TFPD_02: ICC can only make money by high priced publications and hard protected copyrights – part 2 of 2
As promised I continue with part two of the Trade Finance
Paradigm: ICC can only make money by high priced publications and hard
protected copyrights.
Example 3: The URDG 758 example
When the URDG 758 came into force – I was planning to market
them in my local market as much and wide as I possible could. A new brochure
was being written – seminars arranged – websites updated. In addition I would have
liked to have copies of the URDG 758 printed with the bank logo – and spread to
the trade finance customers in the market – just as we had done with the UCP
600. We were planning to buy 1000+ copies for the purpose. But – then the
pricing structure became known. As it turned out only one version of the URDG
758 was available. Nicely printed – and including the newly drafted model forms
– which most likely is why it does not fit the leaflet version.
What we had hoped of course – was that (like was the case
with UCP 600) a leaflet version would be available. Note the prices mentioned
in part 1 of this blog post: For the book version of the UCP 600: EUR 25. For
the leaflet version of the UCP 600: EUR 4!
And the starting price for the URDG 758 was 30 EUR – of
course decreasing with the number of copies bought. However – the total cost
level could (of course) not be approved – so instead only the absolutely
necessary number of URDG 758 books was purchased. As far as I recall 100-150
copies! i.e. approx. 10 per cent of the planned number of copies. I am
confident the maths will show that the total earning to 1000 is more than for
150 – even if the earnings per copy is lower for the leaflet version…
In other words: the pricing structure for the URDG 758
decreased the total income – AND limited its reach in the market!
Example 4: The eBook example
The last example is about the eBooks published by the ICC.
Personally I am a huge fan of eBooks. I prefer them at any time! I just bought
the Danish translation of the Tyler Hamilton book “The Secret Race” in the
Apple iBook store for my iPad!
A great number of the ICC books are available as eBooks
(some are ONLY available that way) – just as the ICC newsletter DCInsight is
available as an eBook. So that surely is great! However – when buying them you
really must have strong faith! Because it is not easy – sometimes it is even
impossible.
First of all – the price: The UCP 600 is EUR 25 for the
paper version – and EUR 22,50 for the eBook version; so no significant difference;
i.e. not much to save by buying the eBook version. The Tyler Hamilton eBook
mentioned earlier was DKK 99 (EUR 13). The printed version (on sale) is DKK 193
(EUR 25) – i.e. quite a difference!
Secondly – there is the measures to protect the copyright.
On the ICC website – when choosing an eBook you get the following “warning:”
Quote
If you Select^ the eBook format:
You need the free Adobe Digital Editions software, version
1.7.1 or higher which can be downloaded at http://www.adobe.com/products/digitaleditions/
You will be able to quickly find topics / keywords of
interest to you, using the Adobe search function
The Adobe download function will be supplied to you at the
same time as your eBook is delivered.
Unquote
This is all very well. There is however one challenge:
Although the “Adobe Digital Editions software” can be downloaded free of charge
– it must still be downloaded and installed onto to the computer from where the
eBook is to be read. When using a company computer (especially in banks) you
are NOT allowed to download and install anything! Software to be installed on
the company computer must be carefully checked and approved by the IT
department – and that (at least in banks) usually is something that can be time
consuming – and challenging.
Thirdly – and also related to the copyright issue, the
downloaded eBook is “locked” to one computer (I am not even sure it this is one
“device”??). I.e. it can only be opened and read from one computer.
Naturally this makes it very inflexible. For example with
the before mentioned “Guide to ICC Uniform Rules for Demand Guarantees (URDG
758)” by Dr. Georges Affaki, Sir Roy Goode – it would be natural for a trade
finance department to buy one or two copies and keep them in their library – so
that the guarantee officers can consult them whenever they need it. If it is
downloaded to a computer and can only be read from this computer then the
person how uses this computer better not get sick (or fired) – and must be willing
to hand over the computer to the colleagues when they need to check anything
regarding the URDG 758.
In other words: The ICC eBook model means mostly
disadvantages for the users – with the consequence that the natural successor
of the printed book is not the first choice for trade finance publications.
So just to wrap up the challenges:
1. Due to the pricing model the ICC rules do not reach as far
as they “should.” The word “should” in this context means that the ICC rules
ideally should reach all the actual and potential users of the rules.
2. It is the corporate customers that would have the biggest
value from translated ICC rules – but often they do not get the translated
rules (even if available) because of the pricing model.
3. The pricing structure for the URDG 758 decreased the total
income – AND limited its reach in the market!
4. The ICC eBook model means mostly disadvantages for the users
– with the consequence that the natural successor of the printed book is not
the first choice for trade finance publications.
So what to do about it? As said – it is important that the
ICC grows – i.e. they must make a profit – and their copyright must be
protected!
There are in fact many ways to go. Here are some (free of
charge) suggestions – and of course the list is not exhaustive:
1: Differentiated pricing for books. E.g. one price for a
book bought in Denmark and another price for the same book bought in India.
This would make sense especially if the book for the India market is printed in
India.
2: Find a better model for eBooks. For example when
downloading music at iTunes the song is available at a fixed number of devices.
The purchasing of eBooks should be hassle-free – and somehow usable for a
(fixed) number of readers.
3: Differentiated levels in access to trade finance
information. Today you only have the DC-Pro with one option: One Year: EUR 2500
(i.e. one half years salary for my friend in India).
- You could have subscriptions for 1 month, 6 months, 9
months or one year.
- You could have different levels of subscriptions – so that
some are (almost) free of charge – but limited. E.g. that the documents can
only be read on the screen – or there are commercials on the page.
- You could even have the Spotify model where you pay a
fixed fee each month – and then have access (depending on your membership
level). This would even allow that the works of others e.g. textbooks, guides
and training material to be included – and the authors (if not the ICC) could
be paid a fee per view. That would increase the number of monthly subscribers.
This could – as an example – include the publications by the IIBLP.
4: More flexible guidelines in terms of translations – so
that the ICC National Committee can produce and sell the translations at the
same price as the English version.
In fact it seems that a few translations (French and
Spanish) are official – i.e. can be bought from www.iccbooks.com. Why not
include all the translations there.
See also point 5
5: The ICC books could be sold via the “print on demand”
model. I.e. all the books are set and ready – but are only printed when and
where purchased. In that case for example translations for small countries
(like my own) need not be published in many copies.
In other words: There are many challenges – but also lot’s
to do about it!
Look out for the next paradigm " ICC rule making – it
takes the time it takes " .... coming soon ....
Take care of each other – and the LC!
Kim