New study estimates piracy costs industries $20.5 billion each year
October 4, 2006
Editor’s note: Because of the nature of one of the source’s experience with piracy, the source wished to remain anonymous. At the wishes of this source, they will be referred to as “Stuart.”
As illegal downloading of music and movies continues on college campuses across America, many students are still unaware of the effects this piracy may have on them and on their livelihood.
A new study by the Institute for Policy Innovation found that piracy costs American industries $20.5 billion per year, along with taking away 140,000 jobs from workers.
Giancarlo Moschini, professor of economics, supports this assessment of the negative effect of piracy on the economy and adds that another consequence of downloading illegally is what it does to other consumers.
“Some of them [consumers] benefit by getting a valuable product for free, but consumers who pay the sticker price are arguably worse off. Essentially they end up subsidizing those who engage in piracy,” Moschini said.
“Students should certainly be made aware that they are breaking the law and should be encouraged to think carefully about the consequences and the ethical implications of their actions.”
Along with the growing concern about piracy’s effect on the economy is the increasing possibility that college students will be prosecuted for engaging in acts of piracy, especially for the illegal downloading of movies.
“There’s no question that piracy is illegal and that it is hurting the movie industry,” said Barbara Mack, attorney and associate professor of journalism and communication.
“But movie producers are in a tough spot; if they prosecute college-age thieves, they get bad press and no money, since college-age thieves are notoriously poor.”
Students, though, should not use this as license to continue downloading without fear of retribution, Mack said.
“They’ll get around to prosecuting thieves here. It’s just a matter of time and money,” she said.
Many students, including those aware of the possible effects, continue to feel comfortable downloading their files in the face of these consequences.
“Stuart,” a student in animal science, claims to have downloaded hundreds of songs and movies illegally.
When confronted about the possibility of being arrested for illegal downloading someday, Stuart said, “It doesn’t concern me because I don’t see why they would go after me. I’ve seen people who actually sell their files after they downloaded them. They’re worse than me.”
Even with many people sharing the sentiments of Stuart, Barbara Mack remains firmly against piracy.
“It’s weird that people who would never walk into a Target store and steal a DVD are perfectly comfortable stealing something over the Internet. Theft is theft,” Mack said.