OECD Report Unsure of Connection between Piracy and Lost Music Revenues

The Organisation for Economic Co-operation and Development, an international, 30-county organization that promotes democracy and free trade, recently released a report (OECD Report) on the current information economy surrounding digital music. The importance of new technology, including the potential uses of P2P networks, and the idea that legal and other frameworks should be designed to encourage and not to pre-empt innovations, were recurring themes in the OECD Report. As part of its recommendations, the authors suggested licensed file-sharing and new forms of "superdistribution" should be examined as solutions to address the issue of Internet-based piracy. One of the most interesting findings was that the authors found it difficult to establish a connection between online music piracy and a reduction in the revenues of record companies. Some members of the music industry, including the International Federation of the Phonographic Industry, have expressed mixed views about the content of the OECD Report. Summary by: Sue Diaz