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Malaysian price controls may flout WTO

Staff, CNETAsia CNet Asia

Published: 15 Jul 2003 10:27 BST

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Could Malaysia be in breach of a World Trade Organisation (WTO) rule by going ahead with price controls on software and recordings?

According to Singapore daily The Straits Times, the US is looking into such a violation of the trade agreement Malaysia goes ahead with the plan to put software, movie and music discs under the same price controls as rice and sugar.

The WTO pact makes it clear that no signatory should do anything that would 'unreasonably prejudice the legitimate interests of the right holder', said the paper.

Original CDs are priced between RM25 (£4.31) and $15 (£9.23), while pirated copies go for about $2. Original Video CDs are priced at $12 and copies are sold at $2.

Neither Microsoft nor the BSA is in favour of the Malaysia's plan to use price controls to stem piracy. Last month, authorities announced plans to place software, CDs, DVDs and Video CDs (VCD) under the same price regulations that govern food and essential items such as oil and rice. By reducing the price of the discs, the government hope to curb the piracy for which the country has received criticism from copyright protection groups.

Organisations like the Recording Industry Association of Malaysia (RIM) and BSA will meet with government officials to suggest other ways to regulate the pricing of their members' products.


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