Negative Impacts of Illegal Music Products

The Impacts are :

•Destroy Domestic Music Industry
Selling and purchasing illegal goods are criminal action consider that, it hurts other parties, especially party in music industry . This piracy activity create loss for them in the form of money ( royalty which must got by them ) and feeling of unappreciated ( Act of selling and buying the illegal Music Product means that people don’t appreciate the creator). So, people from music industry will think twice to create more and more because finally, it will be pirated and their exertion finally, unexpectedly, will benefit the other party who copy their Music Product. This thing will reduce the domestic creativity in Indonesia and, the worst thing here, people from music industry will stop their activity as the action to protest the piracy in Indonesia which create the destruction of Indonesia’s Music Industry . If it happens, state will get much more loss from tax and Indonesian GDP will decrease because of the decreasing of total output from Domestic Music Industry. Also, Indonesian will get less diversity of music to be listened


•Create status for Indonesia as Priority watching list
As what have been told before, piracy has become one serious problem in Indonesia and that problem becomes bigger and bigger connected with Indonesia’s worse status in international world. It can be seen in fact while, Since April 2005, Indonesia is categorized as priority watching list again, connected with its piracy rate. So, while Indonesia is categorized as priority watching list, it means that people tend to reduce their interest to innovate and create something because of lack of law protection to intellectual property. This also influence investment and trade in Indonesia because the status above create a bad image of Indonesia in international world and if it still happen, it’s not impossible that Indonesia will be the first level country and will get Trade fine from US. As example, Ukraina has already become the first level country and US cancelled its export to US as much as $75 million. Not just US, it’s not impossible that, the other developed countries which give high attention to intellectual property right will do embargo to Indonesia connected with the status.

•Create Loss for the state
Illegal Music Product creates a huge loss for Music Industry and also the state in the form of the tax-payment they must receive. Each year, state can have a loss around 1 trillion

•Disadvantage in the process of Transferring technology
Many Firms tend to consider strong intellectual property protection connected with the decision of technology transfer rather than investment decision so, by being a country with weak protection to Intellectual Property, we will have a difficulty in the process of transferring the technology from other countries and it is a poor fact consider that, to be the developed country, Technology (usually through investment ) is a must. Considering our status now, although we can get the technology, one firm has its own policy to minimize the transfer of technology to spesific countries so, there is a possibility that we will not get the whole technology but just some parts of that which means, we will get less benefit compared with other countries.

•Support Porn Material
In Indonesia’s culture, every little thing connected with pornography will be rejected and by the existence of Illegal Music Product offered with Video Clip, it has a chance to show pornography and it is contrary with Indonesia’s culture because it can destroy Indonesia’s Young Generation and also Support the criminality in the form of Sexual Harassment.