A global consumer decision model of intellectual property theft

Abstract

Purpose Intellectual property theft amounts to billions of dollars per year worldwide. The first step in stemming this loss is to understand the underlying precursors of this behavior. This paper aims to propose and test a model of consumer choice to purchase or pirate intellectual property, specifically music. This paper combines and applies the theory of reasoned action (TRA) and Becker’s theory of crime to develop a more comprehensive model of digital piracy behavior. Culture was tested as an antecedent to the attitudes and the perceptions of risk associated with music piracy. Design/methodology/approach A survey of 4,618 participants was conducted across 23 countries. Construct measures were validated using confirmatory factor analysis in LISREL. A conceptual model was tested using logistic structural equation modeling in MPlus. Respondents were asked about the last music they acquired to test a behavioral model of music piracy. Findings The results indicated that culture, specifically rule orientation and uncertainty avoidance, had a significant impact on attitudes toward the music industry, ethical perceptions of music piracy and risk perceptions. Respondents’ ethical perceptions of downloading had the highest impact on music piracy behavior. The personal/copy risk associated with the illegal downloading of music had a significant impact while the relative channel risk did not. The market value, quality and selection also had a significant impact on downloading behavior, as did the respondent's ability to find and download music. Research limitations/implications While this paper was limited by focusing on the illegal downloading of music, the results can provide guidance in the design of future research concerning the piracy and unlicensed downloading of other types of intellectual properties such as movies/videos, TV, paywall content and e-books. Practical implications In recent years, improved access to music and video through online streaming and online stores has significantly decreased music piracy. This research indicated that further inroads into this behavior could be made through better online purchase access and through consumer education about the ethics and results of digital downloading. Further, efforts are more efficient by targeting cultures with lower levels of rule orientation with ethics education and targeted risk messages in countries with higher uncertainty avoidance. Social implications Yearly losses to the music industry amount to about $5-29bn. Many find music and video downloading and “sharing” as acceptable. The model developed in this research has implications to affect this mass loss of revenue to the music industry and perhaps the societal view of downloading behavior that is illegal but commonly accepted. Originality/value This model is the first to integrate cultural aspects into models of digital piracy. In addition, the model is developed from a strong theoretical base (TRA and Becker’s theory of crime) to integrate multiple antecedents to intellectual property theft research.

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