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Profiting from Being Pirated by ‘Pirating’ the Pirates

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  • Sana El Harbi
  • Gilles Grolleau

Abstract

Pirates are not only copiers, they can also be innovators. They possess skills and a creative capital that allow them to explore new directions. Their innovations can be freely and profitably re‐appropriated by the high‐end designers of the pirated firms. Creative pirates are engaged in a kind of tacit reciprocity, where they appropriate illegally creations of high end designers and launch modified or new versions that can in return inspire in a profitable way, the designers of the original fashion houses. Moreover, pirates can create a pro‐competitive environment that stimulates the innovative abilities of the pirated firm at unexpected levels without piracy.

Suggested Citation

  • Sana El Harbi & Gilles Grolleau, 2008. "Profiting from Being Pirated by ‘Pirating’ the Pirates," Kyklos, Wiley Blackwell, vol. 61(3), pages 385-390, August.
    • Handle: RePEc:bla:kyklos:v:61:y:2008:i:3:p:385-390
    DOI: 10.1111/j.1467-6435.2008.00407.x
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    References listed on IDEAS

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    1. Takeyama, Lisa N, 1997. "The Intertemporal Consequences of Unauthorized Reproduction of Intellectual Property," Journal of Law and Economics, University of Chicago Press, vol. 40(2), pages 511-522, October.
    2. Stan Liebowitz, 2005. "Economists’ Topsy-Turvy View of Piracy," Law and Economics 0505002, University Library of Munich, Germany.
    3. Joshua Slive & Dan Bernhardt, 1998. "Pirated for Profit," Canadian Journal of Economics, Canadian Economics Association, vol. 31(4), pages 886-899, November.
    4. Liebowitz, S J, 1985. "Copying and Indirect Appropriability: Photocopying of Journals," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 945-957, October.
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    1. Insaf Bekir & Sana El Harbi & Gilles Grolleau, 2013. "How a luxury monopolist might benefit from the aspirational utility effect of counterfeiting?," European Journal of Law and Economics, Springer, vol. 36(1), pages 169-182, August.
    2. Alberto Pastore, 2014. "No al falso! Un?indagine esplorativa sulle strategie anti-contraffazione delle fashion firms," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2014(2), pages 81-102.
    3. Banerjee, Dyuti & Chatterjee, Ishita, 2010. "The impact of piracy on innovation in the presence of technological and market uncertainty," Information Economics and Policy, Elsevier, vol. 22(4), pages 391-397, December.
    4. Insaf Bekir & Sana El Harbi & Gilles Grolleau, 2012. "The strategy of raising counterfeiters’ costs in luxury markets," European Journal of Law and Economics, Springer, vol. 33(3), pages 645-661, June.
    5. Banerjee, Dyuti, 2013. "Effect of piracy on innovation in the presence of network externalities," Economic Modelling, Elsevier, vol. 33(C), pages 526-532.
    6. Simona Romani & Giacomo Gistri & Stefano Pace, 2012. "When counterfeits raise the appeal of luxury brands," Marketing Letters, Springer, vol. 23(3), pages 807-824, September.

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