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Global software piracy: Trends and strategic considerations

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  • Nill, Alexander
  • Shultz II, Clifford J.

Abstract

The design, manufacture, distribution, and sale of software constitutes a rapidly growing and remarkably lucrative global industry. Leaders of most software companies understand that intellectual property rights (IPR) typically are vital to competitive advantage and company success. Theft of intellectual property (IP) in the form of software piracy is brazen, extremely costly, lowers incentives to innovate, and threatens the very existence of some companies. IP theft, therefore, is a daunting challenge for managers of software firms. In this article, we make several contributions that should prove helpful to software designers, managers, responsible users, and broad stakeholders of software innovation and use--that is, almost all of us. In doing so, we provide an overview of international legal, ethical, economic, and systemic considerations, and we share an analysis of the drivers of consumer software piracy. We then discuss strategic considerations and introduce a decision-making typology, which may help legitimate companies to devise strategies and tactics to manage their software IP in the face of widespread piracy.

Suggested Citation

  • Nill, Alexander & Shultz II, Clifford J., 2009. "Global software piracy: Trends and strategic considerations," Business Horizons, Elsevier, vol. 52(3), pages 289-298, May.
    • Handle: RePEc:eee:bushor:v:52:y:2009:i:3:p:289-298
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    References listed on IDEAS

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    1. Berman, Barry, 2008. "Strategies to detect and reduce counterfeiting activity," Business Horizons, Elsevier, vol. 51(3), pages 191-199.
    2. Antonio Andrés, 2006. "The relationship between copyright software protection and piracy: Evidence from europe," European Journal of Law and Economics, Springer, vol. 21(1), pages 29-51, January.
    3. Steven Globerman, 1988. "Addressing International Product Piracy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 497-504, September.
    4. Nill, Alexander & Shultz, Clifford II, 1996. "The scourge of global counterfeiting," Business Horizons, Elsevier, vol. 39(6), pages 37-42.
    5. John Hagedoorn & Danielle Cloodt & Hans van Kranenburg, 2005. "Intellectual property rights and the governance of international R&D partnerships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 175-186, March.
    6. Chaudhry, Peggy E., 2006. "Changing levels of intellectual property rights protection for global firms: A synopsis of recent U.S. and EU trade enforcement strategies," Business Horizons, Elsevier, vol. 49(6), pages 463-472.
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    Cited by:

    1. Mateja Kos Koklic & Monika Kukar-Kinney & Irena Vida, 2016. "Three-Level Mechanism of Consumer Digital Piracy: Development and Cross-Cultural Validation," Journal of Business Ethics, Springer, vol. 134(1), pages 15-27, March.
    2. Stumpf, Stephen A. & Chaudhry, Peggy, 2010. "Country matters: Executives weigh in on the causes and counter measures of counterfeit trade," Business Horizons, Elsevier, vol. 53(3), pages 305-314, May.

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    Keywords

    Software IPR Piracy Global Strategy;

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