Digital Piracy
Thursday, 3 November 2011
1. Definition of Piracy
Thursday, 3 November 2011
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Piracy has been formed since many decades ago. It started with hard copies of pirated VCD and DVD, and evolved till today’s online soft copies. All these have been made possible with the improvement of technology and the incredible creation of the Internet. As a result of the Internet, the public has grown to become better equipped with using the online network. Thus, they grow to expect more in the products and information they acquire and result in online piracy.
" People tends to find all means to illegally obtain the products they want simply through a few clicks online. "
2. Types of piracy
Piracy with regards to information and media mainly covers two major areas, the multimedia industry and software industry. For today’s world, getting the latest hit song, video or software program can be as easy as pressing a button. With no investment necessary, any song or movie or even program can be found on person to person file sharing networks such as Limewire, Frostwire or BitTorrent.
For music, it is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent. It is a form of copyright infringement, which is a crime in many countries.
The beginning of music downloading phenomenon started with Napster. Napster was an online music sharing service started in June of 1999. It was the first commonly used music sharing system on the Internet. While it was not a true peer-to-peer network as the content (a list of files provided by each user) was stored on a central network of servers, the actual transfer/sharing of files occurred directly between individual user’s machines.
Whereas for video piracy, a movie is usually released in several formats and different versions as the primary sources used by a group for a particular movie may vary. Pirated movies are primarily released by these organized groups, commonly referred to as scene groups or warez groups. The first release of a movie is usually of a lower quality due to a lack of sources, but is eventually replaced with higher-quality releases as better sources become available.
Types of Software Piracy
1) End-User piracy: When users copy software without appropriate licensing for each copy. This includes both casual copying and distribution between individuals, and companies who do not strictly monitor the number of software licenses they install and do not acquire enough licenses to cover their software installations.
2) Pre-installed Software: When a computer manufacturer takes one copy of software and illegally installs it on more than one computer. Consumers should be on the lookout for proper license documentation when purchasing a new PC, to ensure they're getting what they paid for.
3) Internet Piracy: When unauthorized copies are downloaded over the Internet. If downloads are made available on the Internet, make sure that the publisher has authorized this distribution.
4) Counterfeiting: When illegal copies of software are made and distributed in packaging that reproduces the manufacturer's packaging. Counterfeit registration cards with unauthorized serial numbers are often included in these packages.
5) Online Auction Piracy: several forms, such as:
- Software resold in violation of the original terms of sale, NFR (Not for Resale), or OEM software that is never authorized for resale by a third party.
- Online distributors offering special deals with the software publisher, liquidated inventories, or acquisition through bankruptcy sales. These types of phrases are used to fool consumers into believing that they are getting genuine product that wouldn't otherwise be discounted.
Top Pirated Music |
For music, it is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent. It is a form of copyright infringement, which is a crime in many countries.
The beginning of music downloading phenomenon started with Napster. Napster was an online music sharing service started in June of 1999. It was the first commonly used music sharing system on the Internet. While it was not a true peer-to-peer network as the content (a list of files provided by each user) was stored on a central network of servers, the actual transfer/sharing of files occurred directly between individual user’s machines.
Top Pirated Videos |
3. Consumer VS Producer
Ever wondered if we were to compare between the consumers and the producers, which category will be benefiting more in this world of digital piracy? This issue shall be discussed here.
In the market of music, movies and computer software programmes, both the consumers and the producers are competing to get their own gains. The producers are the ones who create the products in the aim of getting sales from the consumers; whereas the consumers are the ones building the size of the demand in the market while expecting for quality cum affordable products.
Categorization of Consumers
There are two types of consumers.
1) The pirates paying less than their fair share for the digital content
2) The non-pirates paying more than their fair share.
These two type of differing behaviours results in an issue of unjust. Not only does it raise the issue of unjust among the consumers, such unjust is also cast upon the producer whereby their profits decrease. Piracy is commonly considered to be detrimental to firms’ profit unless there exist strong network effects in the product market.
There have been people who claim that piracy damages producers' surplus because it causes decline of music sales. All the companies spent significant time and energy creating and promoting new music/movie/software. It is unfair that all this hard work, the product of their efforts is subject to a free-for-all with no obvious flow of money back to the producers. What is the incentive of putting forth all that effort if you don’t reap any benefits? Because of the presence of digital piracy, the producer has suffered great lost from the drop in sales of their legal products.
