After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
But this is factually untrue. In the USA there is a very limited group
of authors who actually live by their pen. Only select musicians eke
out a living from their noisy vocation (most of them rock stars who own
their labels - George Michael had to fight Sony to do just that) and
very few actors come close to deriving subsistence level income from
their profession. All these can no longer be thought of as mostly
creative people. Forced to defend the intellectual property rights and
the interests of Big Money, Madonna, Michael Jackson, Schwarzenegger
and Grisham are businessmen at least as much as they are artists.
Economically and rationally, we should expect that the costlier a work
of art is to produce and the narrower its market - the more its
intellectual property rights will be emphasized. Consider a publishing
house. A book which costs 50,000 DM to produce with a potential
audience of 1000 purchasers (certain academic texts are like this) -
would have to be priced at a minimum of 100 DM to recoup only the
direct costs. If illegally copied (thereby shrinking the potential
market - some people will prefer to buy the cheaper illegal copies) -
its price would have to go up prohibitively, thus driving out potential
buyers. The story is different if a book costs 10,000 DM to produce and
is priced at 20 DM a copy with a potential readership of 1,000,000
readers. Piracy (illegal copying) will in this case have been more
readily tolerated as a marginal phenomenon.
This is the theory. But the facts are tellingly different. The less the
cost of production (brought down by digital technologies) - the fiercer
the battle against piracy. The bigger the market - the more pressure is
applied to clamp down on the samizdat entrepreneurs. Governments, from
China to Macedonia, are introducing intellectual property laws (under
pressure from rich world countries) and enforcing them belatedly. But
where one factory is closed on shore (as has been the case in mainland
China) - two sprout off shore (as is the case in Hong Kong and in
Bulgaria).
But this defies logic: the market today is huge, the costs of
production and lower (with the exception of the music and film
industries), the marketing channels more numerous (half of the income
of movie studios emanates from video cassette sales), the speedy
recouping of the investment virtually guaranteed. Moreover, piracy
thrives in very poor markets in which the population would anyhow not
have paid the legal price. The illegal product is inferior to the legal
copy (it comes with no literature, warranties or support). So why
should the big manufacturers, publishing houses, record companies,
software companies and fashion houses worry?
Public-domain text, read in full here on John Shaqi.
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