Piracy and Video Games- Is There a Light at the End of the Tunnel?

From the SelectedWorks of Maxim Tsotsorin

January 2013

Piracy and Video Games: Is There a Light at theEnd of the Tunnel?

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Piracy and Video Games: Is There a Light at the End of the Tunnel?

I. Introduction ................................................................

II. Videogame Piracy: A Global and Expensive Problem

A. A Bit of History ................................

B. Market Segments and Platforms

1. PC Video Games ................................

2. Video Games for Consoles ................................

3. Mobile Game Apps ................................

D. Foreign Markets ................................

II. Possible Solutions ................................

A. A Legal Solution: Anti-Piracy Laws and Enforcement

1. Legislative Framework ................................

2. Enforcement ................................

B. A Business Solution: Open Pricing and F2P

C. A Technological Solution: Digital Rights Management

D. Two Case Studies ................................

1. Valve in Russia and the Value of Customer Service

2. Game Dev Tycoon and the Power of Education

III. Conclusion ................................


1


Maxim V. Tsotsorin

Table of Contents

................................................................................................

II. Videogame Piracy: A Global and Expensive Problem ................................................................

................................................................................................................................

B. Market Segments and Platforms................................................................................................

...............................................................................................................................

................................................................................................

................................................................................................

................................................................................................................................

................................................................................................................................

Piracy Laws and Enforcement ................................................................

................................................................................................

................................................................................................................................

B. A Business Solution: Open Pricing and F2P ................................................................

C. A Technological Solution: Digital Rights Management ................................................................

...............................................................................................................................

1. Valve in Russia and the Value of Customer Service ................................................................

and the Power of Education ................................................................

................................................................................................................................


............................................... 2

............................................. 3

.................................... 3

........................................... 4

............................... 5

............................................... 6

........................................................... 7

................................... 8

.................................. 10

..................................... 11

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I. Introduction

“For as long as there has been stuff, people have wanted that stuff for free.”

idea is the driving force behind the problem that has haunted businesses on every side of the

spectrum: designer knock-offs, pirated movies, illegally downloaded music MP3s, and

video games. Yes, stolen as in “theft

of video games from bit-torrents is

copy making it available to others for download, or a

find illegal – but free – games. Either way, videogame piracy is a crime

countries provide severe civil2 and criminal penalties for violating those laws.

In addition to being unlawful in many countries around the globe, videogame piracy

seems to benefit the end user who receives a game for free and can enjoy it without any costs

incurred. While this is definitely one of the major driving forces behind the w

piracy, the bigger picture reveals that the only party that benefits from piracy is the pirate him

herself. While it is pretty clear the game developers lose

their releases, what it means in the

gamer would spend on a legitimate

graphics, better sound effects, better interface, better storyline, and better overall user

experience. In essence, buying games in the open market subsidizes game development; buying

illegal copies under the table subsidized only the maker of the illegal copy

makers out of business.

Over the past couple decades piracy has become a relat

available technology has made making a copy

on your personal laptop – with a click of a button

look better than originals, and printing t

stickers. In the Internet universe, multitude of bit

provide videogame pirates with an unlimited distribution m

industry’s countermeasures, however, also has not stayed still.

broad array of preventive and enforcement measures targeting different facets of the problem.

1 David Houghton, A Brief History of Video Games

brief-history-of-video-game-piracy/. 2 Civil remedies typically include those afforded for copyright and trademark infringement. See 17 U.S.C. § 501

(2011) (copyright infringement and applicable r

and applicable remedies). 3 See, e.g., Agreement on Trade-Related Aspects of Intellectual Property Rights

299, 33 I.L.M. 1197 (1994). In the United States,

violations. See 17 U.S.C. § 506. 4 Bruce Everiss, The History of Software Piracy

http://gametheoryonline.com/2010/08/17/history


2

“For as long as there has been stuff, people have wanted that stuff for free.”


offs, pirated movies, illegally downloaded music MP3s, and

as in “theft.” Creating pirated CDs/DVDs or downloading illegal copies

torrents is against the law – whether you are the creator of a pirate

making it available to others for download, or a user scouring dark corners of the Internet to

games. Either way, videogame piracy is a crime, and laws of many

and criminal penalties for violating those laws.3



incurred. While this is definitely one of the major driving forces behind the widespread nature of

piracy, the bigger picture reveals that the only party that benefits from piracy is the pirate him

herself. While it is pretty clear the game developers lose money and do not make much profit on

in the long run is that no profit equals no games.

imate copy would have gone to developing new games: with better


In essence, buying games in the open market subsidizes game development; buying

illegal copies under the table subsidized only the maker of the illegal copy and drives videogame

Over the past couple decades piracy has become a relatively low-

has made making a copy of a videogame as easy as ripping off a music CD

with a click of a button. Digital color copiers make CD inserts that

look better than originals, and printing technology allows printing on CDs without messy

In the Internet universe, multitude of bit-torrents and peer-to-peer sharing platforms

provide videogame pirates with an unlimited distribution market and low cost operations.

industry’s countermeasures, however, also has not stayed still. The game developers employ a


A Brief History of Video Games, GAMESRADAR (Aug. 30, 2010), http://www.gamesradar.com/a

Civil remedies typically include those afforded for copyright and trademark infringement. See 17 U.S.C. § 501

(2011) (copyright infringement and applicable remedies); 15 U.S.C. § 1111-1125 (2011) (trademark infringement

Related Aspects of Intellectual Property Rights art. 6, Apr. 15, 1994, 1869 U.N.T.S.

. In the United States, criminal copyright infringement is used for “willful and for profit”

The History of Software Piracy, GAME THEORY (Aug. 17, 2010),

http://gametheoryonline.com/2010/08/17/history-video-game-piracy-pc-ps3-wii-xbox-free-download/

“For as long as there has been stuff, people have wanted that stuff for free.”1 This basic


offs, pirated movies, illegally downloaded music MP3s, and stolen

downloading illegal copies

the creator of a pirated

scouring dark corners of the Internet to

and laws of many



idespread nature of

piracy, the bigger picture reveals that the only party that benefits from piracy is the pirate him- or

money and do not make much profit on

no profit equals no games.4 Every dollar a

copy would have gone to developing new games: with better


In essence, buying games in the open market subsidizes game development; buying

and drives videogame

-cost business –

as easy as ripping off a music CD

Digital color copiers make CD inserts that

echnology allows printing on CDs without messy

peer sharing platforms

arket and low cost operations. The

The game developers employ a


http://www.gamesradar.com/a-

Civil remedies typically include those afforded for copyright and trademark infringement. See 17 U.S.C. § 501-505

1125 (2011) (trademark infringement

, Apr. 15, 1994, 1869 U.N.T.S.

criminal copyright infringement is used for “willful and for profit”

download/.


This paper provides a brief overview of the videogame piracy pro

then samples the solution landscape with

specific aspects of game development and publishing

a well-balanced approach targeting the

consider a number of enforcement and preventive measures that could be extremely effective if

combined.

II. Videogame Piracy: A Global and Expensive Problem

A. A Bit of History

The videogame piracy has been a problem since the development of the first video game

that could have been copied and resold

years of personal computers.5 The first video games were sold on audio compact cassettes, whi

were extremely easy to copy because of mass proliferation of dual cassette players

needed was a blank tape.6 During the early days, many game publishers around the world went

out of business for this exact reason

inventing and implementing various technical anti

tapes, such as Lenslok.8

Then came the game consoles

Commodore, and followed by Nintendo and Sega

cartridges9: simply speaking, a removable circuit board

modules. Those cartridges were extremely expensive to manufacture, but they were also very

expensive to copy – one would pretty much need to replicate the full manufacturing process.

Instead, the game pirates switched their focus to consoles themselves

compatible consoles accepting unlicensed games were as common as the legitimate ones.

Nevertheless, during this period many of the game developers we know today established and

grew their operations.

Both the costs of producing the cartridges and

as the games became more and more complex. The industry embraced the greater capacity and 5 See generally Sandra Leigh King, While You Were Sleeping

6 Everiss, supra note 4; Houghton, supra

7 Everiss, supra note 4.

8 Lenslok, WIKIPEDIA, http://en.wikipedia.org/wiki/Lenslok

9 See Game Cartridge, WIKIPEDIA, http://en.wikipedia.org/wiki/Game_cartridge

10 Everiss, supra note 4; Miodrag Kovacevic,

http://deltagamer.com/20973/a-brief-

such an expensive process that pirates promptly stopped bothering with it and moved on to the PlayStation.”).11

Houghton, supra note 1.


3

This paper provides a brief overview of the videogame piracy problem and its extent

the solution landscape with particular focus on those countermeasures that target

game development and publishing. The anti-piracy efforts should certainly be

balanced approach targeting the black market in every possible manner, so it is helpful to


Global and Expensive Problem

piracy has been a problem since the development of the first video game

that could have been copied and resold—or simply shared, as it was happening in the yearly

The first video games were sold on audio compact cassettes, whi

were extremely easy to copy because of mass proliferation of dual cassette players

During the early days, many game publishers around the world went

for this exact reason.7 During this period, the industry has gone to great trouble

inventing and implementing various technical anti-piracy solutions to prevent copying cassette

Then came the game consoles that brought temporary relief – starting with

ed by Nintendo and Sega. The games were embodied in

a removable circuit board with preinstalled software and hardware

Those cartridges were extremely expensive to manufacture, but they were also very

one would pretty much need to replicate the full manufacturing process.

