Piracy losses disputed
TEXT OF INTERVIEW
SCOTT JAGOW: The piracy of DVDs, handbags, clothes and other products costs companies hundreds of billions of dollars a year. But just how many hundreds of billions? A new report says the numbers are greatly exaggerated. This comes from the Organisation for Economic Co-operation and Development or OECD. Our European correspondent Stephen Beard has more from London. Stephen, what’s the deal here?
STEPHEN BEARD: We’re talking here about the amount that companies lose in sales overseas because people are ripping off their products. That figure according to the OECD is $200 billion a year. Business lobby groups on the other hand had estimated losses up to three times as much: $600 billion a year.
JAGOW: So is the OECD accusing the industry of fudging the numbers on purpose?
BEARD: No absolutely not, but that clearly is the implication isn’t it? And it certainly is embarrassing for these business lobby groups because they have bandied this higher figure around and as a result have been able to drive this issue up the political agenda.
JAGOW: But if it’s $200 billion or $600 billion, to most people what’s the difference? It’s still hundreds of billions of dollars in stolen goods.
BEARD: Indeed, and as you stay it is still theft. And in fact the OECD says we are not in any way trying to minimize this. It is a serious problem and it is growing at an alarming rate.
JAGOW: Have we gotten any response from the industry groups?
BEARD: Yes, there’s one in particular, the Paris-based International Chamber of Commerce, they actually, that group estimates that losses are even higher — they put losses at $1 trillion — and has expressed the concern that this is actually going to be counterproductive. This is going to take the heat off countries like China.
JAGOW: Hm. Alright Stephen Beard in London, thank you.
BEARD: OK Scott.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
