Cheng, Sims and Teegen (1997)

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Cheng, Sims and Teegen (1997)
Title: To purchase or to pirate software: An empirical study
Author(s): Cheng, H. K., Sims, R. R., Teegen, H.
Year: 1997
Citation: Cheng, H. K., Sims, R. R., & Teegen, H. (1997). To purchase or to pirate software: An empirical study. Journal of Management Information Systems, 13(4), 49-60.
Link(s): Definitive
Key Related Studies:
Discipline:
Linked by: Banerjee, Khalid and Sturm (2005), Holm (2001), Kwan (2007), Moores (2003)
About the Data
Data Description: The sample group consisted of a total of 340 business students; of which 73 were resident M.B.A. students, 27 were executive M.B.A. students, and 240 were undergraduate business students.
Data Type: Primary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 1997
Funder(s):
  • Not stated

Abstract

Illegal copying of computer software, usually called software piracy, is a prevalent and serious problem. Some researchers attribute the widespread incidence of software piracy to people's attitudes toward piracy behavior and peer norms. However, current literature leaves unanswered a fundamental question of why individuals pirate software. The objective of this paper is to identify the underlying reasons why individuals pirate software. We also identify what motivates individuals to purchase software as opposed to pirating it. Understanding why individuals purchase and pirate software has clear value for policymakers to develop effective measures to curb the software piracy problem.

Main Results of the Study

  • This research found that the three most important reasons for respondents to purchase software were "required for school work or workplace," "use the software all the time," and "availability of manual."
  • The three most important reasons for pirating software included "software too expensive," "want to try out software," and "can't afford the software." These reasons, with the affordability of software as the common thread, are used by software pirates to justify their piracy.
  • Software piracy is often used by software vendors as grounds for pricing the software higher in order to recoup the potential piracy losses.
  • The findings in this study suggest that a higher software price makes piracy more desirable and a lower software price may in fact be called for.


Policy Implications as Stated By Author

Besides lowering the software price, another way for software vendors to combat the software-piracy problem is to raise both consumers' reservation price and perhaps their "moral" cost of piracy.

Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Green-tick.png
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Green-tick.png
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)
Green-tick.png

Datasets

Sample size: 340
Level of aggregation: Individuals
Period of material under study: 1997