Instead, the game pirates switched their focus to consoles themselves – for exam

compatible consoles accepting unlicensed games were as common as the legitimate ones.

uring this period many of the game developers we know today established and

Both the costs of producing the cartridges and the limited storage space posed problems

as the games became more and more complex. The industry embraced the greater capacity and

While You Were Sleeping, 11 SMU SCI. & TECH. L. REV. 3 (2007).

supra note 1.

http://en.wikipedia.org/wiki/Lenslok (last visited May 3, 2013).

http://en.wikipedia.org/wiki/Game_cartridge (last visited May 3, 2013).

note 4; Miodrag Kovacevic, A Brief Overview of Console Piracy, DELTAGAMER (Nov. 27, 2011),

-overview-of-console-piracy (“[M]anufacturing a pirate N64 cartridge was

such an expensive process that pirates promptly stopped bothering with it and moved on to the PlayStation.”).

and its extent, and

focus on those countermeasures that target

piracy efforts should certainly be

black market in every possible manner, so it is helpful to


piracy has been a problem since the development of the first video game

as it was happening in the yearly

The first video games were sold on audio compact cassettes, which

were extremely easy to copy because of mass proliferation of dual cassette players – all you

During the early days, many game publishers around the world went

gone to great trouble

to prevent copying cassette

starting with Atari and

were embodied in game

with preinstalled software and hardware

Those cartridges were extremely expensive to manufacture, but they were also very

one would pretty much need to replicate the full manufacturing process.10

for example, NES-

compatible consoles accepting unlicensed games were as common as the legitimate ones.11

uring this period many of the game developers we know today established and

the limited storage space posed problems

as the games became more and more complex. The industry embraced the greater capacity and

(2007).

(last visited May 3, 2013).

(Nov. 27, 2011),

(“[M]anufacturing a pirate N64 cartridge was

such an expensive process that pirates promptly stopped bothering with it and moved on to the PlayStation.”).


lower cost of recordable optical media

publishers anticipated increased

protective measures.12 It was, however, a losing game at the outset. Technology was developing

so quickly, many companies simply could not keep up with the tools available to the public (and,

thus, the pirates). Shortly after CD

burners became commonplace in many households

homes.13 Video game pirates, unable to fully utilize still growing

offering illegal copies literally going door

companies started programming their consoles to accept only authentic CDs with original game

copies and implementing other technical barriers to copying

immediately circumvented by “modding”

its abilities.15 All of this resulted in

With the wide adoption of

Instead of going door-to-door looking for customers, the pirates now would only needed to

upload the files and post them online.

illegal copies, offer search engines for marketing efforts, collect payments etc.

virtually anonymous and staying under the enforcement radar

Additionally, there was no longer a need to distribute a physical medium containing a video

game – a click of a button would upload an illegal copy to the Internet, and another click would

pay for and download the game on

B. Market Segments and Platforms

Video games exist in our lives in every shape and form, and they typically use some kind

of a platform. The most popular and established categories of video games by platform are: (1)

console games made for consoles like Sony PlayStation, Xbox, or Nintendo

made for personal computers; and

devices such as smartphones. In recent years, there has also been an emergence of private servers

– also called “grey shards” – that allow “playe

12

See, e.g., Everiss, supra note 4. The first was Sony which used CD13

See Houghton, supra note 1. 14

Everiss, supra note 4. 15

See generally Phillip A. Harris Jr., Mod Chips and Homebrew: A Recipe for Their Continued Use in the Wake of

Sony v. Divineo, 9 N.C. J.L. & TECH. 113 (2007).

HUBPAGES (last updated Jan. 31, 2013); Houghton, 16

See generally Koroush Ghazi, PC Game Piracy Examined

http://www.tweakguides.com/Piracy_1.html17

Houghton, supra note 1. 18

Andrew V. Moshirinia, Giant Pink Scorpions: Fighting Piracy with Novel Digital Rights Management Technology

23 DEPAUL J. ART TECH & INTELL. PROP. L. 1,


4

optical media – CR-ROM, and later DVD-ROM. With that, m

publishers anticipated increased piracy concerns and thus developed and implemented numerous

It was, however, a losing game at the outset. Technology was developing


. Shortly after CD-ROMs were introduced for mass consumption, the CD

in many households allowing users makes copies in their own

ideo game pirates, unable to fully utilize still growing Internet popularity,

illegal copies literally going door-to-door looking for customers.14 As soon as the game


and implementing other technical barriers to copying, most of them were almost

circumvented by “modding” – physical altering of the console to perform outside of

All of this resulted in a dramatic drop in sales and industry-wide layoffs.

With the wide adoption of the Internet, the videogame industry suffered yet again.

door looking for customers, the pirates now would only needed to

upload the files and post them online.17 “The Internet” would do the rest - provide storage for

h engines for marketing efforts, collect payments etc.

virtually anonymous and staying under the enforcement radar at a very low expense


click of a button would upload an illegal copy to the Internet, and another click would

onto the user’s personal computer.18

and Platforms



console games made for consoles like Sony PlayStation, Xbox, or Nintendo Wii; (2) PC games

and (3) mobile games, which are basically apps made for mobile

In recent years, there has also been an emergence of private servers

that allow “players of cloud-based entertainment software access

note 4. The first was Sony which used CD-ROMs for its PlayStation console.

Mod Chips and Homebrew: A Recipe for Their Continued Use in the Wake of

(2007). See also Martene Battle, Mod Chipping for Video Game Consoles

(last updated Jan. 31, 2013); Houghton, supra note 1.

PC Game Piracy Examined, TWEAKGUIDES (Apr. 2012),

http://www.tweakguides.com/Piracy_1.html.

Giant Pink Scorpions: Fighting Piracy with Novel Digital Rights Management Technology

1, 2 (2012).

With that, many game

piracy concerns and thus developed and implemented numerous

It was, however, a losing game at the outset. Technology was developing


ROMs were introduced for mass consumption, the CD

allowing users makes copies in their own

Internet popularity, were

As soon as the game


most of them were almost

physical altering of the console to perform outside of

wide layoffs.

the videogame industry suffered yet again.16

door looking for customers, the pirates now would only needed to

provide storage for

h engines for marketing efforts, collect payments etc. – all while being

at a very low expense.


click of a button would upload an illegal copy to the Internet, and another click would



Wii; (2) PC games

apps made for mobile

In recent years, there has also been an emergence of private servers

based entertainment software access

ROMs for its PlayStation console. Id.

Mod Chips and Homebrew: A Recipe for Their Continued Use in the Wake of

Mod Chipping for Video Game Consoles,

Giant Pink Scorpions: Fighting Piracy with Novel Digital Rights Management Technology,


these unauthorized serve3rs to play copyrighted video games that are made available through

hacked software and/or circumvention of the rights holders’ technological protection

measures.”19

1. PC Video Games

The most pirated platform is the PC

pirates.20 With advent of the Internet, “PC gaming took the biggest and most obvious hit.”

the widespread use of the Internet, pirates

various file sharing services, FTP locations, and Internet Relay Chat

“client base” and to remain as anonymous and as invulnerable as possible.

game publishers voiced their decision to go as

avoid publishing many titles on this platform.

While there are no reliable statistics specific to PC gaming industry

reflect pirated software,24 - overall video

the website Alexa25: huge amount of traffic on popular torrent sites places them in the top few

hundred websites in the world.26

of Canada stated that the computer game industry in North America (including Canada and the

U.S.) lose close to $3.5 billion every year to pirated video games, the number equal one

the total value of the video game market.

19

OFFICE OF THE U.S. TRADE REPRESENTATIVE

at http://www.ustr.gov/sites/default/files/05012013%202013%20Special%20301%20Report.pdf20

See generally Moshirinia, supra note 18, at 21

Houghton, supra note 1. 22

Ghazi, supra note 16. 23

See John Gauder, Pachter: Publishers Have Abandoned PC Platform Due to Piracy

http://www.gamechup.com/pachter-publishers24

In recent years, the number for United States has been around 20%.

Piracy Rate, WEBPRONEWS (May 12, 2010),

2010-05. See also SHADOW MARKET: 2011

the U.S., the lowest in the world), available at

http://globalstudy.bsa.org/2011/downloads/study_pdf/2011_BSA_Piracy_Study25

Of course, one download does not and will never eq

game unless it is free. See, e.g., United States v. Dove, 585 F. Supp. 2d 865 (2008).26

ALEXA, www.alexa.com (last visited May 4, 2013).27

Video Game Piracy Losses in North America

game-piracy-losses-in-north-america/. 28

Rob Crossley, PC Piracy Rate above 90%, Says Ubisoft

http://www.computerandvideogames.com/364271/pc

Ubisoft’s CEO, has later clarified that the rate relates to specific titles, not PC gaming industry as a total.

Phillips, Ubisoft Clarifies “93-95%” PC Piracy Rate Comments

http://www.eurogamer.net/articles/2012


5



1. PC Video Games

most pirated platform is the PC - PC market has been always targeted by the

With advent of the Internet, “PC gaming took the biggest and most obvious hit.”

the widespread use of the Internet, pirates began using to their advantage

various file sharing services, FTP locations, and Internet Relay Chat – in order to

“client base” and to remain as anonymous and as invulnerable as possible.22 More recently, some

game publishers voiced their decision to go as far as to abandon PC territory completely and

avoid publishing many titles on this platform.23

While there are no reliable statistics specific to PC gaming industry

overall video game piracy is often measured by traffic rankings on

: huge amount of traffic on popular torrent sites places them in the top few 26 As recent as last year, the Entertainment Software Association


U.S.) lose close to $3.5 billion every year to pirated video games, the number equal one

e total value of the video game market.27 Some claim that PC piracy rate is as high as 95%

EPRESENTATIVE, 2013 SPECIAL 301 REPORT 20 (May 2013) [hereinafter 301

http://www.ustr.gov/sites/default/files/05012013%202013%20Special%20301%20Report.pdf

note 18, at 21-23.

