Canadian Study: Piracy Created by Greedy Capitalists

Greg Tito

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Sep 29, 2005
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Canadian Study: Piracy Created by Greedy Capitalists



A study conducted by a Canadian institution dispels several myths about piracy in third-world countries.

We all know that pirating games is bad, right? That downloading someone's work without paying for it is tantamount to stealing? Of course, you do, you're a good person. But there is a persuasive argument made by some that piracy is sometimes the only way to play games, whether because there is no legal avenues to purchase them or because the legal marketplaces that do exist are too highly priced to be feasible. A three-year study conducted by the Social Science Research Council and funded by Canada's International Development Research Centre seems to state that these two points are the major contributor to piracy in developing economies. The study focused on six nations (South Africa, Russia, Brazil, Mexico, Bolivia, and India) and its findings were printed in a book called Media Piracy in Emerging Economies [http://www.scribd.com/doc/50196972/MPEE-1-0-1] edited by Joe Karaganis.

Among the major points in the book is the assertion that organized crime has nearly nothing to do with piracy in these nations because it's impossible for even "well-organized" criminals to compete with the low, low price of "free." Also, there are over 300 anti-piracy education programs identified in these nations but the study concludes that these have zero affect on consumer's behavior.

The cause of piracy in these nations, the study purports, is that the price of media is far too high for local populations to afford it. "Relative to local incomes in Brazil, Russia, or South Africa, the retail price of a CD, DVD, or copy of [Microsoft] Office is five to ten times higher than in the US or Europe," the study's website said.

The study also believes that the industries involved (such as the music, movie or game businesses) have been concentrating on legal solutions to the problem of piracy by demanding laws prohibiting it. But with judges and law enforcers already taxed to help the well-being of a nation by reducing violent crime, the study found that anti-piracy laws were deemed less important. "After a decade of ramped up enforcement, the authors can find no impact on the overall supply of pirated goods."

For the gaming industry, the economies of developing nations cannot support the cost of owning expensive game consoles and buying $60 games. So it only makes sense for knockoffs and pirated material to be rampant; if the choice is between not playing and playing, the gamer will always choose to play, no matter if he's pirating the game or not. If a game publisher wants to market games legally to these developing nations, then it might be necessary to reduce the prices to something that the people can afford.

Now, that might not be realistic for AAA titles hot off the presses, but what's wrong with suppliers selling 1 or 2 year old titles to developing countries at a steep discount? I think the worry that people might then try to import games from India back into Western markets is a little crazy, honestly.

In any case, I'm glad that Media Piracy in Emerging Economies is attempting to discuss these issues so that there is an independent source of facts other than the information released by media companies. 'Cause, you know, they kind of want to think about this stuff the way that they do.

Source: Toronto Star [http://www.ssrc.org/features/view/media-piracy-in-emerging-economies/]


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BlindChance

Librarian
Sep 8, 2009
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You may want to take that link down. I Am Not A Lawyer, but given that the report costs $8 in first world nations, the Scrib'd version may constitute piracy itself. I could very well be wrong.
 

Raeil

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Nov 18, 2009
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For a legitimate licensed copy of the report, I would link to [link]piracy.ssrc.org[/link]. From there, one can view the report directly from the company that produced the study. As it stands, the Scribd copy listed in the article is unlicensed for people in the USA, Western Europe, Japan, Australia, Israel, Singapore, and several of the Persian Gulf States (Kuwait, Qatar, the United Arab Emirates, Brunei, and Bahrain), but not Canada.

OT: I'm glad at least one group is looking into this, as it is a major reason given for piracy in developing nations. Also, I find it rather funny that on their official website they state, "For those who must have it for free anyway, you probably know where to look."
 

hansari

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May 31, 2009
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Greg Tito said:
I think the worry that people might then try to import games from India back into Western markets is a little crazy, honestly.
Of course thats crazy considering the shipping costs

But asking someone who is going to travel to India for their own personal/business reasons to pick some stuff up for you, promising that you will compensate them for the trouble, is completely realistic. In fact, my family (and many others) does it all the time, which is why my Dad usually comes back with an additional suitcase then when he left.

So yeah...when the opportunities arises, you can count on websites cropping up that offer such a business model ;)
 

Eri

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Feb 21, 2009
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Cheaper options wouldn't do anything. Look at the anime industry. Anime in japan costs easily 2-10x the amount it costs American consumers and yet Americans still pirate it like crazy despite steep discounting. Dirty pirates will be dirty pirates.
 
