The violation of intellectual property rights (IPR) is a transnational economic and legal problem. This problem could have a solution path when we solve the question: ¿why there is violation of IPR? The main target of this paper is to solve the last question applied to IPR in Latin- America. In order to solve the question the author analyses how has evolved the economic theory of IPR violation showing that the traditional market variables do not fulfill the ways to explain the violation of IPR. That is why the author proposes that it is necessary to include in the economic explanation model the educational, cultural and institutional context which has not been taken in to account in order to build a coherent exposition of the problem. As a development of the theory, the author apply his theoretical assumption to the software copyrights. Then, the author demonstrates econometrically that it’s possible to build an alternative model to explain software piracy taking in to account the educational, cultural and institutional context. The results suggest that education, culture and institutions matter in the development of IPR protection policy, therefore the design of a country’s economic and legal policy must be subject to it’s educational, cultural and institutional context.
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Paper provided by EconWPA in its series Law and Economics with number
0402003.