Digital Piracy


Table of Contents
1.0 EXECUTIVE SUMMARY 3
2.0 TERMS OF REFERENCE 3
3.0 PROCEDURES 3
4.0 FINDINGS 3
4.1 INTRODUCTION 3
4.2 HISTORY OF DIGITAL PIRACY 4
4.3 LAW OF DIGITAL PIRACY 4
4.4 ROLE OF THE INTERNET 4
4.5 THE PIRACY ON DIGITAL CONTENT 5
4.5.1 MUSIC 5
4.5.2 FILMS 5
4.5.3 SOFTWARE 6
4.5.4 GAMES 6
4.5.5 BOOKS 6
4.5.6 TELEVISIONS 6
4.6 CAUSES OF DIGITAL PIRACY 7
4.7 EFFECTS OF DIGITAL PIRACY 9
4.8 SOCIETIES RESPONSES TOWARDS DIGITAL PIRACY 10
5.0 CONCLUSION 11
6.0 RECOMMENDATIONS 11
7.0 REFERENCES 12
8.0 APPENDICES 14


1.0 EXECUTIVE SUMMARY
This is a report of digital piracy. This report will give explanation about digital piracy where it will include what actually digital piracy is and the history on how it was started. Plus there is also included law that are related with digital piracy. Furthermore, to get clearer about digital piracy, this report is including the explanation of the causes and what are the effects of digital piracy. In addition, there is also society's response on digital piracy where most of society feels that it should be stop and also some responses from them are including as well in this report. As recommends, company should not invest in the production of digital content because it give more negative impact than benefits.

2.0 TERMS OF REFERENCE
This report is been produced for the board of director of a company who was thinking either to make investment in the production of digital content or not. It is been produced for 6 months due to a lot of research need to be done before a full and complete report can be made. The words are around 2000 long with the suitable font and size. The report is about digital piracy which also included recommends to board of director in order to make the decisions. The ways of research is by browse through internet and also from books.

3.0 PROCEDURES
Having little knowledge of digital piracy such as what is digital piracy is actually about, the causes and effects of it is very useful in order to finish this report. Also need to know about society reaction towards this problem. A variety of resources have been used such as browser from internet which results in a lot of journal that can be refer to.

4.0 FINDINGS
4.1 INTRODUCTION
This report is going to explain about digital piracy towards the digital content. First of all, it will explain about the history of digital piracy where it was started from Shawn Fanning when Fanning first created a new software namely Napster which allows the users to copy or download any types of digital content for free from the internet. There is also included a law which is used to protect the digital content from pirated that is Copyright Act. Since digital piracy is close related with internet, this report also included the explanation of how people internet is being used in order to do the digital piracy. In addition, to be clearer about digital piracy, there is an explanation regarding how few types of digital content is being pirated such as books and films. Furthermore, there is also an explanation about the causes and how it affects to others like income and job industry which people who are working in the field arts feel the most effects. Not only that, there is also information regarding the societies responses towards digital piracy.

4.2 HISTORY OF DIGITAL PIRACY
Digital piracy encompasses the illegal copying or downloading of copyrighted software or digital materials such as music or movies files (Yoon, 2010). Digital piracy was started on 1 June 1999 by Shawn Fanning who is a student from North-Eastern University in Boston. Fanning created new peer to peer (P2P) software that is Napster which allows users to share or exchange files of any digital content with other users. It is quite popular as it is easy to use and does not require any costs. However, this software did not stay for a long time and was forced to be shut down on 2001 as an order from Recording Industry Association of America (RIAA). This is because Napster has influence people to download files from internet without limitations. However, once Napster has shut down, most people start to use other files sharing like Bit Torrent and Lime Wire.

4.3 LAW OF DIGITAL PIRACY
In order to reduce the activities of digital piracy, there is a law that enacted with it that is Copyright Law. The main purpose of the law is to protect the rights of the owners of digital content such as author and artist from being pirated. Therefore, if someone copy or download any types of digital content they can be punished under Copyright Act 1987.

