The X Factor

Did you know that the music industry loses more than Rs 300 crore each year due to Mobile Chip Piracy? Its one of the biggest assaults on the music industry,and this time,the Indian Music Industry (IMI) has decided to strike back.

Written by Jaskiran Kapoor
September 25, 2009 02:25 AM IST

3 min read

Did you know that the music industry loses more than Rs 300 crore each year due to Mobile Chip Piracy? Its one of the biggest assaults on the music industry,and this time,the Indian Music Industry (IMI) has decided to strike back. Well,not exactly. There are two options: one,you catch hold of the pirates and lock them up. Two,you find a solution to control this unwanted proliferation. We opted for the solution, Savio DSouza,Secretary General IMI got down to business and for a change,thought like a pirate and his willing victim. Technology is a very fast changing thing. First,piracy was limited to CDs and cassettes,now the format has changed and we have to deal with radio,public performance licensing and the internet, keeping all this in mind,Savio and the IMI have come up with MMX. The Mobile Music Exchange, he expands the abbreviation.

You see,he gets straight to the concept,mobile phones and chips are growing at a phenomenal pace and India will have one of the largest number of mobile phone users in the next few years. Each of these users require music on their phones. The numbers of shopkeepers are currently offering these services illegally and making millions. So,with a tie-up witb mobile companies and seven major members of the music Industry,were offering a legitimate partnership opportunity for these shop keepers via which all they have to do is partner with the music industry and obtain a license. In case they dont,anti-piracy action will continue unabated, says Savio.

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According to stats,there are more than 440 million mobile phone users in India. About 45 per cent of phones have mobile chips (memory cards). And 80 per cent of mobile uders opperate on a balance of just ten bucks so how can they possible download a song worth 30 bucks! Keeping this factor in mind,we decided to offer shopkeepers a chance to legitimise downloads. By paying a licence fees ranging between Rs 1,500 to Rs 5,000 per month per computer,you can get legitimate downloads, tells Savio. While the shopkeeper has a fixed license fee to pay,he can charge whatever price he wants from the customer. Its one of the first models to be set in India,and the world is looking at us. MMX was launched in Andhra Pradesh on March 16 this year,and more than 650 shopkeepers have benefitted from it. Our next market is Punjab and then Bengal. So,are the pirates centered here? No…piracy is a cottage industry,a pick pocket industry which is thriving all over. In fact,an independent survey conducted by IMI showed that an average shopkeeper earns Rs 7,500 to Rs 12,500 each month by music downloads and other music applications! Hence,the licence fee is a reasonable amount to pay, smiles Savio.

Its very difficult to put a price on music for the industry is growing and is very fluid. All Savio and team now need is Punjab Polices full support. And the shopkeepers too!