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Piracy May Boost Sales, Judge Concludes

A Spanish judge came to an interesting conclusion in a case dealing with a seller of pirated copies. According to the judge the defendant doesn’t have to pay compensation to the rightsholders because it is not possible to determine to what extent piracy actually decreases sales. On the contrary, the judge suggests that piracy may even boost sales.

Anyone who says that piracy is only helping or hurting content creators is wrong.

Piracy has a different effect in each unique case. Not only does it differ between the gaming, music, book and movie industries, but also between the relative popularity of the artists and the characteristics of their audiences.

As we’ve pointed out repeatedly in the past, there are plenty of cases where piracy may have a positive effect on sales. Research has shown that “pirates” are the music industry’s best customers, something EMI’s new music boss Douglas Merrill confirmed earlier this year.

“For example, there’s a set of data that shows that file sharing is actually good for artists. Not bad for artists. So maybe we shouldn’t be stopping it all the time. I don’t know,” Merrill said at the time.

Merrill’s conclusions are quite unique coming from a music industry boss, but he is certainly not alone. The same conclusion was reached by people in the anime and book industries in recent months.

The conclusion that piracy is not detrimental to sales has not gone unnoticed by the courts either. In a recent ruling in Spain a local judge noted that it’s impossible to determine the damages a seller of pirated copies had caused, because it’s unclear how many people would have bought the products for the original price.

“It is not possible to determine the damage and corresponding compensation due to loss of benefits to the rightsholder, for the simple reason that customers of pirated copies of music and movies, when making the purchase of pirated copies, externalize their decision not to be customers of music and movies as originals, so there is no profit that could have been gained.”

“In other words, those customers either buy a pirated copy at a low price or they don’t buy an original at a price between 15 and 20 Euros,” the judge added.

On the contrary, instead of hurting the income of copyright holders piracy may actually boost sales, the judge noted.

“In any case, reversing the legal argument, it is conceivable that a customer, after hearing or viewing the pirated copy, may decide to purchase the original, finding it to their taste, so that the sale of pirated copies, far from harming, benefits the market for original items.”

“I declare that there is no harm for which compensation is required,” the judge concluded in her verdict.

Although there are several studies and anecdotes that arrive at a similar conclusion, this is the first time that a judge has brought this up in a verdict. And rightly so.

In a time where people’s rights are stripped to protect the interests of a few multi-million dollar entertainment industry companies, a more realistic, balanced and independent look at the “real” consequences of piracy in individual cases should be encouraged.

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  • Anon

    please.

    • http://pulse.yahoo.com/_IZ5BM5GNLA54OADSWGSXAMA7SY Jay

      Awww… Anon is pouting because even the legal system can prove him wrong. Well, cheer up! There’s always another thread to prove you wrong. :D

    • Agaga

      in my case it is true.

      I download a lot of films I would never buy in the first place. thx to my recommendation , a friend has bought the whole trilogy box set legally. :)

    • Farts

      I would say maybe 50% of downloads are a lost rental however a good movie may or may not bring about the sale of a full purchase. A lot of great movies out that are only worth watching once. I think they would make a LOT more money if people didn’t pirate but my issue is don’t they already have enough? With some movies like avatar don’t they make so much at the theater they could give the thing away? If you take your family to the theater and then buy the expensive bluray I could believe that some families spend almost $100 on a single movie. If they want to exaggerate lost sales then I will too for how much this simple entertainment is costing people and the economy because all our money is going to the rich.

      I believe we shouldn’t pirate but I want a fair price.

      • whir

        i would only rent if it’s at a reasonable price, imo $1 a movie, and less if its not a recent movie

        • http://www.cafepress.com/ladybrinxdesign Ladybrinx

          I agree. I rent from the library, it’s free.

        • http://crashsuit.tumblr.com/ crashsuit

          @Ladybrinx I also rent from the library, though usually I decide it’s easier and faster to download than wait until the disc is available and then go to the library to get it.

    • http://tinyurl.com/ANoiXioNA-personal-info ANoiXioNA

      WoW @Anon…. I am impressed at you improved trolling…..
      Moments like this make me well up with tears……

      You are the Black-belt of trolls…. seriouslyUber King Of Trolls……
      why…..?….?…

      ONE word… You only had to post ONE WORD…

      Now that is a trolling “”Ace”" , “”A hole in One”" , a “”perfect troll”".