4.4 ROLE OF THE INTERNET
There are many role of internet such as searching for information, gathering opinions and also people can do online business which will make a lot of profits. However, the most important for the role of internet is peer to peer file sharing or P2P. This software is known as Napster and was created by Shawn Fanning on 1 June 1999. It enables users to download any files from internet. Examples of file sharing that are mostly being used are Bit Torrent, Ares, Kazaa and Lime Wire. Most users use this software to download games, videos and music as much as they want from the internet. Another reason why users prefer to use P2P file sharing is because of it is faster and reliable plus it can be shared with other users. Besides all the benefit, there is still has the effect. The effect is the owner of the digital content will lose their right on their own properties and also will make them loss. Thus, people should use P2P software wisely so that it would not give any impact either to the users or others.

4.5 THE PIRACY ON DIGITAL CONTENT
4.5.1 MUSIC
Piracy in music has occurred a long time before where people download any songs from the internet by using the P2P file sharing. This method is quite easy without any cost. Instead of copying or downloading from internet, people should buy an original CD or DVD that are sells in the market. Due to this action, it made most composers and artist losses. Therefore, to prevent it from getting worst, composers should copyright the music so that when others start downloading it illegally, the composer can take legal action that are provided under the Copyright Law. Also, the main purpose to copyright the music is to protect it from being pirate by irresponsible internet's user.

4.5.2 FILMS
A lot of solutions have been used to protect films from being pirated but it still occurred. There are a few ways that people can pirate it that is copying the original movies in the forms of CD and DVD. Films that have been pirated are exactly look like the original one. A lot of people prefer to buy the piracy one because of the price is lower when compared with the original film. But the results are, the original is much better than the piracy without any distraction such as the picture and sound is more clears. Other method is people will upload films into the internet where everyone can watch it for free and share it with others. However, sometimes the movie that is uploaded to the internet is still has not released yet. Once it happens, it gives negative impact to the producers of the film as they will loss. Besides that, both methods will give the negative impact to all the film's producers. Therefore, they should copyright the movies from being pirate.

4.5.3 SOFTWARE
Piracy in software is not too popular among internet users. However, there is still people who done it. People do this because of to buy the original software it requires high costs where some people cannot afford it. For example, Microsoft software is something that is very important and needed in every computers and laptops. The uses of Microsoft are not limited on certain tasks but users can do a lot of things with it. Therefore, in order to buy the original Microsoft software, it costs highly which and some people cannot afford it. Thus, it forces people to get the pirated of Microsoft software. This is because, it does not require any cost and the content is still the same one but it is lack in quality.

4.5.4 GAMES
Piracy in games is quite popular among people who addicted with online games. The way people do piracy in games is people will download the games that they like from the internet. Examples of games are Plant vs Zombie and Command and Conquer. These games are very interesting and enjoyable for almost all people. The main reasons why people done this is if they purchase the games that are original, it will require a very high cost and some games needs to be update frequently. Therefore, most people will prefer to download the games from the internet. Plus, some of the online games have a short of time trial and people feel unsatisfied with it. Thus, forces people to download it through piracy.

4.5.5 BOOKS
Book is also being pirates which it means that some of it will be uploaded in the internet and called e-Book. Therefore it can be read by others without need to purchase the book at the bookstore and also can download that e-Book. Piracy in books has its own pros and cons. If look at the positive side, it is very helpful especially for those people who cannot afford to buy the book at the store due to the price that is maybe so high. So that they can still read the book without need to buy it. However in contrast, e-Book gives impacts to the writers and publishers as it is been upload without permission.

