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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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>
  11. 11. Questions?

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