Apr 28, 2008
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Well, its not exactly realistic for AAA games right off the presses to be that expensive in these nations. In that first year nobody will buy, and just pirate because of the cost. The way I see it, you have a choice of either charging very low prices and getting some money, charging $60 and getting no money, or just not selling there, which then piracy wouldn't impact anything there since your not selling there.

So the choice is between some money, or no money. You'd think they would go with some money.
 

dagens24

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Greg Tito said:
In any case, I'm glad that Media Piracy in Emerging Economies is attempting to discuss these issues so that there is an independent source of facts other than the information released by media companies. 'Cause, you know, they kind of want to think about this stuff the way that they do.
Too bad when I try to discuss these issues on The Escapist, I get suspended or put on probation.

EDIT: Sorry if I come off as bitter; I AM! >:/
 

mrdude2010

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Aug 6, 2009
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"but the study concludes that these have zero affect on consumer's behavior."
>zero affect on
>zero affect
>affect

run this one by your editor again
 

aiusepsi

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Nov 22, 2007
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This is the exact kind of thing that Valve's been saying for years: http://www.gamesindustry.biz/articles/valve-not-concerned-about-piracy-in-pc-market

You sell a reasonably priced, localised day-and-date release in Russia, you're going to sell copies. I'm sure they've got hard data to back that up.

Although for them, because Steam accounts are a bit more mobile than CDs, they region-restrict the copies which are sold in emerging markets, which I have seen people around here complaining about.
 

sneakypenguin

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Jul 31, 2008
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campofapproval said:
Eri said:
Cheaper options wouldn't do anything. Look at the anime industry. Anime in japan costs easily 2-10x the amount it costs American consumers and yet Americans still pirate it like crazy despite steep discounting. Dirty pirates will be dirty pirates.
this is a) your opinion, b) anecdotal evidence at best, and c) of little relevance to the discussion.
thanks for ruining it!
Still a valid point i think despite being anecdotal, I don't think lower prices would do much to decrease piracy. If its free and easy at 60 bucks why would I not pirate at 9.99 or something? Only thing I can see wherein somebody would buy is if it was a situations where they didn't have access before.
 

RvLeshrac

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Oct 2, 2008
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Eri said:
Cheaper options wouldn't do anything. Look at the anime industry. Anime in japan costs easily 2-10x the amount it costs American consumers and yet Americans still pirate it like crazy despite steep discounting. Dirty pirates will be dirty pirates.
It costs twice as much because they're paying for production with quality actors, along with numerous extras included with the vast majority of releases. Additionally, people have seen the series on television and thus are more prepared to shell out for a series they enjoy.

In the US, you're purchasing content that has already been paid for, with typically sub-par VAs and translation, often as a blind purchase. There's more piracy because there are fewer ways to discover a new series in the US.
 

Michael Sokolkov

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Mar 18, 2010
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I'd like to add a bit to some facts in the article:
- Average month salary in Russia according to recent study: 20000 roubles (708$).
- Average price of Xbox 360 game in Russia is around 78-80$.
- Xbox 360 Slim 250Gb costs 417$ on average (lowest is ~350$)
- PS3 Slim 160Gb is 478$ on average (lowest is ~400$).

I don't see how 25% price increase will helps fighting piracy.
 
Feb 13, 2008
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Piracy is like Religion. Two sides that will never agree...and the truth is probably somewhere in between.

Oh, and you can get really badly burned on both sides.
 

Therumancer

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Nov 28, 2007
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Well, my basic problem with the logic here is that these things are by no means a nessecity. Yes, the media industry is corrupt and greedy, but at the same time people in developing nations that can't afford things like this shouldn't feel justified in simply stealing them, or performing knock offs. Rather they should look towards these things as something to aspire to, as opposed to an entitlement "because people in other countries can have these things".

Enforcement of things like intellectual properties, and patents is a touchy subject, and honestly when a people are benefitting from theft in a way that doesn't hurt their own goverment and infrastructure, there is no real reason for these countries to pass and enforce laws. I mean in arresting someone for piracy in some of these countries, the goverment absorbs a cost, but really isn't receiving anything in return to it's benefit or that of the society, the only ones benefitting are the IP/Patent holders and when they aren't even based in that country, why should anyone care?

