Dealing with Piracy. Intellectual Asset Management in Music and Software

Abstract

The music and software industry are employing copy-protection devicesin CDs and digital downloads to strengthen their weak appropriabilityregimes that leave ample opportunities for modern-day piracy. Theeffectiveness of the strategy is explained on the grounds that (a) theknowledge involved in copy protection is generally too sophisticatedfor consumers to circumvent, and (b) consumers are not allowed to usecircumvention techniques created by knowledgeable third parties. Copyprotection is controversial, because it deprives consumers from makinghome copies of music and software, and hence overrules copyright lawthat exempts the copying for private use. It is argued that thetechnical enforcement of copyright protection in the home domain ofmillions of individuals necessitates a wide consensus between businessand society about the legitimacy of private and fair use.

Keywords: appropriability, codification, managerialism, intellectual assets, digital rights management

JEL Classification: M, M10, L2, K11