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Digital piracy : theory

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  • BELLEFLAMME, Paul

    ()
    (Université catholique de Louvain, CORE and Louvain School of Management, B-1348 Louvain-la-Neuve, Belgium)

  • PEITZ, Martin

    ()
    (Department of Economics, University of Mannheim, D-68131 Mannheim, Germany)

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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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2010060.

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Date of creation: 01 Oct 2010
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Handle: RePEc:cor:louvco:2010060

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

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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. Martyna Kobus & Michał Krawczyk, 2013. "Piracy as an ethical decision," Working Papers 2013-22, Faculty of Economic Sciences, University of Warsaw.
  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. Budzinski, Oliver & Monostori, Katalin, 2012. "Intellectual property rights and the WTO," Ilmenau Economics Discussion Papers 71, Ilmenau University of Technology, Institute of Economics.

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