      But………..sad to say …..
      you can’t resist being a NewFagTroll……so…
      will be dethroned by logical arguments anyway…

      IMAGE : http://fc08.deviantart.net/fs70/f/2010/356/9/e/troll_face_by_xxcheshiii_chanxx-d35gxcv.jpg

      • Guest

        Perhaps if the movie and music industries didn’t produce such crappy content, people would feel more confident in purchases than pirating to see if they like it or not. If I’m on the fence with an album, I’ll download it. If I like it, I’ll purchase it. If not, I won’t. But smaller or regional bands that I would’ve never heard are easier to access and listen to through torrents, and when I like the music I purchase it.

        Movies are a completely different scenario – I’ll still go to a movie theater with friends, but I don’t always have the time, so I’ll do DVDs. Now, I either pirate it, hit a Redbox for $1 movies (100% legal), or I DVR it if it’s on TV and skip the commercials (100% legal). Either way, I’m not purchasing it unless I absolutely enjoy it, so the movie industry gains no more than maybe $0.40 from me per movie.

        In my case, piracy really has little to positive impact on the movie industry, and only a positive impact on the music industry. And they want to take it away?

    • Lakisha

      ok no problem, I have been saying this for years….

      “customers of pirated copies of music and movies, when making the purchase of pirated copies, externalize their decision not to be customers of music and movies as originals, so there is no profit that could have been gained.”

      “In other words, those customers either buy a pirated copy at a low price or they don’t buy an original at a price between 15 and 20 Euros,” the judge added.

      On the contrary, instead of hurting the income of copyright holders piracy may actually boost sales, the judge noted.

      “In any case, reversing the legal argument, it is conceivable that a customer, after hearing or viewing the pirated copy, may decide to purchase the original, finding it to their taste, so that the sale of pirated copies, far from harming, benefits the market for original items.””

      Its great that its legally also understood by judges now. Thank you for recognizing this judge. You deserve the true nobel peace prize instead of “hitler aka obama (black hitler) as he does nothing but kills people and strips us of our rights, the the corrupt us government gives him a nobel peace prize.

      • quarineesha

        Get out of here Lakisha, we all know you wish your parents gave you some other ridiculous black female name. Lakisha pfffttt

      • quarineesha

        Get out of here Lakisha, we all know you wish your parents gave you some other ridiculous black female name. Lakisha pfffttt

      • Trencher

        $20 says you’re a Fat white guy using the name Lakisha

  • Peter Grant

    :D This is exactly what we’ve been saying all along!

  • Jsdfjsldkf

    Seriously now… piracy doesnt boost sales, you just want to post biased propaganda

    • http://ompldr.org/vYXc2MA/see-what-i-thought-id-do-was-id-pretend-i-was-one-of-those-slut-whores.html w3ts1ut

      Congratulations, you’ve read the title of a TorrentFreak article and completely ignored its content! You win: NOTHING!

      You seem to have ignored this important paragraph located early on in the entry:

      Piracy has a different effect in each unique case. Not only does it differ between the gaming, music, book and games industries, but also between the relative popularity of the artists and the characteristics of their audiences.

      That statement cannot be further from the truth as many creators have [factually] benefited from piracy, while others have had harder times with it.

    • Anon

      Are you talking about TF reporting on what a judge said in court? And labelling it as propaganda because it doesn’t fit your viewpoints?

    • http://twitter.com/Mathew30 Mathew Lisett

      so what you are saying is that after i personally downloaded many tv shows and movies, that i didnt go ahead months later and buy the full boxset of each one and buy the retail dvd’s of movies… i had better not look at where they are then as according to you i havent bought them due to the fact i first gained the content via piracy and by your comment the content i originally gained via piracy didnt boast the sale of theitems i bought months later.

    • Jmorse43508

      Just like your MAFIAA puppet masters want to do all the time…

      A troll and a hypocrite – that’s what you are.

      • http://tinyurl.com/ANoiXioNA-personal-info ANoiXioNA

        Exactly….

        They accuse the opposition of pushing propaganda…..

        Cause that’s what they would do……

        • Jimbo

          more to the point. the entertainment industries try to stifle any ‘propaganda’ that is contrary to their own because they cant handle the truth. they daren’t let anyone in power be subjected to the truth either. check out this article. interesting
          h**p://arstechnica.com/tech-policy/news/2011/11/piracy-problems-us-copyright-industries-show-terrific-health.ars

    • More anon than you

      ur a tard

    • More anon than you

      ur a tard

    • Jsdfjsldkf

      Just goes to show how brainwashed by this site you guys are how you can’t accept the truth.

      • Scary Devil Monastery

        There are about half a dozen serious studies proving that “Yes, piracy does boost sales”.

        Empirical fact generally isn’t considered “brainwashing”.