Pachter: Publishers Have Abandoned PC Platform Due to Piracy, GAMECHUP (Feb. 9, 2013),

publishers-have-abandoned-pc-platform-due-to-piracy/

In recent years, the number for United States has been around 20%. See Mike Sachoff, U.S, Has Lowest Software

(May 12, 2010), http://www.webpronews.com/us-has-lowest-software

2011 BSA GLOBAL SOFTWARE PIRACY STUDY (9th ed. May 2012) (19% piracy rate for

available at

http://globalstudy.bsa.org/2011/downloads/study_pdf/2011_BSA_Piracy_Study-Standard.pdf.

Of course, one download does not and will never equal a lost sale – some people would not even consider a

, United States v. Dove, 585 F. Supp. 2d 865 (2008).

(last visited May 4, 2013).

Video Game Piracy Losses in North America, HAVOSCOPE (Aug. 27, 2012), http://www.havocscope.com/video

PC Piracy Rate above 90%, Says Ubisoft, CVG (Aug. 22, 2012),

http://www.computerandvideogames.com/364271/pc-piracy-rate-above-90-says-ubisoft/. Yves Guillemot,

bisoft’s CEO, has later clarified that the rate relates to specific titles, not PC gaming industry as a total.

95%” PC Piracy Rate Comments, EUROGAMER (Sept. 5, 2012),

http://www.eurogamer.net/articles/2012-09-05-ubisoft-clarifies-93-95-percent-pc-piracy-rate-



PC market has been always targeted by the

With advent of the Internet, “PC gaming took the biggest and most obvious hit.”21 With

began using to their advantage torrents, Usenet,

in order to reach their

More recently, some

far as to abandon PC territory completely and

– most numbers

raffic rankings on

: huge amount of traffic on popular torrent sites places them in the top few

As recent as last year, the Entertainment Software Association


U.S.) lose close to $3.5 billion every year to pirated video games, the number equal one-fifth of

Some claim that PC piracy rate is as high as 95%,28

301 REPORT], available

http://www.ustr.gov/sites/default/files/05012013%202013%20Special%20301%20Report.pdf.

(Feb. 9, 2013),

U.S, Has Lowest Software

software-piracy-rate-

ed. May 2012) (19% piracy rate for

some people would not even consider a

http://www.havocscope.com/video-

. Yves Guillemot,

bisoft’s CEO, has later clarified that the rate relates to specific titles, not PC gaming industry as a total. See Tom

-comments.


but most believe that more realistic number is

however, can have a very high piracy rate.

2. Video Games for Consoles

In comparison to PC games, console

rate of piracy.31 For example, a simple comparison of piracy rates of the same titles on multiple

platforms consistently shows that piracy in the console territory is not as

camp.32 A recent 2011 report about the most pirated video games, TorrentFreak

breaking news about everything BitTorrent

far the most downloaded titles, with on average mo

compared to Xbox 360 and Wii releases. . . . The platforms that are not mentioned, such as the

PS3, get considerably less downloads and are excluded for that reason.”

course, are console specific, and some consoled suffer much higher piracy rates.

Consoles, of course, are not exempt from piracy

typically is not necessary with a PC. Most of the consoles must be modded or otherwise hacked

in order to accept a pirated game

and sometimes even “hunting down relatively sketchy hardware modifications

contrary, typically provides the player with a download

technical knowledge.

Some commentators also advance cultural differences in PC v. console piracy: computer

gaming grew out of hacking and sharing data, whereas console gaming from the outset was

29

Kyle Orland, Why Aren’t Console Piracy Rates Higher?

http://gametheoryonline.com/2010/08/30/console30

Ernesto, The Most Pirated Games of 2011

pirated-games-of-2011-111230/; Ghazi,

GAMASUTRA (Aug. 5, 2010),

http://www.gamasutra.com/view/news/29768/Machinarium_Dev_Saw_Up_To_95_Piracy_Rate.php31

For a great account of the demise of Sega Dreamcast console see xiaopang333,

Did It?, XIAOPANG’S GAME BLOG (May 2, 2008),

dreamcastor-did-it/. 32

Ghazi, supra note 16. 33

Ernesto, supra note 30. 34

See, e.g., Kat Bailey, Sony Calls PSP Piracy Rates “Sickening

http://www.1up.com/news/sony-calls-

Pirated Games, ELSPA Says, THE ESCAPIST

Percent-Of-American-DS-Owners-Play-35

See, e.g., Miodrag Kovacevic, A Brief Overview of Console Piracy

http://deltagamer.com/20973/a-brief-

Back Against Piracy, WIRED (Apr. 19, 2010, 12:00 PM),

http://www.wired.com/magazine/201036

Orland, supra note 29.


6

believe that more realistic number is around 70%,29 if not lower. Certain titles,

can have a very high piracy rate.30

2. Video Games for Consoles

In comparison to PC games, console-based video games typically suffer a

For example, a simple comparison of piracy rates of the same titles on multiple

platforms consistently shows that piracy in the console territory is not as widespread as in PC

report about the most pirated video games, TorrentFreak

breaking news about everything BitTorrent – contained the following passage: “PC games are by

far the most downloaded titles, with on average more than three times the number of downloads


PS3, get considerably less downloads and are excluded for that reason.”33 The actual numbers, of

pecific, and some consoled suffer much higher piracy rates.34

Consoles, of course, are not exempt from piracy, but they do require an extra step which

with a PC. Most of the consoles must be modded or otherwise hacked

accept a pirated game35 – but the hacking requires a fair bit of technical knowledge,

and sometimes even “hunting down relatively sketchy hardware modifications.”36

contrary, typically provides the player with a download-and-play simplicity



Why Aren’t Console Piracy Rates Higher?, GAMETHEORY (Aug. 30, 2010),

http://gametheoryonline.com/2010/08/30/console-piracy-pc-game-pirate/.

The Most Pirated Games of 2011, TORRENTFREAK (Dec. 30, 2011), http://torrentfreak.com/top

; Ghazi, supra note 16; Kris Graft, Machinarium Dev Saw up to 95% Piracy Rate

amasutra.com/view/news/29768/Machinarium_Dev_Saw_Up_To_95_Piracy_Rate.php

For a great account of the demise of Sega Dreamcast console see xiaopang333, Piracy Killed the Dreamcast. . . or

(May 2, 2008), http://xiaopang333.wordpress.com/2008/05/02/piracy

Sony Calls PSP Piracy Rates “Sickening,” 1UP.COM (Apr. 22, 2009),

-psp-piracy-rates; Andy Chalk, 90 Percent of American DS Owners Play

SCAPIST (Jan. 31, 2008), http://www.escapistmagazine.com/news/view/81081

-Pirated-Games-ELSPA-Says.

rief Overview of Console Piracy, DELTAGAMER (Nov. 27, 2011),

-overview-of-console-piracy; David Kushner, Games: Console Makers Fight

(Apr. 19, 2010, 12:00 PM),

http://www.wired.com/magazine/2010/04/pl_games_bootleg/.

if not lower. Certain titles,

based video games typically suffer a much lower

For example, a simple comparison of piracy rates of the same titles on multiple

widespread as in PC

report about the most pirated video games, TorrentFreak – a weblog of

“PC games are by

re than three times the number of downloads


The actual numbers, of 34

, but they do require an extra step which

with a PC. Most of the consoles must be modded or otherwise hacked

but the hacking requires a fair bit of technical knowledge, 36 The PC, on the

play simplicity with minimal



http://torrentfreak.com/top-10-most-

Dev Saw up to 95% Piracy Rate,

amasutra.com/view/news/29768/Machinarium_Dev_Saw_Up_To_95_Piracy_Rate.php.

Piracy Killed the Dreamcast. . . or

rdpress.com/2008/05/02/piracy-killed-the-

90 Percent of American DS Owners Play

http://www.escapistmagazine.com/news/view/81081-90-

(Nov. 27, 2011),

Games: Console Makers Fight


based on a commercial business model.

bolsters the cultural argument –

combat pirates follows the vested interest of the maker/publisher itself. Both Microsoft and Sony

have gone after not only manufacturers and distributors of cracked software and hardware, but

the players using modified consoles as well.

single centralized force that would protect “PC” as a platform

publisher is pretty much on his or her own.

3. Mobile Game Apps

The mobile space has not avoided videogame piracy.

on the Android platform as Google does not provide one, but it would be safe to guess it would

be no less than console games’ rate and likely even as high as PC games’.

titles – such as Angry Birds – would

There is some difference in platforms, however

complaints are coming from Android marketplace

explanation here is the “cultural

space was designed as and based on

penetrate as many devices as possible. Thus, Android

for piracy”40 where users expect many apps to be free

required.41 On the contrary, iOS space is much more protective of its content

pay for Apple products because of its highly proprietary nature

app on your genuine Apple device

although it is much less difficult

37

Id. 38

Daniel Terdiman, Report: Microsoft Bans 1 Million Xbox Live Players

http://news.cnet.com/8301-13772_3-1039526539

See, e.g., Matthew Lynley, Cloud-Based Video Games Will

12:33 PM), http://venturebeat.com/2011/07/14/cloud

Play Because 90% of Android Users Are Pirates

http://www.cinemablend.com/games/Dead

44969.html. 40

Matt Gemmell, Closed for Business, M

for-business/. 41

Marin Perez, Android Piracy Rates “Unbelievably High

http://www.thefullsignal.com/products/12190/android42

See iOS Jailbreaking, WIKIPEDIA, http://en.wikipedia.org/wiki/IOS_jailbreaking43

Eric Ravenscraft, Just How Bad Is App Piracy on Android Anyway? Hint: We’re Asking the Wrong Question

ANDROID POLICE (July 31, 2012), http://www.androidpolice.com/2012/07/31/editorial

on-android-anyways-hint-were-asking-


7

based on a commercial business model.37 The more likely answer – and the one that surely

– is that the focused effort of the console maker/publisher to


manufacturers and distributors of cracked software and hardware, but

the players using modified consoles as well.38 In the PC world, however, there is simply no

single centralized force that would protect “PC” as a platform – every game developer and

isher is pretty much on his or her own.

