The Global Implications of Intellectual Property (IP) Piracy <ul><li>SSgt Damian Niolet for BSI 401 </li></ul>
Overview <ul><li>Quick Look at the Numbers </li></ul><ul><li>How Globalization Exacerbates IP Piracy </li></ul><ul><li>How...
Quick Look at the Numbers <ul><li>$3.82 billion  – Software industry profits – 2004 </li></ul><ul><li>$8.16 billion – Micr...
How Globalization Exacerbates IP Piracy <ul><li>1 – Lack of stringent international laws </li></ul><ul><li>2 – Lack of enf...
How Globalization Exacerbates IP Piracy <ul><li>4 – Developing countries with no ways to use the means </li></ul><ul><li>3...
How IP Piracy is Contributing to a Global Economic Power Shift <ul><li>50 years ago China and India were petri dishes for ...
Why this Power Shift Poses a Problem to Global Security <ul><li>An  economy  built on IP piracy entails a  culture  built ...
Some Ethical Implications <ul><li>IP piracy does provide for the livelihood of hundreds of millions of people </li></ul><u...
Why IP Piracy is Likely to Grow in the Long-Term <ul><li>Hydra concept – stricter enforcement will lead to more sophistica...
Sources <ul><li>Robert Stoll, &quot;Protecting Intellectual Property Rights in a Global Economy: Current Trends and Future...
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The Global Implications of Intellectual Property (IP) Theft

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  • Good afternoon Who Report
  • The point of this slide is to show that IP piracy, because it is a black market, cannot be quantified accurately. Analysts can only come up with best guesses. With a worst and best case scenario like this as an example, all that can be said is that IP piracy is a definite problem.
  • So, I’m going to skip the figures, treat them as irrelevant, we know it happens, some of us know better than others. What this brief is more concerned about are the broader aspects of IP piracy – the ethical ramifications, difficulties in political and economic policy decision making, and future trends 1 – Lack of stringent international laws 2 – Lack of enforcement where laws do exist in other countries 3 – The essence of globalization itself – international business 4 – Hand-me-down technologies and infrastructure 4 – Developing countries with no ways to use the means 3 – International corporations have already done all the work 2 – Local governments have to keep people working 1 – Different countries treat IP differently
  • So, I’m going to skip the figures, treat them as irrelevant, we know it happens, some of us know better than others. What this brief is more concerned about are the broader aspects of IP piracy – the ethical ramifications, difficulties in political and economic policy decision making, and future trends 1 – Lack of stringent international laws 2 – Lack of enforcement where laws do exist in other countries 3 – The essence of globalization itself – international business 4 – Hand-me-down technologies and infrastructure 4 – Developing countries with no ways to use the means 3 – International corporations have already done all the work 2 – Local governments have to keep people working 1 – Different countries treat IP differently
  • The Global Implications of Intellectual Property (IP) Theft

    1. 1. The Global Implications of Intellectual Property (IP) Piracy <ul><li>SSgt Damian Niolet for BSI 401 </li></ul>
    2. 2. Overview <ul><li>Quick Look at the Numbers </li></ul><ul><li>How Globalization Exacerbates IP Piracy </li></ul><ul><li>How IP Piracy is Contributing to a Global Economic Power Shift </li></ul><ul><li>Why this Power Shift Poses a Problem to Global Security </li></ul><ul><li>Some Ethical Implications </li></ul><ul><li>Why IP Piracy is Likely to Grow in the Long-Term </li></ul>
