Software Piracy Pushes Companies To Be More Competitive, Study Claims • The Register

Software program piracy, lengthy a supply of tension amongst app makers and enormous software program firms, could have some helpful results.

Wendy Bradley, assistant professor of technique, entrepreneurship, and enterprise economics at Southern Methodist College's Cox College of Enterprise, and Julian Kolev, an economist at america Patent and Trademark Workplace, just lately examined the influence of software program piracy in a paper [PDF] titled "Software program Piracy and IP Administration Practices: Strategic Responses to Product-Market Imitation."

The economists checked out mentions of piracy within the SEC-mandated annual 10-Ok filings of 106 publicly traded firms that generated 40 per cent of their income between 1991 and 2000, based mostly on the idea that software program companies, so dependent upon patent, copyright, and trademark safety, "profit disproportionately from cumulative innovation."

    

They in contrast the mental property (IP) methods of those companies, alongside a management group of firms not dealing with important IP threat, earlier than (1991-2000) and after (2001-2007) a significant "piracy shock" – the debut of BitTorrent in July, 2001.

        


        

The authors think about the arrival of BitTorrent in July, 2001, to be a super dividing line as a result of the decentralized file sharing protocol can deal with massive recordsdata in a manner that Napster couldn't, and since IP rights holders had been unable to close it down.

What they discovered was "piracy shock" pushed affected companies to innovate, as measured by an uptick in analysis and growth spending and in patent, copyright, and trademark purposes.

        

This improve doesn't seem like pushed by efforts to instantly stop software program piracy.

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