3. Mobile Game Apps

The mobile space has not avoided videogame piracy. There is no reliable piracy statistic


be no less than console games’ rate and likely even as high as PC games’. Piracy rate for popular

would easily be somewhere around 80-90%.39

difference in platforms, however – it seems that most piracy

complaints are coming from Android marketplace, and not as much from iOS space

explanation here is the “cultural factor” bolstered by the overarching “vested interest.” Android

and based on open source project, which certainly helped Google

penetrate as many devices as possible. Thus, Android and Google Play is practically “designed

where users expect many apps to be free and where no hardware

On the contrary, iOS space is much more protective of its content – people are used to

pay for Apple products because of its highly proprietary nature. In addition, runn

genuine Apple device does require some tampering – also called jailbreak

difficult than modding a console.43

Report: Microsoft Bans 1 Million Xbox Live Players, CNET (Nov. 11, 2009),

10395265-52.html.

Based Video Games Will Put Pirates out of Business, GAMESBEAT

http://venturebeat.com/2011/07/14/cloud-gaming-piracy/; William Usner, Dead Trigger

Play Because 90% of Android Users Are Pirates, GAMING BLEND (June 24, 2012, 02:42 AM),

//www.cinemablend.com/games/Dead-Trigger-Goes-Free-Play-Because-90-Android-Users

MATT GEMMELL (July 23, 2012), http://mattgemmell.com/2012/07/23/closed

ates “Unbelievably High,” THE FULL SIGNAL (July 23, 2012, 1:38 PM),

http://www.thefullsignal.com/products/12190/android-piracy-rates-unbelievably-high.

http://en.wikipedia.org/wiki/IOS_jailbreaking (last modified Apr. 30

Just How Bad Is App Piracy on Android Anyway? Hint: We’re Asking the Wrong Question

http://www.androidpolice.com/2012/07/31/editorial-just-how-bad

-the-wrong-question/.

and the one that surely

is that the focused effort of the console maker/publisher to


manufacturers and distributors of cracked software and hardware, but

there is simply no

every game developer and

There is no reliable piracy statistic


Piracy rate for popular

it seems that most piracy-related

, and not as much from iOS space. A possible

factor” bolstered by the overarching “vested interest.” Android

open source project, which certainly helped Google

is practically “designed

hardware tampering is

people are used to

. In addition, running an illegal

also called jailbreak42 –

AMESBEAT (July 14, 2011,

Dead Trigger Goes Free-To-

Users-Pirates-

http://mattgemmell.com/2012/07/23/closed-

(July 23, 2012, 1:38 PM),

(last modified Apr. 30, 2013).

Just How Bad Is App Piracy on Android Anyway? Hint: We’re Asking the Wrong Question,

bad-is-app-piracy-


The mitigating factor with

of the games are even released as free to play (F2P), where the player

copy, but some features of the game (e.g., weapons, locations, equipment) are locked and could

only be purchased. Another factor is interoperability: while most mobile devices operate on

either iOS or Android platforms, a particular game may not be available on a specific device.

some instances, there have been even reports of pira

mobile game that eventually went from zero to

online outlets within mere months

D. Foreign Markets

Pirates operating in foreign countries pose much greater risk than those in the United

States – laws differ from country to country, and so differs the enforcement.

extent of the problem on the international scale (since a high piracy

still result in smaller losses than a

breakdown of piracy losses by country:

Table 1: Video Games Piracy Losses by Country

No.

1 2 3 4 South Korea5 6 7 8 9

10

Source: International Intellectual Property Alliance, 200

44

Stuart Dredge, How Big a Problem Are Pirated Mobile Games?,

http://www.pocketgamer.co.uk/r/Mobile/feature.asp?c=278345

See, e.g., Seth Coster, How Piracy Saved Our Dying Mobile Game

http://www.gamasutra.com/blogs/SethCoster/20130208/186329/How_Piracy_Saved_Our_Dying_Mobile_Game.p

hp. 46

Crime Statistics: Software Piracy Rate (Most Recent) by Country

http://www.nationmaster.com/graph/cri_sof_pir

including video games, for almost all countries of the world). The piracy rate is the total number of units of pirated

software deployed in 2007 divided by the total units of software insta

projected loss. Id.


8

with mobile game piracy is the games’ relatively low price. Many

of the games are even released as free to play (F2P), where the player downloads and plays a free


y be purchased. Another factor is interoperability: while most mobile devices operate on

either iOS or Android platforms, a particular game may not be available on a specific device.

some instances, there have been even reports of pirates who helped to “get the

went from zero to thousands of daily downloads through legitimate

within mere months.45


laws differ from country to country, and so differs the enforcement. To get an idea of the

extent of the problem on the international scale (since a high piracy rate in a small country can

a lower rate in a much larger country46), Table 1 shows a

breakdown of piracy losses by country:

Table 1: Video Games Piracy Losses by Country

Country Market Value (million)

Italy 817 China 589.9 Spain 510

South Korea 461.9 Russia 282.1 Mexico 273 Taiwan 202.9 Brazil 159.3

Sweden 135.3 India 129.9

Source: International Intellectual Property Alliance, 2009.

How Big a Problem Are Pirated Mobile Games?, POCKET GAMER (Apr. 17, 2007),

http://www.pocketgamer.co.uk/r/Mobile/feature.asp?c=2783.

How Piracy Saved Our Dying Mobile Game, GAMASUTRA (Feb. 8, 2013),


Crime Statistics: Software Piracy Rate (Most Recent) by Country, NATIONMASTER.COM (2007),

http://www.nationmaster.com/graph/cri_sof_pir_rat-crime-software-piracy-rate (listing piracy rate for software,


software deployed in 2007 divided by the total units of software installed, which does not reflect the value of the

mobile game piracy is the games’ relatively low price. Many

downloads and plays a free


y be purchased. Another factor is interoperability: while most mobile devices operate on

either iOS or Android platforms, a particular game may not be available on a specific device.44 In

get the word out” for a

through legitimate


To get an idea of the

rate in a small country can

), Table 1 shows a

(million)

(Apr. 17, 2007),


(listing piracy rate for software,


lled, which does not reflect the value of the


A very helpful breakdown by country is made in a

United States Trade Representative.

more to protect intellectual property rights and implement anti

countries on either a priority watch list and a watch list; a number of countries (this year it is

only one country – Ukraine) is designated as “priority foreign countries”

egregious [intellectual property rights

adverse impact on the U.S. products, and that are not entering into good faith negotiations or

making significant progress in negotiations to provide adequate and effective [intellectual

property rights protection.”48

While Ukraine may not be the great

small “market share,” many countries that made the priority watch list or watch list pose

significant threat to video games and videogame piracy in those countries is rampant.

Entertainment Software Association (ESA) commented on those country placements supported

by the game industry as follows:

Spain will be subject to an [intermediate review]

returned to the “Watch List” for falling short on commitments made in

mechanisms to address rampant online piracy.

Russia is to be retained on the “Priority Watch List.” During 2012, Russia led all other

countries in peer-to-peer piracy of ESA member game titles, highlighting the need for a

legal framework to address online piracy problems.

Brazil is to be retained on the “Watch List.” During 2012, for a second year in a row,

Brazil ranked second in the world in peer

not put in place needed online remedies nor pr

violations.

Mexico is to be retained on the “Watch List.” Deficiencies in Mexico’s copyright laws

combined with a lack of enforcement of its existing laws have allowed hard goods game

piracy to flourish while cont

legislation outlawing the trafficking in circumvention devices and technologies and to

take serious steps to address growing online piracy.

Of course, there are many factors that result in high p

example, video game consoles are banned outright

from playing, and many bring their consoles from overseas, or purchase at gray goods

47

301 REPORT, SUPRA NOTE 19. 48

Id. at 5-7. 49

See id. at 28-56. 50

ESA Applauds Administration for International Copyright Protection

http://www.theesa.com/newsroom/release_detail.asp?releaseID=19951

See generally Frank Lin, Piracy in China: Identifying the Problem and Implementing Solutions

TRADE L.J. 83 (2005).


9

A very helpful breakdown by country is made in a recent report of the Office of the

United States Trade Representative.47 The report, which lists countries that could have done

more to protect intellectual property rights and implement anti-piracy measures,

atch list and a watch list; a number of countries (this year it is

Ukraine) is designated as “priority foreign countries” – those “with the most

egregious [intellectual property rights-related] acts, policies and practices with the great



While Ukraine may not be the greatest threat to video game industry due to its relatively


significant threat to video games and videogame piracy in those countries is rampant.

Association (ESA) commented on those country placements supported

[intermediate review] to determine whether Spain should be

returned to the “Watch List” for falling short on commitments made in 2012 to improve

mechanisms to address rampant online piracy.


peer piracy of ESA member game titles, highlighting the need for a

address online piracy problems.


Brazil ranked second in the world in peer-to-peer piracy of ESA member titles, but it has

not put in place needed online remedies nor prosecuted any site operators for copyright



piracy to flourish while contributing to online piracy problems. Mexico is urged to pass


take serious steps to address growing online piracy.50

Of course, there are many factors that result in high piracy rates. In China,

example, video game consoles are banned outright. This, however, does not stop gamers


ESA Applauds Administration for International Copyright Protection, ENTM’T SOFTWARE ASS’N (May 1, 2013),

http://www.theesa.com/newsroom/release_detail.asp?releaseID=199.

