Andrés (2006a)

Source Details

Andrés (2006b)
Title:	The relationship between copyright software protection and piracy: Evidence from Europe
Author(s):	Andrés, A. R.
Year:	2006
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:	Landes and Posner (1989) Burke (1996) Papadopoulos (2003) Kranenburg and Hogenbirk (2005)
Discipline:	L8: Industry Studies: Services L86: Information and Internet Services • Computer Software O3: Technological Change • Research and Development • Intellectual Property Rights O34: Intellectual Property and Intellectual Capital
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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:	IPRC WIPO UNESCO WTO
Data Collection Methods:	Quantitative Collection Methods Survey Research (quantitative; e.g. sales/income reporting)
Data Analysis Methods:	Quantitative Analysis Methods Descriptive statistics (counting; means reporting; cross-tabulation) Regression Analysis
Industry(ies):	Software publishing
Country(ies):	Austria Denmark Finland France Germany Greece Ireland Italy Norway Portugal Spain Sweden Switzerland Bulgaria Czech Republic Hungary Poland Romania Slovakia Slovenia The Netherlands United Kingdom Russian Federation
Cross Country Study?:	Yes
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	1994,1997,2000
Funder(s):

Abstract

• 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

Coverage of Fundamental Issues

Issue	Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
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)

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)
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)

Datasets

Sample size:	23
Level of aggregation:	Country
Period of material under study:	1994, 1997,2000