Copyright infringement (at times referred to as piracy) is the use of
works
Works may refer to:
People
* Caddy Works (1896–1982), American college sports coach
* Samuel Works (c. 1781–1868), New York politician
Albums
* '' ''Works'' (Pink Floyd album)'', a Pink Floyd album from 1983
* ''Works'', a Gary Burton album ...
protected by
copyright
A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, education ...
without permission for a usage where such permission is required, thereby infringing certain
exclusive right
In Anglo-Saxon law, an exclusive right, or exclusivity, is a de facto, non-tangible prerogative existing in law (that is, the power or, in a wider sense, right) to perform an action or acquire a benefit and to permit or deny others the right to p ...
s granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to make
derivative work
In copyright law, a derivative work is an expressive creation that includes major copyrightable elements of an original, previously created first work (the underlying work). The derivative work becomes a second, separate work independent in fo ...
s. The copyright holder is typically the work's creator, or a publisher or other business to whom copyright has been assigned. Copyright holders routinely invoke legal and technological measures to prevent and penalize copyright infringement.
Copyright infringement disputes are usually resolved through direct negotiation, a
notice and take down
Notice and take down is a process operated by online hosts in response to court orders or allegations that content is illegal. Content is removed by the host following notice. Notice and take down is widely operated in relation to copyright infri ...
process, or litigation in
civil court
Civil law may refer to:
* Civil law (common law), the part of law that concerns private citizens and legal persons
* Civil law (legal system), or continental law, a legal system originating in continental Europe and based on Roman law
** Private la ...
. Egregious or large-scale commercial infringement, especially when it involves
counterfeit
To counterfeit means to imitate something authentic, with the intent to steal, destroy, or replace the original, for use in illegal transactions, or otherwise to deceive individuals into believing that the fake is of equal or greater value tha ...
ing, is sometimes prosecuted via the
criminal justice
Criminal justice is the delivery of justice to those who have been accused of committing crimes. The criminal justice system is a series of government agencies and institutions. Goals include the Rehabilitation (penology), rehabilitation of o ...
system. Shifting public expectations, advances in digital technology and the increasing reach of the Internet have led to such widespread, anonymous infringement that copyright-dependent industries now focus less on pursuing individuals who seek and share copyright-protected content online, and more on expanding copyright law to recognize and penalize, as indirect infringers, the service providers and software distributors who are said to facilitate and encourage individual acts of infringement by others.
Estimates of the actual economic impact of copyright infringement vary widely and depend on other factors. Nevertheless, copyright holders, industry representatives, and legislators have long characterized copyright infringement as piracy or theft – language which some U.S. courts now regard as
pejorative
A pejorative or slur is a word or grammatical form expressing a negative or a disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hostility, or disregard. Sometimes, a ...
or otherwise contentious.
Terminology
The terms ''piracy'' and ''theft'' are often associated with copyright infringement. The original meaning of ''
piracy
Piracy is an act of robbery or criminal violence by ship or boat-borne attackers upon another ship or a coastal area, typically with the goal of stealing cargo and other valuable goods. Those who conduct acts of piracy are called pirates, v ...
'' is "robbery or illegal violence at sea", but the term has been in use for centuries as a synonym for acts of copyright infringement.T. Dekker ''Wonderfull Yeare'' 1603, reprinted by University of Oregon ''
Theft
Theft is the act of taking another person's property or services without that person's permission or consent with the intent to deprive the rightful owner of it. The word ''theft'' is also used as a synonym or informal shorthand term for some ...
'', meanwhile, emphasizes the potential commercial harm of infringement to copyright holders. However, copyright is a type of
intellectual property
Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, cop ...
, an area of law distinct from that which covers robbery or theft, offenses related only to tangible
property
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
. Not all copyright infringement results in commercial loss, and the U.S. Supreme Court ruled in 1985 that infringement does not ''easily'' equate with theft.'' Dowling v. United States'' (1985), 473 U.S. 207, pp. 217–218.
This was taken further in the case ''MPAA v. Hotfile'', where Judge
Kathleen M. Williams
Kathleen Mary Williams (born 1956) is United States district judge of the United States District Court for the Southern District of Florida. She previously served as the Federal Public Defender for the Southern District of Florida.