Piracy in China: Identifying the Problem and Implementing Solutions, 14

recent report of the Office of the

The report, which lists countries that could have done

piracy measures, places reviewed

atch list and a watch list; a number of countries (this year it is

those “with the most

related] acts, policies and practices with the greatest



est threat to video game industry due to its relatively


significant threat to video games and videogame piracy in those countries is rampant.49

Association (ESA) commented on those country placements supported

to determine whether Spain should be

2012 to improve


peer piracy of ESA member game titles, highlighting the need for a


peer piracy of ESA member titles, but it has

osecuted any site operators for copyright



ributing to online piracy problems. Mexico is urged to pass


In China,51 for

. This, however, does not stop gamers


(May 1, 2013),

, 14 CURRENTS: INT’L


markets. Most games are pirated because they are simply

stores, and with the ease of Internet download may be copied relatively cheap.

other countries – mostly African

a copy of the game they would like to purchase.

In Russia – and many other countries as well

most people simply cannot afford them.

to the problem of being safe havens for pirates

burn copies of a game (both console and PC)

official retailers pirating games from official copies

well as breaking street dates by releasing games much earlier than

publisher), and anti-industry mentality

simply to “let the stupid Americans pay for the games.”

Nevertheless, if left unaddressed by local governments, videogame piracy will be

hurting game developers and publishers around the world

someone pirates a game because they want to, or because they have to. Whatever pirates’

motivations are, lost revenue is lost revenue.

II. Possible Solutions

The solutions to video game piracy are

solutions are legal – establishing clear legislative framework and implementing consistent

enforcement; some are business

purchases, or offering open pricing

Other solutions are technological (known as DRM)

protecting physical medium from copying, or even requiring the players to keep the video game

always online so the server can continuously verify the authenticity of the copy. Many other

solutions are political, cultural, psychological etc. Of course, it can take a large amount of time to

discuss all of them in this short paper. Thus, it appears

them in three major categories: (1) legal, (2) business, and (3) technological.

52

See Eric Jou, Bootleggers Explain Why There’s So Muc

AM), http://kotaku.com/5988244/bootleggers53

See. e.g., Crime Statistics, supra note 46 54

See Timur Seyfelmliukov, Welcome to Russia, Where Most of Your Friends Are Video Game Pirates

29, 2012, 9:15 AM), http://kotaku.com/5955739/welcome

pirates. 55

See id.


10

markets. Most games are pirated because they are simply unavailable through legitimate

stores, and with the ease of Internet download may be copied relatively cheap.52

mostly African – there is simply no potion for gamers to pay online for

a copy of the game they would like to purchase.53

and many other countries as well – video games are expensive

not afford them.54 In addition, however, there are multiple layers

safe havens for pirates – relative ease to hack a console and t

(both console and PC), complete lack of enforcement (that allows

from official copies to sell them at a much lower

reaking street dates by releasing games much earlier than requested by the game

industry mentality – either because the industry is “too greedy,” or

“let the stupid Americans pay for the games.”55


hurting game developers and publishers around the world – regardless of whether


ions are, lost revenue is lost revenue.

The solutions to video game piracy are many; some effective and some are not. Some

establishing clear legislative framework and implementing consistent

enforcement; some are business – offering games as F2P and receiving revenue through in

pricing – the player pays what he player thinks the game is worth.

Other solutions are technological (known as DRM) – making illegal copies unplayable, or


online so the server can continuously verify the authenticity of the copy. Many other


discuss all of them in this short paper. Thus, it appears to be more beneficial to sample a few of

them in three major categories: (1) legal, (2) business, and (3) technological.

Bootleggers Explain Why There’s So Much Video Game Piracy in China, KOTAKU (Mar. 4, 2013, 7:45

http://kotaku.com/5988244/bootleggers-explain-why-theres-so-much-video-game-piracy

note 46 (comments below).

o Russia, Where Most of Your Friends Are Video Game Pirates

http://kotaku.com/5955739/welcome-to-russia-where-most-of-your-friends

unavailable through legitimate

In some

there is simply no potion for gamers to pay online for

video games are expensive, and

In addition, however, there are multiple layers

relative ease to hack a console and to

that allows

lower price, as

ted by the game

industry is “too greedy,” or


regardless of whether


many; some effective and some are not. Some

establishing clear legislative framework and implementing consistent

offering games as F2P and receiving revenue through in-game

the player pays what he player thinks the game is worth.

making illegal copies unplayable, or


online so the server can continuously verify the authenticity of the copy. Many other


e beneficial to sample a few of

(Mar. 4, 2013, 7:45

piracy-in-china.

o Russia, Where Most of Your Friends Are Video Game Pirates, KOTAKU (Oct.

friends-are-video-game-


A. A Legal Solution: Anti

1. Legislative Framework

In the United States, anti-

and, to some extent, Trademark Act of 1946

without copyright holder’s permission

holders’ exclusive rights58 to reproduce, distri

any part of it.59 The remedies provided are injunctions,

infringing articles,61 damages and profits,

also provides for criminal penalties

The trademark law is also very important in video game industry.

brand name – allows consumers distinguish goods or services of one sel

those of many others. Thus, developer names, console names, as well as video game title

typically trademarks. While with the widespread use of the Internet trademark infringement is

usually left to the physical – counterfeit

56

See 17 U.S.C. § 501-505 (2011). 57

See 15 U.S.C. § 1111-1125 (2011). 58

Exclusive rights include the following rights:

(1) to reproduce the copyrighted work in copies or phonorecords;

(2) to prepare derivative works based upon the copyrighted work;

(3) to distribute copies or phonorecords of

transfer of ownership, or by rental, lease, or lending;

(4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion

pictures and other audiovisual works, to perform the

(5) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and

pictorial, graphic, or sculptural works, including the individual images of a motion picture or

other audiovisual work, to display the copy

(6) in the case of sound recordings, to perform the copyrighted work publicly by means of a

digital audio transmission.

17 USC § 106. 59

See 17 U.S.C. ch. 5 §§ 501-513. 60

Id. § 502. 61

Id. § 503. 62

Id. § 504. 63

Id. § 505. 64

Id. § 506(a). 65

See generally PAUL R. PARADISE, TRADEMARK

ECONOMY 154-59 (1999).


11

Legal Solution: Anti-Piracy Laws and Enforcement

1. Legislative Framework

-piracy laws are based on provisions of Copyright Act of 1976

Trademark Act of 1946.57 Copyright infringement is the unauthorized

without copyright holder’s permission - use of copyrighted material that infringe copyright

to reproduce, distribute, display, or perform a copyrighted work or

The remedies provided are injunctions,60 impounding and disposition of

damages and profits,62 and costs and attorney’s fees.63 The Copyright Act

also provides for criminal penalties for willful infringement for commercial gain.

The trademark law is also very important in video game industry.65 A trademark

allows consumers distinguish goods or services of one seller or provider from

those of many others. Thus, developer names, console names, as well as video game title


counterfeit – copies of a game, it is still being used by many large

Exclusive rights include the following rights:

to reproduce the copyrighted work in copies or phonorecords;

to prepare derivative works based upon the copyrighted work;

to distribute copies or phonorecords of the copyrighted work to the public by sale or other

transfer of ownership, or by rental, lease, or lending;

in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion

pictures and other audiovisual works, to perform the copyrighted work publicly;

in the case of literary, musical, dramatic, and choreographic works, pantomimes, and


other audiovisual work, to display the copyrighted work publicly; and

in the case of sound recordings, to perform the copyrighted work publicly by means of a

RADEMARK COUNTERFEITING, PRODUCT PIRACY, AND THE BILLION DOLLAR

of Copyright Act of 1976,56

Copyright infringement is the unauthorized –

copyrighted material that infringe copyright

bute, display, or perform a copyrighted work or

impounding and disposition of

The Copyright Act

for willful infringement for commercial gain.64

A trademark – a

ler or provider from

those of many others. Thus, developer names, console names, as well as video game titles, are


pies of a game, it is still being used by many large

the copyrighted work to the public by sale or other

in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion

in the case of literary, musical, dramatic, and choreographic works, pantomimes, and


in the case of sound recordings, to perform the copyrighted work publicly by means of a

OLLAR THREAT TO THE U.S.


companies such as Nintendo, Sony,

injunctions,67 damages,68 and destruction of infringing articles.

Another important law is the Digital Millennium Copy

signed by President Bill Clinton in October 1998. The main reason of the law was to impose

stiffer penalties on online pirates, which is achieved by adding serious fines and criminal

penalties for anyone who circumvents the technology that preve

According to the law and its anticircumvention provisions, any attempt to bypass a copy

protection technology may be actionable and result in severe penalties.

No Electronic Theft Act

copyright protection and anti-piracy legislation. Before this act people could distribute video

games by giving them away for free

The act provided for criminal prosecution under

no profit was ever made. The penalties were also raised: statutory damages were increased by

50%; maximum penalties included five years of incarceration and up to $250,000 in fines.

On the international scale, the most important document

Intellectual Property Rights (

participates in both of these (both documents have overlapping provisions

copyright is enforceable in over 100 countries who are also signatories to these agreements.

TRIPs specifically provides for protection of software (including, of course, video games)

its provisions require the members

intellectual property across the globe

66

See, e.g., Frequently Asked Questions

5, 2013). 67

15 U.S.C. § 1116 (2011). 68

Id. § 1117. 69

Id. § 1118. 70

Digital Millennium Copyright Act, Pub. L. 10571

See generally Corinne L. Miller, Comment,

Reconciling Gaming Culture Norms with the Anti

453 (2008). 72

No Electronic Theft (NET) Act of 1997, H.R. 2265, 105th Cong. (1997).73

United States v. LaMacchia, 871 F. Supp. 535 (D. Mass.

time that copyright infringement for non74

Agreement on Trade-Related Aspects of Intellectual Property Rights, Apr. 15, 1994, 1869 U.N.T.S.

