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
| |
|
DMCA
The DMCA (Digital Millennium Copyright Act) was signed into law by U.S. President Clinton in 1998 and implements the two 1996 WIPO treaties (WIPO Performances and Phonograms Treaty and WIPO Copyright Treaty). Besides other issues the DMCA addresses the influence of new technologies on traditional copyright. Of special interest in the context of the digitalization of intellectual property are the titles no. 2, which refers to the limitation on the liability of online service providers for copyright infringement (when certain conditions are met), no. 3, that creates an exemption for making a copy of a computer program in case of maintenance and repair, and no. 4 which is concerned with the status of libraries and webcasting. The DCMA has been widely criticized for giving copyright-holders even more power and damage the rights and freedom of consumers, technological innovation, and the free market for information.
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