FilmPro sells millions of videocassettes directly to consumers at $25 apiece for a $10 profit on each  However, FilmPro is losing money because people are buying illegally copied versions of its $25 videocassettes at far cheaper prices  So far, one million illegally copied cassettes have been sold for $5 each
Illegal copying, ttherefore, has cost the company at least $10 million in potential profits
The illegally copied tapes are of such high quality that it is virtually impossible to differentiate between them and the originals.