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Software piracy, long a source of anxiety among app makers and large software companies, may have some beneficial effects.
Wendy Bradley, assistant professor of strategy, entrepreneurship, and business economics at Southern Methodist University's Cox School of Business, and Julian Kolev, an economist at the United States Patent and Trademark Office, recently examined the impact of software piracy in a paper [PDF] titled "Software Piracy and IP Management Practices: Strategic Responses to Product-Market Imitation."
The economists looked at mentions of piracy in the SEC-mandated annual 10-K filings of 106 publicly traded companies that generated 40 per cent of their revenue between 1991 and 2000, based on the belief that software firms, so dependent upon patent, copyright, and trademark protection, "benefit disproportionately from cumulative innovation."
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