Turning Piracy into Profits: a Theoretical Investigation

Minniti, Antonio; Vergari, Cecilia

doi:10.1016/j.infoecopol.2010.06.001

Cited by 20 publications

(12 citation statements)

References 22 publications

(20 reference statements)

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“…This dynamic has been observed for music as well [95]. The promotional effects of piracy have also been noted in markets that are underdeveloped and in which access is therefore limited [76]. It is also possible that a certain level of music piracy can drive sales in other revenue-generating areas providing a net benefit to PROs [78].…”

Section: Music Streaming Systems and Digital Piracymentioning

confidence: 89%

The Access Model for Music and the Effect of Modification, Trial, and Sharing Usage Rights on Streaming Adoption and Piracy

Hampton-Sosa

2019

J. theor. appl. electron. commer. res.

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The access economy business model has been applied to a wide range of digital goods and services such as software, movies, music, and books. The digital platforms that manage transactions between buyers and sellers enable product rights owners to define product usage rights with a great deal of precision. In this paper, music product usage rights for digital consumption and platform attributes of music streaming systems are discussed and a model for digital music streaming system adoption and digital piracy is presented. The results of a quasi-experiment suggest that the perceived freedom to tryout, modify, and share digital music products contribute to both perceived usefulness and perceived enjoyment of a product format and the music streaming system. In turn, perceived usefulness and perceived enjoyment lead to the intention to adopt a music streaming system. The perceived usefulness of a music streaming system is associated with a reduction of pirating intention.

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Section: Music Streaming Systems and Digital Piracymentioning

confidence: 89%

The Access Model for Music and the Effect of Modification, Trial, and Sharing Usage Rights on Streaming Adoption and Piracy

Hampton-Sosa

2019

J. theor. appl. electron. commer. res.

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“…They consider that piracy maybe welfareincreasing, in particular because it leads to market expansion (providing information about the characteristics and value of the product and facilitating the purchasing decision) and because selling physical products that are complements to the information goods mitigates negative effect of piracy on profits. Nevertheless, for Minniti and Vergari (2010) the market expansion effect, that allows firms to reach new costumers, occurs in emerging markets. On the contrary, in mature and widespread markets, firms prefer to be protected from piracy.…”

Section: The Processes Of Imitation and Its Effects On The Economymentioning

confidence: 99%

The impact of the patent system on the social welfare: A critical view

Giménez

2018

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Purpose: This article offers a critical view of the impact of patents on economic activity. The article questions whether a strengthening of the patent system is optimal in economic terms, from a business and social perspective.Design/methodology/approach: We develop two analytic innovation models. They help us to understand how the strength of the patent system affects 1) the industry profits 2) the social welfare. Findings:The strengthening of patent systems could cause a decline in the activities of imitation and, therefore, a decrease in competition, a reduction in the production and assimilation of new technologies and could create barriers to entry into technology-intensive sectors, increasing the costs of production. We will show that a lower strength patent system and an increase in the activities of imitation can i) increase the benefits to industry as a whole ii) lead to greater social surplus. Research limitations/implications:The final set of sustainability-related issues (and drivers) presented aren't exhaustive and are delimited by the particular scenario generated around Aqualogy's business scope; therefore, it cannot be considered as a standard application mode. Originality/value: Much of the literature on innovation has traditionally seen imitation processes as harmful to the development of new technologies, and detrimental to the welfare of consumers, producers and society at large. That is why policies aimed at strengthening the patent system and discouraging imitation processes are associated with improvements in social welfare, -fostering innovation, trade, foreign investment and technology transfer-. However, our findings should lead us to rethink how optimal innovation policy should be designed. The problems associated with restrictions on the free market involve costs that outweigh the social benefits that patents can provide. Market mechanisms can effectively reward innovators for being the first to bring a product into the market, without the need to grant a monopoly.

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“…The issue of diffusion is discussed by Prasad and Mahajan (2003), where there is an optimum level of piracy according to the type of market, determined by the choice of how much the company should protect itself from illegal copies. That aspect is also investigated by Minniti and Vergari (2010), who highlight that this effect is more captured still in developing markets, showing through and analyzing how a community of archive sharing affects the profitability of producers of digital goods. In addition, piracy can produce other positive effects, such as signalling and herding effects (Note 1) (Castro et al, 2008).…”

Section: Literature Revisionmentioning

confidence: 99%