IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00262515.html
   My bibliography  Save this paper

Market Piracy in the Design-Based Industry : Economics and Policy regulation

Author

Listed:
  • Pierre-Jean Benghozi

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Walter Santagata

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

Abstract

Market piracy in the design-based industry is an expanding worldwide phenomenon (Grossman and Shapiro, 1988a,b; Chaudhry and Walsh, 1996; Schultz II and Saprito, 1996). It deserves a great deal of attention both because of its impressive international dimension (Verma, 1996) and its intrinsic illegality, ambiguity and powerfull potential links with criminal organizations (Andreano and Sigfried, 1980; Fiorentini and Peltzman, 1995). The aim of this paper is to develop theoretical arguments about economic agents' behavior and to shed some light on the main regulatory issues of illegal markets. At a first sight the room for rational incentives to commercial piracy is self-evident. On one hand, an original backpack by the Italian stylist Prada costs, for instance, $ 510 in Manhattan, New York, and a bootleg copy costs $ 70 in Rome, just in front of Castel Sant'Angelo. On the other hand, the number of units sold can be impressive: as an example Louis Vuitton sells 3.5 millions units per year. Market piracy is usually noticed in sectors such as luxury goods or fashion, but piracy can also be observed in more traditional sectors such as car manufacturers, "bureautic" industry, cooking utensils, aircraft-parts and so on.