1197 (1994). 75

Berne Convention for the Protection of Literary and Artistic Works, Sept. 9, 1886, as

828 U.N.T.S. 221, available at

http://www.wipo.int/export/sites/www/treaties/en/ip/berne/pdf/trtdocs_wo001.pdf.76

Article 10.1 of the TRIPS Agreement provides as follows: “Computer programs, whether in source or object code,

shall be protected as literary works under the Berne Convention (1971)

Intellectual Property Rights art. 10.1, Apr. 15, 1994, 1869 U.N.T.S. 299, 33 I.L.M. 1197 (1994)


12

companies such as Nintendo, Sony, and Electronic Arts etc.66 Typical remedies include

destruction of infringing articles.69

Another important law is the Digital Millennium Copyright Act (DMCA),



penalties for anyone who circumvents the technology that prevents copyright infringement


protection technology may be actionable and result in severe penalties.71

No Electronic Theft Act of 199772 is another law designed to fill the gaps in statutory

piracy legislation. Before this act people could distribute video

games by giving them away for free – a loophole authorized by United States v. LaMacchia

The act provided for criminal prosecution under copyright laws in specific circumstances, even if



ale, the most important documents are Trade-Related Aspects of

Intellectual Property Rights (TRIPs)74 and the Berne Convention.75 The United States

(both documents have overlapping provisions76), and thus the U.S.

enforceable in over 100 countries who are also signatories to these agreements.

TRIPs specifically provides for protection of software (including, of course, video games)

members of the Agreement to provide comprehensive pro

intellectual property across the globe.

Frequently Asked Questions, NINTENDO ANTI-PIRACY.COM, https://ap.nintendo.com/faq/

Digital Millennium Copyright Act, Pub. L. 105-304, 112 Stat. 2860 (1998).

Corinne L. Miller, Comment, The Video Game Industry and Video Game Culture Dicho

Reconciling Gaming Culture Norms with the Anti-Circumvention Measures of the DMCA, 16 Tex. Intell. Prop. L.J.

No Electronic Theft (NET) Act of 1997, H.R. 2265, 105th Cong. (1997).

United States v. LaMacchia, 871 F. Supp. 535 (D. Mass. 1994). The court ruled under the laws effective at the

time that copyright infringement for non-commercial purposes could not be criminally prosecuted.

Related Aspects of Intellectual Property Rights, Apr. 15, 1994, 1869 U.N.T.S.

Berne Convention for the Protection of Literary and Artistic Works, Sept. 9, 1886, as amended Sept. 28, 1979,

http://www.wipo.int/export/sites/www/treaties/en/ip/berne/pdf/trtdocs_wo001.pdf.

ticle 10.1 of the TRIPS Agreement provides as follows: “Computer programs, whether in source or object code,

shall be protected as literary works under the Berne Convention (1971).” Agreement on Trade-Related Aspects of

, Apr. 15, 1994, 1869 U.N.T.S. 299, 33 I.L.M. 1197 (1994).

Typical remedies include

right Act (DMCA),70 which was



nts copyright infringement.


the gaps in statutory

piracy legislation. Before this act people could distribute video

United States v. LaMacchia.73

copyright laws in specific circumstances, even if



Related Aspects of

The United States

, and thus the U.S.

enforceable in over 100 countries who are also signatories to these agreements.

TRIPs specifically provides for protection of software (including, of course, video games), and

to provide comprehensive protection of

https://ap.nintendo.com/faq/ (last visited May

The Video Game Industry and Video Game Culture Dichotomy:

, 16 Tex. Intell. Prop. L.J.

1994). The court ruled under the laws effective at the

commercial purposes could not be criminally prosecuted. Id.

Related Aspects of Intellectual Property Rights, Apr. 15, 1994, 1869 U.N.T.S. 299, 33 I.L.M.

amended Sept. 28, 1979,

ticle 10.1 of the TRIPS Agreement provides as follows: “Computer programs, whether in source or object code,

Related Aspects of


While there is arguably

Congress recognizes a continuous need to improve it to account for

bills was a controversial Stop Online Piracy Act (SOPA).

online copyright infringement and online t

ability to bar advertising networks and payment facilities from conducting business with

infringing websites, to bar search engines from linking to infringing websites, and to require ISPs

to block access to infringing websites.

both the public and the Internet companies as being too broad

would be exposed to liability under the new law.

with no prospect for moving forward.

lawmaking failures clearly show that while news laws are necessary, they should be carefully

drafted and embody a balanced approach to the interests of different stakeholders.

2. Enforcement

Enforcement of the copyright is typically on the copyright holder.

typically monitor the Internet for online activity regarding their games (e.g., with Google Alerts

or periodically checking online forums), some

copies are still commonplace –

catches their eye. As soon as the violation is identified, a typical first step is to send a seize

desists letter in hopes the piracy will stop. If there is no response and the infringement is

ongoing, the next step would be a consideration to institute a lawsuit and request an injunction

and damages.

A specific mechanism, of course, depends on who is the copyright holder, who is the

infringer and where the infringer is located, the extent of infringemen

copyright in the United States is typically enforced through a civil lawsuit, it might be a

considerable cost for a small indie developer; a larger company would likely file a suit for a local

(i.e., U.S.-based) pirate who is able to

77

Stop Online Piracy Act, H.R. 3261, 112th Cong. (2011).78

See generally Jeffrey A. Lindebaum & David Ewen,

Measures and Proposed Legislation to Combat the Sale of Coun

(2012). 79

Mahakali Overdrive, SOPA’s Assault on Libraries, Students, and the Global Flow of Knowledge

2012, 4:37 PM), http://www.dailykos.com/story/2012/01

the-Global-Flow-of-Knowledge. 80

Bill Summary & Status, THE LIBRARY OF

visited May 5, 2013). 81

See, e.g., Annemarie Birdy, Copyright

Persepctive on ACTA, SOPA, and PIPA, 30

SOPA, PIPA, and the Fight over Online Piracy82

See 17 U.S.C. §§ 411, 501(b) (2011).


13

is arguably a somewhat effective anti-piracy legislative framework, the

s a continuous need to improve it to account for Internet piracy

Stop Online Piracy Act (SOPA).77 This bill was introduced to combat

online copyright infringement and online trafficking in counterfeit goods; its provisions included



to block access to infringing websites.78 The bill has received an extremely vocal protest from

both the public and the Internet companies as being too broad – even libraries had concern they

would be exposed to liability under the new law.79 The bill did not pass and is currently stalled

with no prospect for moving forward.80 Other similar bills also had the same fate.

how that while news laws are necessary, they should be carefully


Enforcement of the copyright is typically on the copyright holder.82 Many companies


or periodically checking online forums), some – especially in other countries where “physical”

occasionally visit gray markets and retailers to see if anything

catches their eye. As soon as the violation is identified, a typical first step is to send a seize


the next step would be a consideration to institute a lawsuit and request an injunction


infringer and where the infringer is located, the extent of infringement and losses. Since a



is able to affect the revenue stream significantly.

Stop Online Piracy Act, H.R. 3261, 112th Cong. (2011).

Jeffrey A. Lindebaum & David Ewen, Catch Me If You Can: An Analysis of New Enforcement

to Combat the Sale of Counterfeit Products on the Internet,

SOPA’s Assault on Libraries, Students, and the Global Flow of Knowledge

http://www.dailykos.com/story/2012/01/18/1056117/-SOPA-s-Assault-on-Libraries

IBRARY OF CONGRESS, http://thomas.loc.gov/cgi-bin/bdquery/z?d112:h.r.3261:

Copyright Policymaking as Procedural Democratic Process: A Discourse

30 CARDOZO ARTS & ENTM’T L.J. 153 (2012); Mike Belleville, Note,

SOPA, PIPA, and the Fight over Online Piracy, 26 TEMPLE INT’L & COMPARATIVE L.J. 303 (2012).

piracy legislative framework, the

piracy. On of such

This bill was introduced to combat

rafficking in counterfeit goods; its provisions included



The bill has received an extremely vocal protest from

even libraries had concern they

The bill did not pass and is currently stalled

Other similar bills also had the same fate.81 These recent

how that while news laws are necessary, they should be carefully


Many companies


especially in other countries where “physical”

sit gray markets and retailers to see if anything

catches their eye. As soon as the violation is identified, a typical first step is to send a seize-and-


the next step would be a consideration to institute a lawsuit and request an injunction


t and losses. Since a



ffect the revenue stream significantly. A smaller

Catch Me If You Can: An Analysis of New Enforcement

, 32 PACE L. REV. 567

SOPA’s Assault on Libraries, Students, and the Global Flow of Knowledge, DAILY KOS (Jan. 18,

Libraries-Students-and-

bin/bdquery/z?d112:h.r.3261: (last

Policymaking as Procedural Democratic Process: A Discourse-Theoretic

(2012); Mike Belleville, Note, IP Wars:


company – or a larger company,

letter written by a lawyer hoping it will have some effect.

In case of criminal infringement, however, the e

government and its agencies.83 Anyone

may make a report to FBI, USCIS, or any other enforcement agency to enforce a copyright and

stop an infringing violator.84 In

operations.85

Around the globe, however, some countries have sophisticated anti

enforcement mechanisms, and some don’t.

but they are rarely enforced. China is another example where enforcement could have been

better. Some countries, nevertheless

laws;86 one would only hope an effective enforcement of these laws would follow.

B. A Business Solution: Open Pricing

The open pricing approach has long been used in music industry, the most well

example being Radiohead.87 In 2007 the band released a new album exclusively online

allowed their fans to set the price paid.

study estimated that 38% of users paid for the album, and, factoring in those who downloaded

the album for free, the average amount paid was $2.26.

In video game space there ha

which proved successful.90 A Humble Bundle

downloads of independently published games with no set price, with the minimum being one

cent; the stated goal of $1 million was successfully exceeded.

138,813 times with an average price paid of $9.18.

