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For quite a while, it seemed as if copyright legislation had accomplished its goals Then computers and digital media came creeping around the corner A copy of a digital file was identical to the original, an actual clone, be it a document, song, video, or some software This meant that computers could be used to eliminate generation loss Digital piracy became a viable, inexpensive alternative to legitimate ownership Software publishers responded by building anti-duplication devices into their programs Known as copy protection, these technologies prevented the average user from making copies of commercial programs The media companies also came up with a copy protection technology, known as MacroVision, to prevent the duplication of videocassettes From the beginning, copy protection was an exercise in futility Hackers would immediately release Piracy in Asia tools that could disable or bypass Many Asian countries pay little heed to each new type of copy protection US and European intellectual property Some of these tools were sold comlaws They see the laws as unfair and opmercially, such as a small device that pressive to their third-world economies eliminated the MacroVision copy As a result, piracy is rampant throughprotection The hackers felt that out Asia, with many major stores openly copy protection violated a user s fair selling pirated software, music, and use right to back up his or her softmovies at prices low enough to be afware or media, and the hackers effordable to the general population forts enabled legitimate users to Publishers have long claimed they ve exercise their legal rights lost billions of dollars in revenue due to The one saving grace for pubpiracy in Asia They are upset that lishers was distribution Getting a pipiracy hinders their ability to successrated movie meant going to a big city fully market their products to the and finding someone selling videos largest populations in the world Even out of a briefcase The vast majority if a CD can only be sold for $50 in Asia, of the general public did not have the publishers want that $50 for themaccess to pirated material, so the acselves As long as piracy is rampant, tual impact on the bottom line was publishers will never be able to control minimal The exception to this was the price of their product and realize in Asia (see Piracy in Asia below) revenue5 The options for distribution changed dramatically with the arrival of the Internet For the first
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of the biggest negotiating issues for China s entry into the World Trade Organization was international intellectual property rights But the Chinese weren t about to start paying for hundreds of millions of pirated software programs China had a parallel initiative to switch its computing infrastructure to Linux, a freely available alternative to Microsoft Windows
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Part III Reserving Rights 73 time, an author could globally distribute a work without a publisher It also meant that pirates could just as easily distribute their warez This term is used to describe Part III illegal versions of commercial software that are packaged and distributed for free by Reserving Rights hacker groups all over the world This was the publishing industry s worst nightmare: a new distribution channel they had no control over that was more advanced than any of the channels they could control Most publishing houses did not have the foresight to understand what the Internet might mean to their industry If they had, they may have begun to change their business model in time to alleviate rampant piracy Instead, they were left trying to play catch-up It wasn t long before most popular audio recordings were freely available over the Internet, with the quality nearly as good as the original Furthermore, no degradation occurred as copies were made and passed around Software, which had become an equally massive market by this time, was just as easy to copy The video game industry, which is now one of the largest segments of the entertainment industry, was the most vulnerable to extensive piracy6
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