Form and Effects of Piracy - Essay Example

Piracy may cause the business to go bankrupt. In the study of Gopal and Gupta (p 1946), they stated that piracy had accounted for a yearly $40 billion revenue losses in software products alone. When this practice of piracy continues, time will come the branded software industry may lose its business. People may not patronize the original software products since counterfeited products may be offered at a lesser price. With the worldwide crisis, the presence of counterfeited products may suit the budget of the customers. In a Billboard news report, Tony Fernandez, Chairman of the local music industry in Malaysia gave a warning that the music industry might be destroyed for the next twelve months by piracy. He further noted that major departments in the country had closed as a result. He explained that business is impossible to continue and flourish if they stay to “bleed” (Patrick, p 47) as a result of a decrease in the sale of their legal products. 

            In the sector of online infringement, piracy as a result of file-sharing had, in turn, affected the sale of CDs to decrease. The findings of Li and Nergadze (p1) supported this in divulging that the sale of CDs declined from 940 million to 615 in 2006 and continue to lose 4.2 billion annually. Efforts to curtail this damaging practice of online infringement had been imposed. However, the problem seems to proliferate because of the large number of file-sharers.  The majority who download seems to accept the practice of online infringement as a norm.

            In addition to the above effects of piracy, it also cost physical and psychological damage to humans. Gilpin in his study (p 9) exposed that many lost their lives and had accumulated trauma from the pirates who are based along the coasts to victimize shipments. It is also obvious that not only victims are subjected to such dangerous experiences but also their families.   

            Piracy in any form should not be tolerated if business and society are to prosper.  All businesses should be legalized for fair competition. Individuals or groups who wanted to venture into the same successful business should also exert effort and creativity to have a healthy business competition. Likewise illegal activities associated with piracy should be dealt with properly.