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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 * John D. Works (1847–1928), California senator and judge * Samuel Works (c. 1781–1868), New York politician Albums * ''Works'' (Pink Floyd album), a Pi ...
protected by
copyright A copyright is a type of intellectual property that gives its owner the exclusive legal 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, ...
without permission for a usage where such permission is required, thereby infringing certain
exclusive right 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 perform the same ...
s granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to produce
derivative work In copyright law, a derivative work is an expressive creation that includes major copyrightable elements of a first, previously created original work (the underlying work). The derivative work becomes a second, separate work independent from ...
s. The copyright holder is usually 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 infr ...
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 A counterfeit is a fake or unauthorized replica of a genuine product, such as money, documents, designer items, or other valuable goods. Counterfeiting generally involves creating an imitation of a genuine item that closely resembles the original ...
ing, or the fraudulent imitation of a product or brand, 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 of offenders, preventing other ...
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 word, phrase, slur, or derogatory term is a word or grammatical form expressing a negative or disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hosti ...
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 valuable goods, or taking hostages. Those who conduct acts of piracy are call ...
'' is "robbery or illegal violence at sea", but the term has been in use for centuries as a synonym for acts of copyright infringement. ''
Theft Theft (, cognate to ) 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 shor ...
'', 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, co ...
, 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, re ...
. 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 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. In 1668 publisher John Hancock wrote of "some dishonest Booksellers, called Land-Pirats, who make it their practise to steal Impressions of other mens Copies" in the work ''A String of Pearls: or, The Best Things Reserved till Last'' by
Thomas Brooks Thomas, Thom, Tom, or Tommy Brooks may refer to: Politics and religion * Thomas Brooks (Puritan) (1608–1680), Puritan minister and author * Thomas Brooks, American minister after whom Brookfield, Connecticut, was named * Thomas Brooks, 1st Baron ...
. Over time the metaphor mostly used in the book-trade became more common, such that the use of the word 'pirate' itself to describe unauthorized publishing of books was attested to in
Nathan Bailey Nathan Bailey (died 27 June 1742), was an English philologist and lexicographer. He was the author of several dictionaries, including his '' Universal Etymological Dictionary'', which appeared in some 30 editions between 1721 and 1802. Bailey' ...
's 1736 dictionary ''
An Universal Etymological English Dictionary ''An Universal Etymological English Dictionary'' was a dictionary compiled by Nathan Bailey (or Nathaniel Bailey) and first published in London in 1721. It was the most popular English dictionary of the eighteenth century until the publication ...
'':
'One who lives by pillage and robbing on the sea. Also a plagiary'
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 1709 or 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 ...
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 1 ...
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, but ...
giving the company a
monopoly A monopoly (from Greek language, Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic Competition (economics), competition to produce ...
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 agreement, international legal agreement between all the member nations of the World Trade Organization (WTO). It establishes minimum standards f ...
(TRIPs) requires
criminal In ordinary language, a crime is an unlawful act punishable by a State (polity), state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definiti ...
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 th ...
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 Computer hardware, computing dev ...
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 (, cognate to ) 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 shor ...
, "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 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 turn on question ...
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 * ''The Convert'', a 2023 film produced by Jump Film & Television and Brouhaha Entertainment * "Conversion" (''Doctor Who'' audio), an episode of the audio drama ''Cyberman'' * ...
, 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 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 perform the same ...
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 a social media and social networking service owned by the American technology conglomerate Meta Platforms, Meta. Created in 2004 by Mark Zuckerberg with four other Harvard College students and roommates, Eduardo Saverin, Andre ...
,
YouTube YouTube is an American social media and online video sharing platform owned by Google. YouTube was founded on February 14, 2005, by Steve Chen, Chad Hurley, and Jawed Karim who were three former employees of PayPal. Headquartered in ...
or
Twitter Twitter, officially known as X since 2023, is an American microblogging and social networking service. It is one of the world's largest social media platforms and one of the most-visited websites. Users can share short text messages, image ...
. 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 In linguistics, a blend—also known as a blend word, lexical blend, or portmanteau—is a word formed by combining the meanings, and parts of the sounds, of two or more words together.
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 rights, right to freedom of expression has been r ...
. 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 i ...
, 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: * the mystique/prestige bestowed upon monarchs ** one or more monarchs, such as kings, queens, emperors, empresses, princes, princesses, etc. *** royal family, the immediate family of a king or queen-regnant, and sometimes h ...
, at a rate determined by law rather than private negotiation, is paid to the copyright owner or representative
copyright collective A copyright collective (also known as a copyright society, copyright collecting agency, licensing agency or copyright collecting society or collective management organization) is a non-governmental body created by copyright law or private agreeme ...
. 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'' (
013 013 is a music venue in Tilburg, the Netherlands. The venue opened in 1998 and replaced the ''Noorderligt'', the ''Bat Cave'' and the ''MuziekKantenWinkel''. 013 is the largest popular music venue in the southern Netherlands. There are two concer ...
UKSC 18, on appeal from: 011EWCA 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 In computing, a news aggregator, also termed a feed aggregator, content aggregator, feed reader, news reader, or simply an aggregator, is client software or a web application that aggregates digital Content (media), content such as online newsp ...
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 multimedia and other files can result in less overall delay when web browser, browsing the Web. Parts o ...
created by the
web browser A web browser, often shortened to browser, is an application 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 scr ...
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 United States, 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 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 militair ...
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 ...
, 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 Licenses (GNU GPL or simply GPL) are a series of widely used free software licenses, or ''copyleft'' licenses, that guarantee end users the freedom to run, study, share, or modify the software. The GPL was the first ...
(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 CC license is used when an author wants to give other people the right to share, use, and bu ...
s, which are predominantly applied to visual and literary works.


