Music piracy from economical prospects Custom Essay

Chapter 1: Background and Context
In the twenty-first century music downloads directly to your computer, phone or MP3 player has become as popular as buying CDs. It’s cheaper and individual has a choice to pay for each track or download a certain amount of music per month for free. There are plenty of different sites that allow to buy music online or get some free legal tracks, but there are users of other sites who share copyrighted music using file-sharing networks, thereby breaking the law. Music piracy can be defined as the stealing of music. The difinition of internet piracy it the practice of using the internet to illegally copy software/music/video and pass it on to other people. (Cambridge University Press. 2011.) One scenario could be burning a copy of CD for friend or yourself. Also, downloading music from the Internet if the song’s royalties are not paid. As well, recently has spread listening to music online without downloading it. For example, music piracy can be defined as the stealing of music. Even before Napster became popular in the late 1990s, the internet was extremely effective and popular way to and share content, including pirated material. The net has made it possible easy to share digital files, which in turn allowed people operate them illegally. The result has been a struggle between governments, users and interest groups (Library.thinkquest.org, 2014).. In general social media networks themselves do not put pirated music and video in the websites, but they give the opportunity to users to do so.

Economy encourages people to use pirated music because of the high price of the acquisition of legitimate audio CDs. If such piracy behavior is modeled as a utility to increase the ability to choose the illegal behavior, which gives a positive consumer surplus without punishment. Higher legal CDs purchasing cost would increase the payoff from piracy, ceteris paribus. This increase in gain will increase the number of pirates, that leads to greater illegal behavior (Ehrlich, 1973, pp. 521–565). In the field of software piracy, such behavior was indeed found, and higher prices for software, usually correlated with increased piracy behavior (Cheng, Sims and Teegen, 1997). Income effect and a significant price related to software piracy rates have been reported by Gopal and Sanders (2000). Gopal and Sanders (1997) are developed the general model of ethical behavior. Prisents in Figure 1 (See in appendix A). In part their model has been borrowed from the descriptive model of marketing ethics developed by Hunt and Vitell (1986), the ethical predisposition concept was set forth by Brady and Wheeler (1996), and Raghunathan and Saftner (1995) developed the ethical decision-making framework. Figure 2 (See in appendix A) presents the model of ethical relationships related to digital piracy.

The first widely used p2p (peer-to-peer) file-sharing service was Napster. Napster had a strong impact on Internet users. The service allows to easily share ausio files, typically music, encoded in MP3 format with other users, which led to accusations of copyright infringement from the the music industry. Despite the fact that the service was stopped by the court, it led to the emergence of decentralized peer-to-peer networks.
In the early twenty-first century piracy were engaged small groups of people such as "The Pirate Bay". The Pirate Bay (commonly abbreviated TPB) is a website that provides torrent files and magnet links to facilitate peer-to-peer file sharing using the BitTorrent protocol. It was founded in Sweden in 2003.
At present days a lot of people doing piracy. Someone on a large scale and someone simply copies the CD disc to an iPod.
The Pirate Bay is featured in Steal This Film (2006), a documentary series about society and filesharing, produced by The League of Noble Peers, in the Danish Documentary Good Copy Bad Copy which explores the issues surrounding file copyright, and also the newer documentary TPB AFK. The Pirate Bay has been a topic on the US-syndicated NPR radio show On the Media.

Music piracy has many negative consequences for both the music industry and the economy. For example in the 24 years since 1975 the value of U.S. shipments of recorded music have grown steadily from $ 5.8 to $ 12.8 billion. In the period from 1999 to 2008, the annual income of U.S. physical recorded music fell from $ 12.8 billion to $ 5.5 billion (Economic Report of the President, 2010, pp. Table B-62, page 262). Moreover, Loss of revenue of billions of dollars for the original manufacturers (Cary L., Chris A. 1998). Musiv piracy does damage to the reputation of the authentic products and their manufacturers (Markenverband.de. 2012). It acts as a barrier to the entry of trademark owners to those markets where their brands are pirated. (Annika K. 2007). It closes off competition as competitors first get attracted by the high price margin being enjoyed by the original and then have to wage a price war against low price counterfeiters (Hollensen 2009.).
�Over the last decade, the counterfeiting and piracy phenomenon has risen to very dangerous dimensions and has become one of the most devastating problems facing world business.�
�European Commission� Official Homepage (Ec.europa.eu, 2014.)

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