Alas that i cannot create a real link to this, you have to be logged in through my school to see it...
Author:
Jain, Sanjay
Author Affiliation:
TX A&M U
Source:
Marketing Science, July-August 2008, v. 27, iss. 4, pp. 610-26
Publication Date:
July-August 2008
Abstract:
In recent years, the issue of copyright protection for intellectual properties such as computer software, music CDs, and videos has become increasingly important. It is often claimed that illegal copying of intellectual property costs companies billions of dollars in lost revenues and reduces firms' incentives to innovate. Some researchers have shown that copying can be beneficial to firms when there are strong network effects and copying expands the market. In this paper, we first examine the impact of illegal copying of software and other similar intellectual properties on firms' prices, profits, and quality choices, even when there are no network effects and the market is saturated. We show that contrary to the claims of manufacturers, there are conditions under which copying can increase firms' profits, lead to better quality products, and increase social welfare. This is because weaker copyright protection enables firms to reduce price competition by allowing price-sensitive consumers to copy. Thus, weaker copyright protection can serve as a coordination device to reduce price competition. We also examine how equilibrium copyright enforcement is affected by network externalities. In contrast to previous research, we show that strong network effects can sometimes lead to a firm choosing higher levels of copyright protection. Our results show that in the presence of strong network effects, stronger copyright enforcement by one firm can serve as a coordinating device to reduce price competition.
Here's another
http://cyberlaw-dev.stanford.edu/system/files/digitalmusicarticlecirculation.pdf
Some evidence towards how market segmentation allows companies to profit off of the offering of free content, and data shown that piracy does not cannibalize sales
http://dl.acm.org/citation.cfm?id=2017429
Another one stuck behind my school's logon, abstract below
Impact of piracy on innovation at software firms and implications for piracy policy
Jeevan Jaisingh Corresponding Author Contact Information, E-mail The Corresponding Author
[Author vitae]
ISOM Department, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong
Available online 27 November 2008.
Abstract
In this paper, we look at how innovation in the presence of piracy is affected by the policy choice of alliances such as the Business Software Alliance (BSA). Surprisingly, we find that a stricter piracy policy, that increases the perceived cost to using pirated software for end-users, may in some cases lead to an increase in piracy, and a decrease in product quality. The implication for a social planner is that in a monopoly market, an increase in the policy variable, could act as a disincentive for innovation. In a competitive market an increase in the policy variable provides an incentive for innovation.
Keywords: Software piracy; Policy; Quality; Innovation
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Your move.