Protected distribution

To maximize revenue, pre-COVID-19
film distribution Film distribution, also called film exhibition or film distribution and exhibition, is the process of making a film available for viewing to an audience. This is normally the task of a professional film distributor, who would determine the marketin ...
typically began with
movie theaters A movie theater (American English) or cinema (Commonwealth English), also known as a movie house, cinema hall, picture house, picture theater, the movies, the pictures, or simply theater, is a business that contains auditoriums for viewing fi ...
(theatrical window), on average approximately weeks, before the release to
Blu-ray Blu-ray (Blu-ray Disc or BD) is a digital optical disc data storage format designed to supersede the DVD format. It was invented and developed in 2005 and released worldwide on June 20, 2006, capable of storing several hours of high-defin ...
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 ki ...
(entering its video window). During the theatrical window, digital versions of films are often transported in
data storage device Data ( , ) are a collection of discrete or continuous values that convey information, describing the quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpreted form ...
s by couriers rather than by
data transmission Data communication, including data transmission and data reception, is the transfer of data, signal transmission, transmitted and received over a Point-to-point (telecommunications), point-to-point or point-to-multipoint communication chann ...
. The data can be
encrypted In cryptography, encryption (more specifically, encoding) is the process of transforming information in a way that, ideally, only authorized parties can decode. This process converts the original representation of the information, known as plain ...
, 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 ''Flushed Away'' is a 2006 animated adventure comedy film produced by DreamWorks Animation and Aardman Features. The film was directed by Sam Fell and David Bowers, from a screenplay by Dick Clement, Ian La Frenais, Chris Lloyd, Joe Keen ...
''. 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 ...
s use
Machine Identification Code Printer tracking dots, also known as printer steganography, DocuColor tracking dots, yellow dots, secret dots, or a machine identification code (MIC), is a digital watermarking, digital watermark which many color laser printing, laser printers a ...
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, cheques, and ownership title certificate designs worldwide since about 1996. It is added ...
on banknotes is used to prevent copying to make
counterfeit currency Counterfeit money is currency produced outside of 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 ...
.


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 primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...
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 lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
, 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 Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
,
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
,
France France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...
,
Poland Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
and
Sweden Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...
; 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 acro ...
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 Election, elected to serve as a popular representative in the European Parliament. When the European Parliament (then known as the Common Assembly of the European Coal and S ...
Felix Reda Felix Reda (formerly Julia Reda; born 30 November 1986) is a German researcher, politician, and former 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 (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 [intellectual property] infringements 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 (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 The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...
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 from 2004 to 2014, 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


See also

* Abandonware * ''In re Aimster Copyright Litigation'' * * Copyright law of Australia * 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 * Licence laundering * 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

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