Efforts which has Already Done to Reduce The Existence of Illegal Music Product

And...The Efforts are :

•Constitution or UU of Intellectual Property Right
Illegal goods can be found easily, in trotoar, Vendor’s Place, market, even in place like supermarket, hypermarket and department store but, on July 29 2003, the first day Constitution No. 19 Tahun 2002 about Intellectual Property Right come into operation, we can’t see it anymore in most big stores, supermarket and department store because it has already cleaned from illegal Music Product and begin to sell just the original one caused by feeling of fear to the fine and the existence of their business. That’s why, in 2003, there are decreasing in the quantity of illegal goods from 363.5 millions to 356.2 millions and, this decreasing can increase Music Industry’s growth by 10.9%. Now, there is a decreasing but, the quantity of illegal still exceed the original one because, we can still find the illegal goods in the market, trotoar and Vendor’s place where the seller seemed don’t care about the fine and this constitution and they can’t be blamed because most of the sellers live from this business so, their level of afraid to the risk is just small. And, I believe the transaction of illegal Music Product in those places will never end since the demand for illegal goods is still high. Let’s say, the law enforcers do the arrest and seizure, it will make supply curve shift to the left ( decrease ) and creates the higher price of the good ( but still categorized cheap compared with the original one because, they don’t have to pass some procedures )for these goods because the demand is constant and creates more profit for the seller, consider that the caught activity reduces its competitor and people will have less alternative for sellers. So,because this is illegal business, and supported by law of Supply, there will be other suppliers appeared and the price will decrease again and the activity will come back like before.

•Copyright Tax
Based on APBN 2005, there will be Copyright Tax for original goods as the law instrument to create easiness for the law enforcer to recognize the original and illegal Music Product, for the certainty in watching the goods physically and administratively also, Copyright Tax have its own fine ( see appendix ). But, how far it will help? I still doubt that, this Copyright Tax can be worked because, although, there is an easier way for the law enforcer to recognize the goods and that Copyright Tax will be used to support the illegal-goods destruction project, the law enforcer in Indonesia still weak so, there will be no significant change in the quantity of illegal existed and sold as what the government expected. Now, talk about charging Copyright Tax around 1% per unit sold, what a small quantity but, consider the substitution theory, it will stimulate more demand for illegal. Also, Copyright tax will make longer the bureucracy line and create one more difficulties for the Music Creator.
•Anti-Piracy Campaign
This way have already done by artists in Indonesia to invite society not to buy the illegal Music Product and I think, it can be worked because in marketing, there is person who act as opinion leader so, in this case, I assume the artists like SLANK and Delon are the opinion leaders in which, they have fanatic fans that will follow whatever they said or do so, since the artists keep telling not to buy illegal, their fans will do that. This way will not cover so much people but, at least, it can help to reduce. As the real action of this campaign, begin from May 22 2003, there is anti-piracy campaign held by ASIRI by doing a show in Jakarta, Bandung, Surabaya, Yogyakarta and Semarang ) with the theme of “ 100% Anti-Piracy Music “. Also, there is “ Save Our Music “ Campaign in some schools in Jakarta.
•Offer a competitive price
Between all the efforts, in my mind, this is the most efficient efforts in which, done by the party from Music Industry itself where, we can purchase CD with a lower price than usual. How can it be happened ?
As what have been said by Syanne Susita ( Promotion Manager Universal Music Indonesia ) and Zakaria (Promotion Manager EMI MUSIC Indonesia ), it can be happened because of the reducing of Production and Marketing Cost. Also, the packaging made as cheap as possible and there is no huge promotion anymore to reduce cost. The breakthrough here is the existence of Royalty Break held by Universal Music to create a specific deal and agreement and deal with the artists so, the royalty must be paid is less than what usually paid in the past. This Royalty Break then, take a big role to reduce the cost and automatically, the price so, currently, Illegal Music product with reachable price has already existed so, it will give more tight competition with illegal Music products because people will think twice to buy illegal music product while currently, the original one has a reachable price.
•Improve controlling process of the import of raw material
Actually, one way to reduce illegal Music Product is to control the import of raw material of Optical Disc which in this case, is a primary need for production of Illegal Music Products in which, without that, production process will not be done. By seeing this condition, Indonesia’s Department of Industry has already released some regulations to prevent the piracy to be happened, such as : duty to put Certificate of Analysis and technical specification based on serial number of production to each Polycarbonate Raw Material needed. Beside that, to each weight minimal 500 kilograms package of polycarbonate optical grade must have logo, name of producer, serial number of production, name of country, weight and kind of Polycarbonate. About the machine to produce it and the possession of Empty Optical Disc also has been put in Regulation No. 05/M-DAG/PER/4/2005 On April 15 2005 about the requirement of importing machine, Machine Tools, Raw Material and Optical Disc. Now, the regulation has already existed but, the supervision from the government is still weak which make the regulation seemed useless and just can give less contribution in reducing Illegal Music product in Indonesia.