4.5.6 TELEVISIONS
Even though some people might ask how to do the piracy in television and it sounds weird too, but it still exists. For example, a football match which is people usually watch it live from television is being piracy such as people also can watch it with other way like online. From here, people still can watch the football match but they have to pay or subscribed for it. However, of course the environment will not be the same as people watch it at the stadium that is more interesting and enjoyable. But, there is still people that prefer not to watch the match at live at the stadium because they find it is quiet easy to just watch it through online. Not only that, there is still lots of movies that we can watch it through online which it is also called piracy.

4.6 CAUSES OF DIGITAL PIRACY
4.6.1 SOPHISTICATED IN TECHNOLOGY
Sophisticated in technology is one of the causes because of people that involved in digital piracy are able to produce the same pirated goods with the original one. Furthermore, nowadays is the age that people are very advanced in technology and most of activities involve the uses of it. Moreover, since there is advanced in technologies such as computer technology, computer software can be pirated easily and sold to those who need it with a lower price. Besides, internet also can be used for disseminating the piracy product such as can download any digital content for free. Next, pen drive and hard disk can also be used to store digital content that have been downloaded from the internet.

4.6.2 UNSTRICTLY OF COPYRIGHT ACT
However, there are still many of people who do not afraid to the punishment and even not care at all about this. For them, the punishment may be too light and make them do a lot of digital piracy. Not only that, the authority is rarely conducted raids in the fight against digital piracy. Thus, it makes people to continue their activities. In addition, the sellers of pirated goods even dare to sell the product in open. For example, the sales of pirated CDs and DVDs is been sold in the open like night markets and shops. The authorities do not care about their business even though they sell pirated goods because of there is no arrestment that being made. This resulted in an increase to digital piracy. Not just stop there , law enforcement also seem not so tight as most of the real owners of the digital content that have registered their ideas under the Copyright Act does not seem useful. This is because their main purpose to register their works is to protect it from the piracy for example piracy, but it still happens. This clearly shows that the law has not been effective enough to protect any digital content from being pirated.

4.6.3 PREFERENCES OF PEOPLE AGAINST PIRATED PRODUCT
Since there are peoples who still demand for pirated product, it made the activity of digital piracy increase. This is because, price for pirated good is cheaper compared to original one and they want to save money but it is lack in quality. In addition, they can also download any digital content that they want from the Internet. Besides can save money, time is also can be reduced. Other than that, the digital content available at the internet is also the latest one which is not only coming from inside the country but from abroad as well. For example, songs and movies that can be downloaded from the internet is mostly the latest one.

4.6.4 BENEFITS FROM PIRATED PRODUCT
As demand for pirated goods increased, this led people who involved in digital piracy always get a good income that causes it to grow rapidly. Furthermore, they do not have to pay royalty to the original owners of the digital content. Plus, most pirated products are very easy to be found compared with the original one. For example, computer software like Microsoft the original one is difficult to find even if any, the price is definitely expensive. Therefore, many people choose to buy pirated software because it easier to be found and the price are also cheap.

4.6.5 SOMETHING FOR NOTHING
Something for nothing means that anyone who got something they want without need to make any payment or use any energy. This often happen in piracy where people download any digital content they want from the internet. By doing this, they do not have to pay anything to anyone, especially the owners of digital content but in the same time these people still earning higher profit.

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4.7 EFFECTS OF DIGITAL PIRACY

4.7.1 JOB LOSES
The effect of digital piracy in the job industry is most employees will lose their jobs, especially those who work in the arts industry. For example when there is digital piracy on a film, demand the audience to the original film will reduce because people prefer the pirated film as the price is cheaper and easy to get it. Therefore profit for the original movie will reduce and people who are involved in filmmaking will lose their jobs due to reduce in manufacturing film as director not getting much profit and less new movie to be produced.
4.7.2 INCOME
This effect occurs when a business is having losses due to its product has been pirated. For example, when there is piracy in books in which people will reprint the book or upload it in the internet where a lot of people can read this book online. This action normally does not obtain prior authorization from the author or owner of the book. Once this happens, the income of author of the book will reduce due to the demand of readers towards the original book is also reduced as people can get it for free via online. Not only the, author get the impact but publisher also as they have spent money in order to promote the book and make the book known to readers.

