Private or Public Law Enforcement? The Case of Digital Piracy Policies with Non-monitored Illegal Behaviors

Preprint OPEN
Éric Darmon ; Thomas Le Texier (2014)
  • Subject: copyright infringement, law enforcement, digital piracy, illegal file-sharing, illegal behavior deterrence
    • jel: jel:D23 | jel:D78 | jel:K42

In the case of digital piracy should rights be publicly or privately enforced? The emergence of large-scale anti-piracy laws and the existence of non-monitored illegal channels raise important issues for the design of digital anti-piracy policies. In this paper, we study the impact of these two enforcement settings (public vs. private) in the presence of an illegal non-monitored outside option for users. Taking account of market outcomes, we show that in both cases, the optimal strategies of the legal seller and the monitoring authority leads to rejection of the outside option out while accommodating to the presence of illegal monitored channels. Compared to private enforcement, public enforcement generates higher monitoring levels and lower price levels. Public enforcement also generates greater (legal) welfare. However, we identify potential con flict of interests between the legal seller and the social planner when the effciency of non monitored networks is low. We provide some insights into the role of supply side anti-piracy policies.
  • References (26)
    26 references, page 1 of 3

    Adermon, A. and Liang, C.-Y. (2010). Piracy, music, and movies: A natural experiment. Working Paper Series 854 Research Institute of Industrial Economics.

    Arai, Y. (2011). Civil and criminal penalties for copyright infringement. Information Economics and Policy, 23(3-4):270 { 280.

    Arnold, M., Darmon, E., Dejean, S., and Penard, T. (2014). Graduated response policy and the behavior of digital pirates: Evidence from the french three-strike (hadopi) law. CREM Working Paper Series.

    Banerjee, D. S. (2003). Software piracy: a strategic analysis and policy instruments. International Journal of Industrial Organization, 21(1):97 { 127.

    Banerjee, D. S. (2006). Lobbying and commercial software piracy. European Journal of Political Economy, 22(1):139 { 155.

    Banerjee, D. S. (2011). On the su ciency of regulatory enforcement in combating piracy. Journal of Regulatory Economics, 40(2):160 { 176.

    Banerjee, D. S., Banerjee, T. C., and Raychaudhuri, A. (2008). Optimal enforcement and anticopying strategies to counter copyright infringement. Japanese Economic Review, 59(4):519 { 535.

    Becker, G. S. (1968). Crime and punishment: An economic approach. Journal of Political Economy, 76:169{217.

    Belle amme, P. and Peitz, M. (2010). Digital piracy: Theory. CESifo Working Paper Series 3222, CESifo Group Munich.

    Belle amme, P. and Picard, P. M. (2007). Piracy and competition. Journal of Economics and Management Strategy, 16(2):351 { 383.

  • Metrics
    No metrics available
Share - Bookmark