Click here to close now.

Welcome!

API Journal Authors: Carmen Gonzalez, Liz McMillan, AppDynamics Blog, Vormetric Blog, Elizabeth White

Related Topics: API Journal, @MicroservicesE Blog, Agile Computing

API Journal: Blog Feed Post

Piracy in Developing Countries

“The elephant in the room” they thought was piracy

Joe Karaganis, of the Social Science Research Council, is giving a talk at the Berkman Center on a six-country study on media (music, film and software) piracy. The study began in 2004 and should be available in March.

NOTE: Live-blogging. Getting things wrong. Missing points. Omitting key information. Introducing artificial choppiness. Over-emphasizing small matters. Paraphrasing badly. Not running a spellpchecker. Mangling other people’s ideas and words. You are warned, people.“The elephant in the room” they thought was piracy. Previous studies on access to media tended to avoid the issue of piracy. “The media ecology is still an ecology of piracy.” “We saw a role for a broader social-scientific approach to these issues.” The point of diminishing returns had passed for increasing the strength of IP laws, he says, so countries have been focusing on enforcement. “We began to frame a project that would ask a different set of questions.” It wanted to look not only the costs of piracy, but also at the benefits especially in developing countries. At first, they were more interested in skeptically examining industry reports, but many others started doing this, so it became less of a focus. They’ve tried to separate piracy and counterfeiting, which are usually considered together, because “they have less and less to do with each other in actual practice.”

Three areas of research:

Pricing: The persistence of high and relatively uniform media prices in the developing world; the industry wants to protect the value of their goods in Western markets rather than worrying about making it available in the developing world. Uniform and high prices plus poverty is pretty much the recipe for piracy.

The structure of policymaking: The primary role of the RIAA is to filter info about piracy into the US Trade Representatives and other policy-making organizations, through the IIPA. The IIPA has stimulated many studies on piracy globally and ahs set the terms of the debate.

The organization of enforcement.

Joe shows a table of prices of Coldplay’s Viva La Vida in six countries. The legal price ranges from $8.50 in India to $20.50 in S. Africa (US dollars), but compared to the local incomes, the price is $760 in India and a “mere” $75 in Mexico. But the pirate price in India is $0.40-$1.2, with a corresponding drop in the price compared to local income. The prices are much lower for legal copies of domestically-produced CDs. Same is true for movie DVDs. Where a local company owns its distribution, the prices tend to compete with pirates. Joe says that over the past 10 years, the price of pirated copies has dropped to very close to marginal prices. We’re at a transitional moment, he says, to purely digital media.

He shows a chart of the structure of policy-making organizations, with industry associations feeding into the IIPA, which hands them off to the USTR, which then passes them through 85% of the time. Joe says the study has spent a lot of time unpacking the IIPA’s annual table of losses due to piracy in multiple countries; the data is opaque, although it’s becoming less so. (The IIPA does not compile info about the US.) The table shows “levels,” i.e., what percentage of media in a country are pirated. In Argentina, it’s 75% of business sw. In Brunei, it’s 100% of music.

A questioner points out that not every pirated work would have been purchased if it could not be pirated. Joe says the report goes into the methodological terrain pretty deeply. But, he says, “the default is secrecy” in these reports. “All of this is a black box, and very deliberately so.” He says that their credibility has so eroded that they’d do better to become more transparent.

The USTR can put you on a watch list, priority watch list, and a priority foreign country list “which is a fast track to sanctions.” The acceptance of the WTO, however, meant that sanctions could not be applied to WTO members (because it requires multilateral processes), so the sanctioned countries graph flatlined. The number of warnings, however, went up.

There are few prosecutions in most countries, but lots of raids to confiscate goods. The raids become the punishment. “The industry groups have successfully enlisted the police” but have run into obstacles on the judicial end. In the few cases that can be prosecuted, there are “spectacular punishments.” There has been competition for enforcement resources among companies that have access to them. The industry is so woven into the enforcement process, they can direct and even fund the raids. “There’s just no boundary between public and private power.” Film companies are the best at deploying state resources. The demand for enforcement gives rise to business models, starting with bribing the police, to blackmailing people who have been detected with infringing materials.

