World-Information.Org

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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Like that car? The tricks of the data body industry

2. Like that car? The tricks of the data body industry

In the New Economy, data have become a primary resource. Businesses unable to respond to the pressure of informatisation are quickly left behind. "Information is everything" has become the war-cry of the New Economy. More than ever, business companies now collect data related to their customers, their competitors, economic indicators, etc., and compile them in

data warehouses. Large amounts of data acquired can be turned into a systematic collection called a

data warehouse through

data mining techniques. These data can be used for marketing, stock exchange transactions, risk assessment, and many other purposes.

However, there are also many companies that specialise in data body economics as the main line of business. They collect huge amount of data process and enhance them (thereby increasing the value of the data) and offer them on to other companies.

Direct marketing companies belong to this category.

Direct marketing companies carry out targeted marketing, also called strategic marketing, aimed at individual customers or groups of customers. This process is based on a consumer profile, a collection of data containing personal information such as age, sex, marital status, employment, address, and information about consumer and payment behaviour. Based upon this profile, conclusions regarding possible future consumption are drawn and offers are made.

For example, somebody who has been attracted by a car on display in an airport terminal and completes a card with name and address to participate in a draw reveals a lot of economically valuable information about him / herself. Apart from name and address, and other data that is completed on the card, this person also can be assumed to be a potential car buyer (evidently he / she wants a car) and to be relatively affluent (the poor do not normally travel by plane). The time when you complete the card also provides information: in July and August, you are more likely to be a holiday maker than in November. Possibly in small print somewhere on the ticket you complete you agree to receive more information about this and other products, and you agree also that your data are "electronically processed". The data acquired this way can normally be expected to be much more valuable than the car the is offered in the draw. Most people who completed the cards will not win in the draw, but instead end up on directs marketing data warehouses and one day receive offers of products and services which they never knew they wanted.

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intellectual property may be put into place by copyright owners before distributing their works. Examples are:

Contracts

Contracts are a pre-infringement control method, which very often is underestimated. Properly formed contracts enable copyright holders to restrict the use of their works in excess of the rights granted under copyright laws.

Copy Protection

This approach was standard in the 1980s, but rejected by consumers and relatively easy to break. Still copy protection, whereby the vendor limits the number of times a file can be copied, is used in certain situations.

Limited Functionality

This method allows copyright owners to provide a copy of the work, which is functionally limited. Software creators, for example, can distribute software that cannot print or save. A fully functional version has to be bought from the vendor.

Date Bombs

Here the intellectual property holder distributes a fully functional copy but locks off access at a pre-specified date or after a certain number of uses.

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