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‘Digital piracy’ may benefit companies -
08-24-2008, 12:17 AM
Quote:
Unauthorised copying of software, music or films, so-called digital piracy, may have benefits for the affected companies, an Oxford researcher has claimed.
In her talk at the Annual Conference of the Royal Economic Society, Oxford economist Karen Croxson suggests that piracy does not necessarily undermine profit as pirates may actually help to promote the product they steal.
Ms Croxson said: ‘Digital piracy has been claimed to endanger whole industries. A natural question to ask is: Why do some companies develop water-tight technology to safeguard their intellectual property when others appear more relaxed about copying?’
Ms Croxson points out that piracy poses a threat to sales only when those who otherwise would buy become tempted instead to copy. In any market there are some who value the product but never would buy.
Their piracy cannot harm the seller. Quite the opposite: because, like any consumer, a pirate will talk to others about product experiences, copying which does not displace sales can actually help business.
Consumer `buzz’ is hugely important for sales success, studies have shown, and piracy drives up buzz without the need for extra marketing.
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Full story here: ?Digital piracy? may benefit companies - University of Oxford
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