The Piracy "Industry"

Until recent years, the problem of piracy (the unauthorized reproduction or distribution of copyrighted works (for commercial purposes)) was largely confined to the copying and physical distribution of tapes, disks and CDs. Yet the emergence and increased use of global data networks and the WWW has added a new dimension to the piracy of intellectual property by permitting still easier copying, electronic sales and transmissions of illegally reproduced copyrighted works on a grand scale.

This new development, often referred to as Internet piracy, broadly relates to the use of global data networks to 1) transmit and download digitized copies of pirated works, 2) advertise and market pirated intellectual property that is delivered on physical media through the mails or other traditional means, and 3) offer and transmit codes or other technologies which can be used to circumvent copy-protection security measures.

Lately the International Intellectual Property Alliance has published a new report on the estimated trade losses due to piracy. (The IIPA assumes that their report actually underestimates the loss of income due to the unlawful copying and distribution of copyrighted works. Yet it should be taken into consideration that the IIPA is the representative of the U.S. core copyright industries (business software, films, videos, music, sound recordings, books and journals, and interactive entertainment software).)

Table: IIPA 1998 - 1999 Estimated Trade Loss due to Copyright Piracy (in millions of US$)





Motion Pictures

Records & Music

Business Applications

Entertainment Software

Books





1999

1998

1999

1998

1999

1998

1999

1998

1999

1998

Total Losses

1323

1421

1684

1613

3211

3437

3020

2952

673

619



Total Losses (core copyright industries)

1999

1998

9910.0

10041.5




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Individualized Audience Targeting

New opportunities for online advertisers arise with the possibility of one-to-one Web applications. Software agents for example promise to "register, recognize and manage end-user profiles; create personalized communities on-line; deliver personalized content to end-users and serve highly targeted advertisements". The probably ultimate tool for advertisers. Although not yet widely used, companies like Amazon.Com have already started to exploit individualized audience targeting for their purposes.

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Databody convergence

In the phrase "the rise of the citizen as a consumer", to be found on the EDS website, the cardinal political problem posed by the databody industry is summarised: the convergence of commercial and political interest in the data body business, the convergence of bureaucratic and commercial data bodies, the erosion of privacy, and the consequent undermining of democratic politics by private business interest.

When the citizen becomes a consumer, the state must become a business. In the data body business, the key word behind this new identity of government is "outsourcing". Functions, that are not considered core functions of government activity are put into the hands of private contractors.

There have long been instances where privately owned data companies, e.g. credit card companies, are allowed access to public records, e.g. public registries or electoral rolls. For example, in a normal credit card transaction, credit card companies have had access to public records in order to verify identity of a customer. For example, in the UK citizen's personal data stored on the Electoral Roll have been used for commercial purposes for a long time. The new British Data Protection Act now allows people to "opt out" of this kind of commercialisation - a legislation that has prompted protests on the part of the data industry: Experian has claimed to lose LST 500 mn as a consequence of this restriction - a figure that, even if exaggerated, may help to understand what the value of personal data actually is.

While this may serve as an example of an increased public awareness of privacy issues, the trend towards outsourcing seems to lead to a complete breakdown of the barriers between commercial and public use of personal data. This trend can be summarised by the term "outsourcing" of government functions.

Governments increasingly outsource work that is not considered core function of government, e.g. cooking meals in hospitals or mowing lawns in public parks. Such peripheral activities marked a first step of outsourcing. In a further step, governmental functions were divided between executive and judgemental functions, and executive functions increasingly entrusted to private agencies. For these agencies to be able to carry out the work assigned to them, the need data. Data that one was stored in public places, and whose handling was therefore subject to democratic accountability. Outsourcing has produced gains in efficiency, and a decrease of accountability. Outsourced data are less secure, what use they are put to is difficult to control.