4.7.3 CREATIVITY
It is clearly shows that the creativity of the original owner of digital content has been pirated. When this happen, indirectly it will cause the quality of the digital content are reduced. This is because to create any digital content like music much effort has been placed as well as many interesting ideas have been used where it shows the creativity of a person in order to get quality results. However, when there is digital piracy, of course the creativity also being pirated where it causes other people to be able to replicate the content.

4.7.4 INNOVATION
Innovation is a reformation and in the context of digital content it means that the reforms made by the people in order to make the digital content unique and attractive. Therefore, when the occurrence of digital piracy, indirectly, it also makes innovations of the digital content been pirated. This means that people can copy and use the idea or innovation that was created by someone else to produce a new product. Thus, there is no uniqueness and innovation in a digital content anymore.

4.8 SOCIETIES RESPONSES TOWARDS DIGITAL PIRACY

4.8.1 DATA PROTECTION ACT
Data Protection Act is a law of United Kingdom where it will protect the personal information of consumers in a transaction. It is related with digital piracy because of when piracy is occurring, most customer is very worried that their personal information is not keep in save by company. Therefore, societies really hope that every company must comply with this act in order to protect customers' personal data. As refer to Appendix 1, it shows the SQL code on how the customer data can be saving in SQL. This ways of saving is better and efficient compared to saving in manually. Also it can be easy for business to make reference in the future.

4.8.2 LITIGATION
Next is people who are involved with digital piracy should be subject to the law so that people do not engage further with digital piracy. To make it come true, the responsible party should do the investigation towards the piracy more widespread so that those who are involved will be punished. In addition, the law that are related to digital piracy like Copyright Act 1987 should be used to overcome this problem and protect the rights of the owners of digital content. Not only that, this act would allow people to buy and use the original digital content and not pirated. Also if there is any new innovation that have been made to any digital content it should be copyright so that it cannot be copied or used by the other people because when this happen, it is known as digital piracy because it uses other people's rights.

4.8.3 EDUCATION
Furthermore, societies also believe that education is also a factor that leads people to do more digital piracy. This is because, if a person is more exposed to the world of IT, it can motivate them to perform digital piracy. In addition, they will not only do the digital piracy for their own, but will also do it for other people which it can give profits to them. Plus, the society also assumed that development in technology today has encouraged more people to engage with digital piracy. However the development in technology is also can be very useful if it is being used in correctly and also it show that a country has been growing rapidly.

4.8.4 MAKING ISP'S RESPONSIBLE
Internet service provider or known as ISP is a service that provided by the Internet that enables a business to keep its consumers' personal data safely and also does not allow other people to hack it. Therefore, most society response that company should provide the ISP so that their personal data can be saved safely.

5.0 CONCLUSION
In conclusion, digital piracy nowadays has spread rapidly like mushrooms growing after rain. This is because many people are interested to do digital piracy since people get lot of profit from it. But in contrast, it can give negative impact to the owner of the digital content since their goods and ideas have been pirated. Besides that, should be remembered that this activity is illegal by the law and people who do it can be punished regarding the Copyright Act. Therefore, people should not get involved with digital piracy and start to buy the original of digital content. Even though it might be costly but people will satisfy with it as the original of digital content is high in quality.

6.0 RECOMMENDATIONS
Since digital piracy is increase from time to time, therefore it is not a good idea to invest in the production of digital content. This is because even when company is investing in it, it will only gain profit at the beginning but soon the amount of profit will reduce and can make company losses. Based on the effects from the report too, it shows that digital piracy has given many negative impacts to others like job losses. Besides, most of the digital content has been pirated by those who want to gain profit easily. Furthermore, most consumers prefer to buy goods that have been pirated compared to the original as the prices are much cheaper and also easy to be found. Therefore, in order to avoid this from happen, company should not invest in the production of digital content.