Early life a ...
granted a motion to deny the MPAA the usage of words whose appearance was primarily "pejorative". This list included the word "piracy", the use of which, the motion by the defense stated, serves no court purpose but to misguide and inflame the jury.
"Piracy"
The term "piracy" has been used to refer to the unauthorized copying, distribution and selling of works in copyright. The term "word-pirates" has been used as far back as 1603 to described unauthorized printing. The first use of the word 'piracy' itself to describe unauthorized copying dates back to at least 1700, as attested to in Edward Ward's 1700 poem ''A Journey to Hell'':
''Piracy, Piracy,'' they cry'd aloud, / What made you print my Copy, Sir, says one
The practice of labeling the infringement of exclusive rights in creative works as "piracy" predates statutory copyright law. Prior to the
Statute of Anne
The Statute of Anne, also known as the Copyright Act 1710 (cited either as 8 Ann. c. 21 or as 8 Ann. c. 19), was an act of the Parliament of Great Britain passed in 1710, which was the first statute to provide for copyright regulated by the g ...
in 1710, the
Stationers' Company
The Worshipful Company of Stationers and Newspaper Makers (until 1937 the Worshipful Company of Stationers), usually known as the Stationers' Company, is one of the livery companies of the City of London. The Stationers' Company was formed in ...
of London in 1557, received a
Royal Charter
A royal charter is a formal grant issued by a monarch under royal prerogative as letters patent. Historically, they have been used to promulgate public laws, the most famous example being the English Magna Carta (great charter) of 1215, bu ...
giving the company a
monopoly
A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...
on publication and tasking it with enforcing the charter. Article 61 of the 1994
Agreement on Trade-Related Aspects of Intellectual Property Rights
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO). It establishes minimum standards for the regulation by nat ...
(TRIPs) requires
criminal
In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definitions of", in Can ...
procedures and penalties in cases of "willful trademark counterfeiting or copyright piracy on a commercial scale." Piracy traditionally refers to acts of copyright infringement intentionally committed for financial gain, though more recently, copyright holders have described online copyright infringement, particularly in relation to
peer-to-peer file sharing
Peer-to-peer file sharing is the distribution and sharing of digital media using peer-to-peer (P2P) networking technology. P2P file sharing allows users to access media files such as books, music, movies, and games using a P2P software program tha ...
networks, as "piracy".
Richard Stallman
Richard Matthew Stallman (; born March 16, 1953), also known by his initials, rms, is an American free software movement activist and programmer. He campaigns for software to be distributed in such a manner that its users have the freedom to ...
and the
GNU Project
The GNU Project () is a free software, mass collaboration project announced by Richard Stallman on September 27, 1983. Its goal is to give computer users freedom and control in their use of their computers and computing devices by collaborati ...
have criticized the use of the word "piracy" in these situations, saying that publishers use the word to refer to "copying they don't approve of" and that "they ublishersimply that it is ethically equivalent to attacking ships on the high seas, kidnapping and murdering the people on them."
"Theft"
Copyright holders frequently refer to copyright infringement as
theft
Theft is the act of taking another person's property or services without that person's permission or consent with the intent to deprive the rightful owner of it. The word ''theft'' is also used as a synonym or informal shorthand term for some ...
, "although such misuse has been rejected by legislatures and courts". The slogan "
Piracy is theft
"Piracy is theft" was a slogan used by UK non-profit organization FAST (Federation Against Software Theft). It was first used in the 1980s and has since then been used by other similar organisations such as MPAA. It has also been used as a stat ...
" was used beginning in the 1980s, and is still being used. In copyright law, infringement does not refer to theft of physical objects that take away the owner's possession, but an instance where a person exercises one of the exclusive rights of the copyright holder without authorization. Courts have distinguished between copyright infringement and theft. For instance, the
United States Supreme Court
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...
held in '' Dowling v. United States'' (1985) that bootleg phonorecords did not constitute stolen property. Instead,
interference with copyright does not easily equate with theft,
conversion
Conversion or convert may refer to:
Arts, entertainment, and media
* "Conversion" (''Doctor Who'' audio), an episode of the audio drama ''Cyberman''
* "Conversion" (''Stargate Atlantis''), an episode of the television series
* "The Conversion" ...
, or fraud. The Copyright Act even employs a separate term of art to define one who misappropriates a copyright: ' ..an infringer of the copyright.'
