Counterfeiting and anti-counterfeiting of software and content

Yacov Yacobi, Gideon Yaniv

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We address a counterfeiter who pretends to be the legitimate producer of software or content, charges the same price as the latter and competes with her in the same market. We examine the legitimate producer's joint determination of the profit-maximizing price and intensity of monitoring the counterfeiter's illegal activity. Our approach involves an explicit solution of the profitmaximizing level of counterfeiting, based on a real probability of detection function. The analysis reveals that the profit-maximizing price is lower than the price set in the absence of counterfeiting and must be accompanied with some minimum level of monitoring to be positive. Depending on the level of counterfeiting, the profitmaximizing monitoring rate may rise or fall with an increase in the penalty rate or in the legitimate producer's share in the counterfeiter's fine and back payments, and may counterintuitively rise with improvements in detection technology.

Original languageEnglish
Title of host publicationProceedings of the 8th ACM Workshop on Digital Rights Management, DRM'08, Co-located with the 15th ACM Computer and Communications Security Conference, CCS'08
Pages53-57
Number of pages5
DOIs
StatePublished - 2008
Externally publishedYes
Event8th ACM Workshop on Digital Rights Management, DRM'08, Co-located with the 15th ACM Computer and Communications Security Conference, CCS'08 - Alexandria, VA, United States
Duration: 27 Oct 200831 Oct 2008

Publication series

NameProceedings of the ACM Conference on Computer and Communications Security
ISSN (Print)1543-7221

Conference

Conference8th ACM Workshop on Digital Rights Management, DRM'08, Co-located with the 15th ACM Computer and Communications Security Conference, CCS'08
Country/TerritoryUnited States
CityAlexandria, VA
Period27/10/0831/10/08

Keywords

  • Anti-counterfeiting
  • Counterfeiting
  • Monitoring rate
  • Piracy
  • Probability of detection
  • Software

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