Question

In: Economics

Explain how person-to-person digital file sharing of songs and movies for free can lead, over time,...

Explain how person-to-person digital file sharing of songs and movies for free can lead, over time, to undersupply of these goods.

Solutions

Expert Solution

When a film or song is made and sold, there are monetary benefits from the selling of that product for all involved in the process. The product is also protected by copyright law, and it can not be copied, replicated or resold without their permission. If you didn't pay for a copyright song, movie or other media file, then downloading that file is a criminal offence. Similarly it is also illegal to share a copyrighted media file, whether by electronic or non-electronic means, without the copyright holder's express permission.

Most of us are not sitting around the house with more than half a million dollars. So if you access files that you didn't pay for or upload without the copyright holder's permission, you could just have to pay that amount. The dissemination of copyright materials is punishable by law under the Digital Millennium Copyright Act. Anyone found guilty of copyright infringement may face the following penalties: up to five years' imprisonment fines and charges of up to $150,000 per file In addition to all other charges that may be brought against you, the copyright holder can file suit that will result in legal fees and damages to be charged.

Illegal downloading places the computer at high risk of virus receipt. Most illegal downloading is done using Peer-to-Peer (P2P) software which enables people to share their files with others. Since you have no idea where to get the files from, there's no way to tell whether they're tainted with viruses or spyware. Downloading infected files to your computer can lead to data loss, repetitive pop-ups, slow Internet connection and possible identity theft. An successful anti-virus software won't always protect you from viruses that P2P software obtains.

However, from an economic viewpoint, data subjects would only be able to port their data if there is a net benefit (less expense or more satisfaction, for example). The GDPR contemplates the possibility where theoretically possible, of getting the data transmitted directly from one controller to another. Therefore, while there is no requirement on data controllers to do so, data portability requires device interoperability in order to achieve real efficiencies. Interoperability refers in this context to the ability of two or more systems (online service providers or platforms) to share information and/or data, and then be able to use it.


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