The economics of piracy

May 2006

Record labels, music publishing, internet

Adam Singer , CEO of the MCPS-PRS Alliance makes some sensible comments about the economics of piracy – and Adam points out that in the main issue is about pricing – with a clever lesson from history – “In 1784, William Pitt the Younger had the same problem with tea smuggling. The duties were high and there was much rhetoric about a moral duty to pay. Pitt tackled this by reducing the import duty on tea from 119% to 12.5%. The smuggling of tea ended overnight, revenues from duties rose, and he neatly illustrated that smuggling (or piracy) was more to do with economics than morality”

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