Consumers who are non pirates will end up paying more than their fair share compared to those who purchase it illegally.
Consumers who are pirates will benefit as they are paying less than their fair share. The cost saved can be spent on other areas. To download illegally is as easy as turning the internet on and doing a quick search, many of such downloads can be effortlessly found online. To such consumers, the ability to get these entire download at such great convenience is a great deal to them.
In the market of music, movies and computer software programmes, both the consumers and the producers are competing to get their own gains. The producers are the ones who create the products in the aim of getting sales from the consumers; whereas the consumers are the ones building the size of the demand in the market while expecting for quality cum affordable products.
Categorization of Consumers
There are two types of consumers.
1) The pirates paying less than their fair share for the digital content
2) The non-pirates paying more than their fair share.
These two type of differing behaviours results in an issue of unjust. Not only does it raise the issue of unjust among the consumers, such unjust is also cast upon the producer whereby their profits decrease. Piracy is commonly considered to be detrimental to firms’ profit unless there exist strong network effects in the product market.
· Producer at a loss
There have been people who claim that piracy damages producers' surplus because it causes decline of music sales. All the companies spent significant time and energy creating and promoting new music/movie/software. It is unfair that all this hard work, the product of their efforts is subject to a free-for-all with no obvious flow of money back to the producers. What is the incentive of putting forth all that effort if you don’t reap any benefits? Because of the presence of digital piracy, the producer has suffered great lost from the drop in sales of their legal products.
· Producer at benefit
On the other hand, there are those who claim that piracy, under certain conditions, has beneficial effects on production of digital products and increases profitability. Piracy attracts the most price sensitive consumers. It could be beneficial to firms in this case as it removes these consumers from the market whereby firms will have less incentive to engage in self-destructing price competition.
· Consumer at a loss
Consumers who are non pirates will end up paying more than their fair share compared to those who purchase it illegally.
· Consumer at benefit
Consumers who are pirates will benefit as they are paying less than their fair share. The cost saved can be spent on other areas. To download illegally is as easy as turning the internet on and doing a quick search, many of such downloads can be effortlessly found online. To such consumers, the ability to get these entire download at such great convenience is a great deal to them.
4a. Advantages & Disadvantages of Piracy (Multimedia Industry)
The fact that digital products are virtual instead of physical affects the economic mechanisms behind the production and distribution of content, and how piracy works for digital as opposed to physical products: "the main consequence of the non-physical form of digital products is their virtually negligible marginal cost of reproduction and their ability to be digitally delivered.”
With the growing tendency toward online distribution among legitimate and illicit distributors alike, the expense of distributing shrunk further from the costs of printing and transporting CDs to merely the costs of maintaining a website . By sheer volume of file transfers, though, distributing music/video/software through traditional web servers and FTP servers were not as popular as peer to peer (P2P) now, because the traditional direct download method is slower.
· Multimedia Industry
Downloading music and movie from the internet has become such an easy task to many. Without having to leave home, one can listen to the songs he/she likes almost instantly. But then, instead of downloading from legal sources, people ended up downloading illegally. There are definitely some benefits as well as disadvantage to illegal downloading.
Ø Advantages:
1. Piracy keeps music “alive”. Music albums will eventually go out of production when the music company decides not to print old albums anymore. So, the only way people get to listen and enjoy old song is to download from illegal sources. This way of illegal sharing does effectively keeps “dead” music “alive”.
2. On a long run, downloading music actually increases sales of albums. It creates a love for music in teens who can yet afford to buy albums. But when the teens grow up, the amount of time they have to spend on music downloading decreases. Instead they would rather spend money on good quality music, hence increase sales on a long run.
3. Being available for download, music reaches the crowd in a relatively lesser amount of time thus boosting its popularity. With the increased in popularity, it will drives up the sales of legal music.
4. Legal online file-sharing services exist at fair prices and are much safer.
5. Piracy benefits visual art students. For example, an idealistic art would be ecstatic if each of his film were to be pirated and watched by millions around the world. Whereas for films made by big name directors, they would be angered by such piracy.
