How Technology Advances Demand New Business Models

Copyright law was established to protect the rights of authors, but since its inception, technology has made it much easier to copy and reproduce works. Under the “fair use” doctrine, limited use of copyrighted work is allowed for personal or educational use, but making money from a copyright-protected work without permission is not allowed. Penalties for infringement are severe, with highfines for each copyrighted work that was infringed and even higher damages if the infringement is “willful,” plus costs and attorney fees. 

Copy machines and VCRs were early examples of copying technology, and the courts struggled to establish standards for the allowable use of these technologies. Then it moved file-sharing capabilities like Napster and Grokster, which caused upheaval in the music industry. Now we are seeing the widespread use of torrent sites. 

The reality is that law enforcement is ineffective at stopping copying and counterfeiting. The U.S. Congress tried to help with the Digital Millennium Copyright Act (DMCA), but it has been misapplied and ineffective. Lawsuits and laws lag behind technology and are only a temporary way to protect rights and profits.