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  • www.oecd.org/publishing

    Piracy of Digital ContentResponding to concerns in governments and the business community, the OECD launched a project in 2005 to assess the magnitude and impact of counterfeiting and piracy. The objective of the project was to improve factual understanding and awareness of how large the problem is and the effects that infringements of intellectual property rights have on governments, business and consumers around the world.

    This book reports on Phase II of this project and studies digital piracy, i.e. the infringement of copyrighted content (such as music, films, software, broadcasting, books, etc.) where the end product does not involve the use of hard media, such as CDs and DVDs. It presents the unique economic properties of markets for pirated digital products, where the existence of a large number of suppliers willing to provide pirated content at virtually no cost poses new and difficult challenges to copyright owners and policy makers in combating that piracy. These economic features, together with rapid technological developments, create special and unique problems for policy makers and the large number of actors involved in different jurisdictions. This book also provides an illustrative, in-depth case study of the sports rights owners sector, highlighting how it is affected by digital piracy.

    For more information about OECD work on counterfeiting and piracy, see www.oecd.org/sti/counterfeiting.

    The full text of this book is available on line via this link: www.sourceoecd.org/scienceIT/9789264064508

    Those with access to all OECD books on line should use this link: www.sourceoecd.org/9789264064508

    SourceOECD is the OECD online library of books, periodicals and statistical databases. For more information about this award-winning service and free trials, ask your librarian, or write to us at SourceOECD@oecd.org.

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    Piracy of Digital Content

  • Piracy of Digital Content

  • ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

    The OECD is a unique forum where the governments of 30 democracies worktogether to address the economic, social and environmental challenges of globalisation.The OECD is also at the forefront of efforts to understand and to help governmentsrespond to new developments and concerns, such as corporate governance, the

    information economy and the challenges of an ageing population. The Organisationprovides a setting where governments can compare policy experiences, seek answers tocommon problems, identify good practice and work to co-ordinate domestic andinternational policies.

    The OECD member countries are: Australia, Austria, Belgium, Canada, theCzech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland,

    Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand,Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey,the United Kingdom and the United States. The Commission of the EuropeanCommunities takes part in the work of the OECD.

    OECD Publishing disseminates widely the results of the Organisations statisticsgathering and research on economic, social and environmental issues, as well as the

    conventions, guidelines and standards agreed by its members.

    Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.

    OECD 2009

    You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications,

    databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials,

    provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or

    commercial use and translation rights should be submitted to rights@oecd.org. Requests for permission to photocopy

    portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center

    (CCC) at info@copyright.com or the Centre franais d'exploitation du droit de copie (CFC) contact@cfcopies.com.

    This work is published on the responsibility of the Secretary-General of

    the OECD. The opinions expressed and arguments employed herein do not

    necessarily reflect the official views of the Organisation or of the governments

    of its member countries.

  • FOREWORD 3

    PIRACY OF DIGITAL CONTENT ISBN 978-92-64-06450-8 OECD 2009

    Foreword

    This study covers the piracy of content, such as music, films and software that does not involve the use of physical media; in other words it essentially deals with piracy over the Internet. This represents Phase II of a three-phase project examining the Economic Impacts of Counterfeiting and Piracy (www.oecd.org/sti/counterfeiting). Phase I covered counterfeiting and piracy resulting in the production of tangible goods, while Phase III will cover other forms of counterfeiting.

    The study was prepared by the Structural Policy Division of the OECD Directorate for Science, Technology and Industry. The main study was prepared by Piotr Stryszowski, while the case study was prepared by Danny Scorpecci. The study was carried out under the guidance of an informal expert advisory group composed of OECD member governments and industry representatives, and the study team wishes to acknowledge the valuable assistance provided by the advisory group.

    The study was presented to the OECD Committee on Industry, Innova-tion and Entrepreneurship, which agreed to its public release. This study was also presented to the OECD Information, Computer and Communications Policy Committee and benefited from this committees comments. The study was undertaken with the support of governments and industry associa-tions, and the authors express their gratitude for the inputs provided.

  • TABLE OF CONTENTS 5

    PIRACY OF DIGITAL CONTENT ISBN 978-92-64-06450-8 OECD 2009

    Table of Contents

    Executive Summary .................................................................................................. 7

    Introduction ................................................................................................

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