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  • Date Submitted: 10/24/2010 10:16 AM
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Unit 2 Activity : Market Structure
David Shlensky
Mr. Malo

  It is in Microsoft’s best interests to keep DRM functional and active in the electronic disc industry, since it can be considered an online theft prevention method. Microsoft loses millions of sales annually due to the fact that pirates download illegal electronic media (games, movies, etc.); Microsoft believes a way to mitigate the financial decrease due to pirates is DRM, which is a form of copy protection for digital content.

  DRM puts restrictions on how products are used on customer’s machines, which customers oppose, seeing it as unfair and a violation of their rights. Critics argue that they should manage their own purchased products for themselves and not be manipulated by a third party.   However, DRM creators say that it is one of the few successful measures to counteract piracy – a practice that is is increasing among us each year and making a dent in the economic electronic market.   Piracy isn’t seeming to slow down and and is becoming more common, since the laws for piracy are usually not strict enough and/or unenforced. Discreet file sharing is also making it harder and harder for anti-piracy corporations to track them down. All law and technicalities aside, piracy is seen making most of its impact on the economic sphere of the world, and subsequently to all major industries like Microsoft, Apple, etc.

  This is why Microsoft supports DRM. From a financial standpoint, it aims to prevent – or at least try to - piracy and increase their financial income. Microsoft and other major corporations that are affected by piracy are trying to incorporate DRM in their products because it is hurting their profit; and for an economy that sustains the US and world market that is bad, bad news.

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