The court said that in the case of copyright infringement, the province guaranteed to the copyright holder by copyright law – certain
exclusive right
In Anglo-Saxon law, an exclusive right, or exclusivity, is a de facto, non-tangible prerogative existing in law (that is, the power or, in a wider sense, right) to perform an action or acquire a benefit and to permit or deny others the right to p ...
s – is invaded, but no control, physical or otherwise, is taken over the copyright, nor is the copyright holder wholly deprived of using the copyrighted work or exercising the exclusive rights held.
"Freebooting"
The term "freebooting" has been used to describe the unauthorized copying of online media, particularly videos, onto websites such as
Facebook
Facebook is an online social media and social networking service owned by American company Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin M ...
,
YouTube
YouTube is a global online video platform, online video sharing and social media, social media platform headquartered in San Bruno, California. It was launched on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim. It is owned by ...
or
Twitter
Twitter is an online social media and social networking service owned and operated by American company Twitter, Inc., on which users post and interact with 280-character-long messages known as "tweets". Registered users can post, like, and ...
. The word itself had already been in use since the 16th century, referring to pirates, and meant "looting" or "plundering". This form of the word – a
portmanteau
A portmanteau word, or portmanteau (, ) is a blend of wordsfreeloading
{{Short pages monitor and are considered essential to
freedom of speech
Freedom of speech is a principle that supports the freedom of an individual or a community to articulate their opinions and ideas without fear of retaliation, censorship, or legal sanction. The right to freedom of expression has been recogni ...
.
Another example is the practice of
compulsory licensing
A compulsory license provides that the owner of a patent or copyright licenses the use of their rights against payment either set by law or determined through some form of adjudication or arbitration. In essence, under a compulsory license, an ...
, which is where the law forbids copyright owners from denying a license for certain uses of certain kinds of works, such as compilations and live performances of music. Compulsory licensing laws generally say that for certain uses of certain works, no infringement occurs as long as a
royalty
Royalty may refer to:
* Any individual monarch, such as a king, queen, emperor, empress, etc.
* Royal family, the immediate family of a king or queen regnant, and sometimes his or her extended family
* Royalty payment for use of such things as int ...
, at a rate determined by law rather than private negotiation, is paid to the copyright owner or representative
copyright collective
Copyrights can either be licensed or assigned by the owner of the copyright. A copyright collective (also known as a copyright society, copyright collecting agency, licensing agency or copyright collecting society or collective management organiz ...
. Some fair dealing laws, such as Canada's, include similar royalty requirements.
In Europe, the copyright infringement case ''
news aggregator
In computing, a news aggregator, also termed a feed aggregator, feed reader, news reader, RSS reader or simply an aggregator, is client software or a web application that aggregates syndicated web content such as online newspapers, blogs, podc ...
service infringed the copyright of the news generators; the other concerned whether the temporary
web cache
A Web cache (or HTTP cache) is a system for optimizing the World Wide Web. It is implemented both client-side and server-side. The caching of multimedias and other files can result in less overall delay when browsing the Web.
Parts of the syste ...
created by the
web browser
A web browser is application software for accessing websites. When a user requests a web page from a particular website, the browser retrieves its files from a web server and then displays the page on the user's screen. Browsers are used on ...
of a consumer of the aggregator's service, ''also'' infringed the copyright of the news generators. The first prong was decided in favor of the news generators; in June 2014 the second prong was decided by the Court of Justice of the European Union (CJEU), which ruled that the temporary web cache of consumers of the aggregator did not infringe the copyright of the news generators.
Non-infringing types of works
In order to qualify for protection, a work must be an expression with a degree of originality, and it must be in a fixed medium, such as written down on paper or recorded digitally., for example. The idea itself is not protected. That is, a copy of someone else's original idea is not infringing unless it copies that person's unique, tangible ''expression'' of the idea. Some of these limitations, especially regarding what qualifies as original, are embodied only in case law (judicial precedent), rather than in statutes.
In the U.S., for example, copyright case law contains a substantial similarity requirement to determine whether the work was copied. Likewise, courts may require computer software to pass an
Abstraction-Filtration-Comparison test
The Abstraction-Filtration-Comparison test (AFC) is a method of identifying substantial similarity for the purposes of applying copyright law. In particular, the AFC test is used to determine whether non-literal elements of a computer program have ...
