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Protection Against Software Piracy: A Study Of Technology Adoption For The Enforcement Of Intellectual Property Rights

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  • Michael Stolpe

Abstract

Although software piracy is often described as a threat to innovation, only a minority of publishers has chosen to adopt hardware keys, the most secure technology protecting intellectual property in software. A survey of German software publishers reveals that they demand different levels of costly security, depending on product characteristics and markets served. Industry-specific business applications are more likely to be protected by hardware keys than other software. So is software whose usage involves network effects creating a channel for the distribution of illegal copies as well as positive externalities among users. Another factor is the export of software to countries where protection strategies relying on registration requirements and legal action are difficult to implement. These findings have policy implications. Since public protection incurs costs of its own, initiatives to strengthen intellectual property rights in software and their official enforcement should take empirical evidence about private willingness to pay for protection into account.

Suggested Citation

  • Michael Stolpe, 2000. "Protection Against Software Piracy: A Study Of Technology Adoption For The Enforcement Of Intellectual Property Rights," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(1), pages 25-52.
    • Handle: RePEc:taf:ecinnt:v:9:y:2000:i:1:p:25-52
    DOI: 10.1080/10438590000000002
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    Citations

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    Cited by:

    1. Andrés, Antonio R. & Goel, Rajeev K., 2012. "Does software piracy affect economic growth? Evidence across countries," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 284-295.
    2. van Kranenburg, H.L. & Hogenbirk, A.E., 2003. "Determinants of multimedia, entertainment, and business software copyright piracy: a cross-national study," Research Memorandum 020, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    3. repec:hal:wpaper:halshs-00929792 is not listed on IDEAS
    4. Eric P. Chiang & Djeto Assane, 2009. "Estimating The Willingness To Pay For Digital Music," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 512-522, October.
    5. Eric Darmon & Alexandra Rufini & Dominique Torre, 2014. "Publisher's Announcements and Piracy-Monitoring Devices in Software Adoption," Annals of Economics and Statistics, GENES, issue 115-116, pages 409-430.
    6. Cowan, Robin & Harison, Elad, 2001. "Protecting the digital endeavour: prospects for intellectual property rights in the information society," Research Memorandum 027, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    7. Siebert, Horst & Stolpe, Michael, 2001. "Technology and economic performance in the German economy," Kiel Working Papers 1035, Kiel Institute for the World Economy (IfW Kiel).
    8. Dyuti Banerjee, 2011. "On the sufficiency of regulatory enforcement in combating piracy," Journal of Regulatory Economics, Springer, vol. 40(2), pages 160-176, October.
    9. Michael Kunin, 2004. "Why do Software Manufacturers Tolerate Piracy in Transition and Less Developed Countries? A theoretical model," CERGE-EI Working Papers wp231, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    10. Vendrik, M.C.M. & Hirata, J., 2003. "Experienced versus decision utility of income: relative or absolute happiness," Research Memorandum 039, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    11. Dyuti Banerjee & Ahmed Khalid & Jan-Egbert Sturm, 2005. "Socio-economic development and software piracy. An empirical assessment," Applied Economics, Taylor & Francis Journals, vol. 37(18), pages 2091-2097.
    12. Knut Blind & Jakob Edler, 2003. "Idiosyncrasies of the Software Development Process and Their Relation to Software Patents: Theoretical Considerations and Empirical Evidence," Netnomics, Springer, vol. 5(1), pages 71-96, May.

    More about this item

    Keywords

    Intellectual property rights;

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