Académique Documents
Professionnel Documents
Culture Documents
Public Policy & Marketing, Health Marketing Quarterly, and the Journal of Macromarketing.
Professor David Hardesty has been an Assistant Professor of
Marketing at the University of Miamifor the past three years.
Before that, he held a faculty position at the University of
Southern Mississippi for three years. Professor Hardesty's
research focuses on consumer responses and public policy issues
related to pricing and promotion as well as measurement. He
has published in outlets such as the Journal of Consumer
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Tracy A. Suter
Steven W. Kopp
David M. Hardesty
dealing in the production and distribution of copyrightable creations. The focus of this paper is to better
understand how the ethical judgments of employees
regarding the opportunities to recreate copyrighted works
via traditional and newer technologies impact assessments
of copying behavior in the workplace.
KEY WORDS: copyright, ethical judgments, intellectual property, Internet, public policy
62
Losses from piracy of copyright-protected materials are well into the biUions of dollars (Business
Software Alliance, 2003; Recording Industry Association of America, 1999; Wall Street Journal, 1998).
A significant proportion of this unauthorized copying
takes place at work (Clabum, 2001). Court cases have
dealt with use of photocopiers (American Geophysical Union v. Texaco, 1992; Pasha Pubhcations v.
Enmark, 1992), databases (Rural Telephone v. Feist,
1991), and software (Universal City Studios v. Reimerdes, 2001). It is estimated that nearly 23% of the
software in use during 2002 was unlicensed and cost
$6 billion in lost retail sales (Business Software Alliance, 2003). Pubhshers of newsletters lose between
25 and 40% of their potential revenue to unauthorized photocopying. Because some types of copying
may actually be encouraged by the employer, for
example, making unauthorized copies of software on
multiple computers in an office, it is perhaps
impossible to determine what amount of copying
that is sanctioned by employers and what amount is
illicit. However, because of the reach and ease of
using the Internet and other technologies for copying
and distribution, this problem will not go away in the
near future. Further, this issue has global dimensions
(Newspaper Licensing Agency v. Marks and Spencer,
2001; Wall v. Brunell, 1997).
Of course, copy-capable technologies only provide the means by which individuals may make
copies, and that copying, regardless of the technology, is a type of individual behavior. This issue has
become one of ethical management. In a survey
among technology workers, one-third reported that
they had seen a coworker make copies of software for
personal use; 9% of those technology workers reported making copies themselves (Society of Financial Service Professionals, 2001). In this same survey,
software copying was one of the most fi^equent
practices of "heavy abusers". Because of the proliferation of computers and computer networks, as well
as the convergence of computer and communications
technology, illegal reproduction and distribution of
copyrighted software and other intellectual property
is easier than ever. So, it is highly relevant to investigate any relationship between an individual's ethical
or moral philosophy, the individual's beliefs about
copying intellectual property, and that individual's
participation in ethically questionable activities with
respect to two groups of technological alternatives.
Background
Legal issues
is considered. With a network of interlinked computers, the sharers of copyrightable works need not
be in the same geographic space, do not have the
necessity of exchanging the "original" diskettes,
CD-ROMs, etc., and do not have a limit on the
number of copies that can be made. Said another
way, the copying of digital works can be "substantial" in terms of both quantity and quality within
the networked technologies of the Internet. It is this
distinction that dictated the groupings of traditional
and newer technologies for the purpose of this study.
Traditional technologies characteristically exhibit
copies from the original that are lower in quality and
have a limited quantity of copies that can be produced. Newer technologies, in contrast, maximize
both quality and quantity via the digital nature of the
copies and the lack of necessity to be in the same
geographic space to share the originals.
The importance of the latter issue led to the
passage of the first Internet-specific intellectual
property legislation when in December 1997 the No
Electronic Theft (NET) Act was signed into effect.
This law was aimed specifically at stopping electronic copyright violations by making the willful
violation of copyright a criminal offense, even if no
profit to the infringed is involved. In addition to the
NET Act, the Digital Millennium Copyright Act
(DMCA) was enacted in 1998. The intent of the
DMCA was, among other objectives, to harmonize
U.S. copyright law with international law, make it
unlawful to defeat technological protections used by
copyright owners to protect their works, and
establish safe harbors for on-line service providers
who unknowingly transmit copyrighted works.
