Digital piracy: theory

Research, Preprint English OPEN
Belleflamme, Paul ; Peitz, Martin (2010)
  • Publisher: Munich: Center for Economic Studies and Ifo Institute (CESifo)
  • Subject: information good | copyright | software | information good piracy | piracy | L11 | Tausch | Computerkriminalität | Digitale Güter | music | Immaterialgüterrechte | Musikwirtschaft | Urheberrecht | Virtuelle Gemeinschaft | Softwareindustrie | L82 | information good, piracy, copyright, IP protection, internet, peer-to-peer, software, music | L86 | IP protection | peer-to-peer | Geschäftsmodell | Kriminalitätsökonomik | internet | Theorie
    • jel: jel:L82 | jel:L11 | jel:L86
      ddc: ddc:330
    acm: ComputingMilieux_LEGALASPECTSOFCOMPUTING

This article reviews recent theoretical contributions on digital piracy. It starts by elaborating on the reasons for intellectual property protection, by reporting a few facts about copyright protection, and by examining reasons to become a digital pirate. Next, it provides an exploration of the consequences of digital piracy, using a base model and several extensions (with consumer sampling, network effects, and indirect appropriation). A closer look at market-structure implications of end-user piracy is then taken. After a brief review of commercial piracy, additional legal and private responses to end-user piracy are considered. Finally, a quick look at emerging new business models is taken.
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