file sharing of copyrighted work do you do it? is it the right thing to do? can it be stopped?
Post on 19-Dec-2015
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File Sharing of Copyrighted Work
• Do you do it?
• Is it the right thing to do?
• Can it be stopped?
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A Growing Audience
• Traffic on peer-to-peer networks has nearly doubled since 2002
• Average simultaneous worldwide P2P users
• 2002: 4.9 million
• 2007: 9.4 million• source: BigChampagne
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CD Sales Plummeting
• CD sales down by 20% from March 2006-2007.
• Wall Street Journal lists a number of factors contributing, including file sharing.
• slashdot.org, March 22, 2007. <http://slashdot.org/articles/07/03/22/1547252.shtml>
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Has File Sharing Hurt Music Sales?
• It depends on whom you ask.
• Some economists say no.
• Oberholzer-Gee, Koleman Strumpf. The Journal of Political Economy, 2007.
• Some economists say yes.
• Liebowitz, Stan J. “Economists Examine File-Sharing and Music Sales”. The Industrial Organization of Digital Goods and Electronic Markets, 2005.
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Other possible factors in declining music sales• 800 fewer retail outlets (Tower
Records' demise alone closed 89)
• increasingly negative attitude towards CD sales from big-box retailers (Best Buy now dedicates less floor space to CDs in favor of better-selling items)
• Wall Street Journal, “Sales of Music, Long in Decline, Plunge
Sharply”, March 21, 2007.
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Other factors for lower sales(continued)
• Music sales may have been artificially inflated to begin with.
• People replaced LPs and cassettes with CDs. When they completed this task, sales stabilized.
• Movie sales actually up.
• slyck.com, March 6, 2007. <http://www.slyck.com/story1436.html>
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Is downloading the same as stealing?
• Stealing implies that someone has been deprived of property
• Here, it’s not clear if that is always the case
• People who download often wouldn’t have bought the music anyway.
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Record Companies file lawsuits.
• Not suing organized criminals but ordinary people. http://p2pnet.net/story/2206
• The defendants can’t afford to defend themselves, so almost all the cases settle, usually for around $4000.
• Boston Globe, March 8, 2007.
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The record companies claim to “win” the lawsuits.
But do they really?• Illegal downloading is still rampant
• 80 million tunes were legally downloaded last December, but illegal downloads were nearly six times higher at 466 million songs.
• Boston Globe, March 8, 2007.
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Are the lawsuits effective at decreasing piracy?
• Record companies say they have stabilized the problem, that illegal downloading is no longer “growing exponentially”
• Boston Globe, March 8, 2007.
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Are lawsuits effective? (continued)
• Number of households illegally downloading music is down.
• NPD Group as cited in the Boston Globe, March 8, 2007.
• But those who are left are downloading more.
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Should content owners be spending their money on
something else?
• Lawsuits cost much more than record companies recover.
• Record companies could probably find a way to make money embracing the technology
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New technology
• New technology allows ads to be embedded in media files unobtrusively
• When a user downloads a file, an ad pops up asking if the user would be willing to view an ad in exchange for owning a legal copy of the music.
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Would you view an ad in exchange for a legal
copy?
• The company marketing the technology claims that 60% of users are willing to view the ad
• Business 2.0,2 “Peer-to-Peer Music Goes Legit with Pop-Up Ads”, April 2007.
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Why view an ad if you don’t have to?
People don’t really want to rip anyone off; they
just want music for free• People don’t really want to rip
anyone off. They just want music for free.
• They would view the ad just because they might as well.
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Other ways for content owners to embrace file
sharing
• Flat-fee all-you-can-download services
• Other ways?
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Lawsuits may be counterproductive
• If people view the copyrighted owners as the bad guys, they are less likely to care about the anti-piracy cause.
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Nobody likes the RIAA
• Voted “Worst company in America” by consumerist.com, narrowly beating out Halliburton.
• http://consumerist.com/consumer/worst-company-in-america/riaa-wins-worst-company-in-america-2007-245235.php
• Making everyone hate you certainly couldn’t help the cause to stop illegal downloading
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Do the record companies and others
go to far?• A company suing Apple, Microsoft,
and RealNetworks for failing to implement Digital Rights Management technology.
• news.com, May 11, 2007. http://news.com.com/Apple,+others+draw+legal+threat+over+media+players/2100-1030_3-6183105.html
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Too Far (continued)?
• Digital Millenium Copyright Act
• makes it illegal “descramble a scrambled work, to decrypt an encrypted work, or otherwise to avoid, bypass, remove, deactivate or impair a technological measure, without the authority of the copyright owner.”
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File Sharing sites are defiant
• piratebay.org’s legal threats section
• Can they ever be stopped?