What the Online Piracy Data Tells Us About Copyright Policymaking

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education Libraries, archives, museums and other cultural activities

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing Video game publishing Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

What the Online Piracy Data Tells Us About Copyright Policymaking
Title: What the Online Piracy Data Tells Us About Copyright Policymaking
Author(s): Smith, Michael D.
Year: 2023
Citation: Smith, M. D. (2023). What the Online Piracy Data Tells Us About Copyright Policymaking. Hudson Institute.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
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About the Data
Data Description: “This policy memo summarizes the peer-reviewed empirical research into the impact of online piracy on the marketplace for creative works, drawing heavily on similar reviews of the literature my colleagues and I have produced in papers, testimony, and book chapters.”
Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • Not specified
Funder(s):
  • Not Specified

Abstract

The impact of online piracy on creators, consumers, and society has been debated for years. This paper reviews empirical research on the effects of piracy. Studies overwhelmingly find piracy negatively impacts creators by reducing income. Piracy also harms society by decreasing incentives for investing in creative works. However, legislative interventions worldwide have successfully reduced these detrimental effects. The peer-reviewed literature clearly shows piracy is harmful economically, but appropriate anti-piracy laws can reverse the damage. This paper summarizes the empirical evidence on the impacts of online piracy and the effectiveness of policy responses.

Main Results of the Study

“In short, there is a broad consensus in the peer-reviewed academic literature that online piracy does exactly what one would expect: it makes it harder for creators and rights owners to make a fair market return on their investments in content creation and dissemination.” “Thus, there is significant empirical evidence in the academic literature that online piracy decreases the revenues available to creators of copyrighted works, and that this reduction in revenues has harmed consumers by reducing both the quantity and quality of creative output that would have occurred absent piracy.” “The right legislative interventions can have a significant impact—one that lessens the harms of piracy to creators and consumers alike. This is true whether the interventions address the demand side of piracy by targeting consumers or the supply side of piracy by targeting providers. Moreover, the data shows that policymakers should not be deterred by the claims from some advocates that the availability of legal alternatives alone will solve these problems.”

Policy Implications as Stated By Author

The study does not make any explicit policy recommendation. However, the author acknowledges the effectiveness of anti-piracy policies and speaks to policymakers that “while online piracy has a demonstrable negative impact on our creative economy and our culture since it disincentivizes creativity, the empirical evidence shows that concrete legislative steps can be taken to avoid some of this damage. The good news for policymakers is that they can confidently use government regulation to reverse these harms.”

Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Green-tick.png
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Green-tick.png
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)
Green-tick.png

Datasets

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