Sat, 22 Jul 2000

Poor people and cheap VCDs

The Jakarta Post editorial on July 19, 2000, entitled A nation of pirates caught my attention. The Post categorized those who pirate VCDs, CDs and software and those who buy them as notorious culprits that have behaved immorally, and, accordingly, should be crushed as if they were bedbugs. Meanwhile the composers and producers of the products are regarded as highly civilized people with a noble morality and excellent intellect. They are recognized as creative composers, and, as such, they deserve to be honored and appreciated.

Karl Marx said that "it is not man's consciousness (morality) that determines (conditions) a person's or a society's economic behavior. On the other hand, it is the social-economic conditions of the people that determine man's moral consciousness". In other words, for the common people whether piracy or buying pirated products are considered immoral or in violation of the law does not matter. What is more important is that these people, with their economic limitations, can afford to buy the products.

This argument may be responded to by using a lawyer's adage: "Although we will face the end of the world tomorrow, the law must be upheld". Moreover, these days foreign investors (read capitalists) are badly needed to bring in foreign exchange and help to reduce unemployment.

However, it should be noted that laws only serve the interests of the elite of society, whereas ordinary people do not have access to the law. Therefore it is practically impossible for them to have the benefit of law in their effort to seek justice.

If we really want to curb CD/VCD piracy, the producers of original pieces must be allowed to undergo tight competition among themselves, meaning having a price war. For example, producers should produce their merchandise in great quantity, maintain high quality and sell it at the same price as, or lower than, the price of pirated CDs/VCDs. This will make the pirates unable to stay in business and hence close down. Afterwards, the producers of originals might gradually increase the prices of their products to the point that piracy is no longer profitable.

However, monopolies, oligopolies or cartels must be strictly banned so that the producers cannot set their prices at will. Let the market work on that instead.

M. IKHSAN

Jakarta