Alternative to combating digital piracy

Product piracy is widespread and significant: in Spain alone, CD sales are said to have dropped by 17 million units because of illegal street vendors.

by IESE Insight
Last Updated: 23 Jul 2013

More generally, counterfeiting reduces the return on investments, can lead to business failure and undermines incentives for technological innovation and intellectual creation.

Traditional policies for combating piracy have focused on prosecuting those who benefit from it, while raising awareness about how piracy affects artists and producers. But lowering taxes on legal products may do more to combat it than a larger police force, it is argued.

Increased policing increases the chance of confiscation and so reduces the profits of counterfeiting. But if that extra policing means higher taxes, it may make legal products more expensive. Lowering sales taxes will make the legal product more competitive compared with pirate copies.

Policies to combat piracy,
Ricard Gil,
IESE Insight, June 2006

Review by Steve Lodge

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Is it favouritism to protect an employee no one likes?

The Dominic Cummings affair shows the dangers of double standards, but it’s also true that...

Masterclass: Communicating in a crisis

In this video, Moneypenny CEO Joanna Swash and Hill+Knowlton Strategies UK CEO Simon Whitehead discuss...

Remote working forever? No thanks

EKM's CEO Antony Chesworth has had no problems working from home, but he has no...

5 rules for work-at-home productivity

And how to focus when focusing feels impossible.

Scandal management lessons from Dominic Cummings

The PR industry offers its take on the PM’s svengali.

Why emails cause conflict

And what you can do about it.