Quote:
Originally Posted by HarryT
I really must disagree. If a criminal, who would have otherwise bought the book, steals it (excuse me - "copyright infringes" it) instead; then that is clearly a lost sale. The author will not receive the income for that sale - it is indeed a lost sale.
Of course, if the criminal would not have bought the book, it isn't a lost sale.
|
Ok, this is an interesting point. If you have 10,000 p-books on the shelf and someone breaks into the store and steals them, then you can deduct this "loss" against your revenues as an expense. Of course, it would be the value that the "retailer" paid for the books, not what the retail value of them was.
So, if a software company like MS estimates that 100,000 copies of office were made in 2007, do they get to deduct the "cost" of those as an expense? If so, how do you determine the cost? The cost to duplicate the CD is under $1. The R&D cost per copy is generally determined by actual costs divided by units sold. I wonder if they can take an expense in this case?
Interesting... no, I am not an accountant or a tax lawyer.
BOb