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Profiting from Being Pirated by 'Pirating' the Pirates

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Author Info

  • 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. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 61 (2008)
Issue (Month): 3 (08)
Pages: 385-390

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Handle: RePEc:bla:kyklos:v:61:y:2008:i:3:p:385-390

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Cited by:
  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. Banerjee, Dyuti, 2013. "Effect of piracy on innovation in the presence of network externalities," Economic Modelling, Elsevier, vol. 33(C), pages 526-532.
  3. 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.
  4. 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.
  5. Dyuti Banerjee & Ishita Chatterjee, 2009. "On the Impact of Piracy on Innovation in the Presence of Technological and Market Uncertainty," Development Research Unit Working Paper Series 26-09, Monash University, Department of Economics.

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