Piracy is one of the major infringements that the U.S government has had to deal with in the recent years. Studies have shown that every year online piracy has cost the American economy nearly 58 billion dollars and has seen Americans lose over 750, 000 jobs. The American government has enacted various intellectual property rights to control the growing rate of online piracy. Such initiatives such as Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) have been on the forefront in the fight against piracy. Piracy has hurt the U.S economy in a variety of ways both socially and mostly economically (“The Effects of Piracy”).
The first way that piracy has affected the American economy is the decrease of revenue collected through the sale of legal copies. If piracy were not an issue in the U.S, artists and other involved parties would be able to sell much more of their copies. Pirates, however, sell their copies at highly discounted prices that attract market niches that would have otherwise have bought legal copies (“The Effects of Piracy”).
Secondly, due to the loss of revenue, most producers are forced to cut their cost by laying off involved stakeholders. Stakeholders such as cloth designers, hair stylists, technicians and camera operators are the ones that feel the ripple effects of piracy. Most of these stakeholders are left without any source of income or means of survival (“Piracy’s Ripple Effect on the Global Economy – Diplomatic Courier”).
Thirdly, apart from the economic effects of piracy, it has in numerous occasions affected the reputation of the producers. This is because viewers are exposed to the badly made copies. Thus, producers are presented in a bad light to their prospective viewers affecting their future revenues and success. Hence, the American government should be able to enforce stricter regulations against piracy to protect these revenues as well as jobs (“The Economics of Video Piracy | The People, Ideas, And Things (PIT) Journal”).
“Piracy’s Ripple Effect on the Global Economy – Diplomatic Courier”. Diplomatic Courier. N. p., 2014. Web. 20 Oct. 2016.