How Much Does Music and Movie Piracy Really Hurt the US Economy
Music piracy
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MUSIC PIRACY
-Digvijay Chauhan
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What is Piracy?
• Piracy is the unauthorized reproduction and distribution of electronic audio and media devices. This include the copying of:• Movies• Songs• E-books• Other materials in electronic
form
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Music Piracy
• Music piracy is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent.
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Why does it happen?
• Music piracy is being committed because people don’t want to pay for a legal copy when they can just download it from websites for FREE.
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How does it happen?
• Internet (Downloading)• Passing of legal/illegal copies from one hand to another• Peer to peer link programs (BitTorrent and others)
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P2P Sharing
Instead of storing the files on a central computer, the files live on users' machines.
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Napster
• Napster is a software program which allows its users to locate and share MP3 files • It is now being regarded as the
company that precipitated the digital download revolution • It was created in 1999 by Sean
Fanning, a freshman at Northeastern University
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• Napster technology incorporates a centralized or server-based Peer-to-Peer (P2P) network • There is a central list of information that is accessed by all the users of
the system • Under the Napster program there was no process for checking to see if
the materials distributed are protected by copyright, nor does the system recognize the true identity of the users involved in the transaction • At its peak the Napster service had about 80 million registered users.
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The Consequences
• The consequence of this is that music companies are losing millions of dollars.• They don’t just lose money, they lose their selling details and even in
some cases they don’t get a GOLD or PLATINUM credit for the song because people don’t buy it, they simply download it !• Music piracy is costing the U.S. economy $12.5 billion every year !
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Worldwide Internet Bandwidth Consumption• BitTorrent (one of the main
reasons for music piracy) accounts for 28.4% of the worldwide internet bandwith consumption !• Whereas iTunes accounts for just
3.1% !
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Countries with most music piracy
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Recording Industry Association of America
Mission: to foster a business and legal environment that supports and promotes its members creative and financial vitality Members: artists and record companiesRIAA members create, manufacture, and distribute approximately 90% of all legitimate sound recordings produced and sold in the U.S.
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Napster’s shut down
• RIAA filed a lawsuit against Napster.• In July 2001 Napster was shut
down.• Napster is now back in business
as a legal, pay-per-song music-download site.
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Conclusion
• Since the introduction of Napster, many other similar utilities and Web sites have appeared. • Some, like Gnutella, allow virtually anything to be shared.• P2P utilities that employ this decentralized approach are
virtually impossible to shut down.
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