83

Id. § 506. 84

See, e.g., Filing a Complaint with the IC385

See Jason Ankeny, Feds Seize Android App Marketplaces Applanet,

FierceMobileContent, FIERCE MOBILE (Aug. 22, 2012),

android-app-marketplaces-applanet-appbucket86

Anti-Internet Piracy Law Adopted by Spanish Government

http://www.bbc.co.uk/news/technology87

Moshirinia, supra note 18, at 39-40. 88

Id. at 40. 89

Id. 90

See generally id. at 41-44. 91

Id. at 41-42. 92

Id. at 42.


14

, for a smaller violation – would likely settle for a legal demand

letter written by a lawyer hoping it will have some effect.

In case of criminal infringement, however, the enforcement is through the federal

Anyone – including the copyright holder as well as a third party


In some instances, the federal investigators even conducted sting

Around the globe, however, some countries have sophisticated anti-

enforcement mechanisms, and some don’t. In Russia, for example, there are law

t they are rarely enforced. China is another example where enforcement could have been

nevertheless, has recently stepped up their efforts and revised anti

one would only hope an effective enforcement of these laws would follow.

Business Solution: Open Pricing and F2P

The open pricing approach has long been used in music industry, the most well

In 2007 the band released a new album exclusively online

allowed their fans to set the price paid.88 Although no figures were released by Radiohead, one


um for free, the average amount paid was $2.26.89

In video game space there has been a number of experiments with open pricing

Humble Bundle is a limited time release of bundled DRM


cent; the stated goal of $1 million was successfully exceeded.91 The bundle was purchased

rice paid of $9.18.92 An interesting caveat is that while the open

Filing a Complaint with the IC3, INTERNET CRIME COMPLAINT CTR. (IC3), http://www.ic3.gov/default.aspx

Feds Seize Android App Marketplaces Applanet, AppBucket in Piracy Sting,

(Aug. 22, 2012), http://www.fiercemobilecontent.com/story/feds

appbucket-piracy-sting/2012-08-22.

Internet Piracy Law Adopted by Spanish Government, BBC NEWS (Jan. 3, 2012, 2:06 PM),

http://www.bbc.co.uk/news/technology-16391727.

would likely settle for a legal demand

nforcement is through the federal

including the copyright holder as well as a third party –


the federal investigators even conducted sting

-piracy laws and

laws against piracy,

t they are rarely enforced. China is another example where enforcement could have been

, has recently stepped up their efforts and revised anti-piracy

one would only hope an effective enforcement of these laws would follow.

The open pricing approach has long been used in music industry, the most well-known

In 2007 the band released a new album exclusively online and

Although no figures were released by Radiohead, one


been a number of experiments with open pricing, most of

is a limited time release of bundled DRM-free


The bundle was purchased

An interesting caveat is that while the open

http://www.ic3.gov/default.aspx.

AppBucket in Piracy Sting,

http://www.fiercemobilecontent.com/story/feds-seize-


price strategy generated sufficient revenue, the bundle itself was widely pirated.

success in this particular instance, however, the open pricing model will suit only a limited

number of game developers – users would prefer to pay for an established game developer name

and for a well-regarded title that user feel personally connected to.

A better solution to piracy

pricing model – is the “free to play” (F2P) release. F2P refers to any video game that has an

option of allowing its players to download and play it for free.

price model – or variation of it, -

or the in-game equipment/weapons only begins after the game is played for some time and the

player is “sucked in” into the gaming experience. This model has been effectively utilized by a

large percentage of PC and mobile gam

C. A Technological Solution: D

There is a large number of

hardware- and software-based.97

that includes “any technology that inhibits uses of digital content that are not desired or intended

by the content provider.”98 It has become an industry standard aided by multiple laws and

regulations granting special protection to DRM.

non-game-based such as entering a serial number from an included manual, to

sophisticated software detecting an illegal copy

There is, however, a significant backlash in the gamers’ community.

implementations, while being a great idea in principle, makes playing even a legitimate copy a

hassle. For example, Electronic Art’s

possible, essentially turning legitimate purchases into long

players to be constantly connected to its servers in order to play.

93

Id. at 42-43. 94

See id. at 44. 95

See Free-To-Play, WIKIPEDIA, http://en.wikipedia.org/wiki/Free96

See, e.g., Kyle Orland, Ubisoft Boss: Free

2012, 1:03 PM), http://arstechnica.com/gaming/2012/08/u

piracy-rates/. 97

See generally Ginger Myles, V1N3: Preventing Piracy within the Video Game Industry

ASS’N (Mar. 11, 2013), http://idmaa.org/?post_type=journalarticle&p=69598

Digital Rights Management, WIKIPEDIA

4, 2013). 99

See, e.g., Digital Millennium Copyright Act, Pub. L. 105100

See, e.g., Moshirinia, supra note 18, at 101

Houghton, supra note 1.


15

price strategy generated sufficient revenue, the bundle itself was widely pirated.93


users would prefer to pay for an established game developer name

regarded title that user feel personally connected to.94

A better solution to piracy – and certainly having an advantage over “traditional” open

is the “free to play” (F2P) release. F2P refers to any video game that has an

option of allowing its players to download and play it for free.95 Thus, it is in essence an open

- but the choice of the user about how much to pay for the extras

game equipment/weapons only begins after the game is played for some time and the


large percentage of PC and mobile game developers.96

Technological Solution: Digital Rights Management

There is a large number of technical ways to prevent piracy of a video game

Digital Rights Management (DRM) is an overarching concept

es “any technology that inhibits uses of digital content that are not desired or intended

It has become an industry standard aided by multiple laws and

regulations granting special protection to DRM.99 The DRM methods range from conventional,

based such as entering a serial number from an included manual, to highly

sophisticated software detecting an illegal copy.

There is, however, a significant backlash in the gamers’ community.100 Some

, while being a great idea in principle, makes playing even a legitimate copy a

hassle. For example, Electronic Art’s Spore DRM “greatly limits the number of installations

possible, essentially turning legitimate purchases into long-term rentals,” while Ubisoft forces

players to be constantly connected to its servers in order to play.101 Steam – an online

http://en.wikipedia.org/wiki/Free-to-play (last modified Apr. 17, 2013).

Ubisoft Boss: Free-To-Play a Natural Reaction to High Piracy Rates, ARS

http://arstechnica.com/gaming/2012/08/ubisoft-boss-free-to-play-a-natural-reaction

V1N3: Preventing Piracy within the Video Game Industry, INT’L DIGITAL

http://idmaa.org/?post_type=journalarticle&p=695.

IKIPEDIA, http://en.wikipedia.org/wiki/Digital_rights_management

Digital Millennium Copyright Act, Pub. L. 105-304, 112 Stat. 2860 (1998).

note 18, at 34-38.

93 Despite the


users would prefer to pay for an established game developer name

and certainly having an advantage over “traditional” open

is the “free to play” (F2P) release. F2P refers to any video game that has an

Thus, it is in essence an open-

how much to pay for the extras

game equipment/weapons only begins after the game is played for some time and the


game – both

Digital Rights Management (DRM) is an overarching concept

es “any technology that inhibits uses of digital content that are not desired or intended

It has become an industry standard aided by multiple laws and

The DRM methods range from conventional,

highly

Some DRM

, while being a great idea in principle, makes playing even a legitimate copy a

DRM “greatly limits the number of installations

while Ubisoft forces

an online

(last modified Apr. 17, 2013).

RS TECHNICA (Aug. 22,

reaction-to-high-

IGITAL MEDIA AND ARTS

http://en.wikipedia.org/wiki/Digital_rights_management (last visited May


distribution service, - on the other hand, was embraced by gamers due to secure downloads,

permanent product registration, and

The DRM criticism made some developers to move away from it

some are utilizing non-invasive DRM that simply detects an illegal copy and notifies the game

developer if the game copy was pirated

endogenous DRM – “a piracy deterrence method that uses in

experience of users who run unlicensed copies.”

game elements, and triggering of d

D. Two Case Studies

Videogame distributors and publishers alike recognize the importance of combating

piracy by any means. Some focus on a particular approach, most combine a number of them to

increase effectiveness. A few, however, ha

approaches to combat videogame piracy

players’ freedom even further, but by innovative measures

services Valve provides for Russian gamers, and

developer decided to undertake.

1. Valve in Russia

A great example of how a game company can operate a successful business in Rus

one of the places in the world where piracy is a way of life

Valve for its Steam distribution system

The easiest way to stop piracy is not by putting antipiracy technology to work. It’

giving those people a service that’s better than what they’re receiving from the pirates.

For example, Russia. You say, oh, we’re going to enter Russia, people say, you’re

doomed, they’ll pirate everything in Russia. Russia now outside of Germany is o

largest continental European market.

According to Mr. Newell

that they learned over the years that

102

Id. 103

Moshirinia, supra note 18, at 49-50.104

Id. at 34-38. See also infra Part II.D.2.105

Todd Bishop, How Valve Experiments with the Economics of Video Games

http://www.geekwire.com/2011/experiments

Newell with Ed Fries). 106

Id.


16

n the other hand, was embraced by gamers due to secure downloads,

permanent product registration, and “download-anywhere” philosophy.102

The DRM criticism made some developers to move away from its traditional forms

invasive DRM that simply detects an illegal copy and notifies the game

if the game copy was pirated, so further steps could be taken. Others employ

“a piracy deterrence method that uses in-game elements to degrade the

experience of users who run unlicensed copies.”103 Such include whimsical obstacles, redacted

game elements, and triggering of deliberate crashes.104



increase effectiveness. A few, however, have made headline by introducing innovative

approaches to combat videogame piracy – not by developing new DRM that inhibits legitimate

players’ freedom even further, but by innovative measures. The examples below are the value of

services Valve provides for Russian gamers, and an educational crusade a small indie game

Valve in Russia and the Value of Customer Service

A great example of how a game company can operate a successful business in Rus

one of the places in the world where piracy is a way of life – is the strategy implemented

for its Steam distribution system. Valve’s CEO, Gabe Newell, said:

The easiest way to stop piracy is not by putting antipiracy technology to work. It’



doomed, they’ll pirate everything in Russia. Russia now outside of Germany is o

largest continental European market. 105

Mr. Newell, there are a couple of factors that come into play here. One is

that they learned over the years that piracy is not a pricing issue, but a service issue.