On one hand, the film is made for art while the other is made for money. But without piracy, the film made by the art student will have minimal opportunity in showcasing his work or even worse, they might not even be able to get the chance to fully publicized they work.
Statistics:
Statistics:
An examination of the RIAA’s marketing and sales charts shows that the real decrease in CD sales actually began in earnest after Napster ceased operating. In fact, during the 2 1/2 years that Napster was operating, CD sales increased by over $500 million dollars from what they were in 1998. Since 2001, CD sales have continued to decrease steadily.
Ø Disadvantages:
1. In order to protect the rights of originality, laws have been imposed to stop people from downloading. Thus, people are taking the risk of getting caught and receiving a criminal record when he/she downloads illegally. The penalties might be a fine, a ban or even imprisonment. Is it really worth taking such risk just to download illegal property?
2. Free file-sharing sites often transmit viruses and ad-ware.
3. Quality of pirated movies and songs might not be as accurate and précised as compared to original copies. It may not be as pleasant to watch or listen as compared to the original copy.
4. Though downloading music and movie makes it easily available to the masses, it also makes it spread far and wide. But considering something that is very easily available is usually of a lesser value. Something that is scarce is precious while something that is plentiful tends to be of a lesser value. Therefore, this results in the price of the music or movie to depreciate.
Statistics:
Case 1:
According to Recording Industry Association of America (RIAA) (2009), they estimated that music sales declined from $13.7 billion in 1998 to $8.5 billion in 2008.
According to Recording Industry Association of America (RIAA) (2009), they estimated that music sales declined from $13.7 billion in 1998 to $8.5 billion in 2008.
Case 2:
In Australia, tax losses due to movie theft amounted to $193 million. Direct consumer spending losses to the movie industry, i.e cinema owners, local distributors, producers and retailers, amounted to $575 million (equivalent to more than three times the combined revenues of AFL clubs Collingwood, Hawthorn, Carlton and Geelong.)
In Australia, tax losses due to movie theft amounted to $193 million. Direct consumer spending losses to the movie industry, i.e cinema owners, local distributors, producers and retailers, amounted to $575 million (equivalent to more than three times the combined revenues of AFL clubs Collingwood, Hawthorn, Carlton and Geelong.)
Case 3:
The Institute for Policy Innovation concludes that global music piracy causes $12.5 billion of economic losses every year, 71,060 U.S. jobs lost, a loss of $2.7 billion in workers' earnings, and a loss of $422 million in tax revenues, $291 million in personal income tax and $131 million in lost corporate income and production taxes.
The Institute for Policy Innovation concludes that global music piracy causes $12.5 billion of economic losses every year, 71,060 U.S. jobs lost, a loss of $2.7 billion in workers' earnings, and a loss of $422 million in tax revenues, $291 million in personal income tax and $131 million in lost corporate income and production taxes.
These records has thus shown how piracy has improved or declined the sales of hard copies legal music.
4b. Advantages & Disadvantages of Piracy (Software Industry)
We have addressed the benefits and disadvantages of piracy on multimedia industry. Now, we shall further inform you about the pros and cons from the perspective of the software industry.
Case 1:
· Software Industry
Piracy is not just a concern for software publishers; it also affects consumers and the economy as a whole.
Ø Advantages
1. Many nations see software piracy as a less-expensive means of participating in the global economy, which requires advanced information technology. One can save a huge sum of money when downloading pirated software. Moreover, not all software is available at low cost. Most good software costs hundreds to thousands. So how do students afford this kind of software? How do students get their projects and assignments done without money to purchase original software? Therefore, pirated software cast significant benefits upon those who cannot afford at such great price.
Ø Disadvantages
1. Software piracy slows the economic growth rates of developing because it discourages new software developers from entering the market and slows down the industry's ability to bring new and innovative solutions to consumers.
2. Legitimate software from these producers will not be able to compete with the cheaper pirated versions. This prevents countries from experiencing economic growth through the growth of software development as a new industry.
3. Unregulated file-sharing could reduce the appeal and quality of related industries. Software piracy stifles innovation. The cost of combating software piracy, plus lost revenues, could be spent on research and development to benefit users. That means that quality suffers. If you have no money to get better equipment, fresh people with new ideas, then how can the quality improve? The answer is: “It can’t.”