Both the NET Act and the DMCA were attempts to
help somewhat antiquated federal statutes wdth
contemporary technologies and behaviors.
Organizational issues
63
64
Hypothesis development
Traditional copying technologies
Research methods
The hypotheses were tested using data gathered from
non-student adults who filled out a questionnaire
that included multiple indicators for each latent
construct of interest. The questionnaire was distributed to approximately 600 members of a statew^ide household research panel. Two hundred
ninety-seven surveys were returned resulting in a
response rate of approximately 49.5%. To begin,
Vitell and Muncy's (1991) four dimensional ethical
assessment items were measured. Next, participants
responded to measures of the ethical implications
associated with their work-based activities of photocopying a book instead of buying it, copying a
compact disk to a cassette using an audio cassette
player/recorder instead of purchasing it, copying a
movie using a VCR instead of buying it, copying
computer software, and dow^nloading information
from the Web instead of purchasing it. At the end of
the survey, respondents indicated their gender, age,
income, and other demographic variables. Finally,
subjects were asked to indicate what they believed
was the purpose of the study; none of the respondents were able to determine the purpose of the
research. The median household income for the
sample was between $30,000 and $39,999. Sixtythree percent of the sample was female with an
average age of 38.
65
books, copying a compact disk using an audiocassette recorder, and copying a movie using a videocassette recorder at work. These three dependent
variables were measured as the average of three items
on a four-point scale such as, "It is ethical to copy
pages from a book instead of buying it ... Never (1)
- Rarely (2) - Sometimes (3) - Often (4)", "It is
ethical to copy a compact disk to a cassette instead of
buying it ... Never (1) - Rarely (2) - Sometimes (3)
- Often (4)", and "It is ethical to copy movies because no one is harmed ... Never (1) - Rarely (2) Sometimes (3) - Often (4)".
The ethical implications associated with downloading infonnation from the Intemet at work instead of buying it as well as copying software served as
the dependent variables in assessing hypotheses four
and five. Each of these variables was assessed as the
average of three items measured on a four-point scale
such as, "It is ethical to download infonnation from a
Web site or newsgroup instead of buying the information... Never (1) - Rarely (2) - Sometimes (3) Often (4)" and "It is ethical to copy software instead
of buying it... Never (1) - Rarely (2) - Sometimes
(3) - Often (4)". As summarized in Table I, coefficient alpha estimates of intemal consistency reliability
for each multi-item measure were as follows: 0.94,
actively benefiting from illegal activity; 0.90, passively benefiting at the expense of others; 0.85, actively benefiting from questionable actions; 0.80, no
harm, no foul; 0.75, photocopying behavior; 0.86,
audio cassette copying behavior; 0.80, video cassette
copying behavior; 0.87, Intemet copying behavior;
and 0.88, software copying behavior. Each of these
Measures
TABLE I
Number of items, variable means, standard deviations, and reliabilities
Variable
Actively benefiting from Ulegal activity
Passively benefiting at the expense of others
Actively benefiting from questionable actions
No harm, no foul
Photocopying behavior
Audiocassette copying behavior
Videocassette copying behavior
Internet copying behavior
Software copying behavior
Number of items
5
4
4
5
3
3
3
3
3
Mean
6.84
6.39
6.17
3.47
2.50
1.52
1.67
2.32
2.16
Standard deviation
0.58
1.03
1.15
1.54
0.89
0.77
0.88
1.23
0.94
Alpha
0.94
0.90
0.85
0.80
0.75
0.86
0.80
0.87
0.88
66
Tracy A. Suter et al
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Results
Hypothesis 1 predicted that an individual's assessments of ethically questionable behaviors are negatively related to the likelihood of photocopying
materials from books. As shown in Table II, the
standardized beta coefficients associated with these
relationships were -0.122 {p < 0.10, actively benefiting from illegal activity), -0.256 {p < 0.01,
passively benefiting at the expense of others), -0.268
(p < 0.01, actively benefiting from questionable
actions), and -0.311 {p < 0.01, no harm, no foul).
