Some people are involved in piracy. Piracy is the illegal copying and selling of
computer software programmes and music. This has a direct influence on, for
example, the music and entertainment industries and affects negatively the
success of these businesses
The influence of socio-economic issues on a business cannot be ignored. The
management of each business (even the smallest) needs to keep this in mind and
try to manage these effects to the best of their ability.
it makes the legitimate business owner to make no profit and when the profit decline, workers loss their jobs
Read more: http://wiki.answers.com/Q/How_does_piracy_affect_businesses#ixzz1vhHZmB13The illegal downloading of music is no different than buying a pirated CD from a vendor standing on the street corner. There really is no difference. Anytime a consumer is not purchasing an authentic CD or DVD, they are hurting legitimate businesses, artists, and are also helping fund criminal organizations.
The movie studios and record labels spend years in developing their products. So when a pirate immediately steals their creation as soon as it is released, the studios and record companies lose millions of dollars instantly. The general public really does not understand the harmful effects that piracy has on all of us. We all need to educate ourselves and those around us to the true harmful effects of piracy. Nothing positive comes from piracy.
For better or worse, peer-to-peer file sharing has completely revolutionized how people discover and consume music during the course of the last fifteen years. Piracy played an important role in how music was distributed through the black market throughout the latter half of the 20th century. However, it was not until around 1995 that casual music lovers began using the internet to illegally ...
Decrease in Sales of Legal Copies
The number of additional authorized copies that would be sold is not equal to the number of illegally duplicated copies. Pirates typically sell their wares at prices substantially discounted from street prices; the substantial price discounts induce some people to purchase the product who would not otherwise do so. In addition, some unauthorized copies are produced for noncommercial reasons (e.g., making a copy for a friend).
There is a substantial difference between getting a copy for free from a friend and having to pay the street price; hence some of these copies would not be purchased if the consumer had to pay something approximating the street price.
Retail Price Effects of Piracy
Street prices are affected by the extent of illegal commercial copying. The availability of inexpensive, high-quality illegal copies reduces the demand for legal copies to the extent that some users buy illegal copies instead of legal ones. Interestingly, the effect on the street price of legal copies can either be positive or negative.
Positive: The street price will rise if most price-sensitive consumers switch to illegal copies while the most price-insensitive consumers do not. The resulting market for legal copies will have less price-sensitive demand, thereby causing the manufacturer’s profit-maximizing price to increase, which partially offsets the reduction in sales attributable to piracy.
Negative: The street price will fall if consumers do not differ very much in price sensitivity. In this case all consumers are equally likely to buy from a pirate if given a chance, so that the effect of piracy is to make the demand for legal copies more price elastic.3 If demand is more elastic, the profit-maximizing monopoly price falls and the proper calculation of the loss to rights holders must include profits lost on legally sold copies (because piracy forced the price down), as well as profits lost from pirated copies.
Estimating the Amount of Piracy
Assuming that the extent of unauthorized copying can be estimated with reasonable accuracy, one can not assume that all unauthorized copies are illegal and representing piracy. In fact, the exact definition of what is and is not an example of legal copying is a matter of controversy. Different opinions on the legality of various actions lead to different statistics on the extent of and hence economic consequences of piracy.
Counterfeit products and materials are knock-off, bootleg, pirated or other illegally produced materials that are produced and sold in violation of the Intellectual Property Rights (IPRs) of others or in a manner that fraudulently represent their quality or origin (Porteus, 2002). Despite the various anti-counterfeit efforts of multinationals and international trade organizations, counterfeiting ...
The Expectation of Piracy
The expectation of illegal copying may cause some products not to be marketed at all, because the manufacturer does not believe that legal sales would be sufficient to recover the costs of production and distribution. In this case the loss to rights holders is the profits and royalties that would have been earned had the product been created and brought to market. Consumers also suffer a cost in this situation, equal to the difference between the value they would have placed on this product less the price they would have paid for it.
There are of course also losses from piracy that do not (directly) concern profits. Counterfeit copies of movies, for example, can degrade the reputation of the movie maker in the eyes of viewers who see those badly made copies.
Who Suffers ?
Piracy costs the Music Industry and the Government millions of rupees each year. Not only does India rank among the top 10 countries affected by piracy, it loses an astounding sum of nearly Rs 450 crore (Rs 4.5 billion) to pirated music. Apart from adding nothing to the creative process, pirates evade payment of royalty, excise duty, sales tax and the promotion and publicity costs.
| CONSUMERS suffer when they discover that they have bought a poor quality product, and supported theft of intellectual property. Also due to poor quality of CDs, the CD player is also affected. |
| ARTISTS and other right holders suffer since pirate recordings do not earn them any royalties. When revenue from top selling hits is lost to piracy, companies cannot afford to invest in specialist areas and offer consumers a wider selection of music. |
| GOVERNMENT suffers as pirates do not pay taxes. It is estimated that piracy results in loss to the exchequer to the tune of some Rs. 190 millions in Sales Tax, Excise duty and Income Tax, in 1997. |
Mr. Vickers Humanities 19115 December 2004"HOW SHOULD I MAKE MONEY?" Businesses nowadays do what they have to do to get the job done, as far as making profit and succeeding in their goals. They complete these goals by any means necessary and in my opinion they should be held responsible for their actions. Sure what they do can sometime bring in profit, but looking ahead, they " re doing things ...
| PIRATES alone gain. When a pirated copy is sold, money goes to criminals, not to the artists, other right owners, Music Companies or the Government. Piracy in films occurs under the following Circumstances |
| Pirated CD’s |
| Illegally shown on Cable |
| P2P transfer |
| Availability on the NET |
Music Piracy occurs due to following: |
| Availability of Pirated CD’s. |
| Copying of cassettes. |
| Internet and P2P download. |
| Playing of Music in Hotels & Restaurants. |
| Public Events |
A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources. See also corporate citizenship.Read more: http://www.businessdictionary.com/definition/corporate-social-responsibility.html#ixzz1vhaOkGkoCorporate social responsibility means: * Conducting business in an ethical way and in the interests of the wider community * Responding positively to emerging societal priorities and expectations * A willingness to act ahead of regulatory confrontation * Balancing shareholder interests against the interests of the wider community * Being a good citizen in the communityThere are four dimensions of corporate responsibility * Economic – responsibility to earn profit for owners * Legal – responsibility to comply with the law (society’s codification of right and wrong) * Ethical – not acting just for profit but doing what is right, just and fair * Voluntary and philanthropic – promoting human welfare and goodwill * Being a good corporate citizen contributing to the community and the quality of life |
In this article Christine Coupland discusses web-based forms of the reports and socially responsibility documents of five banking groups: Loyds/TSB, HSBC, The Royal Bank of Scotland, the Co-operative Bank and Barclays. Social and environmental reporting is a broad concern, and, therefore, separation of CSE issues will indicate the allocation of particular status. The study also focuses on the ...