(AFC Test) to determine if it is too abstract to qualify for protection, or too dissimilar to an original work to be considered infringing. Software-related case law has also clarified that the amount of R&D, effort and expense put into a work's creation does not affect copyright protection.
Evaluation of alleged copyright infringement in a court of law may be substantial; the time and costs required to apply these tests vary based on the size and complexity of the copyrighted material. Furthermore, there is no standard or universally accepted test; some courts have rejected the AFC Test, for example, in favor of narrower criteria.
Preventive measures
The BSA outlined four strategies that governments can adopt to reduce software piracy rates in its 2011 piracy study results:
* "Increase public education and raise awareness about software piracy and IP rights in cooperation with industry and law enforcement."
* "Modernize protections for software and other copyrighted materials to keep pace with new innovations such as cloud computing and the proliferation of networked mobile devices."
* "Strengthen enforcement of IP laws with dedicated resources, including specialized enforcement units, training for law enforcement and judiciary officials, improved cross-border cooperation among law enforcement agencies, and fulfillment of obligations under the World Trade Organization's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)."
* "Lead by example by using only fully licensed software, implementing software asset management (SAM) programs, and promoting the use of legal software in state-owned enterprises, and among all contractors and suppliers."
Legal
Corporations and legislatures take different types of preventive measures to deter copyright infringement, with much of the focus since the early 1990s being on preventing or reducing digital methods of infringement. Strategies include education, civil and criminal legislation, and international agreements,Ram D. Gopal and G. Lawrence Sanders. "International Software Piracy: Analysis of Key Issues and Impacts". Information Systems Research 9, no. 4 (December 1998): 380–397. as well as publicizing anti-piracy litigation successes and imposing forms of digital media copy protection, such as controversial
DRM
DRM may refer to:
Government, military and politics
* Defense reform movement, U.S. campaign inspired by Col. John Boyd
* Democratic Republic of Madagascar, a former socialist state (1975–1992) on Madagascar
* Direction du renseignement milita ...
technology and
anti-circumvention
Anti-circumvention refers to laws which prohibit the circumvention of technological barriers for using a digital good in certain ways which the rightsholders do not wish to allow. The requirement for anti-circumvention laws was globalized in 1996 ...
laws, which limit the amount of control consumers have over the use of products and content they have purchased.
Legislatures have reduced infringement by narrowing the scope of what is considered infringing. Aside from upholding international copyright treaty obligations to provide general limitations and exceptions, nations have enacted compulsory licensing laws applying specifically to digital works and uses. For example, in the U.S., the DMCA, an implementation of the 1996
WIPO Copyright Treaty
The World Intellectual Property Organization Copyright Treaty (WIPO Copyright Treaty or WCT) is an international treaty on copyright law adopted by the member states of the World Intellectual Property Organization (WIPO) in 1996. It provides addi ...
, considers digital transmissions of audio recordings to be licensed as long as a designated copyright collective's royalty and reporting requirements are met. The DMCA also provides safe harbor for digital service providers whose users are suspected of copyright infringement, thus reducing the likelihood that the providers themselves will be considered directly infringing.
Some copyright owners voluntarily reduce the scope of what is considered infringement by employing relatively permissive, "open" licensing strategies: rather than privately negotiating license terms with individual users who must first seek out the copyright owner and ask for permission, the copyright owner publishes and distributes the work with a prepared license that anyone can use, as long as they adhere to certain conditions. This has the effect of reducing infringement – and the burden on courts – by simply permitting certain types of uses under terms that the copyright owner considers reasonable. Examples include
free software license
A free-software license is a notice that grants the recipient of a piece of software extensive rights to modify and redistribute that software. These actions are usually prohibited by copyright law, but the rights-holder (usually the author) ...
s, like the
GNU General Public License
The GNU General Public License (GNU GPL or simply GPL) is a series of widely used free software licenses that guarantee end users the Four Freedoms (Free software), four freedoms to run, study, share, and modify the software. The license was th ...
(GPL), and the
Creative Commons license
A Creative Commons (CC) license is one of several public copyright licenses that enable the free distribution of an otherwise copyrighted "work".A "work" is any creative material made by a person. A painting, a graphic, a book, a song/lyrics ...
s, which are predominantly applied to visual and literary works.
