Nora El-Bialy Ibrahim () (Faculty of Management Technology, The German University in Cairo)
Abstract
This paper develops the first applied econometric model to examine the efficiency of existing enforcement measures and legal framework on prevailing software piracy rates in Egypt. Hence, it can be used as a tool when discussing new policies concerning the welfare of the interest groups and the pricing of protected software products (i.e., original software products). The model will focus on the available time-series data during 1992-2002 in Egypt. This time period was chosen due to the paucity of quantitative data concerning the model. The institutional environment is examined according to the New Institutional Economics (NIE) to illustrate the legal framework, the informal constraints and the enforcement authorities to support the empirical model. Analytical results show that efficient enforcement of property rights does not only imply increasing legal enforcement through imposing more severe punishments and prosecutions, as decreasing the prices of software plays a much bigger role. Thus relying on legal enforcement authorities alone is not always economically optimal, as it will not be able to deter IPR infringement on its own.
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Publisher Info
Paper provided by The German University in Cairo, Faculty of Management Technology in its series Working Papers with number
13.
Find related papers by JEL classification: F19 - International Economics - - Trade - - - Other K39 - Law and Economics - - Other Substantive Areas of Law - - - Other K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
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