.

Part II.D.2.

How Valve Experiments with the Economics of Video Games, GEEKWIRE (Oct. 23, 2012, 9:17 AM),

11/experiments-video-game-economics-valves-gabe-newell/ (interview of Gabe

n the other hand, was embraced by gamers due to secure downloads,

s traditional forms, and

invasive DRM that simply detects an illegal copy and notifies the game

Others employ

game elements to degrade the

Such include whimsical obstacles, redacted



ve made headline by introducing innovative

not by developing new DRM that inhibits legitimate

. The examples below are the value of

an educational crusade a small indie game

A great example of how a game company can operate a successful business in Russia –

strategy implemented by

The easiest way to stop piracy is not by putting antipiracy technology to work. It’s by



doomed, they’ll pirate everything in Russia. Russia now outside of Germany is our

there are a couple of factors that come into play here. One is

piracy is not a pricing issue, but a service issue.106 Pirates

(Oct. 23, 2012, 9:17 AM),

(interview of Gabe


may provide free video games, but they

doesn’t take much in terms of providing a better service to

factor is timing.108 The quicker one gets the game out, the less

In Mr. Newell’s words: “[P]eople who are telling you that Russians pirate everything are the

people who wait six months to localize their product into Russia

2. Game Dev Tycoon

A very interesting development has recently shaken the world of video game pirates.

While this is not really a preventive or enforcement approach, but rather an “ultimate prank” one

game developer pulled on pirates, it is worth mentioning.

On April 28, 2013, the Greenheart Games, a small indie game studio, released its first

title Game Dev Tycoon after two years of development

multiple operating systems, is a simulator that takes the player back to the 1980s with the

challenge to become a market leader by releasing new and innovative games.

is that in addition to a legitimate copy that

company also posted a copy on a well

of people downloaded the torrent copy only to find out that it was modified

authors. A few hours into the gameplay the player receives a message that the games he or she

“developed” are heavily pirated, which leads

situation leads to a quick bankruptcy that ends the game.

The game made many of those who downloaded an illegal copy upset

voiced their complaints on that very BitTo

plans of becoming the next “virtual game dev tycoon.”

rate of the illegal copy almost matched the

release there were 214 downloads of the

copy (6.4% and 93.6%, respectively).

107

Id. 108

Id. 109

Id. 110

Many other game developers also tried different tactics to get back at video game piracy

making the illegal copy unplayable, frustrating the user.

Are Screwing with Pirates, CRACKED.COM

game-designers-are-screwing-with-pirates.html111

Ernesto, Game Pirates Whine About Piracy in Game Dev Simulator

http://torrentfreak.com/game-pirates-112

Id. 113

Id. 114

See id. 115

Id.


17

may provide free video games, but they are lacking services that valuable to the gamers

doesn’t take much in terms of providing a better service to make pirates a non-issue

The quicker one gets the game out, the lesser the chance is it will be pirated.

eople who are telling you that Russians pirate everything are the

people who wait six months to localize their product into Russia.”109

Game Dev Tycoon and the Power of Education

interesting development has recently shaken the world of video game pirates.


game developer pulled on pirates, it is worth mentioning.110

Greenheart Games, a small indie game studio, released its first

after two years of development.111 The mobile game, available for

multiple operating systems, is a simulator that takes the player back to the 1980s with the

become a market leader by releasing new and innovative games.112

is that in addition to a legitimate copy that was put on sale in the App Store, Google Play etc.

company also posted a copy on a well-known BitTorrent website. Almost immediately thousands

of people downloaded the torrent copy only to find out that it was modified –


“developed” are heavily pirated, which leads to rapidly decreasing funds. This “incurable”

situation leads to a quick bankruptcy that ends the game.113

The game made many of those who downloaded an illegal copy upset

voiced their complaints on that very BitTorrent website; apparently, “pirates” ruined their perfect

plans of becoming the next “virtual game dev tycoon.”114 Interesting thing is that the download

rate of the illegal copy almost matched the “storyline” – within only one day after the

there were 214 downloads of the genuine version, but 3,104 downloads of the cracked

copy (6.4% and 93.6%, respectively).115 Another interesting twist is that the game was taken

Many other game developers also tried different tactics to get back at video game piracy – most of the time

unplayable, frustrating the user. See, e.g., Kyle Nazario, Six Hilarious Ways Game Designers

COM (Apr. 22, 2011), http://www.cracked.com/article_19162_6

pirates.html.

Game Pirates Whine About Piracy in Game Dev Simulator, TORRENTFREAK (Apr. 29, 2013),

-whine-about-piracy-in-game-dev-simulator-130429/.

lacking services that valuable to the gamers: “[I]t

issue.”107 Another

it will be pirated.

eople who are telling you that Russians pirate everything are the

interesting development has recently shaken the world of video game pirates.


Greenheart Games, a small indie game studio, released its first

The mobile game, available for

multiple operating systems, is a simulator that takes the player back to the 1980s with the 112 The caveat here

App Store, Google Play etc., the

immediately thousands

“cracked” by the


to rapidly decreasing funds. This “incurable”

The game made many of those who downloaded an illegal copy upset – some of them

pirates” ruined their perfect

Interesting thing is that the download

one day after the game

genuine version, but 3,104 downloads of the cracked

Another interesting twist is that the game was taken

most of the time

Six Hilarious Ways Game Designers

http://www.cracked.com/article_19162_6-hilarious-ways-

(Apr. 29, 2013),


down from the BitTorrent website and is no longer available there

virtually never respond to legal take

The authors of the game –

a notice in the cracked copy that the copy was illegal, but then decided that they “didn

pass up the unique opportunity of holding a mirror in front of [the users] and showing [the users]

what piracy can do to game developers.”

Clearly, the Greenheart Games chose an interesting and unconventional approach to

educating its user base about the dangers of piracy. Arguably, this also could be a very effective

one. Hearing about the harm piracy does to video game market is one thing; experiencing it

yourself is quite another. While the game does not make you lose real money, the time and

invested is still something measurable no one wants to lose to pirates.

III. Conclusion

Piracy in video game industry has taken root a

late start, however, it has quickly

the Internet, piracy rates rose unbelievably high

to pirates, of course, are lost revenue for game developers who might not have sufficient funds to

continue development.

The United States, as well as most of the other countries, recognizes the inherent harm

that piracy brings to the video game marketplace. Both the United States and the international

community created legislative framework to advance anti

some countries could have been more efficient. This problem is also exaggerated by multiple

other layers – pricing v. income in many countries, cultural differences, etc.

developers also embraced other solutions

DMR to prevent copying, some experiment with different pricing models.

Although some say that piracy will never stop, it certainly may be minimized. A well

balanced approach including different aspects of targeting pira

international level, a healthy collaboration among governments would certainly drive piracy rate

down. On the consumer level, learning about players’ needs and wants could be extremely

valuable in defeating piracy as it

follow the suit.

116

See Stacey Cowley, Video Game Studio Pirate

3:27 PM), http://money.cnn.com/2013/04/29/technology/innovation/game117

Ernesto, supra note 111.


18

down from the BitTorrent website and is no longer available there – considering torrent websites

respond to legal take-down notices and virtually never take anything down.

– both versions – noted that they originally wanted to simply put

a notice in the cracked copy that the copy was illegal, but then decided that they “didn


what piracy can do to game developers.”117


about the dangers of piracy. Arguably, this also could be a very effective


yourself is quite another. While the game does not make you lose real money, the time and

something measurable no one wants to lose to pirates.

Piracy in video game industry has taken root after the movies and the music. Despite the

has quickly become a global and expensive problem. With the advent of

the Internet, piracy rates rose unbelievably high – close to 90% for popular titles. The

revenue for game developers who might not have sufficient funds to

ited States, as well as most of the other countries, recognizes the inherent harm


community created legislative framework to advance anti-piracy efforts, althoug


pricing v. income in many countries, cultural differences, etc.

embraced other solutions – business, technical, etc. Many employ some form

to prevent copying, some experiment with different pricing models.

Although some say that piracy will never stop, it certainly may be minimized. A well

balanced approach including different aspects of targeting piracy could yield positive results. On



valuable in defeating piracy as it was already shown by Steam. One only hope

Video Game Studio Pirates Its Own Game – With an Ironic Twist, CNNMONEY

http://money.cnn.com/2013/04/29/technology/innovation/game-dev-tycoon-piracy/

considering torrent websites

take anything down.116

noted that they originally wanted to simply put

a notice in the cracked copy that the copy was illegal, but then decided that they “didn’t want to



about the dangers of piracy. Arguably, this also could be a very effective


yourself is quite another. While the game does not make you lose real money, the time and effort

fter the movies and the music. Despite the

With the advent of

close to 90% for popular titles. The sales lost

revenue for game developers who might not have sufficient funds to

ited States, as well as most of the other countries, recognizes the inherent harm


piracy efforts, although enforcement in


pricing v. income in many countries, cultural differences, etc. Many game

ical, etc. Many employ some form of

Although some say that piracy will never stop, it certainly may be minimized. A well-

cy could yield positive results. On



was already shown by Steam. One only hopes others would

ONEY (Apr. 29, 2013,

piracy/.

Documents

Piracy and Video Games- Is There a Light at the End of the Tunnel?