Archives for piracy



Pirates of the Caribbean

Hollywood is abuzz with reports that the tiny islands of Antigua and Barbuda may begin operating their own national versions of the Pirate Bay, where individuals can cheaply, or even freely, download the latest films and TV shows. The clincher: this will all be legal.

How is that possible? Because the World Trade Organization says so. Let us explain.

When the U.S. helped create the WTO back in the early 1990s, it had a few main goals. One was to create a serious world trade court. The WTO has a lot of complex rules on trade, and the idea was to build a legal system that could neutrally adjudicate allegations of rule breaking. And it would work by allowing the winning country to retaliate against the loser by “suspending obligations.”

In other words, if the U.S. takes Japan to trade court and wins, Japan has to stop doing whatever bad thing it was doing. And if it doesn’t, the U.S. gets to retaliate–by, for example, increasing tariffs on Japanese goods up to the amount of harm Japan was causing. Read More »



The Authors of The Knockoff Economy Answer Your Questions

We want to thank everyone for their questions — it’s great to see people responding to, critiquing and, in some cases, tweaking, the ideas we set out in The Knockoff Economy. We are fascinated by the complex relationship between copying and creativity — and we’re thankful that many of you are as well.  So, to the Q&A . . .

Q. The issue that concerns my industry most is internet sales of prescription skin products such as retin-A and hydroquinone. Some might be counterfeit, but many are probably diverted products. The manufacturer sells them to a physician, the unscrupulous physician sells them on the internet at a deep discount, the patient may be hurt by expired or dangerous medications or may not use them correctly even if they are real. This hurts legitimate physicians by drawing business away from them, but also hurts a manufacturer’s reputation. (Apparently, people who have qualms about buying Viagra online don’t think twice before buying skin medications from those same sources.)

Do you plan to do any research in this area? Will you be looking at diversion in addition to counterfeits? Read More »



Piracy’s Next Frontier

While pirate attacks worldwide are down so far this year, Foreign Policy reports that Africa’s blackbeards seem to have shifted their attention to West Africa and Indonesia, where attacks have increased. From a new report from the International Maritime Bureau:

The decline in Somali piracy, however, has been offset by an increase of attacks in the Gulf of Guinea, where 32 incidents, including five hijackings, were reported in 2012, versus 25 in 2011. In Nigeria alone there were 17 reports, compared to six in 2011. Togo reported five incidents including a hijacking, compared to no incidents during the same time last year.

The IMB report emphasized that high levels of violence were also being used against crew members in the Gulf of Guinea. Guns were reported in at least 20 of the 32 incidents. At least one crew member was killed and another later died as a result of an attack.



Copying Is Not Theft

Last week, the New York Times ran an interesting and important op-ed by Stuart Green, a law professor, who argues that although illegal downloading of songs or videos from the Internet may be wrong, it’s not really “theft” in the sense that the term has been understood historically in the law. Nor is it theft according to the moral intuitions of ordinary people (as Green’s own research with psychologist Matthew Kugler shows), who draw a sharp distinction between online file sharing and ordinary theft, even when the economic value of the property taken is the same.  Read More »



We Need More People in Government Like This

A blog reader sent a message to her congressman, Tim Walz, complaining about SOPA, the bill that aims to protect intellectual property rights online that has sent many internet folks into a tizzy.

Here is the response she got from Congressman Walz:

…SOPA approaches the problem as a criminal matter when in fact, study upon study shows that online piracy is best dealt with as an economic matter. Instead of using the Justice department as a sledgehammer amongst the delicate weeds of the internet, corporations must embrace the free market and adapt their business models to compete in a new reality. The ability to adapt and compete is the cornerstone of capitalism, we should promote this rather than rushing to insert ourselves in the market in ways that could severe disrupt internet commerce and progress.

Now, I don’t 100 percent agree with this answer, but I love the spirit of it – especially coming from a Democrat!  That last sentence sounds like the argument you would get over faculty lunch in the University of Chicago department of economics. Read More »



How Much Do Music and Movie Piracy Really Hurt the U.S. Economy?

Supporters of stronger intellectual property enforcement — such as those behind the proposed new Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) bills in Congress — argue that online piracy is a huge problem, one which costs the U.S. economy between $200 and $250 billion per year, and is responsible for the loss of 750,000 American jobs. 

These numbers seem truly dire: a $250 billion per year loss would be almost $800 for every man, woman, and child in America. And 750,000 jobs – that’s twice the number of those employed in the entire motion picture industry in 2010.

The good news is that the numbers are wrong. Read More »



Somali Pirates Practice Inventory Management

Somali pirates are apparently getting more sophisticated in their business practices: “A group of Somali pirates announced Sunday that they’re cutting their asking prices for hostages by 20 percent — to speed up the negotiation process, make room for more hostages and take in more cash,” reports Wired. Read More »



The Anti-Piracy Campaign in Images

The piracy problem off the Horn of Africa has received less media attention in recent months, but the pirates are still going strong, and international efforts to combat the threat have increased. FP’s new photoessay, “Pirate Hunting in the Gulf of Aden,” depicts the battle. Read More »