7.0 REFERENCES
Litman, J. (2001) Digital Copyright. New York: Prometheus Books
Gong, L. (2002) Internet Computing [online] Available from <http://www.computer.org/csdl/mags/ic/2002/01/w1037.html> [24 November 2013]
Lysonski, S. and Durvasula, S. (2008) 'Digital piracy of MP3s: consumer and ethical predispositions'. Journal of Consumer Marketing [online], 25(3), 167-178. Available from <http://www.emeraldinsight.com/journals.htm?articleid=1723318> [24 November 2013]
Dahlstrom, A., Farrington, N., Gobera, D., Roemer, R., Schear, N. (2006) Piracy in Digital Age [online] University of California. Available from <http://courses.cs.washington.edu/courses/csep590/06au/projects/digital-piracy.pdf> [26 November 2013]
Lipton, D. J. (2005) Solving the Digital Piracy Puzzle: Disaggregating Fair Use from the DMCA's Anti-Device Provisions [online] Available from <http://jolt.law.harvard.edu/articles/pdf/v19/19HarvJLTech111.pdf> [14 December 2013]
Litman, J. (1996) Revising Copyright Law for the Information Age [online] Available from <http://www.law.cornell.edu/copyright/commentary/litrvtxt.htm> [16 December 2013]
Bhattacharjee, S., Gopal, D., R. and Sanders, G. L., (2003) Digital Music and Online Sharing: Software piracy 2.0? [online] 46(7) Available from <http://utopia.csis.pace.edu/dps/2007/jkile/DCS891A/2004-10-08%20Assignment/Digital%20Music%20and%20Online%20Sharing%20-%20Software%20Piracy%202.0.pdf> [17 December 2013]
Schiappacasse, M (nd) Intellectual Property Rights in China: Technology Transfers and Economic Development [online] Available from <http://wings.buffalo.edu/law/biplj/biplj224.pdf> [17 December 2013]
Givon, M., Mahajan, V. and Muller, E. (1995) Software Piracy: Estimation of Lost Sales and the Impact on Software Diffusion [online] 59, 29-37 Available from <http://www.johnstockmyer.com/enmu/JMPiracyArticle.pdf> [14 December 2013]
BMJ (2000). Data protection legislation: interpretation and barriers to research. [online] Available from <http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1118686/>[7 April 2014]
Disney, T. (2014). Disney Antipiracy. [online] Available from<http://thewaltdisneycompany.com/content/disney-antipiracy> [6 April 2014]
Disney, T. (2014). Reports and Financial Information. [online] Available from <http://thewaltdisneycompany.com.investors/financial-information> [5 April 2014]
Meyer, S. (2014). Understanding Digital Piracy. New York: Rosen Publisher Group.
Strauss, K. (2013). TV and Film Piracy: Threatening an Industry? [online] Available from <http://www.forbes.com/sites/karstenstrauss/2013/03/06/tv-and-film-piracy-threatening-an-industry> [10 April 2014]
Yoon, C. (2010). Theory of Planned Behaviour and Ethics Theory in Digital Piracy: An Integrated Model. [online] Available from <http://beta.orionsshoulders.com/Resources/articles/26_22305_%200.pdf> [10 April 2014]

8.0 APPENDICES
8.1 APPENDIX 1

FIGURE 1: CASH FLOW OF THE WALT DISNEY COMPANY (Disney, 2014)

As refer to the Appendix 1, it shows the cash flow of The Walt Disney Company it shows that company's profit is increased from year to year which it means that even there is a lot of piracy nowadays but the company still get profit as usual. This is because the company is antipiracy which means that it has copyright its brand, product and names so that other company cannot use the same as Disney.
8.2 APPENDIX 2
SQL CODE TO SAVE CUSTOMER DATA
CREATE DATABASE customerorder;

USE customerorder;