Q: Is it understood by the populace that they’re doing something illegal?
A: Yes, but it’s an everyday activity.
Q: Are people worried about being caught?
A: Other countries than the US don’t focus on consumer-level enforcement.
Q: In my country people don’t know it’s illegal.
A: In our research, there’s usually no ambiguity. The lower price is the figure.

Q: Correlations?
A: There are loose correlations between GDP and piracy, but they vary according to media type. The content business model is to keep prices high and just wait it out for incomes to go up. Of course, the price of tech is dropping faster than income is growing.

Piracy is de-formalizing, he says. It’s no longer the small storefront. It’s the street vendor and others less vulnerable to raids. Enforcement against retail optical disk sales has worked. But that just pushed it out into the street.

Q: Do the charts include works that are distributed as unlicensed as intended?
A: It’s a black box.

Q: Do people have a reason to buy legal works for anything except fear of enforcement?
A: There’s no fear of enforcement. People buy legal works only for other reasons. In several of the countries, there are home-grown enforcement campaigns that come from domestic artists.

Q: What will be the take-away of the report?
A: It won’t be liked by industry lobbyists because it departs from the theft narrative that has defined the debate. It’s written from the perspective of the developing economies, where the reasons and conditions for piracy are just not part of the piracy of debate. You never hear about problems of pricing, for example. Our goal is to encourage developing cvountries to ssert more control over their IP policies and enforcement in order to enrich their own culture.
Q: Is there anything a developing country can do about pricing?
A: Depends on the sector. E.g., the biz sw strategy is to allow rampant priacy to ensure universal adoption, and then they begin to enforce against the most vulnerable institutions: municipal gov’ts, etc. What’s the source of open source platforms here? Most govts have no demonstrated any consistent open source adoption strategy. A lot of half-baked strategies, but few fully implemented ones. But that seems to be an adequate outcome. They want a ubiquitous platform of supported sw, which they get with pirated copies of Windows and MS Office. The OS advocates are often being gamed by MSFT’s high-level strategy. “This is an optimal strategy for the software companies. Microsoft wouldn’t have it any other way.” The enforcement rhetoric doesn’t match the sw companies’ strategies. MSFT could enforce Windows 7 piracy in China, but if they did, Linux would be the standard overnight. They’re still growing 30%. If you’re an open sw advocate, piracy is a real problem [because it lets countries use Microsoft for free]. The President of Romania in 2007 at a press conf with Bill Gates in 2007 said that piracy is part of their relationship with MSFT. [It's a national freemimum policy - dw]

By the way, Joe says, they’ve found no connections between piracy and drug trafficking, prostitution, organized crime, or terrorism. There are little overlaps but nothing systematic. This is despite industry claims that piracy funds organized crime and terrorism.

Joe points to the famous Jack Valenti quote that the VCR is to the US film industry what the Boston strangler is to a woman at home alone. [God bless Valenti! We miss you, Jack! - dw] On the other hand, Robert Bauer of the MPA has said (Joe says) that we should treat piracy as a signal of unmet demand and that the task is then to “find a way to meet that demand.”

Q: To what are things like Blu Ray an attempt to stay a step ahead of pirates?
A: It recreates scare production, and thus the conditions for smuggling-based pirate economies. There are always opportunities for that to re-emerge. Blu Ray at the moment has no impact on the markets we looked at.

More Stories By David Weinberger

David is the author of JOHO the blog (www.hyperorg.com/blogger). He is an independent marketing consultant and a frequent speaker at various conferences. "All I can promise is that I will be honest with you and never write something I don't believe in because someone is paying me as part of a relationship you don't know about. Put differently: All I'll hide are the irrelevancies."

@ThingsExpo Stories
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context wi...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare to be blown away with a glimpse of the future.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
SYS-CON Events announced today that the "Second Containers & Microservices Conference" will take place November 3-5, 2015, at the Santa Clara Convention Center, Santa Clara, CA, and the “Third Containers & Microservices Conference” will take place June 7-9, 2016, at Javits Center in New York City. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!