Protected distribution
To maximize revenue, pre-COVID-19
film distribution
Film distribution (also known as Film exhibition or Film distribution and exhibition) is the process of making a movie available for viewing by an audience. This is normally the task of a professional film distributor, who would determine the marke ...
typically began with
movie theaters
A movie theater (American English), cinema (British English), or cinema hall ( Indian English), also known as a movie house, picture house, the movies, the pictures, picture theater, the silver screen, the big screen, or simply theater is a ...
(theatrical window), on average approximately 16 and a half weeks,
before the release to
Blu-ray
The Blu-ray Disc (BD), often known simply as Blu-ray, is a digital optical disc data storage format. It was invented and developed in 2005 and released on June 20, 2006 worldwide. It is designed to supersede the DVD format, and capable of sto ...
and
DVD
The DVD (common abbreviation for Digital Video Disc or Digital Versatile Disc) is a digital optical disc data storage format. It was invented and developed in 1995 and first released on November 1, 1996, in Japan. The medium can store any kin ...
(entering its video window). During the theatrical window, digital versions of films are often transported in
data storage device
Data storage is the recording (storing) of information (data) in a storage medium. Handwriting, phonographic recording, magnetic tape, and optical discs are all examples of storage media. Biological molecules such as RNA and DNA are conside ...
s by couriers rather than by
data transmission
Data transmission and data reception or, more broadly, data communication or digital communications is the transfer and reception of data in the form of a digital bitstream or a digitized analog signal transmitted over a point-to-point o ...
. The data can be
encrypted
In cryptography, encryption is the process of encoding information. This process converts the original representation of the information, known as plaintext, into an alternative form known as ciphertext. Ideally, only authorized parties can decip ...
, with the key being made to work only at specific times in order to prevent leakage between screens.
Watermarking
Coded Anti-Piracy
Coded anti-piracy (CAP) is an anti-copyright infringement technology which marks each film print of a motion picture with a distinguishing pattern of dots, used as a forensic identifier to identify the source of illegal copies.
They are not to b ...
marks can be added to films to identify the source of illegal copies and shut them down. In 2006 a notable example of using
Coded Anti-Piracy
Coded anti-piracy (CAP) is an anti-copyright infringement technology which marks each film print of a motion picture with a distinguishing pattern of dots, used as a forensic identifier to identify the source of illegal copies.
They are not to b ...
marks resulted in a man being arrested for uploading a screener's copy of the movie ''
Flushed Away
''Flushed Away'' is a 2006 computer-animated adventure comedy film directed by David Bowers and Sam Fell, produced by Cecil Kramer, David Sproxton, and Peter Lord, and written by Dick Clement, Ian La Frenais, Chris Lloyd, Joe Keenan and W ...
''. Some
photocopier
A photocopier (also called copier or copy machine, and formerly Xerox machine, the generic trademark) is a machine that makes copies of documents and other visual images onto paper or plastic film quickly and cheaply. Most modern photocopiers u ...
s use
Machine Identification Code
A Machine Identification Code (MIC), also known as printer steganography, yellow dots, tracking dots or secret dots, is a digital watermark which certain color laser printers and copiers leave on every printed page, allowing identification of t ...
dots for similar purposes. The
EURion constellation
The EURion constellation (also known as Omron rings or doughnuts) is a pattern of symbols incorporated into a number of secure documents such as banknotes and ownership title certificates designs worldwide since about 1996. It is added to help ...
on banknotes is used to prevent copying to make
counterfeit currency
Counterfeit money is currency produced without the legal sanction of a state or government, usually in a deliberate attempt to imitate that currency and so as to deceive its recipient. Producing or using counterfeit money is a form of fraud or ...
.
Economic impact of copyright infringement
Organizations disagree on the scope and magnitude of copyright infringement's free rider economic effects and public support for the copyright regime.
The
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
funded a study to analyze "the extent to which unauthorised online consumption of copyrighted materials (music, audiovisual, books and video games) displaces sales of online and offline legal content", across
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
, the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
,
Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
,
France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
,
Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populous ...
and
Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...
