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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Data bunkers

Personal data are collected, appropriated, processed and used for commercial purposes on a global scale. In order for such a global system to operate smoothly, there a server nodes at which the data streams converge. Among the foremost of these are the data bases of credit card companies, whose operation has long depended on global networking.

On top of credit card companies such as Visa, American Express, Master Card, and others. It would be erroneous to believe that the primary purpose of business of these companies is the provision of credit, and the facilitation of credit information for sale transactions. In fact, Information means much more than just credit information. In an advertisement of 1982, American Express described itself in these terms: ""Our product is information ...Information that charges airline tickets, hotel rooms, dining out, the newest fashions ...information that grows money funds buys and sells equities ...information that pays life insurance annuities ...information that schedules entertainment on cable television and electronically guards houses ...information that changes kroners into guilders and figures tax rates in Bermuda ..."

Information has become something like the gospel of the New Economy, a doctrine of salvation - the life blood of society, as Bill Gates expresses it. But behind information there are always data that need to be generated and collected. Because of the critical importance of data to the economy, their possession amounts to power and their loss can cause tremendous damage. The data industry therefore locates its data warehouses behind fortifications that bar physical or electronic access. Such structures are somewhat like a digital reconstruction of the medieval fortress

Large amounts of data are concentrated in fortress-like structures, in data bunkers. As the Critical Art Ensemble argue in Electronic Civil Disobedience: "The bunker is the foundation of homogeneity, and allows only a singular action within a given situation." All activities within data bunker revolve around the same principle of calculation. Calculation is the predominant mode of thinking in data-driven societies, and it reaches its greatest density inside data bunkers. However, calculation is not a politically neutral activity, as it provides the rational basis - and therefore the formal legitimisation most every decision taken. Data bunkers therefore have an essentially conservative political function, and function to maintain and strengthen the given social structures.

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Bruce Schneier

Bruce Schneier is president of Counterpane Systems in Minneapolis. This consulting enterprise specialized in cryptography and computer security. He is the author of the book Applied Cryptography and inventor of the Blowfish and Twofish encryption algorithms.

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Disney

American corporation that became the best-known purveyor of child and adult entertainment in the 20th century. Its headquarters are in Burbank, Calif. The company was founded in 1929 and produced animated motion-picture cartoons.
In 1955 the company opened the Disneyland amusement park, one of the world's most famous. Under a new management, in the 1980s, Disney's motion-picture and animated-film production units became among the most successful in the United States. In 1996 the Disney corporation acquired Capital Cities/ABC Inc., which owned the ABC television network. The Disney Company also operates the Disney Channel, a pay television programming service.

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