4. Downloading files illegally have a risk of viruses and Spyware! Pirated software can carry viruses or may not function at all.
5. Unlicensed users do not receive quality documentation. It also deprives consumers of the basic protections offered by properly licensed software like money-back guarantees, installation support, maintenance releases, and upgrade rebates.
6. Piracy can expose end-users to potential risks of identity theft if criminals who sell counterfeit software CDs obtain a buyer's name, address, credit card and other information during purchase. This increases identity theft risks.
StatisticsCase 1:
Both the Software and Information Industry Association (SIIA) and the Business Software Alliance (BSA) estimate that up to 40 percent of installed business software worldwide, and 23 percent in the U.S., is illegally copied. Software theft and its related effects -- including lost jobs, wages and tax revenues -- totalled an estimated $8.7 billion in the U.S. in 2002.
Case2:
For software companies, piracy means lost in revenue, which in turn means fewer jobs, scaled-back operations and less tax for the public purse. This result in economic backlash which affects other industries, $1.37 billion in revenue was lost across the entire Australian economy. 6,100 jobs were forgone across the entire economy.
Case 3:
Economists Trisha Bezmen of South Carolina and Craig Depken of Texas found that countries with greater rates of software piracy have lower rates of economic development.
Statistics
As mentioned in The Straits Times newspaper in Singapore reported in May, 2010, software piracy cost technology firms around the world more than $50 billion in 2009. The newspaper cited an annual report by the Business Software Alliance as the source of the information.
With all these pros and cons over piracy, it is hard to determine whether piracy is beneficial or detrimental on the whole.
5. Anti-piracy
In comparison, anti-piracy unwinds the self-selection process and forces firms to compete more vigorously on price. A high sale of legal music/video/software pushes producers to cut down on their cost to increase sales at the risk of without having sufficient breakeven amount.
In equilibrium, it may reduce firm profits despite increasing the number of customers in the market. This is definitely not benefiting to the producers.
However, this in turns benefit the consumer as the prices of products have fallen in prices.
However, this in turns benefit the consumer as the prices of products have fallen in prices.
Changes Applied
In addition, with DRM implemented to prevent unauthorized copying, music producers are now more willing to offer digital music for purchase and download. Previously, they were afraid if people can get it online for free, they will no longer purchase the legal hard copies.
Now that there is a mechanism in place to control the spread of illegal music, they feel more secured that they are still able to get a share of the market. With the increasing ease of getting legal music online, it is certainly encouraging for people to support legal products for it now offers the same convenience of accessing an illegal copy.
For instance, they allow online music stores like Apple’s iTunes, Microsoft’s Zune Pass to distribute their music, thus consumers are offered a wider range of music. This in turns benefit both parties.
6a. What are the methods to tackle piracy? (Multimedia Piracy)
The most common law implemented to protect intellectual property is copyright. It is a form of legal protection provided to the authors of original works of authorship, whether books, music, film or other creative works. Its aim is to allow authors, musicians, directors to profit from their creativity and so encourage them and others to produce other works in future.
This war in tackling piracy has been going on for a long time, and these are some of the past individual battles, such as: Napster, DVD encryption, copy-protected CDs, the infamous Sony "rootkit", DRM, P2P, DCMA, ACTA, watermarking, and so on.
1) For Napster, the music industry spearheaded a copyright infringement suit against Napster in 2001. Napster was found liable for copyright infringement because it facilitated the downloading of music and was shut down.
2) Singapore signed an agreement with seven other countries to protect intellectual property(IP) rights and fight counterfeiting and piracy. The key elements of ACTA include more robust border measures for IPR, stronger civil and criminal liability regimes, and additional provisions for copyright protection in the digital environment
This war in tackling piracy has been going on for a long time, and these are some of the past individual battles, such as: Napster, DVD encryption, copy-protected CDs, the infamous Sony "rootkit", DRM, P2P, DCMA, ACTA, watermarking, and so on.
· Available Cases:
1) For Napster, the music industry spearheaded a copyright infringement suit against Napster in 2001. Napster was found liable for copyright infringement because it facilitated the downloading of music and was shut down.