; the public funding behind the study provided a necessary basis for its neutrality. 30,000 users, including minors between 14 and 17 years, were surveyed among September and October 2014. While a negative impact was found for the film industry, videogame sales were positively affected by illegal consumption, possibly due to "the industry being successful in converting illegal users to paying users" and employing player-oriented strategies (for example, by providing additional bonus levels or items in the gameplay for a fee); finally, no evidence was found for any claims of sales displacement in the other market sectors. According to the
European Digital Rights
European Digital Rights (EDRi) is an international advocacy group headquartered in Brussels, Belgium. EDRi is a network collective of non-profit organizations (NGO), experts, advocates and academics working to defend and advance digital rights ...
association, the study may have been censored: specifically, as of 2018, the European Commission has not published the results, except in the part where the film industry was found to be adversely affected by illegal content consumption. Access to the study was requested and obtained by
Member of the European Parliament
A Member of the European Parliament (MEP) is a person who has been elected to serve as a popular representative in the European Parliament.
When the European Parliament (then known as the Common Assembly of the ECSC) first met in 1952, its ...
Felix Reda
Felix Reda (formerly Julia Reda; born 30 November 1986) is a German researcher and politician who was Member of the European Parliament (MEP) from Germany. He was a member of the Pirate Party Germany until 27 March 2019, part of The Greens–E ...
.
In relation to computer software, the
Business Software Alliance
The Software Alliance, also known as BSA, is a trade group established by Microsoft in 1988 to represent commercial software makers. It is a member of the International Intellectual Property Alliance. Its principal activity is trying to stop copyr ...
(BSA) claimed in its 2011 piracy study: "Public opinion continues to support intellectual property (IP) rights: Seven PC users in 10 support paying innovators to promote more technological advances."
Following consultation with experts on copyright infringement, the United States Government Accountability Office (GAO) clarified in 2010 that "estimating the economic impact of IP ntellectual propertyinfringements is extremely difficult, and assumptions must be used due to the absence of data", while "it is difficult, if not impossible, to quantify the net effect of counterfeiting and piracy on the economy as a whole."
The U.S. GAO's 2010 findings regarding the great difficulty of accurately gauging the economic impact of copyright infringement was reinforced within the same report by the body's research into three commonly cited estimates that had previously been provided to U.S. agencies. The GAO report explained that the sources – a
Federal Bureau of Investigation
The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...
(FBI) estimate, a Customs and Border Protection (CBP) press release and a Motor and Equipment Manufacturers Association estimate – "cannot be substantiated or traced back to an underlying data source or methodology."
Deaner explained the importance of rewarding the "investment risk" taken by motion picture studios in 2014:
Usually movies are hot because a distributor has spent hundreds of thousands of dollars promoting the product in print and TV and other forms of advertising. The major Hollywood studios spend millions on this process with marketing costs rivaling the costs of production. They are attempting then to monetise through returns that can justify the investment in both the costs of promotion and production.
Motion picture industry estimates
In 2008, the Motion Picture Association of America (MPAA) reported that its six major member companies lost US$6.1 billion to piracy. A 2009 ''Los Angeles Daily News'' article then cited a loss figure of "roughly $20 billion a year" for Hollywood studios. According to a 2013 article in ''
The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'', industry estimates in the United States range between $6.1B to $18.5B per year.
In an early May 2014 article in ''The Guardian'', an annual loss figure of US$20.5 billion was cited for the movie industry. The article's basis is the results of a
University of Portsmouth
The University of Portsmouth is a public university in Portsmouth, England. It is one of only four universities in the South East England, South East of England rated as Gold in the Government's Teaching Excellence Framework. With approximately 28 ...
study that only involved Finnish participants, aged between seven and 84. The researchers, who worked with 6,000 participants, stated: "Movie pirates are also more likely to cut down their piracy if they feel they are harming the industry compared with people who illegally download music".
However, a study conducted on data from sixteen countries between 2005 and 2013, many of which had enacted anti-piracy measures to increase box office revenues of movies, found no significant increases in any markets attributable to policy interventions, which calls into doubt the claimed negative economic effects of digital piracy on the film industry.
Software industry estimates
Psion Software claimed in 1983 that software piracy cost it £2.9 million a year, 30% of its revenue.Will Wright said that ''Raid on Bungeling Bay'' sold 20,000 copies for the Commodore 64 in the US, but 800,000 cartridges for the Nintendo Famicom with a comparable installed base in Japan, "because it's a cartridge system [so] there's virtually no piracy".