These results support hypothesis 1. Interestingly, the
results for actively benefiting from illegal activity
suggest a weaker relationship compared to the other
three dimensions. It is also interesting to note that
subjects ranked photocopying behavior as the most
ethical of the five studied copying technologies
(mean = 2.50, see Table I).
Hypothesis 2 predicted that an individual's
assessments of ethically questionable behaviors are
negatively related to the likelihood of copying
compact disks using an audiocassette player/recorder. The standardized beta coefficients associated
with these relationships were -0.069 {p > 0.10,
actively benefiting firom illegal activity), -0.054
{p > 0.10, passively benefiting at the expense of
others), -0.069 (p > 0.10, actively benefiting from
questionable actions), and -0.102 {p > 0.10, no
harm, no foul). These results fail to support
hypothesis 2. Thus, there appears to be no relationship between audiocassette copying behavior
and assessments of more general ethically questionable behaviors.
Hypothesis 3 predicted that an individual's
assessments of ethically questionable behaviors are
negatively related to the likelihood of copying
movies using a videocassette recorder (VCR). The
standardized beta coefficients associated with these
relationships were -0.009 (p > 0.10, actively benefiting from illegal activity), 0.048 (p > 0.10, passively benefiting at the expense of others), -0.058
{p > 0.10, actively benefiting from questionable
actions), and -0.109 {p > 0.10, no harm, no foul).
These results fail to support hypothesis 3. Similar to
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hypothesis 2, there does not appear to he a relationship hetween videocassette recording and
assessments of more general ethically questionable
behaviors.
Hypothesis 4 was evaluated using simple linear
regression with ethical behavioral assessments serving as the independent variable and Internet copying behavior as the dependent variable. Recall that
this fourth hypothesis predicted that an individual's
ethical behavioral assessments would be negatively
correlated to Internet copying behavior. In partial
support of this prediction, the standardized beta
coefficients for these analyses were -0.091
{p > 0.10, actively benefiting from illegal activity),
-0.132 {p < 0.10 one-tailed, passively benefiting at
the expense of others), -0.244 {p < 0.01, actively
benefiting from questionable actions), and 0.202
{p < 0.05, no harm, no foul). Finally, hypothesis 5
was evaluated in a similar fashion with ethical
behavioral assessments serving as the independent
variable and software copying behavior as the
dependent variable. The standardized beta coefficients were -0.065 {p > 0.10, actively benefiting
from illegal activity), -0.116 {p > 0.10, passively
benefiting at the expense of others), 0.183
(p < 0.05, actively benefiting from questionable
actions), and 0.303 {p < 0.01, no harm, no foul),
which partially supports the fifth hypothesis. As
with hypothesis 1, the results for actively benefiting
from illegal activity suggest a weaker relationship
compared to the other three dimensions in the
context of both Internet and software copying
behavior.
Overall, stated beliefs of general ethically questionable behaviors, including behaviors believed to
be illegal, served as a good predictor of photocopying behavior. Additionally, Internet and software copying behavior can be predicted by a subset
of ethically questionable behaviors. More specifically, the strongest relationships to Internet and
software copying behaviors were witnessed in
conjunction with the "actively benefiting from
questionable actions" and "no harm, no foul"
ethically questionable behavioral dimensions. These
results could signal that respondents do not recognize the legal boundaries of copyrighted works in
the context of newer technologies. The implications of these results will be discussed in the next
section.
67
Discussion
Ethics research issues
68
Conclusion
69
517-525.
Muncy, J. A. and S. J. Vitell: 1992, 'Consumer Ethics: An
Investigation of the Ethical Beliefs of the Final Consumer', Jouma/ of Business Research 24(4), 297-311.
Newspaper Licensing Agency Ltd v Marks & Spencer pic:
2001, United Kingdom House of Lords 38 (July 12).
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70
Steven W. Kopp
Walton College of Business,
University of Arkansas,
Fayetteville, AR 72701,
U.S.A.
E-mail: skopp@waUon.uark.edu
David M. Hardesty
University of Miami,
523D Jenkins Building,
Coral Gables, FL 33124,
U.S.A.
E-mail: hardesty@miami.edu