        Guess what position that puts you and your drivel in?

      • http://twitter.com/Mathew30 Mathew Lisett

        why is it that with people having different views to that of yours, our brains must be brainwashed. and what makes you think that we as people and readers of this website can not come up with our own thoughts and processing powers delivered after reading information

    • Scary Devil Monastery

      A number of scientific studies disagree with your personal opinion.

  • Nebojsha91

    Next step:
    Ask for money from copyright holder for promoting its content :D

    • Dezmiles

      Great idea

    • Anonymous

      And for the web hosting of the embarrassing letters.

  • Lokol

    Interesting point, although I will say that the judge isn’t making a distinction between overall trends and individual actions. To be short, it seems like taking the overall trend of benefit that piracy may or may not provide, and using that to say that an individuals actions are or are not justified, when the individuals actions are not necessarily related to the trend.

    I mean, it’s nice to hear a judge say it, but I don’t think he’s really fulfilling the spirit or letter of individualistic law.

    • http://pulse.yahoo.com/_IZ5BM5GNLA54OADSWGSXAMA7SY Jay

      Spain has had a lot of precedents set for these types of rulings. He is fulfilling the law based on those precedents in Spain.

      • Danny

        (she)

      • Lokol

        Ok. I was speaking from an American perspective. Good to know there’s precedent for this.

  • Anonymous

    This is “we love Spain day”

    It is interesting how Spain presents rational copyright laws and judgements that the United States is trying to destroy.

    • Iloveyouspain

      I love you, Spain!

    • http://twitter.com/icanhazsake Ninja

      I love that judge. We gotta clone her. And we gotta clone senator Zoe and Wyden. Too much win for politicians and judges!

  • No.Brainer

    I often end up buying about 1/5 of the movies I downloaded from torrents…when they re good! …so to me this article makes sense! kudo!

  • Pingback: P2PTalk » Piracy May Boost Sales, Judge Concludes

  • Anonymous

    Nice, I never thought about it liek that dude.
    total-anon.at.tc

    • Thing

      Pointless spam is pointless…

      • Guest

        … hitting Flag button is not. :)

  • Anonymous

    Nice, I never thought about it liek that dude.
    total-anon.at.tc

  • Anonymous

    Nice, I never thought about it liek that dude.
    total-anon.at.tc

  • http://profiles.google.com/zerianis10 Christopher Kidwell

    Finally, we get a sane judge here who realizes that pirates are some of the recording and movie businesses best customers… until they piss off that person with a lawsuit and make them swear off buying anything from those companies for the rest of time.

  • http://profiles.google.com/zerianis10 Christopher Kidwell

    Finally, we get a sane judge here who realizes that pirates are some of the recording and movie businesses best customers… until they piss off that person with a lawsuit and make them swear off buying anything from those companies for the rest of time.

  • http://profiles.google.com/zerianis10 Christopher Kidwell

    Finally, we get a sane judge here who realizes that pirates are some of the recording and movie businesses best customers… until they piss off that person with a lawsuit and make them swear off buying anything from those companies for the rest of time.

  • Antonio

    piracy IS NOT THEFT. Only duplicating+SELLING should be considered as a crime. Piracy is simply the natural will of man to exchange resources. It’s natural, it can’t be prohibited at all. Live with it. Everything which can be digitized, can also be duplicated.Stop this hypocricy and useless moralisms. Take more time/resources to fight people which EARN MONEY from duplicating other’s stuff, instead of pursuing free downloaders. Sorry for the bad english.

    • http://profiles.google.com/zerianis10 Christopher Kidwell

      Bingo. With all due respect to the MAFIAA, the fact is that most people who pirate would NEVER BUY THE LEGAL PRODUCT IN QUESTION!
      Not at the price they are asking, anyway, because they are too poor to afford it.

      • Swordfishman

        I’m too poor to afford a ferrari, so it’s OK if I steal one? I agree that this is slightly different (physical vs digital), but the same concept is generally applied. I was taught that if you can’t afford something, either save up to buy it or just deal without. None of this “I’m poor, but I am entitled to download your work for free” stuff.

        • Brain

          You were taught by a generation who lived in an age when finformation was still a scarce commodity. If I could clone a Ferrari without depriving the owner of the original of anything, I would. Stealing is still wrong.

        • Brain

          You were taught by a generation who lived in an age when finformation was still a scarce commodity. If I could clone a Ferrari without depriving the owner of the original of anything, I would. Stealing is still wrong.

