The day the Web went dark – Jan. 18.
Some may not have noticed, others likely wondered what was happening, but many participated – millions, in fact. Congress took notice, and those businesses that haven’t, should follow suit.
Internet giants Google, Wikipedia and Craigslist were among the throng of Web sites that participated in the online protest of antipiracy legislation bills known as the PROTECT IP Act -– aka the Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act of 2011 -– and the Stop Online Piracy Act.
By the next day, myriad representatives, including Missouri Sen. Roy Blunt, had flipped sides, agreeing with protesters that the two bills went too far, and in some cases potentially violated First Amendment rights. Though the intent of the bills is pure, the lengths to which they are willing to go are not. Among the provisions, the bills could allow the U.S. attorney general, and other entities, to seek court orders against Web sites accused of enabling or facilitating the exchange of copyrighted materials. In so doing, U.S. sites and search engines could be required to remove links to those sites, and Internet service providers could be ordered to block access to those sites. Those that fail to do so could be black-listed, which formed the basis of the Web blackout.
In the wake of the uproar, both bills have been postponed, and by some accounts, effectively killed. But many Web users fear that more arguably unconstitutional legislation will inevitably pop up.
Let’s take a moment to look at copyright infringement, carried out mostly these days through Internet piracy. By its most basic definition, piracy is the illegal downloading of copyrighted materials, anything from music to movies to books.
Many organizations, such as the Motion Picture Association of America and the Recording Industry Association of America, take the stance that piracy results in a loss of revenues. But that concept isn’t entirely sound. Downloading a movie or a song is only gaining a copy of that product; the original still exists after the infringement has occurred. With digital media, production costs have been slashed, as physical objects no longer have to be created.
So, entertainment industries really aren’t losing revenue, just potential revenue. A person who pirates software doesn’t represent a lost sale, it equates to a missed opportunity, a missed customer.
Instead of aggressively pursuing those who would violate copyright law, what if companies aggressively pursue their business? Companies, and their owners, can spend time and money supporting legislation that, while solving one problem, may very well infringe on our rights as Americans, or they could show people why they should value the company and convince them to purchase by offering great customer service or better products.
As an example, look to the success of one Web company, Bellevue, Wash-based Valve Corp., which, by some industry projections, reeled in nearly $1 billion in 2010 revenues in the video game industry, a huge target of Web pirates.
Through its social media and sales platform, Steam, users can purchase and download games directly, become a part of an online community, and talk and play games with friends. Many major publishers offer products through Steam, and there are often promotional deals such as holiday sales and other community events. Valve also is known for having excellent customer service; in some cases its CEO responds directly to customers’ e-mails. Essentially, Valve has turned something many have believed is in dire straights due to piracy into a real-world, working model of success (and profits).
It is important to remember that the use of the Internet has vastly expanded. It is used by people of every age group, by Democrats and Republicans, and it is used by your customers. If you don’t treat them right, word will get out, and it will travel extremely quickly.
Instead of supporting legislation that would attempt to forcibly place a leash on American rights, embrace the power of the Internet by reaching out to the customers in your niche in new and exciting ways. They will appreciate it, and so will you.
Springfield Business Journal Web Editor Geoff Pickle can be reached at gpickle@sbj.net.[[In-content Ad]]