According to a 2007 BSA and International Data Corporation (IDC) study, the five countries with the highest rates of software piracy were: 1. Armenia (93%); 2. Bangladesh (92%); 3. Azerbaijan (92%); 4. Moldova (92%); and 5. Zimbabwe (91%). According to the study's results, the five countries with the lowest piracy rates were: 1. the U.S. (20%); 2. Luxembourg (21%); 3. New Zealand (22%); 4. Japan (23%); and 5. Austria (25%). The 2007 report showed that the Asia-Pacific region was associated with the highest amount of loss, in terms of U.S. dollars, with $14,090,000, followed by the European Union, with a loss of $12,383,000; the lowest amount of U.S. dollars was lost in the Middle East/Africa region, where $2,446,000 was documented.
In its 2011 report, conducted in partnership with IDC and Ipsos, Ipsos Public Affairs, the BSA stated: "Over half of the world's personal computer users – 57 percent – admit to pirating software." The ninth annual "BSA Global Software Piracy Study" claims that the "commercial value of this shadow market of pirated software" was worth US$63.4 billion in 2011, with the highest commercial value of pirated PC software existent in the U.S. during that time period (US$9,773,000). According to the 2011 study, Zimbabwe was the nation with the highest piracy rate, at 92%, while the lowest piracy rate was present in the U.S., at 19%.
The GAO noted in 2010 that the BSA's research up until that year defined "piracy as the difference between total installed software and legitimate software sold, and its scope involved only packaged physical software."
Music industry estimates
In 2007, the Institute for Policy Innovation (IPI) reported that music piracy took $12.5 billion from the U.S. economy. According to the study, musicians and those involved in the recording industry are not the only ones who experience losses attributed to music piracy. Retailers have lost over a billion dollars, while piracy has resulted in 46,000 fewer production-level jobs and almost 25,000 retail jobs. The U.S. government was also reported to suffer from music piracy, losing $422 million in tax revenue.
A 2007 study in the ''Journal of Political Economy'' found that the effect of music downloads on legal music sales was "statistically indistinguishable from zero".
A report from 2013, released by the European Commission Joint Research Centre suggests that illegal music downloads have almost no effect on the number of legal music downloads. The study analyzed the behavior of 16,000 European music consumers and found that although music piracy negatively affects offline music sales, illegal music downloads had a positive effect on legal music purchases. Without illegal downloading, legal purchases were about two percent lower.
The study has received criticism, particularly from the International Federation of the Phonographic Industry, which believes the study is flawed and misleading. One argument against the research is that many music consumers only download music illegally. The IFPI also points out that music piracy affects not only online music sales but also multiple facets of the music industry, which is not addressed in the study.
Media industry estimates
In a March 2019 article, ''The New York Times'' reported that the Qatar-based beIN Media Group suffered "billions of dollars" of losses, following the unilateral cancellation of an exclusive contract it shared with the Asian Football Confederation (AFC) for the past 10 years. The decision by the AFC to invalidate its license for broadcasting rights to air games in Saudi Arabia came after the kingdom was accused of leading a piracy operation through its television broadcaster, beoutQ, misappropriating sports content owned by beIN Sports since 2017, worth billions of dollars.
In January 2020, the
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
released a report on protection and enforcement of intellectual property rights in third countries. The report named as many as 13 countries, including Argentina, Brazil, China, Ecuador, India, Indonesia, and Saudi Arabia, the last being included for the first time. The report said piracy is "causing considerable harm to EU businesses" and high economic losses have occurred in Argentina, China, Ecuador and India. It also informed Saudi Arabia has not "taken sufficient steps to stop the infringement" caused via BeoutQ, like other countries have, to minimize the extent of financial and economic loss.
Criticism of industry estimates
Some claims made by industry representatives have been criticized as overestimating the monetary loss caused by copyright infringement.
In one example, the Recording Industry Association of America, RIAA claimed damages against LimeWire totaling $75 trillion – more than the global GDP – with the judge overseeing the case ruling that such claims were "absurd". The $75 trillion figure had been obtained by counting each song downloaded as an infringement of copyright. After the conclusion of the case, LimeWire agreed to pay $105 million to RIAA.
In another decision, US District Court Judge James Parker Jones, James P. Jones found that the "RIAA's request problematically assumes that every illegal download resulted in a lost sale", indicating profit/loss estimates were likely extremely off.
