Software protection and software piracy

Abstract

This paper explores the dynamic long-term relationship between software protection and software piracy rates across 108 countries over the period of 20 years (1994–2015), with the help of the ARDL model. The analysis employs a new way of utilising the membership duration of Trade related Intellectual Property Rights agreement and World Intellectual Property Organisation Copyright Treaty agreements of different countries in a panel framework, apart from constructing an index of copyright software protection by focusing on enforcement provisions. The paper overcomes various shortcomings of earlier literatures by thoughtful inclusion of independent variables and methodological techniques. Results show that both copyright software protection and income share a negative long-term relationship with software piracy. Even the enforcement provisions are important in mitigating software piracy. In addition, the model finds a negative relationship between demand for intellectual property protection and software piracy rates.