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Wired Magazine , 10 1 , January A Conversation with Marvin Minsky about Agents. Communications of the ACM , vol. Raisinghani, A. Benoit, J. Ding, M. Gomez, K. Gupta, V. By researching the pirate communities, perceptive businesses and entrepreneurs were successful in identifying the needs that existing businesses were not adequately addressing. For example, many of former Napster customers have migrated to the legal version of Napster and iTunes. Economist, Lastly, online piracy has often spurred the creation of legal and innovative business models.
These new businesses were effective in large part because of their ability to take advantage of the new technology, market insight and market creation initiated by the piracy communities. At times, it was the online pirates themselves that were actively involved with the creation of next generation, legitimate businesses. We find that this pattern of piracy pioneering new market insight, market communities and business models is repeated with each generation of new pirate technology. We believe that companies that understand the pattern and take advantage of the innovation offered by piracy communities can create businesses of significant value.
The paper briefly explores the evolution of piracy technologies and associated online communities starting with the beginning days of the Internet through the recent Napster and Torrent phenomena. In particular, we analyze the influence of the recent peer-to-peer P2P technologies and communities on the creation of new business models in the media industry. Finally, the paper analyzes the recent Torrent phenomenon and suggests its potential impacts on the creation of new business models.
Most of the academic work has been legal published in law journals or ethical published in law or ethics journals in nature. For example, Kaplan and Smith and Rupp explore the legal impact of piracy on the entertainment industry, while Delaney et al. Goodman and Brenner examine the criminality of piracy, and Lichtman writes about holding Internet Service Providers accountable for Internet piracy. Kruger discusses the ethical elements of piracy.
Most of the management related discussions have been in the popular press in the form of newspaper or magazine reports. Most have been descriptive in nature. Some articles have been more analytical and have attempted to examine the lasting impacts of piracy on the media industry.
Our paper is one of the very first and rare attempts on the subject of online piracy in entrepreneurship literature.
Specifically, the paper aims to identify common patterns, i. Finally, the paper examines the parallels between the Napster and Torrent phenomena, a topic not yet analyzed by most academic researchers.
It grew quietly and slowly during the next 10 years. It is important to note that the early adopters of the Internet, many of whom were technologists and scientists, strongly believed in the idea of sharing information for mutual benefit. After all, the Internet was created by the government for the purpose of sharing information for scientific discovery.
The computer communities grew over the years with their original philosophies intact. When companies like Microsoft and Novell started to charge for their software, many people previously accustomed to free software were surprised and displeased. It was some of these disgruntled users that became the first software pirates. For them it was companies like Microsoft that was breaking the deep-rotted code of ethics. A widely known cooperative project was the development of Linux, an open source operating system started by Linus Torvalds in and developed together with the community from the Minix operating system.
ASF is a decentralized community of developers working on its open source software projects. In the Fall of , the year-old college student Shawn Fanning became a pioneer in the P2P file sharing technology when he released the original Napster, a software program he had developed in his dorm room.
Fanning wanted an easier method of finding music and devised a way for computer users to use the Internet as a channel for copying files stored on someone else's hard drive.
To the surprise of many skeptics, millions became Napster users in a matter of months. The Napster servers contained hundreds of thousands of bootlegged audio files donated by users. Then, the majors participated in industry setting efforts such as Secure Digital Music Initiative SDMI , but they were unable to achieve consensus and abandoned the project in
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