The problem of perfect copies and encryption
Digital copying challenges and encryption responses.
5-mark Exam Answer
Because the cost of distributing digital copies of copyrighted intellectual property is nearly zero on the Internet, e-commerce poses special challenges to traditional IP protection. According to Laudon and Traver, digital copies are 'perfect' — identical to the original — and encryption and Digital Rights Management are the technological responses.
- 1.Digital copies are perfect and near-zero cost
- 2.Perfect copies fuel mass piracy
- 3.Traditional copyright law struggles online
- 4.Encryption and DRM are the response
- 5.Legitimate platforms reduce piracy via convenience
Because the cost of distributing digital copies of copyrighted intellectual property — tangible works of the mind such as music, books, and videos — is nearly zero on the Internet, e-commerce poses special challenges to the various methods societies have used in the past to protect intellectual property rights.
Unlike physical goods, digital copies are 'perfect': each copy is identical to the original, with no degradation in quality. A copied MP3 file sounds exactly like the original; a copied e-book is byte-for-byte identical. This makes piracy easy and cheap — a single copy posted online can be downloaded millions of times.
The technological response is encryption and Digital Rights Management (DRM). Encryption scrambles content so that only authorised parties can read it, while DRM systems enforce usage rules — limiting the number of devices a file can be played on, restricting copying, or expiring access after a period. DRM has been used on e-books, music (Apple's former FairPlay), and video (Widevine).
However, technological protection is imperfect. DRM systems have been cracked (such as the breaking of DVD CSS encryption), they can inconvenience legitimate buyers, and they sometimes conflict with fair use. There is substantial agreement among online distributors and copyright owners that they need one another, and legitimate distribution platforms like iTunes, Netflix, and Spotify reduce piracy by making legal access convenient.
A single DVD, when its CSS encryption is cracked, can be perfectly copied and shared online millions of times — illustrating both the perfect-copy problem and the limits of encryption as a response.
The perfect-copy problem — near-zero-cost identical digital copies — challenges traditional copyright, and while encryption and DRM provide imperfect technological protection, convenient legitimate platforms offer the most effective response.
The exam interface follows the university paper pattern: Section A & B carry 5-mark questions; Section C carries objective questions.