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Piracy and Copyright Enforcement Mechanisms

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  • Brett Danaher
  • Michael D. Smith
  • Rahul Telang

Abstract

Much debate exists around the impact that illegal file sharing may have on the creative industries. Similarly, opinions differ regarding whether the producers of artistic works should be forced to accept any weakening of intellectual property rights resulting from illegal file sharing, or if governments should intervene to protect these rights. This chapter seeks to inform these questions by outlining what we do and do not know from existing academic research. We first discuss whether filesharing displaces sales of media goods and then discuss whether such displacement will lead to reduced incentives to produce new creative works. We continue by summarizing recent findings on what businesses can do to compete with piracy and the effectiveness of anti-piracy interventions on encouraging consumers to migrate from illegal to legal consumption channels. We conclude by demonstrating that without additional empirical evidence, it will be difficult to determine the socially optimal set of strategies and government copyright policies in the digital era.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19150.

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Date of creation: Jun 2013
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Publication status: published as Piracy and Copyright Enforcement Mechanisms , Brett Danaher, Michael D. Smith, Rahul Telang. in Innovation Policy and the Economy, Volume 14 , Lerner and Stern. 2014
Handle: RePEc:nbr:nberwo:19150

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References

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  17. Birgitte Andersen & Marion Frenz, 2010. "Don’t blame the P2P file-sharers: the impact of free music downloads on the purchase of music CDs in Canada," Journal of Evolutionary Economics, Springer, vol. 20(5), pages 715-740, October.
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Cited by:
  1. Dalton, John & Leung, Tin Cheuk, 2013. "Strategic Decision-Making in Hollywood Release Gaps," MPRA Paper 52439, University Library of Munich, Germany.
  2. Susan Athey & Scott Stern, 2013. "The Nature and Incidence of Software Piracy: Evidence from Windows," NBER Working Papers 19755, National Bureau of Economic Research, Inc.
  3. Brett Danaher & Samita Dhanasobhon & Michael D. Smith & Rahul Telang, 2014. "Understanding Media Markets in the Digital Age: Economics and Methodology," NBER Chapters, in: Economics of Digitization National Bureau of Economic Research, Inc.
  4. Michael Arnold & Éric Darmon & Sylvain Dejean & Thierry Pénard, 2014. "Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-strike (Hadopi) Law," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201401, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  5. Markus Pasche, 2014. "Welfare Effects of Endogenous Copyright Enforcement - the Case of Digital Goods," Jena Economic Research Papers 2014-008, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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