        • fack u

          That’s got to be the most idiotic metaphor ever. How is a Ferrari at all similar to an mp3? GTFO. SLIGHTLY different? Why don’t you weigh the difficulties of downloading music vs. stealing an expensive car before running your mouth. Fucking tard.

        • fack u

          That’s got to be the most idiotic metaphor ever. How is a Ferrari at all similar to an mp3? GTFO. SLIGHTLY different? Why don’t you weigh the difficulties of downloading music vs. stealing an expensive car before running your mouth. Fucking tard.

        • Scary Devil Monastery

          No, but if you want to make a copy of a ferrari using your own materials you are perfectly welcome to.

          So your comparison isn’t “slightly different” – it isn’t even in the same ballpark.

  • Pingback: Piracy May Boost Sales, Judge Concludes | TorrentForce Blog

  • Eric

    In the old days before the internet, a song from the radio could be recorded on a cassette tape or a movie recorded on a videotape and this was not considered piracy.

    – There are sales of new DVDs

    – There is access to a digital version of the movie on the internet, either by streaming or download

    – And there is the burning of that movie to DVD-R, making of a bogus cover and sale of that film on eBay or at conventions.

    #3 is piracy; the deliberate attempt to take money for a counterfeit publication owned by someone else. #2 is simply the new form of “broadcasting,” which is where viewers see something new without having to pay for it which exposes them to new material or material they seek out which they can buy a copy of if they wish. The difference between the broadcasting of a new song on the radio and the posting of that song on the internet is that in the first case the copyright owner was the one who decided to post it, and in the second it was another party. It’s this lack of granted permission for posting material that is really what irks those who would control the availability of material. There really is no way though now to control the spread of digital audio or video. You send out one copy of something and it’s out there and will spread.

    The movie and recording people should change their tactics and if they need to punish someone go after those who sell bootleg DVDs and CDs on eBay or “collector trading” websites. Otherwise if they would realize that downloading an MP3 nowadays is the modern-day equivalent of recording a song off the radio onto a cassette tape, which may or may not lead to a sale of the album the song came from, and the same with movies — if they realized that downloading a movie is the current version of recording a VHS copy from broadcast, they’d save a lot of effort and still get sales from people who are exposed to something they might not have been able to see in any other way and therefore might decide to buy a copy of so they can own the original in full quality and the packaging.

    Really the wisest thing the movie/recording industry could do now would be realize the distinction between internet access to a movie or song (an inferior experience) and the ability to own the “original” which is a superior and more desirable product, and to upgrade the way movies and songs are packaged — remember how much fun LP albums used to be if people made an effort to dress them up? Album covers were totally beloved things which now no longer exist because the recording industry doesn’t recognize their value. CDs are just not lovable — a larger version of an “album cover” should return — even if it’s only comic-book size. Movies could be packaged along with booklets of stills, posteres, lots of extras, etc. which would make the simple download of the film itself pale in comparison with what people would get if they buy the whole “real” package. It’s the laziness of attempting to get maximum profit out of minimum packaging that is getting publishers’ panties all in a bunch. If what they put out was unquestionably of higher desirability and value than what was available on the internet their “lost sales” factor would decrease dramatically.

    I’m a small-press DVD publisher and I’m aware of all this. The big guys should catch up and get with the program.

    • Violent Violet

      They have always hated all of those things. Those companies have always been sinister and backwards.

    • Violent Violet

      They have always hated all of those things. Those companies have always been sinister and backwards.

  • Common Man

    The judge’s opinion deserves consideration.

    Piracy often introduces people, not just to individual products, but to entire product lines which they might have otherwise ignored. Even if they don’t purchase the product they’ve downloaded, they might purchase a later version or another similar kind of product later on.

    For example, an individual who downloads Schopenhauer’s ‘The Wisdom of Life’ might not necessarily purchase the book – but he might well, later on, purchase ‘The World as Will and Representation’ volumes 1 & 2.

    (Example taken from personal experience…)

  • Barbaric

    “…quite unique…” Sorry, can’t qualify “unique.” It either is or is not.

  • http://torrentfreak.com/ Rob8urcakes

    Nothing to see here, move along please.
    It’s only a legal bone being thrown at us dogs of war in this stupid battle over copywrong crap.

    We need new laws to protect real originators and a new market-model that favours real innovation. Not some bullshit profit-protectionism that holds everyone back and stops innovation, creativity and the very distribution of effort.

  • Anonymous

    Perhaps if the movie and music industries didn’t produce such crappy content, people would feel more confident in purchases than pirating to see if they like it or not. If I’m on the fence with an album, I’ll download it. If I like it, I’ll purchase it. If not, I won’t. But smaller or regional bands that I would’ve never heard are easier to access and listen to through torrents, and when I like the music I purchase it.

