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Digital Piracy: Theory

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Author Info

  • Paul Belleflamme
  • Martin Peitz

Abstract

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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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2010/wp-cesifo-2010-10/cesifo1_wp3222.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3222.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_3222

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Related research

Keywords: information good; piracy; copyright; IP protection; internet; peer-to-peer; software; music;

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References

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  1. MartI´nez-Sánchez, Francisco, 2010. "Avoiding commercial piracy," Information Economics and Policy, Elsevier, vol. 22(4), pages 398-408, December.
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Cited by:
  1. Budzinski, Oliver & Monostori, Katalin, 2012. "Intellectual property rights and the WTO," Ilmenau Economics Discussion Papers 71, Ilmenau University of Technology, Institute of Economics.
  2. Thomes, Tim Paul, 2011. "An economic analysis of online streaming: How the music industry can generate revenues from cloud computing," ZEW Discussion Papers 11-039 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Martyna Kobus & Michał Krawczyk, 2013. "Piracy as an ethical decision," Working Papers 2013-22, Faculty of Economic Sciences, University of Warsaw.

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