Roark (2010)

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 Libraries, archives, museums and other cultural activities

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing Video game publishing 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

Roark (2010)
Title: Limitation of Sales Warranties as an Alternative to Intellectual Property Rights: An Empirical Analysis of IPhone Warranties’ Deterrent Impact on Consumers
Author(s): Roark, M. L.
Year: 2010
Citation: Roark, M.L. (2010). Limitation of Sales Warranties as an Alternative to Intellectual Property Rights: An Empirical Analysis of iPhone Warranties' Deterrent Impact on Consumers. Duke L. & Tech. Rev., i.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: Online surveys sent through Facebook to users reflective of Apple's target market in two pools, university students and general public. The general public majority had at least one college degree (85.7%) and the majority of non-student responders were in the 25–34 age range (59.3%). The highest percentage of annual household income fell between $100,000 - $149,999 (19.2%), followed by $75,000 - 99,999 (17.3%). The student pool were nearly all law students, with 8% non-law.

The survey consisted of 12 questions, yes/no and scale.

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:
  • Not stated
Funder(s):
  • Not stated

Abstract

Apple's success with the Apple iPhone has brought with it certain problems. Its success has revealed a community of hackers that have attempted to circumvent the exclusive arrangement that Apple shares with AT&T for cellular telephone service. Unfortunately for Apple (and similarly situated manufacturers), intellectual property doctrines and laws do not prevent consumers from altering their products so as to circumvent relationships that manufacturers may have with others. Manufacturers inevitably lose capacity to control the product as a result of the sale of specific units. The doctrines of first sale in both patent and copyright law prevent manufacturers from controlling consumer manipulation of the object after the sale has been completed. Additionally, the Digital Millennium Copyright Act's anti-circumvention provision does not necessarily apply to prevent consumers from altering firmware within a product. Manufacturers are increasingly turning to alternatives to intellectual property to secure control over the device after the sale. One such alternative is the exclusion of warranty under Article 2 of the Uniform Commercial Code, for aberrant consumers.

This article considers whether limitation of warranties may actually have the deterrence effect on consumers that manufacturers desire; said differently, the article weighs whether manufacturers can achieve their goals of preventing consumers from using their products in an unauthorized manner by removing warranty protections from the consumer. The Article presents a behavioral model based on the Triandis' model of planned behavior and enhances the model by accounting for likely and unlikely benefits and detriments. The model suggests that participants weigh the detrimental impact together with the probability and magnitude of the detriment against the beneficial impact together with the probability and magnitude of the benefit when making the decision to engage in technological piracy. Considering only half of the equation - what deterrents are likely to impact consumer behavior - the Article then reconciles the model to empirical evidence suggesting that Apple's warranty could be a stronger deterrent for consumers than civil liability.

The data collected suggests four observations of the survey pool: (1) known sanctions reduce the preference for engaging in technology piracy; (2) persons surveyed believe they are more likely to lose a warranty than face civil liability for engaging in technological piracy; (3) a better warranty enhances the magnitude of the warranty's benefit, and therefore raises the level of deterrence to nearly equal the deterrence level of civil liability; and (4) the magnitude, probability, and deterrent impact of both deterrents can be enhanced if consumer knowledge is improved. The article concludes that manufacturers can better protect their post-sale investment in property by raising consumer awareness of their warranty's quality and by raising awareness of the consequences for using the product in a way that is outside the terms of the consumers' authorized use.

Main Results of the Study

  • Known sanctions reduce the preference for engaging in technology piracy. * Persons surveyed believe they are more likely to lose a warranty than face civil liability for engaging in technological piracy.* A better warranty enhances the magnitude of the warranty's benefit, and therefore raises the level of deterrence to nearly equal the deterrence level of civil liability* The magnitude, probability, and deterrent impact of both deterrents can be enhanced if consumer knowledge is improved.


Policy Implications as Stated By Author

Manufacturers can better protect their post-sale investment in property by raising consumer awareness of their warranty's quality and by raising awareness of the consequences for using the product in a way that is outside the terms of the consumers' authorized use.



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)
Green-tick.png

Datasets

Sample size: Not Stated"Not Stated" is not a number.
Level of aggregation: Individual
Period of material under study: Not stated