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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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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