Copyright infringement (at times referred to as piracy) is the use of works protected by copyright without permission for a usage where such permission is required, thereby infringing certain exclusive rights 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 process, or litigation in civil court. 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 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 or otherwise contentious.

Terminology

Copyright Infringement Mickey Mouse Myanmar

The terms ''piracy'' and ''theft'' are often associated with copyright infringement. The original meaning of '' piracy'' 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'', meanwhile, emphasizes the potential commercial harm of infringement to copyright holders. However, copyright is a type of intellectual property, an area of law distinct from that which covers robbery or theft, offenses related only to tangible property. 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 of London in 1557, received a Royal Charter giving the company a monopoly on publication and tasking it with enforcing the charter. Article 61 of the 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights (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 networks, as "piracy". Richard Stallman and the GNU Project 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, "although such misuse has been rejected by legislatures and courts". The slogan " Piracy is theft" 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 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 rights – 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, YouTube or Twitter. 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 of "

freeloading {{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 ''

Public Relations Consultants Association Ltd v Newspaper Licensing Agency Ltd ''Public Relations Consultants Association v The Newspaper Licensing Agency Ltd'' (

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UKSC 18, on appeal from:

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EWCA Civ 890 ) was a 2011 case UK Supreme Court case decided in 2013. It essentially paralleled the US case ''Associated Pre ...

'' had two prongs; one concerned whether a news aggregator 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 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 Substantial similarity, in US copyright law, is the standard used to determine whether a defendant has infringed the reproduction right of a copyright. The standard arises out of the recognition that the exclusive right to make copies of a work w ...

requirement to determine whether the work was copied. Likewise, courts may require computer software to pass an Abstraction-Filtration-Comparison test (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 technology and anti-circumvention 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, 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 licenses, like the GNU General Public License (GPL), and the Creative Commons licenses, which are predominantly applied to visual and literary works.

Protected distribution

To maximize revenue, pre-COVID-19 film distribution typically began with movie theaters (theatrical window), on average approximately 16 and a half weeks, before the release to Blu-ray and DVD (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. The data can be encrypted, with the key being made to work only at specific times in order to prevent leakage between screens.

Watermarking

Coded Anti-Piracy 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 marks resulted in a man being arrested for uploading a screener's copy of the movie '' Flushed Away''. Some photocopiers 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 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 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, the United Kingdom, Spain, France, Poland 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 Felix Reda. In relation to computer software, the Business Software Alliance (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, t ...

(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'', 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 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 (company), Psion Software claimed in 1983 that software piracy cost it £2.9 million a year, 30% of its revenue. Will Wright (game designer), 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 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 (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

References

External links

* {{Copyright law by country Copyright infringement, Copyright law, Infringement Organized crime Organized crime activity Tort law Copyright infringement of software, * File sharing