CREATE TABLE customer (
custID INTEGER NOT NULL,
custName VARCHAR (30) NOT NULL,
custAddress VARCHAR (50) NOT NULL,
custPostcode INTEGER NOT NULL,
CONSTRAINT pri_customer PRIMARY KEY (custID));

CREATE TABLE request (
requestID INTEGER NOT NULL,
requestDate DATE NOT NULL,
customerID INTEGER NOT NULL,
CONSTRAINT pri_order PRIMARY KEY (requestID),
CONSTRAINT for_order FOREIGN KEY (customerID) REFERENCES customer (custID)
ON UPDATE CASCADE ON DELETE CASCADE);

CREATE TABLE requestline (
requestID INTEGER NOT NULL,
productID INTEGER NOT NULL,
requestQuantity INTEGER NOT NULL,
CONSTRAINT pri_requestline PRIMARY KEY (requestID, productID),
CONSTRAINT for1_requestline FOREIGN KEY (requestID) REFERENCES request (requestID)
ON UPDATE CASCADE ON DELETE CASCADE,
CONSTRAINT for2_requestline FOREIGN KEY (productID) REFERENCES product (productID)
ON UPDATE CASCADE ON DELETE CASCADE);

CREATE TABLE product(
productID INTEGER NOT NULL,
productName VARCHAR (50) NOT NULL,
productPrice DECIMAL NOT NULL,
CONSTRAINT pri_product PRIMARY KEY (productID));

INSERT INTO customer VALUES (111, 'Austin', '120 Manley Road',168);
INSERT INTO customer VALUES (112, 'Mark', '121 Eaton Street', 246);
INSERT INTO customer VALUES (113, 'Safiah','120 Gresford Road', 120);
INSERT INTO customer VALUES (114, 'Nazira''156 Kingston Street', 155);
INSERT INTO customer VALUES (115, 'Rani', '212 Meldey Road', 111);
INSERT INTO customer VALUES (116, 'Eriq'. '113 Edgar Street', 122);
INSERT INTO customer VALUES (117, 'Rafique', '786 Welfield Road' 234);
INSERT INTO customer VALUES (118, 'Natasha', '445 Brington Road',245);
INSERT INTO customer VALUES (119, 'Farrah', '677 Almond Street', 140);
INSERT INTO customer VALUES (120, 'Danish', '221 Fahrenheit Street', 230);

INSERT INTO request VALUES (101,'2014.3.1', 111);
INSERT INTO request VALUES (102, '2014.2.25', 112);
INSERT INTO request VALUES (103, '2014.2.26', 113);
INSERT INTO request VALUES (103, '2014.3.31', 114);
INSERT INTO request VALUES (104, '2014.4.6', 115);
INSERT INTO request VALUES (105, '2014.6.4', 116);
INSERT INTO request VALUES (106, '2014.6.4',117);
INSERT INTO request VALUES (107, '2014.7.15',118);
INSERT INTO request VALUES (108, '2014.7.18', 119);
INSERT INTO request VALUES (109, '2014.7.20', 120);
INSERT INTO request VALUES (110,2014.7.20', 121);

INSERT INTO requestline VALUES (101, 131, 3);
INSERT INTO requestline VALUES (102, 132, 2);
INSERT INTO requestline VALUES (103, 133, 5);
INSERT INTO requestline VALUES (104, 132, 4);
INSERT INTO requestline VALUES (105, 131, 1);
INSERT INTO requestline VALUES (106, 132, 1);
INSERT INTO requestline VALUES (107, 131, 2);
INSERT INTO requestline VALUES (108, 131, 3);
INSERT INTO requestline VALUES (109, 133, 3);
INSERT INTO requestline VALUES (110, 133, 3);
INSERT INTO product VALUES (131, 'Never Say Never', 150);
INSERT INTO product VALUES (132, 'Twilight Saga', 250);
INSERT INTO product VALUES (133, 'Harry Potter', 300);

Source: Essay UK - http://ntechno.pro/free-essays/finance/digital-piracy.php


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