Stanford’s Center for Internet and Society pointed me to a comprehensive study by the Social Science Research Council (SSRC) (Wikipedia backgrounder) on the effects of media piracy in emerging markets:
Based on three years of work by some thirty-five researchers, Media Piracy in Emerging Economies tells two overarching stories: one tracing the explosive growth of piracy as digital technologies became cheap and ubiquitous around the world, and another following the growth of industry lobbies that have reshaped laws and law enforcement around copyright protection. The report argues that these efforts have largely failed, and that the problem of piracy is better conceived as a failure of affordable access to media in legal markets.
“The choice,” said Joe Karaganis, director of the project, “isn’t between high piracy and low piracy in most media markets. The choice, rather, is between high-piracy, high-price markets and high-piracy, low price markets. Our work shows that media businesses can survive in both environments, and that developing countries have a strong interest in promoting the latter. This problem has little to do with enforcement and a lot to do with fostering competition.”
I’m looking forward to perusing the report, but there’s a threshold issue that I want to address: SSRC has released the report itself subject to a “Consumer’s Dilemma” license:
[T]he CD license creates different paths to acquiring the report: first, we have an IP address geolocator that sends visitors from high income countries toward an $8 paywall when they download the report; all other resolvable IP addresses get free access. Second, and separately available, a ‘commercial reader’ license that costs $2000.
Why did SSRC set things up this way? Licensing theater:
Maybe some clarification is in order here. If you are residing in one of the listed high-income countries, want to read the report, but think that $8 is an unreasonable price, you can acquire it for free through other means. In fact, we have made it exceedingly easy to do so. If you fall under the terms of the commercial reader license but think that $2000 is unreasonable, you have the same options (plus the $8 option). In both cases, the reader is faced with a dilemma: pay the legal price (roughly mapping ability to pay to a determination about whether the price is fair), acquire it through pirate channels, or don’t bother with it. In most of the countries we’ve studied in this report, the results of this calculation with respect to DVDs, music, and software are strikingly consistent. Media goods are highly desired, exorbitantly priced with respect to local incomes, and freely available through pirate channels. High rates of piracy and tiny legal markets are the result. We’ve written 400+ pages about this dysfunctional form of globalization and its causes.
The resulting consumer dilemma is a ubiquitous experience in medium and low-income countries but one that confronts the American or European reader (or the media company employee conjured up by the commercial reader license) much less frequently and with much less intensity. The global market is made for those consumers. It is priced and distributed for them. They are rarely faced with what they experience as ridiculous pricing for a DVD or book–or seriously disadvantaged by differential pricing. The Consumer’s Dilemma license is a way of reversing that equation and, in the most minor ways, requiring an explicit engagement with it. Among the surreal aspects, that simple choice can subject you to crushing civil and criminal penalties, but you can rest easy knowing that only very rare, arbitrary examples will be made (and none in our case). Now that’s theater. Our license has a theatrical side, to be sure, but it also stays true to the experiences documented in the report.
Well done, SSRC. Now I’m really curious to read the report…
Update: TechDirt has posted an initial analysis of the report here.