2) Singapore signed an agreement with seven other countries to protect intellectual property(IP) rights and fight counterfeiting and piracy. The key elements of ACTA include more robust border measures for IPR, stronger civil and criminal liability regimes, and additional provisions for copyright protection in the digital environment
3) Making individual songs available at 1$ per song has helped stop some piracy. Many will gladly pay $1 for a song rather than paying 20-25 for a cd that only has one song on it that he/she likes.
4) DRM was developed to prevent unauthorized copying and to reduce the overall rate of piracy by making it difficult, if not impossible, to reproduce and distribute copies of legally purchased digital music.
5) From a recent news “Britons 'downloaded 1.2bn illegal tracks this year”, UK high court has approved an act under Digital Economy Act (DEA). Internet users are made aware when they have accessed an illegal site, and given information about legitimate online offerings.
6) Pirate Pay is created to protect artistic content as soon as it leaves the studio. It does this by attaching a pay-firewall to artistic files as soon as they are released onto the internet, which sticks with them whenver they are downloaded as BitTorrents. Since BitTorrents are the most popular method of illegal downloading entertainment files in Russia, so Pirate Pay will tackle a significant chunk of the problem.
7) Anti Video Piracy Association of Singapore (AVPAS) is an anti-piracy alliance with other anime producers founded by Odex on 30 July 2003. It monitors and combats the piracy of video related rights, in particular anime and Japanese-related Intellectual Property.
Problems faced with cumbersome security measures (countering music & video piracy)
Pirate Bay |
6) Pirate Pay is created to protect artistic content as soon as it leaves the studio. It does this by attaching a pay-firewall to artistic files as soon as they are released onto the internet, which sticks with them whenver they are downloaded as BitTorrents. Since BitTorrents are the most popular method of illegal downloading entertainment files in Russia, so Pirate Pay will tackle a significant chunk of the problem.
7) Anti Video Piracy Association of Singapore (AVPAS) is an anti-piracy alliance with other anime producers founded by Odex on 30 July 2003. It monitors and combats the piracy of video related rights, in particular anime and Japanese-related Intellectual Property.
Problems faced with cumbersome security measures (countering music & video piracy)
1) Despite the motive to help music producers, DRM has not been very successful as DRM-encoded music files limit many aspects of a consumer’s ability to listen to the music, thus reducing demand for such products. As a result, many online music stores are moving towards offering DRM-free songs on their stores.
2) Critics of the record companies' strategy have proposed that the attempts to maintain sales rates is impeding the rights of legitimate listeners to use and listen to the music as they wish. When the US Congress passed the Copyright Act of 1909, it deliberately gave less copyright control to music composers than that of novelists: "Its fear was the monopoly power of rights holders, and that that power would stifle follow-on creativity".
3) Some claim that the enforcement by RIAA against music piracy in the United States, which may cost copyright violators up to $150,000 per infringement, is unreasonable, and that it may even violate United States constitutional protections against cruel and unusual punishment. They even accused the RIAA of outright bullying, as when one of their lawyers, Matt Oppenheimer, told the defendant in one lawsuit, “You don’t want to pay another visit to a dentist like me". In that same case, according to Lawrence Lessig, "the RIAA insisted it would not settle the case until it took every penny [the defendant] had saved".
4) Most of the people did not get affected by the Digital Economy Act, and seems oblivious to it. For instance, the result shows that only 12% of people are worried that they are going to get caught
5) HADOPI law in France has only 74% of the people who are at least aware of the law and only 39% feel they really understand what the legislation includes. 45% stated that fear of legal sanction is the major inhibitor alongside with 44% who fear picking up a virus.
Despite implementing HADOPI law, there is still a shortfall in revenue. Moreover, it persists to unsuccessfully give consumers a legal, digital alternative that is compelling or acceptable to them.
INSTEAD, the main impetus to encourage legal downloading amongst non-digital consumers in France should be educating people on the benefits and security of legal downloading services. Indeed, as the digital frontier becomes increasingly blurred and French consumers struggle to perceive which services are legal or not, this point will only grow in pertinence.
From the economic point of view, the key to its success should be measured in upturn in revenue rather than downturn in piracy, and that’s as dependant on ensuring enticing alternative services are available at price points acceptable to consumers as much as the legislation itself.
6b. What are the methods to tackle piracy? (Software Piracy)
Having discuss about the methods to tackle multimedia piracy, we shall now explore into ways of handle software piracy.