Suggested Citation

  • Pierre-Jean Benghozi & Walter Santagata, 2001. "Market Piracy in the Design-Based Industry : Economics and Policy regulation," Post-Print hal-00262515, HAL.
    • Handle: RePEc:hal:journl:hal-00262515
    Note: View the original document on HAL open archive server: https://hal.science/hal-00262515
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00262515/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pierre-Jean Benghozi & Thomas Paris, 1999. "Copyright and distribution channels : an attempt to model remuneration structures," Post-Print hal-00262517, HAL.
    2. Landes, William M & Posner, Richard A, 1987. "Trademark Law: An Economic Perspective," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 265-309, October.
    3. Gene M. Grossman & Carl Shapiro, 1988. "Foreign Counterfeiting of Status Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 79-100.
    4. Hansmann, Henry & Santilli, Marina, 1997. "Authors' and Artists' Moral Rights: A Comparative Legal and Economic Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 26(1), pages 95-143, January.
    5. Huntley, J. A. K. & Stephen, Frank H., 1995. "Unfair competition, consumer deception, and brand copying: An economic perspective," International Review of Law and Economics, Elsevier, vol. 15(4), pages 443-462, December.
    6. Filip Palda, 1998. "Evasive Ability and the Efficiency Cost of the Underground Economy," Canadian Journal of Economics, Canadian Economics Association, vol. 31(5), pages 1118-1138, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Céline Abecassis & Pierre-Jean Benghozi, 2005. "Design configuration in fashion and design industries," Post-Print hal-00262989, HAL.
    2. Christian Barrère & Sophie Delabruyère, 2011. "Intellectual property rights on creativity and heritage: the case of the fashion industry," European Journal of Law and Economics, Springer, vol. 32(3), pages 305-339, December.
    3. Christian Barrère & Sophie Delabruyère, 2011. "Intellectual property rights on creativity and heritage: the case of the fashion industry [Droits de propriété intellectuelle, créativité et patrimoine : le cas de la mode]," Post-Print hal-02615221, HAL.
    4. Christian Barrère, 2021. "Das Französische Luxusmodell [The French Luxury Model]," Post-Print halshs-03495849, HAL.
    5. Santagata Walter, 2002. "Some effect of creativity on fashion market behavior," EBLA Working Papers 200205, University of Turin.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luigi Luini & Andrea Mangani, 2004. "Trademarks, Product Variety, and Economic Activity in Italy and Europe," Department of Economics University of Siena 422, Department of Economics, University of Siena.
    2. Giovanni B. Ramello, 2006. "What'S In A Sign ? Trademark Law And Economic Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 547-565, September.
    3. Rangnekar, Dwijen, 2004. "Demanding Stronger Protection for Geographical Indications: The Relationship between Local Knowledge, Information and Reputation," UNU-INTECH Discussion Paper Series 2004-11, United Nations University - INTECH.
    4. Daniela Benavente, 2010. "The Economics of Geographical Indications: GIs Modelled As Club Assets," IHEID Working Papers 10-2010, Economics Section, The Graduate Institute of International Studies.
    5. Daniela Benavente, 2010. "Geographical Indications: The Economics of Claw-Back," IHEID Working Papers 11-2010, Economics Section, The Graduate Institute of International Studies.
    6. Ramello Giovanni B., 2005. "Intellectual Property and the Markets of Ideas," Review of Network Economics, De Gruyter, vol. 4(2), pages 1-20, June.
    7. Tin Cheuk Leung, 2013. "What Is the True Loss Due to Piracy? Evidence from Microsoft Office in Hong Kong," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 1018-1029, July.
    8. Luke Butcher & Ian Phau & Min Teah, 2016. "Brand prominence in luxury consumption: Will emotional value adjudicate our longing for status?," Journal of Brand Management, Palgrave Macmillan, vol. 23(6), pages 701-715, November.
    9. Dirk Crass & Franz Schwiebacher, 2017. "The importance of trademark protection for product differentiation and innovation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(2), pages 199-220, June.
    10. Ventsislava Nikolova-Minkova, 2022. "Bulgarian and Foreign Trademark Activity in Bulgaria and Bulgarian Trademark Activity Abroad for the Period 2000-2019," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 173-196.
    11. Po-Hsuan Hsu & Dongmei Li & Qin Li & Siew Hong Teoh & Kevin Tseng, 2022. "Valuation of New Trademarks," Management Science, INFORMS, vol. 68(1), pages 257-279, January.
    12. Bian, Qin & Forsythe, Sandra, 2012. "Purchase intention for luxury brands: A cross cultural comparison," Journal of Business Research, Elsevier, vol. 65(10), pages 1443-1451.
    13. Ornella Tarola & Jean Gabszewicz & Didier Laussel, 2011. "To Acquire, or To Compete? An Entry Dilemma," Journal of Industry, Competition and Trade, Springer, vol. 11(4), pages 369-383, December.
    14. Roger Feldman & Félix Lobo, 2013. "Competition in prescription drug markets: the roles of trademarks, advertising, and generic names," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(4), pages 667-675, August.
    15. Marta Biancardi & Andrea Di Liddo & Giovanni Villani, 2022. "How do Fines and Their Enforcement on Counterfeit Products Affect Social Welfare?," Computational Economics, Springer;Society for Computational Economics, vol. 60(4), pages 1547-1573, December.
    16. Bate, Roger & Jin, Ginger Zhe & Mathur, Aparna, 2011. "Does price reveal poor-quality drugs? Evidence from 17 countries," Journal of Health Economics, Elsevier, vol. 30(6), pages 1150-1163.
    17. Audretsch, David B. & Baumol, William J. & Burke, Andrew E., 2001. "Competition policy in dynamic markets," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 613-634, April.
    18. Muriel Perrino & Nathalie Rubio, 2005. "What Anti-Dilution Law Should Learn from the Informative View of Advertising," CAE Working Papers 36, Aix-Marseille Université, CERGAM.
    19. Laura Alfaro & Cathy Bao & Maggie X. Chen & Junjie Hong & Claudia Steinwender, 2022. "Omnia Juncta in Uno*: foreign powers and trademark protection in Shanghai's concession era," CEP Discussion Papers dp1827, Centre for Economic Performance, LSE.
    20. Stefan, Ioana & Bengtsson, Lars, 2017. "Unravelling appropriability mechanisms and openness depth effects on firm performance across stages in the innovation process," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 252-260.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00262515. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.