Reducing copyright piracy using entrepreneurial intermediary platforms

Date14 October 2014
Pages306-316
Published date14 October 2014
DOIhttps://doi.org/10.1108/JEPP-05-2013-0019
AuthorKristie Briggs,Joshua Eiermann,Thomas Hodgson,Elizabeth McNamara
Subject MatterStrategy,Entrepreneurship,Business climate/policy
Reducing copyright piracy using
entrepreneurial intermediary
platforms
Kristie Briggs, Joshua Eiermann, Thomas Hodgson and
Elizabeth McNamara
Department of Economics & Finance, Creighton University, Omaha,
Nebraska, USA
Abstract
Purpose – The purpose of this paper is to examine the role of intermediary platforms, suc h as
Pandora and Spotify, in reducing piracy of digital music.
Design/methodology/approach – The authors modify a predator-prey theoretical framework of
copyright piracy to account for the impact of intermediary platforms on the consumption of original
works and illegal copies.
Findings – The theory shows that an increase in the number of legal alternative platforms available
to consumers of digital music results in an unambiguous increase in the consumption of legitimate
music and an unambiguous decrease in the consumption of unauthorized copies.
Practical implications – The results suggest that policies to encourage entrepreneurship by
intermediary platforms in the music industry serve as a complement to other policies cu rrently being
employed to combat piracy of digital music.
Originality/value – The paper is the first of its kind to analyze the important role of intermediary
platforms in reducing piracy of digital music while encouraging innovation by artists. Historically,
entrepreneur ship in this field has been con troversial, given the gray areas surrounding w hat is and
is not copyright infringement in the ever-evolving digital age. This paper highlights that once
copyright laws are clearly defined,business g rowthin this area can be a highly effective solution to
the piracy probl em.
Keywords Intellectual property rights, Copyrights, Digital music, Piracy
Paper type Research paper
1. Introduction
The rapid pace by which copyrighted materials became digitally available through the
internet and the ease by which these materials can be pirated has left policymakers and
law enforcersdebating the best way to protect copyrightowners. Recent bills such asthe
Stop Online Piracy Act and the Protect Intellectual Property Act, wh ich were presented
to the US House of Representatives and Senate, respectively, in 2011, broadened the
attention given to the subject. However, these bills were ultimately rejected because
opponents successfully convinced policymakers that their implementation would have
unintended consequences for web-based innovation and entrepreneurship.
What constitutes online piracy is wide reaching, and the piracy of digital music is
only one small component of the larger problem. This pap er does not attempt to
provide insight into the larger arena of online piracy, but rather focusses only on piracy
of digital music. More specifically, this paper highlights how the evolution of new,
third-party intermediary platforms fo r the consumption of digital music – such as
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2045-2101.htm
Received 13 May 2013
Revised 14 August 2013
Accepted 14 August 2013
Journal of Entrepreneurship and
Public Policy
Vol. 3 No. 2, 2014
pp. 306-316
rEmeraldGroup PublishingLimited
2045-2101
DOI 10.1108/JEPP-05-2013-0019
JEL Classifications — O30, O34, L24
The authors wouldlike to thank anonymous referees for their helpfulcomments and suggestions.
306
JEPP
3,2

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