· Available Cases
2) At least two big computer companies, IBM and SanDisk, are considering implementing CPRM, according to developers. If adopted widely, it and other hardware-based copy protection ideas stand a chance of easing fears among record labels and movie studios about selling content online.
3) Piracy directly threatens the copyrights of information, thus governments and authorities have tightened security to fight piracy.
3) Any hardware device that limits what consumers can do with their music or video files will face steep hurdles before being adopted. Previous devices with built-in copy protection have reached the market only to disappear under the weight of consumer indifference.
· Available Cases
Ø Methods to tackle Software piracy
1) Current efforts are coming in two parts. An industry body that oversees hardware technologies is creating the new set of standards designed to let individual manufacturers add their own copy-protection schemes. Waiting in the wings to take advantage of the standards body's proposal is a specific technology jointly created by Intel, IBM, Matsushita Electric and Toshiba, dubbed Content Protection for Recordable Media (CPRM).2) At least two big computer companies, IBM and SanDisk, are considering implementing CPRM, according to developers. If adopted widely, it and other hardware-based copy protection ideas stand a chance of easing fears among record labels and movie studios about selling content online.
3) Piracy directly threatens the copyrights of information, thus governments and authorities have tightened security to fight piracy.
Ø Problems faced with cumbersome security measures
1) Companies which made hard-to-copy software found sales suffered as users got fed up with the security measures involved.
2) Plan was initiated to affect removable data storage, such as Zip drives or the Flash memory cards used in MP3 players. But the standards could ultimately serve as a way to keep consumers from copying copyrighted files directly onto their hard drives, a daunting prospect for those who download music or videos from the Net though programs such as Napster or Gnutella.
3) Any hardware device that limits what consumers can do with their music or video files will face steep hurdles before being adopted. Previous devices with built-in copy protection have reached the market only to disappear under the weight of consumer indifference.
4) Attempting to shut down file-sharing websites encouraged the growth of others. Cutting or limiting people’s connection is better than trying to imprison offenders; suing people has proven expensive, unpopular and ineffective.
5) According the internationally established Organisation for Economic Co-operation and Development, "Existing laws and regulations may be too broad and general to deal adequately with the rapid technological developments that facilitate digital piracy, and policy makers may need to consider enacting some specific provisions to deal with these infringements. Such provisions should not unduly impede legitimate digital communications, nor unreasonably impact on the Internet as an effective communications platform, commercial channel and educational tool..."
Possible SolutionBundle unlimited downloading service with ISP subscription may be the best solution. They are downloading music legally that appears to be free.
7. Psychological Thinking (Survey- Based)
In reality, consumers who download their free music or video online are a form of stealing. Trading MP3s is just like stealing a CD from a store. Those MP3s are peoples’ intellectual property. They may not be tangible, but they can be stolen. This means that those consumers who download it can be fined, sued, and even go to jail. But why are these people still downloading it illegally?
Survey (40 people of aged 16 to 30 years old, students and working adults, adults with salary < $3k)
1. Do you support legal properties?
a) Yes. (6 people) (proceed to qns 2)
b) No. (34 people) (proceed to qns 3)
2. Why do you support legal properties?
a) I believe in abiding to law. (2 people)
b) I want good quality. (4 people)
c) It’s my family who influence me since young. (0)
3. Why do you not support legal properties?
a) It is expensive, I rather it be free. (30 people)
b) It is expensive, I rather pay less. (2 people)
c) It is my family who influence me since young. (2 people)
Analysis of Results
There are basically two types of mindset:
1) The money-sensitive (80%)
They are the ones that attempt to save at all costs; hoping that every cent saved can be used in other more worthwhile areas. To them, downloading illegal properties online is not a crime, but simply a trend that is spreading fast and worldwide. Moreover, being computer savvy, they believe that technology should bring them quality and free products. Thus, downloading illegal products is just an agreement that internet has brought them good accessibility and a wide availability of free products.
2) The quality-sensitive (20%)
Most of the people who support legal properties have the mindset that getting legal properties is the only and righteous way to abide to the law. Also, they believe that ONLY legal properties can provide one with the best quality product.
So, should we support piracy or be anti-piracy?
