Welcome!

Government Cloud Authors: Kevin Jackson, Elizabeth White, XebiaLabs Blog, Pat Romanski, Liz McMillan

Related Topics: API Journal, Microservices Expo, Agile Computing

API Journal: Blog Feed Post

Piracy in Developing Countries

“The elephant in the room” they thought was piracy

Joe Karaganis, of the Social Science Research Council, is giving a talk at the Berkman Center on a six-country study on media (music, film and software) piracy. The study began in 2004 and should be available in March.

NOTE: Live-blogging. Getting things wrong. Missing points. Omitting key information. Introducing artificial choppiness. Over-emphasizing small matters. Paraphrasing badly. Not running a spellpchecker. Mangling other people’s ideas and words. You are warned, people.“The elephant in the room” they thought was piracy. Previous studies on access to media tended to avoid the issue of piracy. “The media ecology is still an ecology of piracy.” “We saw a role for a broader social-scientific approach to these issues.” The point of diminishing returns had passed for increasing the strength of IP laws, he says, so countries have been focusing on enforcement. “We began to frame a project that would ask a different set of questions.” It wanted to look not only the costs of piracy, but also at the benefits especially in developing countries. At first, they were more interested in skeptically examining industry reports, but many others started doing this, so it became less of a focus. They’ve tried to separate piracy and counterfeiting, which are usually considered together, because “they have less and less to do with each other in actual practice.”

Three areas of research:

Pricing: The persistence of high and relatively uniform media prices in the developing world; the industry wants to protect the value of their goods in Western markets rather than worrying about making it available in the developing world. Uniform and high prices plus poverty is pretty much the recipe for piracy.

The structure of policymaking: The primary role of the RIAA is to filter info about piracy into the US Trade Representatives and other policy-making organizations, through the IIPA. The IIPA has stimulated many studies on piracy globally and ahs set the terms of the debate.

The organization of enforcement.

Joe shows a table of prices of Coldplay’s Viva La Vida in six countries. The legal price ranges from $8.50 in India to $20.50 in S. Africa (US dollars), but compared to the local incomes, the price is $760 in India and a “mere” $75 in Mexico. But the pirate price in India is $0.40-$1.2, with a corresponding drop in the price compared to local income. The prices are much lower for legal copies of domestically-produced CDs. Same is true for movie DVDs. Where a local company owns its distribution, the prices tend to compete with pirates. Joe says that over the past 10 years, the price of pirated copies has dropped to very close to marginal prices. We’re at a transitional moment, he says, to purely digital media.

He shows a chart of the structure of policy-making organizations, with industry associations feeding into the IIPA, which hands them off to the USTR, which then passes them through 85% of the time. Joe says the study has spent a lot of time unpacking the IIPA’s annual table of losses due to piracy in multiple countries; the data is opaque, although it’s becoming less so. (The IIPA does not compile info about the US.) The table shows “levels,” i.e., what percentage of media in a country are pirated. In Argentina, it’s 75% of business sw. In Brunei, it’s 100% of music.

A questioner points out that not every pirated work would have been purchased if it could not be pirated. Joe says the report goes into the methodological terrain pretty deeply. But, he says, “the default is secrecy” in these reports. “All of this is a black box, and very deliberately so.” He says that their credibility has so eroded that they’d do better to become more transparent.

The USTR can put you on a watch list, priority watch list, and a priority foreign country list “which is a fast track to sanctions.” The acceptance of the WTO, however, meant that sanctions could not be applied to WTO members (because it requires multilateral processes), so the sanctioned countries graph flatlined. The number of warnings, however, went up.

There are few prosecutions in most countries, but lots of raids to confiscate goods. The raids become the punishment. “The industry groups have successfully enlisted the police” but have run into obstacles on the judicial end. In the few cases that can be prosecuted, there are “spectacular punishments.” There has been competition for enforcement resources among companies that have access to them. The industry is so woven into the enforcement process, they can direct and even fund the raids. “There’s just no boundary between public and private power.” Film companies are the best at deploying state resources. The demand for enforcement gives rise to business models, starting with bribing the police, to blackmailing people who have been detected with infringing materials.

