Lowering CD prices won't work according to US official

July 10, 2003

In an
effort to combat piracy, the Malaysian goverment had introduced the idea of lowering prices of original discs. The country is suffering from a high piracy rate and most inhabitants are not able to purchase original discs because of their price. The Malaysian goverment wanted to cut the prices of the originals to have them compete with the much cheaper pirated versions, but according to the US assistant secretary of commerce for market access and compliance is this not a good idea.

William Lash, US assistant secretary of commerce for market access and compliance, said Malaysia had done more than many Asian nations to fight piracy but should not impose price controls to rout fraudsters. "Price controls would have a very damaging effect on the same artists they are trying to protect," Lash told a news conference after flying into Kuala Lumpur to lobby against Malaysia's plans for the music and movie retail business.
Copyright owners, including international recording houses, were surprised recently when Malaysia said it wanted to cut disc prices as a way to fight piracy. Representatives of recording houses in Kuala Lumpur have said such a move could spark a trend among other countries.
'This is an easy way for Malaysia to clear itself but imagine what will happen to us if every country demands that we halve our prices," said the manager of an international recording label.

An original music disc or movie DVD in Kuala Lumpur costs between RM40 and RM80 compared with illegal clones available on the streets from around five to 20 ringgit. Read the entire story here.

Source: DailyExpress