Exploring Copyright, Music Piracy and Cultural Industries

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    Exploring Copyright,

    Music Piracyand Cultural

    Industries

    Erose Sthapit

    Intellectual Property Rights in Media and Cultural Industries - (OLAW0604)

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    Intellectual Property (IP)

    Creations of the mind: inventions, literary and artistic works, and symbols,

    names, images, and designs used in commerce

    Ownership, potential economic gain, powerful incentive to innovate

    Divided into two categories - Industrial property and Copyright

    Europe and North America leading in global arena

    Asia and Africa, responding in steps emphasizing IP

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    Violation of IPR - Music Piracy

    Form of copyright infringement, crime in many countries

    Worst types of intellectual property crimes

    Negative impact - user, provider and artists Disastrous results - local cultural industries, creativity, economic development

    Music, strength, protection through copyright & related rights

    Non-physical, negligible marginal cost of reproduction and digitally delivered

    Internet and digital technologies - online downloading, sharing of digital music

    and counterfeiting

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    Historical and present context

    Cassette tapes and home recording devices (1970s)

    1976, Universal Studios and Walt Disney Productions sued Sony Corporation for

    the home recorder; 8 years later, legal to record entertainment on a recorder

    (struggle over music piracy)

    1999, Napster, first peer-to-peer service (P2P), 87% music traded copyrighted

    Began to take over, followed by Kazaa, Morpheus

    2002, P2P service registered 100 million users Government crack down on these programs

    In todays world, high speed internet, wireless networks and P2P file sharing

    challenge the global music market

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    Economic Impact

    31 countries, larger pirated music markets than commercial

    Brazil, China, India, Indonesia, Mexico, Pakistan, Paraguay, Russia, Spain, and

    Ukraine - unacceptable levels of music piracy

    2003, Pakistan (84% of music sold is pirated), produced 230 million copies of

    both CDs and DVDs. 25 million copies sold within the country, remaining 205

    million copies sold throughout the world

    2003, piracy, 120,000 job losses in the US and 100,000 in the EU Global music industry, from $40 billion to $32 billion, 2 years: 2000 to 2002

    2003, international authorities seized 56 million fake units of music

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    Local cultural industries perspective

    Activities, goods and services within the cultural sector that carry cultural

    content and symbolic meaning

    Radio & television broadcasting, film production, book & periodical publishing,

    video & sound recording, theatre & musical performance etc. Developing countries, production of counterfeited products and lack of

    government intervention

    Discourages manufacturers of legitimate goods from establishing facilities

    Loss of FDI, technology transfer and foreign know-how

    Local creators, inventors, and SMEs discouraged by illegal counterfeiting

    Prevents future growth, the very spirit and energy are at stake

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    Social Impacts

    Mostly affect the artists, creators, andentrepreneurs

    Products of local musicians, music groups,

    record companies, and distributors, pushedout of the market by the counterfeit copies

    Low price

    No artwork, lyrics, or printed material which

    accompany legitimate copies No guarantee as to quality

    Affects national efforts to promote localculture and identity

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    Recent legal practices & strategies (legal)

    Collaboration

    International recording industry with MasterCard, Visa, London Police

    Legal action

    Identify infringing websites Prevent them from being granted card payment facilities

    Hadopi graduated response law

    Decline in P2P levels, 26% in France, 2 million P2P users stooped the activity US, ISP graduated response programme being implemented with major ISPs

    New Zealand, graduated response law implemented 2011, indications of impact

    Italy and Belgium, decline in visits to infringing sites by 70-80%

    Spain, a new law introduced to block illegal websites

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    Challenges (Social Science Research Council)

    Music piracy, rampant - Brazil, India, Russia, South Africa, Mexico and Bolivia

    High prices for media goods, low incomes, cheap digital technologies

    Retail price of a CD or DVD, 5 to 10 times higher than in the US or Europe

    Tiny and underdeveloped legal media markets, low prices

    Domestic companies compete for local audiences, consumers

    Failure of antipiracy education, part of daily media practices

    Industry lobbies successful at changing laws, unsuccessful implementation

    Music pirates, transnational smugglers & legal industry competing with free

    Argues that efforts to enforce copyright law have largely failed

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    Conclusion

    Much higher in developing states

    Mass production of counterfeit products, lack of government intervention

    Competing with a market that can provide their products for free Taking control of the internet vs. right to information

    Need to embrace the price competition

    Socially unacceptable, legal - graduated response, influence consumer habits

    Collaboration of government authorities and different business sectors

    Piracy led cultural destruction - part of the problem, ways to bring about a

    change in the consumer behavior need to be taken into consideration

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    A lot of people think its sillyto pay for music,

    when it's so easy to get it for free11