Q: Is it understood by the populace that they’re doing something illegal?
A: Yes, but it’s an everyday activity.
Q: Are people worried about being caught?
A: Other countries than the US don’t focus on consumer-level enforcement.
Q: In my country people don’t know it’s illegal.
A: In our research, there’s usually no ambiguity. The lower price is the figure.

Q: Correlations?
A: There are loose correlations between GDP and piracy, but they vary according to media type. The content business model is to keep prices high and just wait it out for incomes to go up. Of course, the price of tech is dropping faster than income is growing.

Piracy is de-formalizing, he says. It’s no longer the small storefront. It’s the street vendor and others less vulnerable to raids. Enforcement against retail optical disk sales has worked. But that just pushed it out into the street.

Q: Do the charts include works that are distributed as unlicensed as intended?
A: It’s a black box.

Q: Do people have a reason to buy legal works for anything except fear of enforcement?
A: There’s no fear of enforcement. People buy legal works only for other reasons. In several of the countries, there are home-grown enforcement campaigns that come from domestic artists.

Q: What will be the take-away of the report?
A: It won’t be liked by industry lobbyists because it departs from the theft narrative that has defined the debate. It’s written from the perspective of the developing economies, where the reasons and conditions for piracy are just not part of the piracy of debate. You never hear about problems of pricing, for example. Our goal is to encourage developing cvountries to ssert more control over their IP policies and enforcement in order to enrich their own culture.
Q: Is there anything a developing country can do about pricing?
A: Depends on the sector. E.g., the biz sw strategy is to allow rampant priacy to ensure universal adoption, and then they begin to enforce against the most vulnerable institutions: municipal gov’ts, etc. What’s the source of open source platforms here? Most govts have no demonstrated any consistent open source adoption strategy. A lot of half-baked strategies, but few fully implemented ones. But that seems to be an adequate outcome. They want a ubiquitous platform of supported sw, which they get with pirated copies of Windows and MS Office. The OS advocates are often being gamed by MSFT’s high-level strategy. “This is an optimal strategy for the software companies. Microsoft wouldn’t have it any other way.” The enforcement rhetoric doesn’t match the sw companies’ strategies. MSFT could enforce Windows 7 piracy in China, but if they did, Linux would be the standard overnight. They’re still growing 30%. If you’re an open sw advocate, piracy is a real problem [because it lets countries use Microsoft for free]. The President of Romania in 2007 at a press conf with Bill Gates in 2007 said that piracy is part of their relationship with MSFT. [It's a national freemimum policy - dw]

By the way, Joe says, they’ve found no connections between piracy and drug trafficking, prostitution, organized crime, or terrorism. There are little overlaps but nothing systematic. This is despite industry claims that piracy funds organized crime and terrorism.

Joe points to the famous Jack Valenti quote that the VCR is to the US film industry what the Boston strangler is to a woman at home alone. [God bless Valenti! We miss you, Jack! - dw] On the other hand, Robert Bauer of the MPA has said (Joe says) that we should treat piracy as a signal of unmet demand and that the task is then to “find a way to meet that demand.”

Q: To what are things like Blu Ray an attempt to stay a step ahead of pirates?
A: It recreates scare production, and thus the conditions for smuggling-based pirate economies. There are always opportunities for that to re-emerge. Blu Ray at the moment has no impact on the markets we looked at.

More Stories By David Weinberger

David is the author of JOHO the blog (www.hyperorg.com/blogger). He is an independent marketing consultant and a frequent speaker at various conferences. "All I can promise is that I will be honest with you and never write something I don't believe in because someone is paying me as part of a relationship you don't know about. Put differently: All I'll hide are the irrelevancies."

@ThingsExpo Stories
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.