Chapter 12R, Problem 4CTQ

To determine

The strategies that can be adopted by the CEO of the firm to deal with the music piracy.

Explanation of Solution

Following strategies can be followed to deal with music piracy issue:

• The company should create awareness among the users for using pirated music by explaining the legal consequences.
• The CEO should develop a watermarking system that can be used to trace the distributors of selling pirated music. This can be done by using strong online networks.
• CEO can ask their technical team to trade illegal distribution and cease their access to run illegal websites.
• Actions should be taken by the CEO that will prune the web for pirated stuff.

Economics Concept Introduction

Music piracy: Music piracy refers to the act where music files are downloaded from various sources such as spotify and convert them into CDs for further selling at lower price than the prices offered at legal platforms.