Fighting Software Piracy: Some Global Conditional Policy Instruments
- 314 Downloads
This study examines the efficiency of tools for fighting software piracy in the conditional distributions of software piracy. Our paper examines software piracy in 99 countries over the period 1994–2010, using contemporary and non-contemporary quantile regressions. The intuition for modelling distributions contingent on existing levels of software piracy is that the effectiveness of tools against piracy may consistently decrease or increase simultaneously with the increasing levels of software piracy. Hence, blanket policies against software piracy are unlikely to succeed unless they are contingent on initial levels of software piracy and tailored differently across countries with low, medium and high levels of software piracy. Our findings indicate that GDP per capita, research and development expenditure, main intellectual property laws, multilateral treaties, bilateral treaties, World Intellectual Property Organisation treaties, money supply and respect for the rule of law have negative effects on software piracy. Equitably distributed wealth reduces software piracy, and the tendency not to indulge in software piracy because of equitably distributed wealth increases with the increasing software piracy levels. Hence, the negative degree of responsiveness of software piracy to changes in income levels is an increasing function of software piracy. Moreover, the relationships between policy instruments and software piracy display various patterns: U-shape, Kuznets-shape, S-shape and negative thresholds. A negative threshold represents negative estimates with the increasing negative magnitude throughout the conditional distributions of software piracy. We also discuss the policy implications of our study.
KeywordsIntellectual property rights Panel data Software piracy
The authors are indebted to the editor and reviewers for their constructive comments.
- Abu-Bader, S., & Abu-Qarn, A. S. (2008). Financial development and economic growth: Empirical evidence from six MENA countries. Review of Development Economics, 12(4), 803–817.Google Scholar
- Adu, M. K., Alese, B. K., & Adetunmbi, A. O. (2014). Design of software user identity module (SUIM) for preventing software piracy. Lecture Notes in Engineering and Computer Science, 2211(1), 525–529.Google Scholar
- Bessen, J., & Maskin. E. (2000). Sequential innovation, patents, and imitation. Department of Economics, Massachusetts Institute of Technology, Working Paper No. 00-01.Google Scholar
- Bezmen, T. L., & Depken, C. A. (2004). The impact of software piracy on economic development. Working Paper. Francis Marion University.Google Scholar
- Business Software Alliance. (2007). 2006 Piracy study. BSA, New YorkGoogle Scholar
- Business Software Alliance: BSA. (2009). What is software piracy? http://www.bsa.org/Piracy%20Portal.aspx. Accessed May 2012.
- Grossman, G. M., & Helpman, E. (1991). Innovation and growth in the global economy. Cambridge: MIT Press.Google Scholar
- Holm, H. J. (2003). Can economic theory explain piracy behavior? The B.E Journal of Economic Analysis & Policy, 3(1), 1–15.Google Scholar
- Lessig, L. (2001). The future of ideas: The fate of the commons in a connected world. New York: Random House.Google Scholar
- Mansfield, E. (1994). Intellectual property protection, foreign direct investment, and technology transfer. Washington, DC: International Finance Corporation.Google Scholar
- Maskus, E. K. (2000). Intellectual property rights and economic development. Boulder: University of Colorado.Google Scholar
- Mlachila, M., Tapsoba, R., & Tapsoba, S. J. A. (2014). A quality of growth index for developing countries: A proposal. IMF Working Paper No. 14/172, Washington, DCGoogle Scholar
- Moores, T. T., & Esichaikul, V. (2011). Socialization and software piracy: A study. Journal of Computer Information Systems, 51(3), 1–9.Google Scholar
- Png, I. (2008). On the reliability of software piracy statistics. Mimeo: National University of Singapore.Google Scholar
- Saxegaard, M. (2006). Excess liquidity and effectiveness of monetary policy: Evidence from sub-Saharan Africa. IMF Working Paper No. 06/115, Washington, DC.Google Scholar
- SIIA (Software and Information Industry Association). (2000). SIIA report on global software piracy 2000. Washington, DC: Software and Information Industry Association.Google Scholar
- Todaro, M. P., & Smith, S. C. (2015). Economic development (12th ed.). Harlow: Pearson Education.Google Scholar