Piracy is a growing topic all over the US and other countries as well. One of the major forms of piracy includes music piracy. This can include illegally downloading songs for free, and it’s probably something that we all have been guilty of. Our group has been researching piracy, what exactly it is, what some of the pros and cons of piracy and has come up with a proposal of how to deal with the problem. We want to encourage everyone to become more informed about what piracy is and to see all sides of the issue.
Music piracy affects many groups of people including the consumer, artist, label, and other groups such as the RIAA. Consumers can often see more of a positive side to downloading music for free because obviously it would save them money. Yet often that can cause others in the music industry, such as the artist and label, to lose money. In the bigger picture piracy can have an effect on the economy. According to an online article from informationweek.com about the costs of music piracy, the Institute for Policy Innovation (IPI) released a report stating that U.S. workers lose $2.7 billion in earnings to music piracy. It also said the recording industry loses about $5.33 billion, while retailers lose about $1.04 billion, for a total direct loss of $6.37 billion. The U.S. government and its citizens lose $422 million in tax revenue, according to the report. That figure includes $291 million in personal income tax and $131 in corporate income and production taxes. Clearly, piracy is a topic that in one way or another affects many people. However, there are still tons of people out there that do not even know piracy is illegal and considered stealing. The graph below proves that the majority of consumers and downloaded music, probably that was illegal. The question is, would the majority of people download music had they known more about the issue?
There is an organization known as the IFPI, which represents the recording industry worldwide, with a membership comprising some 1400 record companies in 65 countries and affiliated industry associations in 44 countries. IFPI's mission is to promote the value of recorded music, safeguard the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate. They want to make people aware of what piracy is defined as and are the different forms of piracy.
So what is piracy? According to ifpi.org, the term of piracy is generally used to describe the deliberate infringement of copyright on a commercial scale. In relation to the music industry it refers to unauthorized copying and, in this context, falls into four categories. These categories include physical music piracy, counterfeits, bootlegs, and Internet piracy.
Physical music piracy is the making or distribution of copies of sound recordings on physical carriers without the permission of the rights owner. The term "piracy" refers to activities that are of a commercial nature, including activities that cause commercial harm. The packaging of pirate copies may or may not be different from the original. Pirate copies are often compilations, such as the "greatest hits" of a specific artist, or a collection of a specific genre, such as dance tracks. Counterfeits are one type of physical piracy. These are recordings made without required permission, which are packaged to resemble the original as closely as possible. The original artwork is reproduced, as well as trademarks and logos in some cases, and is likely to mislead the consumer into believing that they are buying a genuine legitimate product. Bootlegs are the unauthorized recordings of live or broadcast performances. They are duplicated and sold, sometimes at a premium price, without the permission of the artist, composer or record company. Internet piracy is commonly used to refer to a variety of unauthorized uses of music or other creative content on the Internet. Internet piracy refers in particular to acts of infringements on the Internet that are of a commercial nature, not necessarily due to the motivation of the perpetrator. While some Internet pirates generate income from their activity, many people engage in such acts for other, non-commercial reasons and they all can cause enormous commercial damage (“What is Piracy?”).
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