Reasons for Supporting Piracy
1) The 2008 British Music Rights survey showed that 80% of people in Britain wanted a legal P2P service. This was consistent with the results of earlier research conducted in the United States, upon which the Open Music Model was based. In addition, the majority of file sharers in the survey preferred to get their music from "local sources" such as LAN connections, email, flash drives , sharing with other people they know personally.
2) The other most common method of file sharing was with P2P technologies. By 2007, P2P networks' popularity had grown so much that they used as much as 39% of the total volume of information exchanged over the internet. They prefer P2P sharing as it is not only cost saving but also extremely convenient to download with just a click online.
Survey (40 people of aged 16 to 30 years old, students and working adults, adults with salary < $3k)
1. Do you support legal properties?
a) Yes. (6 people) (proceed to qns 2)
b) No. (34 people) (proceed to qns 3)
2. Why do you support legal properties?
a) I believe in abiding to law. (2 people)
b) I want good quality. (4 people)
c) It’s my family who influence me since young. (0)
3. Why do you not support legal properties?
a) It is expensive, I rather it be free. (30 people)
b) It is expensive, I rather pay less. (2 people)
c) It is my family who influence me since young. (2 people)
There are basically two types of mindset:
1) The money-sensitive (80%)
They are the ones that attempt to save at all costs; hoping that every cent saved can be used in other more worthwhile areas. To them, downloading illegal properties online is not a crime, but simply a trend that is spreading fast and worldwide. Moreover, being computer savvy, they believe that technology should bring them quality and free products. Thus, downloading illegal products is just an agreement that internet has brought them good accessibility and a wide availability of free products.
2) The quality-sensitive (20%)
Most of the people who support legal properties have the mindset that getting legal properties is the only and righteous way to abide to the law. Also, they believe that ONLY legal properties can provide one with the best quality product.
So, should we support piracy or be anti-piracy?
Reasons for Supporting Piracy
1) The 2008 British Music Rights survey showed that 80% of people in Britain wanted a legal P2P service. This was consistent with the results of earlier research conducted in the United States, upon which the Open Music Model was based. In addition, the majority of file sharers in the survey preferred to get their music from "local sources" such as LAN connections, email, flash drives , sharing with other people they know personally.
2) The other most common method of file sharing was with P2P technologies. By 2007, P2P networks' popularity had grown so much that they used as much as 39% of the total volume of information exchanged over the internet. They prefer P2P sharing as it is not only cost saving but also extremely convenient to download with just a click online.
3) A survey released earlier this month by the University of Hertfordshire revealed that 59% of people aged 18 to 24, and 96% of those aged 14 to 17, do not pay their own monthly internet-access bill. Thus, they need not worry about the consequences of digital piracy. It is in fact their parents, who pay the bills, probably do.
4) From the survey on “Do you support piracy?”, some of them feel that it is more cost saving to download it online.
Reasons for Going Against Piracy
1) Based on the survey of “Do you support piracy”, many of them want to support the artists or have good quality music.
2) For many iPod Touch users, they are anti-pirates for they fully support music from iTunes and stated that it is the greatest music library in the world.
8. Who are the pirates and how to educate them?
Anyone can be a pirate. However, the large percentage of pirates comes from the teenagers and those who are less well-off. Teenagers are highly price-sensitive and most of them cannot afford paying for those legal properties.
Moreover, the teenagers of today are greatly IT savvy that they use the internet much to their convenience and benefits. As for those less well-offs, they cannot pay for the sum and has no alternatives but to do it illegally.
Moreover, the teenagers of today are greatly IT savvy that they use the internet much to their convenience and benefits. As for those less well-offs, they cannot pay for the sum and has no alternatives but to do it illegally.
For school students, they are not earning and thus if they require a certain software for school work, they either request their parents to buy for them at a high cost or download it illegally since it is only for schoolwork.
Educating the people towards anti-piracy
9. So, should we support or ban piracy?
Varied Opinions
1) No need for piracy as there is plenty of free open source software now that has similar functionality with paid software. “But nowadays there's so much good quality free software out there that there's no real need to pirate.”
2) Student, struggling underpaid worker wanting to improve IT skills to make themselves more employer deterred by high costs of software.
