Innovation electronic publishing and the management of intellectual property: what of digital piracy?

This article aims to analyse the effects of piracy on the management of intellectual property (IP) and innovation. The first section discusses the problems associated with digital technologies that are confronting rightholders, and highlights the view that the versatility of these technologies constitutes a major asset for the growth of both electronic publishing and piracy. The effect of piracy on the management of IP and innovation will be discussed in terms of (1) how IP is created; (2) the resources required to stay in the business and the difficulties in maintaining market presence; (3) the means of protection of IP, and (4) the entry barriers to the electronic publishing sector. The analysis is based on an interview sample of thirty-one small- and medium-sized UK-based electronic publishers. The article concludes that while it is right for legislators and those within the industry to seek enhanced copyright protection, it is less clear whether piracy is a material threat to investment in electronic publishing, as it is widely posited to be by the industry.