This goes back to the old maxim about "Free Trade means he with the biggest guns trades freely". Simply put military force has been how trade rights have been defended, and without any real fear of armed retaliation due to the morality of most of the big nations, there isn't even the interest of self preservation. The US isn't going to napalm a hundred thousand civilians in a densely packed city in retaliation for patent violations or IP theft, or send in a bunch of commandos to gun down goverment leaders or whatever. We could do both of these things and nobody could stop us (indeed most of the nations people think would want to stop us would join right in, indeed it's largely because of the US that things like this generally don't happen, since we wind up opposing people who do them or seem like they are planning on it), but we won't because it's wrong. We weigh the thefts on one hand against the cost in human lives on the other, and pretty much let people in these countries steal whatever they want because we have no viable method of stopping them.

The specific example I'm giving is pretty "crazy" but understand the point I'm making here. There is no vested interest in enforcing these laws in most countries, and no benefits to be gained, what's more nobody is going to step in to force them, so nothing gets done.


I could go back and forth on the morality of pracy, and rant about patents (which are a bit differant) but the bottom line is that the situation is messed up all around. The pirates are wrong, the media industries are wrong (being not just greedy, but corrupt about it), and really there is no moral way of sorting the situation out.

Canada has some interesting laws on piracy, which I tend to disagree with (but it's another entire discussion) where as I understand things they have pretty much legalized it and the goverment pays the industries what it thinks is a "fair price" for all of the piracy going on. I'm no expert, but I've read a few things about it here and there. Agree or disagree with them, I think Canada's own attitudes have a lot to do with the way their research is slanted.

I'll also say there is a gray area in this whole thing, with people making copies or fan translations of things not released to their coutry. I haven't followed this too much recently, but things like fansubbed anime have fallen under this catagory, with the basic defense being that if nobody is selling it, then you can't fairly say it's stealing.

In the case of developing nations though, I don't think that gray area really applies because the extent of piracy makes establishing any kind of market where anything is seriously sold legitimatly is difficult. What's more a big part of the issue is that when products are brought to these nations legitimatly, they wind up just stealing them anyway because only the very rich could afford $60 for a video game.... I think people in the US greatly underestimate how good we have it here, and how high our standard of living actually is. The problem of course being that in the case of a lot of these nations the thefts are pretty much justified by saying "well, It's not fair that I drive a used Econocar when other people can afford to drive a Bently. Thus I'm entitled to steal a Bently". Movies, music, and games produced in the US and UK are lightyears ahead of what most nations produce (Hollywood is a big deal globally for a reason), it's not that the people in these countries don't have entertainment, they just want the best, but without that strong an economy behind them, they feel they shouldn't have to pay for it.
 

XT inc

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Jul 29, 2009
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I just wish there was a resolution for these problems because nothing seems to work. Pirates have gotten fed up so they are infringing more than ever and the makers of these products respond how? (in gaming at least)

Full priced games that have had all of the content stripped out into monthly 10 dollar mini expansions, project 10 dollar locking off things to renters and pre owned buyers, D r m controlling peoples products left and right. EULA's that dictate the limited options you have of their product's to an insane degree. Lastly, just poor communication and interaction with the consumers.

You know who people like? Their Friends. I remember when devs felt like they were your friend not some lobbyist group or some lawyer trying to nickel and dime you to death hoping you never tread past the games candy shell and turn your thoughts elsewhere to say their dlc plans or content on disc that is locked to you buy it? because some how you don't own it. Why not question them? Because they will bite your head off.
 

campofapproval

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The_root_of_all_evil said:
Piracy is like Religion. Two sides that will never agree...and the truth is probably somewhere in between.

Oh, and you can get really badly burned on both sides.
that seems a bit overly reductive to me. i see piracy as an extension of very idealistic copyright laws and the reality of global markets (along with obvious game-changing developments like the internet playing over emerging as well as industrialized societies.) in the context of music alone there's multiple options for songwriters these days, from "all rights reserved" to "anyone can remix my music but they must tell me if they wanna use it in a car commercial" to "just don't pretend you wrote it or i'll sue." the big record labels still use the former almost exclusively, effectively throwing money down the money pit going after everyone who breaks any of these dozens of rights they keep reserved for a product people don't (won't?) pay for. it's not just "two sides duking it out" as much as "the people who release the products vs parts of their consumer base to whom 'all rights reserved' is irrelevant or outright hostile."