3) “I agree that piracy costs software firms money, but Microsoft, for example, don't seem to suffer. I believe that the high cost of Office used to be explained as including an element to cover losses due to piracy; yet when Office became difficult to copy, the price didn't drop. Perhaps making software affordable would encourage people to do the 'right thing'?”
4) “Software piracy is theft, pure and simple. As a software developer I know this and if it was my work being stolen I know how I'd feel about it. However I look at the prices of some software packages, that increasingly in this day and age are not luxuries for business use but necessities, and the size of some companies' profit margins and business tactics - and then I wonder if maybe the theft isn't on both sides."
Extracted from comments section from: http://news.bbc.co.uk/2/hi/uk_news/2924531.stm
Extracted from comments section from: http://news.bbc.co.uk/2/hi/uk_news/2924531.stm
10. Conclusion
Having presented all those advantages, disadvatages and even methods of tackling the problem, we shall now take a look at this short video and determine it yourself if "Piracy is really more of its worth or is it more of a trouble creator?"
Nonetheless, there will still be a fairly equal amount of people who are pirates and non pirates. Hence, the economy will improve and also be affected negatively by both groups of users.
If "non-pirates" learn to view the war on piracy as the unfairness of what they get for their money, and not about the unfairness of how much money content producers receive, then they will start to ask: “If everyone else gets unlimited content for little or no payment, why can’t I have it too?”
On the other hand, we can also ask: which actually matters more – that all publicly available digital content is available for minimum cost, or that producers get paid? And if we think it's a good idea to pay content producers something, even if the war on piracy is lost, can we think of some other way to compensate them, one which is less unfair and perhaps less costly than the current system of copyright and failed copycontrol?
11. References
Lists of References
[1] Don’tThinkTwice, It’s All Right: Music Piracy and Pricing in a DRMFree Environment
Rajiv K. Sinha, Fernando S. Machado, & Collin Sellman
[2] The Benefits of Piracy – A Competitive Perspective
Bin Gu, Vijay Mahajan University of Texas at Austin
[3] How piracy affects you?
http://www.microsoft.com/middleeast/piracy/how.mspx
[4] Illegal Music Downloading: Look At The Facts
http://www.besttechie.net/2008/04/14/illegal-music-downloading-look-at-the-facts/
[5] RIAA
http://www.riaa.com/faq.php
[6] Singapore pledges tougher fight on IP rights, piracy
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1156677/1/.html
[7] Tackling internet piracy: The spider and the web
http://www.economist.com/node/14335996
[8] UK gets green light to tackle online piracy
http://www.ft.com/cms/s/2/fb17f07e-6b2b-11e0-9be1-00144feab49a.html#axzz1apgNXwrO
[9] Online Piracy in Numbers - Facts and Statistics [Infographic]
http://www.go-gulf.com/blog/online-piracy
[10] Britons 'downloaded 1.2bn illegal tracks this year
http://www.guardian.co.uk/media/2010/dec/16/illegal-music-downloading-online-piracy?INTCMP=ILCNETTXT3487
[1] Don’tThinkTwice, It’s All Right: Music Piracy and Pricing in a DRMFree Environment
Rajiv K. Sinha, Fernando S. Machado, & Collin Sellman
[2] The Benefits of Piracy – A Competitive Perspective
Bin Gu, Vijay Mahajan University of Texas at Austin
[3] How piracy affects you?
http://www.microsoft.com/middleeast/piracy/how.mspx
[4] Illegal Music Downloading: Look At The Facts
http://www.besttechie.net/2008/04/14/illegal-music-downloading-look-at-the-facts/
[5] RIAA
http://www.riaa.com/faq.php
[6] Singapore pledges tougher fight on IP rights, piracy
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1156677/1/.html
[7] Tackling internet piracy: The spider and the web
http://www.economist.com/node/14335996
[8] UK gets green light to tackle online piracy
http://www.ft.com/cms/s/2/fb17f07e-6b2b-11e0-9be1-00144feab49a.html#axzz1apgNXwrO
[9] Online Piracy in Numbers - Facts and Statistics [Infographic]
http://www.go-gulf.com/blog/online-piracy
[10] Britons 'downloaded 1.2bn illegal tracks this year
http://www.guardian.co.uk/media/2010/dec/16/illegal-music-downloading-online-piracy?INTCMP=ILCNETTXT3487
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