Enforcing IPR Through Informal Institutions: The Possible Role of Religion in Fighting Software Piracy

51 Pages Posted: 28 Oct 2011

See all articles by Nora El-Bialy

Nora El-Bialy

University of Hamburg; University of Marburg

Moamen Gouda

Graduate School of International and Area Studies (GSIAS), Hankuk University of Foreign Studies (HUFS); Marburg Center for Institutional Economics

Date Written: May 9, 2011

Abstract

The existence of formal IPR laws can be considered a prerequisite for having efficient law enforcement but does not imply efficient enforcement in itself. A simple model is constructed to explain the interplay between the IPR law and human behavior within counterfeiting countries. It shows how a politically monitored IPR enforcement strategy is able to alter formal IPR laws or institutions but might not affect informal institutions, or human morals and behavior, to the same extent, hence barely affecting piracy situation. The model shows the essential role of informal institutions and its sanction mechanisms in the enforcement process. The main obstacle of IPR enforcement is that people are still not convinced that IPR violations are unethical. Religion can be considered an informal institution that might support or hinder formal laws issued with regards to IPR and hence influence de facto enforcement of laws,especially in countries with high piracy rate if a high adherence to religion is found. As the Religion-Loyalty Index (RLI) developed by this study shows, Muslim countries have the highest religiosity level among different religions. Consequently, an investigation of how Islamic jurisprudence views IPR piracy is conducted. As Islam generally prohibits IPR piracy, a set of policy recommendations based on new institutional perspective is presented that can effectively help in minimizing IPR piracy in developing countries in general and Muslim ones in specific.

Keywords: Intellectual Property Rights (IPR), Formal vs. Informal Institutions, New Institutional Economics (NIE), Software Piracy, Religion, Enforcement

JEL Classification: F19, K39, K42, L86, Z12

Suggested Citation

El-Bialy, Nora and Gouda, Moamen, Enforcing IPR Through Informal Institutions: The Possible Role of Religion in Fighting Software Piracy (May 9, 2011). Available at SSRN: https://ssrn.com/abstract=1950385 or http://dx.doi.org/10.2139/ssrn.1950385

Nora El-Bialy (Contact Author)

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

University of Marburg

Universitätsstrasse 24
D-35032 Marburg, D-35032
Germany

Moamen Gouda

Graduate School of International and Area Studies (GSIAS), Hankuk University of Foreign Studies (HUFS) ( email )

270 Imun-Dong
Dongdaemun-Gu
Seoul, 130-791
Korea, Republic of (South Korea)

HOME PAGE: http://sites.google.com/site/moamengoudaecon/

Marburg Center for Institutional Economics ( email )

Universitätsstrasse 24
Marburg, D-35032
Germany

HOME PAGE: http://www.uni-marburg.de/fb02/macie/index_html?set_language=en

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