Online from: 1988
|Title:||Global software piracy: trends and strategic considerations|
|Author(s):||Nill A, Shultz C J|
|Journal:||Business Horizons, May-Jun 2009, Volume: 52 Issue: 3 pp.289-298 (10 pages)|
|Keywords:||Computer Crime, Computer Software, Fraud, Intellectual Property|
|Article type:||General review|
|Reference:||38AR721 (Permanent URL)|
Design/methodology/approach - Discusses the cost and magnitude of global software piracy, and the extent to which national laws protect against software piracy in global markets and regulate intellectual property rights (IPR). Illustrates that the extent to which IPR should be protected is subject to ongoing and frequently heated international debate, even though most industrialized countries argue that fairly strict protection of IP is necessary to provide enough incentives for software innovators. Explores drivers of consumer software piracy at the micro level: there is no economic incentive for consumers to protect their software from theft; the less affordable a software product, the more likely it is to be pirated; if consumers do not have easy access to original software products, they are more likely to turn to pirated versions; the easier to use the software the more likely it is to be pirated; and software piracy is frequently perceived as a victimless crime. Considers strategic implications of software piracy with regard to financial analysis and valuation, brand image and customer relations, and systemic competitor and environment assessment. Constructs a typology of strategic responses to the threat of piracy, built on the strategic importance of IP and the likelihood of infringement: use cost-effective tactics to pre-empt and fight piracy; anticipate and incorporate piracy into corporate strategy; don't bother; or observe closely and make reasonable precautions to pre-empt piracy.
Originality/value - Adds to the wealth of literature on software piracy, with an analysis of the effectiveness of legal protection against software piracy and the drivers of consumer software piracy, and suggestions for managing or combating the practice.