|Title:||The relationship between copyright software protection and piracy: Evidence from Europe|
|Author(s):||Andrés, A. R.|
|Citation:||Andrés, A. R. (2006). The relationship between copyright software protection and piracy: Evidence from Europe. European Journal of Law and Economics, 21(1), 29-51.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|About the Data|
|Data Description:||Data on the variables used in the empirical analysis come from diverse sources. Piracy rates are obtained from the International Planning and Research Corporation’s (IPRC, 2003) annual report for the years 1994, 1997, and 2000. Legal information for the construction of the software protection index comes from various sources, primarily the World Intellectual Property Organization (WIPO), the United Nations Educational, Scientific, and Cultural Organization (UNESCO), and the World Trade Organization (WTO).|
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||Yes|
|Government or policy study?:||No|
|Time Period(s) of Collection:||
- This paper provides an empirical analysis of the relationship between software protection and national piracy rates across 23 European countries over a period of three years (1994, 1997, and 2000).
- The analysis not only constructs a new index of copyright software protection but remedies previous econometric and methodological shortcomings by applying a macro level panel data technique.
- Results indicate that copyright software protection and income are the most determinant factors of software piracy. In addition, the model predicts an inverted U relationship between piracy and per capita income.
- Moreover, the above findings are robust to the inclusion of other descriptors suggested by the empirical literature on piracy.
Main Results of the Study
The empirical results reveal that copyright software protection is significantly related to piracy rates. In addition, in accordance with previous cross-country and panel data studies on piracy, per capita income appears to have a negative significant effect on piracy rates. Moreover, there is a quadratic relation (an inverted U-shaped curve) linking piracy and per capita GDP. The results also support previous findings of no significance for education,R&D expenditures, or external pressures (i.e., trade dependency).
Policy Implications as Stated By Author
The present study has three major policy implications. First, the findings imply that improving economic development may play an important role in lowering rates of piracy.Second, it appears that, whereas some piracy is inevitable during the early stage of development, the rate of piracy may be minimized at a later stage through the incentives provided by the development itself. Third, the results indicate that policies aimed at guaranteeing legal provision of the tools necessary to protect software would certainly contribute to curbing the software piracy problem.
Coverage of Study
|Level of aggregation:||Country|
|Period of material under study:||1994, 1997,2000|