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Monopoly players.

Document Cited in Related
Vincent
AuthorKrishanswamy, N.
PositionLetters - Letter to the Editor

"Accept no imitations" (February) did not look at why imitations happen--piracy is profitable. Adam Smith said that high profits trigger competition and profits then drop. The first culprits of piracy are manufacturers who fix high prices to reap high profits and stifle free competition by patenting and creating monopolies.

Recently in India, Procter & Gamble reduced its prices by almost half and Hindustan Lever followed suit. Other players have much lower prices and are making profits, and these provide tough competition for multinationals with more marketing muscle power. Similarly, when Microsoft prices its products beyond the reach of ordinary people, pirates thrive. If Microsoft sells products at cheaper prices, nobody will pirate its products. There have been cases where dealers of genuine products pass off imitations and pocket the extra money. Certain multinationals use high-handed methods to stifle competition that threatens their market performance.

Fakes have always happened, but buyers of modern imitations know they are...

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