FILE SHARING: DIFFERENT PERSPECTIVES

Lost sales Hurts 'the little guy‘ Equivalent to shoplifting WHY DO THEY SAY IT'S UNETHICAL?

Lost sales

Hurts 'the little guy‘

Equivalent to shoplifting

Does not hurt sales Does not hurt 'the little guy‘ Not quite the same as shoplifting WHY IT'S NOT UNETHICAL

Does not hurt sales

Does not hurt 'the little guy‘

Not quite the same as shoplifting

Mix tapes Time shifting Lending SIMILARITIES TO EXISTING MODELS

Mix tapes

Time shifting

Lending

Nine Inch Nails Radiohead SUCCESS STORIES

Nine Inch Nails

Radiohead

Difficult to find particular bands in many locations Not willing to pay $15 on a guess DISCOVERING NEW BANDS

Difficult to find particular bands in many locations

Not willing to pay $15 on a guess

BUSINESS PERSPECTIVE

???QUESTION???

NAPSTER

ITUNES

KAZAA

Allows users to become familiar with potential music. Sampling Effect Network Effects Indirect Appropriability FILE SHARING: OTHER CLAIMS

Allows users to become familiar with potential music.

Sampling Effect

Network Effects

Indirect Appropriability

A study by Stan J. Leibowitz A sudden decline observed starting 1999, the year Napster was born. ECONOMISTS EXAMINE FILE-SHARING AND MUSIC SALES

A study by Stan J. Leibowitz

A sudden decline observed starting 1999, the year Napster was born.

SURVEY BY UNIVERSITY OF RICHMOND SCHOOL OF LAW

IPOQUE STUDY

Economic theory suggests that P2P file sharing will decrease album sales. File sharing threatens artists' ability to sell their music through digital downloading Digital downloading will suffer if file sharing is not controlled. Making copyrighted material instantly available to the world without the owner's permission is stealing. - Norbert J. Michel CONCLUSION

Economic theory suggests that P2P file sharing will decrease album sales.

File sharing threatens artists' ability to sell their music through digital downloading

Digital downloading will suffer if file sharing is not controlled.

Making copyrighted material instantly available to the world without the owner's permission is stealing.

ARE FILE SHARING ACTIVITIES LEGAL OR NOT? File-sharing programs (Limewire, KaZaa) Legal file-sharing activities (Less common) Illegal file-sharing activities (Most common)

File-sharing programs (Limewire, KaZaa)

Legal file-sharing activities (Less common)

Illegal file-sharing activities (Most common)

COPYRIGHT LAW Copyright law covers the creative or artistic expression of an idea. Intellectual Property Copyright Infringement

Copyright law covers the creative or artistic expression of an idea.

Intellectual Property

Copyright Infringement

INTELLECTUAL PROPERTY Intellectual property is a bundle of exclusive rights over creations of the mind such as musical, literacy, and artistic works; inventions; and symbols, names, images, and designs used in commerce, including copyrights, trademarks, patents, and related rights

Intellectual property is a bundle of exclusive rights over creations of the mind such as musical, literacy, and artistic works; inventions; and symbols, names, images, and designs used in commerce, including copyrights, trademarks, patents, and related rights

COPYRIGHT INFRINGEMENT Copyright infringement (or copyright violation) is the unauthorized use of material that is covered by copyright law, in a manner that violates one of the copyright owner's exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative work.

Copyright infringement (or copyright violation) is the unauthorized use of material that is covered by copyright law, in a manner that violates one of the copyright owner's exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative work.

EXAMPLE OF TRIAL INVOLVING FILE-SHARING ACTIVITIES Mostly going after the people who make the files available rather than the people who download the files Jammie Thomas(October 3 rd ,2007) Fined $222,000 for making 24 songs available on KaZaa

Mostly going after the people who make the files available rather than the people who download the files

Jammie Thomas(October 3 rd ,2007)

Fined $222,000 for making 24 songs available on KaZaa

WORTH A WATCH… http://youtube.com/watch?v=1SI8lcGiubQ

http://youtube.com/watch?v=1SI8lcGiubQ