Phau and Ng (2010)

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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

Phau and Ng (2010)
Title: Predictors of Usage Intentions of Pirated Software
Author(s): Phau, I., Ng, J.
Year: 2010
Citation: Phau, I., & Ng, J. (2010). Predictors of usage intentions of pirated software. Journal of Business Ethics, 94(1), 23-37.
Link(s): Definitive
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About the Data
Data Description: The study used questionnaire survey data obtained from 344 students of three undergraduate lectures at an unspecified university institution. There was 165 male (48%) and 179 female (52%) respondents. The majority of respondents fall within the age bracket of 18–24 (81.1%) followed by 25–34 (17.7%) and 35 and above (1.2%) age brackets. The amount of computer usage was recoded into three categories, i.e. low, moderate and heavy users in order to generate a larger sample size for analysis. 68 respondents (19.8%) were low users (0–24 h/week), 212 (61.6%) respondents were moderate users (24–60 h/week) and 64 (18.6%) were heavy users (more than 60 h/week). The survey instrument was made up of four sections comprising established scales and demographic questions. Section A measured all the independent variables. Section B examined attitudes and the purchase intentions towards pirated software. Section C comprised items regarding computer usage patterns and frequency. Section D measured purchasing habits of pirated software and demographic information of respondents. All items were measured on a 7-point Likert scale with 1 representing ‘‘strongly disagree’’ and 7 representing ‘‘strongly agree’’.
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:
  • 2009
Funder(s):

Abstract

The purpose of this study is to investigate the salient factors influencing consumers’ attitudes and usage intentions towards pirated software. Using the Theory of Planned Behaviour, this study investigates the relationships between three sets of factors, i.e. personal, social and perceived behavioural control onto attitudes towards pirated software. Through a multiple regression, only personal factors have shown significant relationship with attitudes towards software piracy. Further results from this study have supported that favourable attitudes towards pirated software is likely to result in stronger intentions to use pirated software. It was found that computer proficiency acts as a predictor for intentions towards pirated software, rather than a moderator as originally postulated.

Main Results of the Study

The study investigated the factors influencing consumers' attitudes and usage intentions toward pirated software and confirmed that an individual with favourable attitudes toward software piracy will also have stronger intentions to use pirated software. Furthermore, the study found that there are additional factors beyond ethical and legal considerations that influence attitudes toward software piracy. The results of the study were as follows:

  • Factor analysis showed three distinct factors to construct 'attitudes toward software piracy': ethical belief, social cost of piracy and anti-big business attitudes;
  • An individual's attitude toward software piracy is positively influenced by value consciousness (the perceived value of pirate software) and amount of computer usage;
  • Integrity had a significant influence on forming negative attitudes towards software piracy. With a lower emphasis placed on integrity, there is likely to be more favourable attitudes towards software piracy. This result conflicts with prior studies, which suggested many individuals do not perceive software piracy as an ethical issue;
  • Value consciousness has proven to be a dominant factor in predicting attitudes towards software piracy;
  • Risk aversion, normative and informative influences and self-gratification are found not significant predictors of attitudes towards software piracy;
  • Perceived chance of getting caught may have a stronger influence on software piracy than perceived severity of punishment. Despite the prospect of punishment, many are still using pirate software because they perceive that there is a low chance of detection and getting caught;
  • Computer proficiency is a significant predictor of intentions to use pirated software.

Policy Implications as Stated By Author

In order to curb the demand for pirated software, anti-pirated software campaigns have to be directed towards influencing attitude change. Specific implications for policy makers and software manufacturers are as follows:


  • A possible direction to curb software piracy is to reduce the perceived benefit of disseminating pirated software through emphasising the social costs attached with piracy;
  • Students do possess anti-big business attitude toward software companies. These companies could improve their corporate image and battle piracy by: (1) Playing a more proactive role in community services to show greater social responsibility and (2) Adopt pricing strategies to counteract the price differential for legitimate/pirate software in countries with lower GNP (proven to face more serious problems of software piracy);
  • Because value consciousness was a predominant factor in predicting attitudes towards pirated software, lowering prices or even providing non-duplicable features in software programs could help to match customers perceived value of legitimate software to pirate software;
  • Enforcements of strict copyright laws are a necessary step to clamp down software piracy. Merely raising the level of punishment may not be able to deter software piracy;
  • Efforts should be focused on ‘sources’ and sellers and buyers of pirated software programs.



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)
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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)
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Datasets

Sample size: 344
Level of aggregation: University students
Period of material under study: 2009