The world's largest data corporation, EDS, is also among the foremost outsourcing companies. In an article about EDS' involvement in government outsourcing in Britain, Simon Davies shows how the general trend towards outsourcing combined with advances in computer technology allow companies EDS, outside of any public accountability, to create something like blueprints for the societies of the 21st century. But the problem of accountability is not the only one to be considered in this context. As Davies argues, the data business is taking own its own momentum "a ruthless company could easily hold a government to ransom". As the links between government agencies and citizens thin out, however, the links among the various agencies might increase. Linking the various government information systems would amount to further increase in efficiency, and a further undermining of democracy. The latter, after all, relies upon the separation of powers - matching government information systems would therefore pave the way to a kind of electronic totalitarianism that has little to do with the ideological bent of George Orwell's 1984 vision, but operates on purely technocratic principles.

Technically the linking of different systems is already possible. It would also create more efficiency, which means generate more income. The question, then, whether democracy concerns will prevent it from happening is one that is capable of creating

But what the EDS example shows is something that applies everywhere, and that is that the data industry is whether by intention or whether by default, a project with profound political implications. The current that drives the global economy deeper and deeper into becoming a global data body economy may be too strong to be stopped by conventional means.

However, the convergence of political and economic data bodies also has technological roots. The problem is that politically motivated surveillance and economically motivated data collection are located in the same area of information and communication technologies. For example, monitoring internet use requires more or less the same technical equipment whether done for political or economic purposes. Data mining and data warehousing techniques are almost the same. Creating transparency of citizens and customers is therefore a common objective of intelligence services and the data body industry. Given that data are exchanged in electronic networks, a compatibility among the various systems is essential. This is another factor that encourages "leaks" between state-run intelligence networks and the private data body business. And finally, given the secretive nature of state intelligence and commercial data capturing , there is little transparency. Both structures occupy an opaque zone.

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Product Placement

With television still being very popular, commercial entertainment has transferred the concept of soap operas onto the Web. The first of this new species of "Cybersoaps" was "The Spot", a story about the ups and downs of an American commune. The Spot not only within short time attracted a large audience, but also pioneered in the field of online product placement. Besides Sony banners, the companies logo is also placed on nearly every electronic product appearing in the story. Appearing as a site for light entertainment, The Spots main goal is to make the name Sony and its product range well known within the target audience.

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Proprietary Network

Proprietary networks are computer networks with standards different to the ones proposed by the International Standardization Organization (ISO), the Open Systems Interconnection (OSI). Designed to conform to standards implemented by the manufacturer, compatibility to other network standards is not assured.

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Atlantic Richfield Company

American petroleum corporation created in 1966 by the merger of Richfield Oil

Corporation and Atlantic Refining Company. A further merger in 1969 brought in Sinclair Oil Corporation. Atlantic Richfield has petroleum operations in all parts of the United States as well as in Indonesia, the North Sea, and the South China Sea. The company also owns and operates transportation facilities for liquid petroleum, including pipelines and tankers; produces and sells chemicals, coal, and metal products; and is involved in the development of solar energy products and in other energy-related activities. Headquarters are in Los Angeles.

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WTO

An international organization designed to supervise and liberalize world trade. The WTO (World Trade Organization) is the successor to the General Agreement on Tariffs and Trade (GATT), which was created in 1947 and liberalized the world's trade over the next five decades. The WTO came into being on Jan. 1, 1995, with 104 countries as its founding members. The WTO is charged with policing member countries' adherence to all prior GATT agreements, including those of the last major GATT trade conference, the Uruguay Round (1986-94), at whose conclusion GATT had formally gone out of existence. The WTO is also responsible for negotiating and implementing new trade agreements. The WTO is governed by a Ministerial Conference, which meets every two years; a General Council, which implements the conference's policy decisions and is responsible for day-to-day administration; and a director-general, who is appointed by the Ministerial Conference. The WTO's headquarters are in Geneva, Switzerland.



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Amazon.Com

Amazon.Com was one of the first online bookstores. With thousands of books, CDs and videos ordered via the Internet every year, Amazon.Com probably is the most successful Internet bookstore.

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