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White Knight or Trojan Horse? The Consequences of Digital Rights Management for Consumers, Firms and Society

Author

Listed:
  • Thierry RAYNA

    (Imperial College, London)

  • Ludmila STRIUKOVA

    (University College, London)

Abstract

Due to its ability to solve all main problems associated with digital goods, Digital Rights Management is the favourite option used by companies to tackle piracy. The aim of this article is to discuss the consequences of DRM for consumers, firms and society. The rationales of DRM are discussed and the expected benefits for firms are presented.. In contrast, consumers are shown to be likely to see few benefits in DRM. This article demonstrates that even a standard DRM system is unlikely to improve social welfare. The article concludes with some public policy recommendations.

Suggested Citation

  • Thierry RAYNA & Ludmila STRIUKOVA, 2008. "White Knight or Trojan Horse? The Consequences of Digital Rights Management for Consumers, Firms and Society," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(69), pages 109-126, 1st quart.
  • Handle: RePEc:idt:journl:cs6905
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    More about this item

    Keywords

    Digital Rights Management; Digital Goods; Piracy; Excludability; Durability; Sampling.;

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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