    Movies are a completely different scenario – I’ll still go to a movie theater with friends, but I don’t always have the time, so I’ll do DVDs. Now, I either pirate it, hit a Redbox for $1 movies (100% legal), or I DVR it if it’s on TV and skip the commercials (100% legal). Either way, I’m not purchasing it unless I absolutely enjoy it, so the movie industry gains no more than maybe $0.40 from me per movie.

    In my case, piracy really has little to positive impact on the movie industry, and only a positive impact on the music industry. And they want to take it away?

  • Anonymous

    Cool story bro. Makes sense to me.
    anon-web.us.tc

    • GUEST

      FLAGGED

    • GUEST

      FLAGGED

    • lol

      Suck a dick

  • Anonymous

    Cool story bro. Makes sense to me.
    anon-web.us.tc

  • Pingback: Courts concede piracy may increase sales | FranklyBrad

  • Jeff Hamillton

    What that judge say is totally crap !!! …. How can piracy increase the sale ??

    http://www.technoyes.com/2011/11/top-10-featured-samsung-applications.html

    • Yodiggitymofoyuhmofo

      Suck a fat one

    • Yodiggitymofoyuhmofo

      Suck a fat one

  • DRuNKeN MaSTeR

    Another example: I recently downloaded (pirated) God of War for PS2… I might not buy the game in original, but I sure bought the novel to the game! It’ll arrive in a few days at my doorstep.

  • Guest

    Personally, I like to try before I buy. If I don’t like something (comics, movie, whatever), I won’t actually buy it and just delete it. If I -do- like something, I often tend to purchase a legitimate copy later on, and also tell all my friends about it.

  • Guest

    Im glad there are other people who use pirating to test things out before they buy them. As a proud owner of over a hundred games on steam, I believe pirates are the best customers. Not to mention They bring down the price on games that are far over priced. Since when did computer games jump to 60 dollars? I refuse to pay 60 dollars for a new game. 50 is ok, 30 is fantastic. I refuse to pay the extra 10 dollars that the producers snuck in there.

  • Aleksej

    The “anime” link is the same as a “book” link, not about anime.

  • Pingback: Judge decides piracy may boost sales | DailyBinaryNews.com

  • Wicked Smilee

    Thru pirated “underground” style music, I came to love going to the shows. I spend lots going to concerts that I never would have known existed, If i hadn’t had the opportunity to share the music. I love it, and I’m sure the artists appreciate the $$$,…

  • Pingback: Richter: Musikpiraten fördern das Geschäft | Binzl Online

  • Doe

    I hope there will be more judges like this in the future. Hopefully in 40 years, we might be free from this current situation when a new generation sweeps in.

  • Pingback: Ein spanischer Richter verlautet: Raubkopierer kurbeln das Musikgeschäft an. | Werbeblogger – Weblog über Marketing, Werbung und PR » Blog Archiv

  • Nomaj

    ??! ?????????????, ?? ?????? ????? ???????????????? ??????? ???? ??? ??????????.

    • Bad Burn

      thats easy for you to say

  • David Sage

    Don’t know is Spanish judges just don’t care about these cases or actually acknowledges non mafia researches, but this makes me want to move there from one Finnish “police state”,,,

  • Anonymous

    ta.gg/5jo

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  • Bad Burn

    I think its hilarious whats happened to the industry.They only have themselves to blame.They digitized music,which should have brought the price of an album down.A music paper back in the day broke down the costs of this new format – it was obvious they were just gouging their customer base.After reading it I vowed to never buy a new cd.Look at their response to “lost” album sales – triple the price of seeing a live band,double the price of a tour t-shirt,stick a few quid on the price of a beer or burger at the gig.(compare and contrast to the Grateful Dead building scaffolding rigs so their fans can have somewhere to hang their recording devices at gigs).I’m actually disappointed I can’t bring down the music industry by downloading everything in sight.
    Someone up there mentioned copyright damaging creativity.
    I have a youtube account.I’ve made two fanvids of songs I like.One was banned by the fucking artist (Neil Young -cheers you miserable twat – hows the rape and murder at laurel canyon these days? how come you snubbed dean clarkes funeral?he made a lot of cash for you and those talentless fuckwits stills and nash back in the day),and the other was flagged by PBfuckingS for using a brief clip of some obscure documentary about diamond production.Thats my two strikes.I can’t risk another – I don’t want to lost the dozens of channels and thousands of favourite vids.Goodbye amature video hobby.

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