Investigating the Determinants of Business Software Piracy: A Longitudinal Study of European Countries
Mahmut Sonmez, Deli Yang and Antonio R. Andres
Affiliation: Loughborough University, The Business School Ashby Road, Loughborough, Leicestershire, LE11 3TU, UK.
Keywords: Information Communication Technology (ICT), intellectual property rights protection, panel data, patent applications, piracy, software industry, intellectual property, Business Software Alliance's (BSA), Business Software Alliance and Inter-national Data Corporation (BSA-IDC), Information Communication Technology, multicollinearity, anti-piracy, gross national income per capita, gross domestic product per capita, internet service providers (ISPs), pricing strategy, complex adaptive systems (CAS), agent-based modeling (ABM), International Planning and Research Corporation, Analytical Framework, empirical analysis, endogeneity bias stemming, ICT patent, piracy rates, longitudinal examinations
This paper investigates the causes of variations in software piracy rates using panel data of 16 European countries for the years 1994, 1997 and 2000. Prior empirical research argued that much of piracy occurs due to a lack of economic development, education, weak enforcement, institutional quality and social culture. This paper, in addition to validating prior research, proves that ‘Information and Communication Technology (ICT) patent applications’ also play a significant role in explaining the variations in business software piracy. This new finding addresses the need for new explanations of piracy and provides insights for policy makers and business practitioners as well as for the research community.
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