We have already seen that piracy is defined as the “theft of intellectual property”, but who does this theft affect and how much does it really cost?
It has been stated that in the music industry alone, costs exceed $12.5billion and thousands of jobs, but many other industries experience losses as well. It is estimated that the intellectual property industry in the US is worth $5 trillion annually and employs 18 million people. The motion picture industry in the US loses $20 billion per year (Nagesh, 2010). Within the European Union things are no better, costing as much as 1.2 million jobs and costing £215bn in lost revenue (The Sun UK, 2010). Software piracy has also increased dramatically in recent years, fueled primarily by the lower cost and in turn higher numbers of computers worldwide. The estimated cost of software piracy stands at $51 billion in commercial value. In countries such as Brazil, China, and India, that account for 86% of increased computer sales, large numbers of new criminal counterfeiters are springing up causing many problems for software manufacturers. Beyond the loss to corporate entities, the local economies also suffer in loss of jobs supporting the legitimate industry. It is estimated that a 10% drop in the piracy rate could create 500,000 new jobs and pump $140 billion dollars into a variety of economies. And this is only accounting for the sale of pirated software, not what is downloaded freely from a host of websites and torrents easily available (Barrett, 2010).
Finally, the cost is also to the users of this software, music, or video entertainment. Many are unaware of the consequences that they could face if they are caught and prosecuted, in facing prison time and/or steep monetary fines and penalties. Also at issue is the risk of dangerous viruses and lack of support through purchasing, downloading, or using pirated software.
The Sun UK. (2010, March 17). Retrieved October 2, 2011, from The Sun UK: http://www.thesun.co.uk/sol/homepage/news/2896317/Online-piracy-cost-39k-jobs.html
Barrett, L. (2010, May 13). eSecurity Planet - Security Trends. Retrieved October 2, 2011, from eSecurity Planet: http://www.esecurityplanet.com/trends/article.php/3881951/Software-Piracy-Cost-Companies-51B-BSA-Report.htm
Nagesh, G. (2010, June 23). The Hill's Technology Blog. Retrieved October 2, 2011, from The Hill: http://thehill.com/blogs/hillicon-valley/technology/105081-lawmakers-industry-lament-costs-of-online-piracy-at-hearing
It has been stated that in the music industry alone, costs exceed $12.5billion and thousands of jobs, but many other industries experience losses as well. It is estimated that the intellectual property industry in the US is worth $5 trillion annually and employs 18 million people. The motion picture industry in the US loses $20 billion per year (Nagesh, 2010). Within the European Union things are no better, costing as much as 1.2 million jobs and costing £215bn in lost revenue (The Sun UK, 2010). Software piracy has also increased dramatically in recent years, fueled primarily by the lower cost and in turn higher numbers of computers worldwide. The estimated cost of software piracy stands at $51 billion in commercial value. In countries such as Brazil, China, and India, that account for 86% of increased computer sales, large numbers of new criminal counterfeiters are springing up causing many problems for software manufacturers. Beyond the loss to corporate entities, the local economies also suffer in loss of jobs supporting the legitimate industry. It is estimated that a 10% drop in the piracy rate could create 500,000 new jobs and pump $140 billion dollars into a variety of economies. And this is only accounting for the sale of pirated software, not what is downloaded freely from a host of websites and torrents easily available (Barrett, 2010).
Finally, the cost is also to the users of this software, music, or video entertainment. Many are unaware of the consequences that they could face if they are caught and prosecuted, in facing prison time and/or steep monetary fines and penalties. Also at issue is the risk of dangerous viruses and lack of support through purchasing, downloading, or using pirated software.
The Sun UK. (2010, March 17). Retrieved October 2, 2011, from The Sun UK: http://www.thesun.co.uk/sol/homepage/news/2896317/Online-piracy-cost-39k-jobs.html
Barrett, L. (2010, May 13). eSecurity Planet - Security Trends. Retrieved October 2, 2011, from eSecurity Planet: http://www.esecurityplanet.com/trends/article.php/3881951/Software-Piracy-Cost-Companies-51B-BSA-Report.htm
Nagesh, G. (2010, June 23). The Hill's Technology Blog. Retrieved October 2, 2011, from The Hill: http://thehill.com/blogs/hillicon-valley/technology/105081-lawmakers-industry-lament-costs-of-online-piracy-at-hearing
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