Delhi the Piracy Capital

Yesterday a national news channel in the absence of anything better to do carried out a long story on book piracy. Two things were highlighted in the story a) Delhi is the piracy capital of India b) students, especially medical students, were the worst pirates so far as books were conerned. Coming close on the heels of the recent judgement against a swiss pharma MNC, the story opened up the issue of IPR violation and piracy once again. My views on piracy are simple:
No one has yet come up with a detailed sociological report on piracy. My personal view, having, read pirated books, got my degrees by reading illegally photocopied articles, bought pirated softwares, music and a host of other things, is that any one trying to resolve the issue of piracy should answer the first question, why would otherwise law abiding citizens willingly violate the law?
The simple answer is high need, high cost and low affordability. I need something real bad, I do not have the full money to pay for it, because in my view it costs more than what it should. That is the simple reason for piracy. I have never realised why a trash paperback by John Grisham should cost 500 Rs, I am going to read it once in the plane and throw it in the dustbin; why a medical course book which has been through 100 editions should still costs $100 when the author, publisher and their daddies have recovered the cost of the book several times over, or why for that matter pharma companies keep extending the patents of an old drug through various non-transparent means often in perpetuity, or for that matter why should a CD with five songs cost Rs 300?
The main reason for piracy I feel is the failure of the companies to understand the market and the paying capability of the consumer and every market goes through this process before piracy is well within the acceptable levels. On the other hand consumers also go through their own education and realise some goods and services will continue to carry a price premium because they are better for the rest of it, pirated or genuinine does not really matter.
Take the case of PCs with prices coming down, grey market has almost disappeared. Yet brands like Sony still command a premium. Take the issue of DVD where moser baer is making the consumers aware of the "real" price of a high quality movie on a DVD.
I think more than anything else, piracy is a signal to the marketers to reconfigure their prices or products and they should learn important lessons from a market where piracy is rampant. That's the real consumer feeback and should be taken seriously - we love you but not that much, is the consumer response.

Disclaimer: This blog entry was make with the aid of a genuine IBM laptop running on genuine Microsoft softwares by a genuinine person with a twisted by genuinine brain.