Critics of industry estimates argue that those who use peer-to-peer sharing services, or practice "piracy" are actually more likely to pay for music. A Jupiter Research study in 2000 found that "Napster users were 45 percent more likely to have increased their music purchasing habits than online music fans who don't use the software were." This indicated that users of peer-to-peer sharing did not hurt the profits of the music industry, but in fact may have increased it.
Professor Aram Sinnreich, in his book ''The Piracy Crusade'', states that the connection between declining music sales and the creation of peer to peer file sharing sites such as Napster is tenuous, based on correlation rather than causation. He argues that the industry at the time was undergoing artificial expansion, what he describes as a perfect bubble'—a confluence of economic, political, and technological forces that drove the aggregate value of music sales to unprecedented heights at the end of the twentieth century".
Sinnreich cites multiple causes for the economic bubble, including the CD format replacement cycle; the shift from music specialty stores to wholesale suppliers of music and 'minimum advertised pricing'; and the economic expansion of 1991–2001. He believes that with the introduction of new digital technologies, the bubble burst, and the industry suffered as a result.
Economic impact of infringement in emerging markets
The 2011 Business Software Alliance Piracy Study Standard estimated the total commercial value of illegally copied software to be at $59 billion in 2010, with emerging markets accounting for $31.9 billion, over half of the total. Furthermore, mature markets for the first time received fewer PC shipments than emerging economies in 2010. In addition with software infringement rates of 68 percent comparing to 24 percent of mature markets, emerging markets thus possessed the majority of the global increase in the commercial value of counterfeit software. China continued to have the highest commercial value of such software at $8.9 billion among developing countries and second in the world behind the US at $9.7 billion in 2011. In 2011, the Business Software Alliance announced that 83 percent of software deployed on PCs in Africa had been pirated (excluding South Africa).
Some countries distinguish corporate piracy from private use, which is tolerated as a welfare service. This is the leading reason developing countries refuse to accept or respect copyright laws. Traian Băsescu, the president of Romania, stated that "piracy helped the young generation discover computers. It set off the development of the IT industry in Romania."Nathan Davis (5 February 2007) "Thanks for letting us pirate" ''APC (magazine), APC Magazine''.
Pro-free-culture organizations
* Free Software Foundation (FSF)
* Open Source Initiative (OSI)
* Electronic Frontier Foundation (EFF)
* Creative Commons (CC)
* Demand Progress
* Fight for the Future
* Pirate Party
* Plan S, by major funders of scientific research
Anti-copyright-infringement organizations
*
Business Software Alliance
The Software Alliance, also known as BSA, is a trade group established by Microsoft in 1988 to represent commercial software makers. It is a member of the International Intellectual Property Alliance. Its principal activity is trying to stop copyr ...
(BSA)
* Canadian Alliance Against Software Theft (CAAST)
* Entertainment Software Association (ESA)
* Federation Against Copyright Theft (FACT)
* Federation Against Software Theft (FAST)
* International Intellectual Property Alliance (IIPA)
* Copyright Alliance
See also
* Abandonware
* ''In re Aimster Copyright Litigation''
*
* Australian copyright law
* Cable television piracy
* Center for Copyright Information
* Comparison of anti-plagiarism software
* ''Computer Associates Int. Inc. v. Altai Inc.''
* Copyfraud
* Copyleft
* Copyright aspects of downloading and streaming
* Copyright, Designs and Patents Act 1988
* Copyrighted content on file sharing networks
* Copyright Remedy Clarification Act
* Criminal remedies for copyright infringement
* ''Elektra Records Co. v. Gem Electronic Distributors, Inc.''
* Fair Use
* FBI
* Federation Against Copyright Theft (FACT)
* Intellectual property in China
* Internet Privacy Act
* ''Jacobsen v. Katzer''
* Legal aspects of copyright infringement
* Missionary Church of Kopimism
* Online piracy
* Open Letter to Hobbyists
* Pirated movie release types
* Plagiarism
* ''Playboy Enterprises, Inc. v. Frena''
* Product activation
* Public domain
* Radio music ripping
* Software copyright
* Software cracking
* Trade group efforts against file sharing
* Trans-Pacific Partnership
* Video copy detection
* Video game piracy
* Warez
* Windows Genuine Advantage
* World Anti-Piracy Observatory (WAPO)
References
Further reading
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External links
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{{Copyright law by country
Copyright infringement,
Copyright law, Infringement
Organized crime
Organized crime activity
Tort law
Copyright infringement of software, *
File sharing