MEIEA Consultants Bureau
Victoria University, Melbourne, Australia
Associate Professor, Music Industry Program Coordinator
Acting Head, International Business, Education and Research Unit
(613) 919 4644
M. Econ. (Preliminary) LaTrobe University
M.Econ (International Trade), Monash University
Ph.D, Victoria University
International music piracy.
Explores the range of motivating factors cited for copyright owner attempts to impede parallel trade, and their relevance to the market for sound recordings more specifically. Critically reviews the economic rationale for copyright owner control over parallel imports in the market for sound recordings. The key motivational factors relevant to this product class are monopoly power, price discrimination, free riding on territory specific investments, and piracy. In doing so, I present an analysis of the market for sound recordings and the prevailing competitive dynamics.
Examines the relative strength and significance of a range of institutional and economic variables thought to influence country specific piracy levels. Previous empirical studies of piracy have examined the influence of copyright convention membership, GDP per capita, corruption in the civil service and the strength of private property rights (Burke, 1996; Marron and Steel, 2000; Ronkainen and Guerrero-Cusumano, 2001). The contribution of this paper is the central role allocated to the affordability index (the ratio of legitimate price to average hourly earnings) and to the balance of trade in sound recording product. The estimated regression model identifies a positive and significant relationship between sound recording PMS and the price-earnings (PE) ratio. The model also suggests a direct (but insignificant) relationship between the balance of trade and PMS.
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