    3. 3. Quick Look at the Numbers <ul><li>$3.82 billion – Software industry profits – 2004 </li></ul><ul><li>$8.16 billion – Microsoft total revenue – 2004 </li></ul><ul><li>Up to 90% - Microsoft software pirated in China – 2004 </li></ul><ul><li>10 million – Computers bought in China – 2004 </li></ul><ul><li>$165 – Average cost of Windows XP – 2004 </li></ul><ul><li>$165 x 9,000,000 = $1.46 billion – losses to Microsoft </li></ul><ul><li>($1,000+$300+$1,000+$250) x 9 million ~ $23 billion </li></ul>
    4. 4. How Globalization Exacerbates IP Piracy <ul><li>1 – Lack of stringent international laws </li></ul><ul><li>2 – Lack of enforcement where laws do exist in other countries </li></ul><ul><li>3 – The essence of globalization itself – international business </li></ul><ul><li>4 – Hand-me-down technologies and infrastructure </li></ul>
    5. 5. How Globalization Exacerbates IP Piracy <ul><li>4 – Developing countries with no ways to use the means </li></ul><ul><li>3 – International corporations have already done all the work </li></ul><ul><li>2 – Local governments have to keep people working </li></ul><ul><li>1 – Different countries treat IP differently </li></ul>
    6. 6. How IP Piracy is Contributing to a Global Economic Power Shift <ul><li>50 years ago China and India were petri dishes for IP piracy </li></ul><ul><li>Today, its estimated that 1/3 of China’s GDP is from IP piracy </li></ul><ul><li>China surpassed Japan in GDP in the 2 nd qtr. of 2010 </li></ul>
    7. 7. Why this Power Shift Poses a Problem to Global Security <ul><li>An economy built on IP piracy entails a culture built on theft </li></ul><ul><li>If IP piracy is deemed acceptable, theft by other means may also become acceptable </li></ul><ul><li>Pirate corporations will gain power, influence governments, or . . . </li></ul><ul><li>Pirate corporations’ leaders may one day assume leadership creating a mafia like country </li></ul><ul><li>International borders will close as IP owners deny doing business </li></ul>
    8. 8. Some Ethical Implications <ul><li>IP piracy does provide for the livelihood of hundreds of millions of people </li></ul><ul><li>Globalization’s true purpose </li></ul><ul><li>Cultural differences </li></ul>
    9. 9. Why IP Piracy is Likely to Grow in the Long-Term <ul><li>Hydra concept – stricter enforcement will lead to more sophisticated pirates </li></ul><ul><li>Technological advances – more hand-me-downs </li></ul><ul><li>Broadband speed and penetration – more people connected at faster rates </li></ul><ul><li>And finally, yet another petri dish – Africa </li></ul>
    10. 10. Sources <ul><li>Robert Stoll, &quot;Protecting Intellectual Property Rights in a Global Economy: Current Trends and Future Challenges,&quot; (statement before the Subcommittee on Government Management, Organization, and Procurement, Washington, D.C., December 9, 2009) </li></ul><ul><li>Stephen Siwek, “Policy Report #189: The True Cost of Copyright Industry Piracy to the US Economy,” Policy Report, (Lewisville, TX: Institute for Policy Innovation, 2007), 1-22. </li></ul><ul><li>Daniel Ikenson, “Manufacturing Discord: Growing Tensions Threaten the U.S. – China Economic Relationship,” Trade Breifing Paper, (Washington, D.C.: CATO Institute, 2010) </li></ul><ul><li>Ted Fishman, China Inc: How the Rise of the Next Superpower Challenges America and the World (New York: Scribner, 2006), 247. </li></ul><ul><li>Adrian Johns, Piracy: the Intellectual Property Wars from Gutenberg to Gates (Chicago: University of Chicago Press, 2009), 8. </li></ul><ul><li>Dr. K.G.K. Nair, and P.N. Prasad, “Development through Information Technology in Developing Countries: Experiences from and Indian State,” (Kerala, India: The Electronic Journal of Information Systems in Developing Countries, 2002) 1-13. </li></ul><ul><li>Henry Blodget, How to Solve China’s Piracy Problem. http://www.slate.com (accessed October 29, 2010). </li></ul><ul><li>China GDP Surpasses Japan, Capping Three-Decade Rise. http://www.businessweek.com (accessed October 29, 2010). </li></ul><ul><li>Declan McCullagh, Piracy Domain Seizure Bill Gains Support . http://news.cnet.com (accessed October 29, 2010). </li></ul>
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