Economic impact

As files sharing has spread a debate on how the infringement of copyright (in terms of file sharing copyrighted audio and visual content) impacts on legal distribution of especially music. In a broader context commentators have pointed out that the music industry, along with other types of media such as film and TV are having a difficult time adapting to the digital age.

Software Industry

According to Moisés Naím, even in countries and regions with high intellectual property enforcement standards, such as the US or the EU, piracy rates of one-quarter or more for popular software and operating systems are common. The pirated software is distributed through file sharing at unprecedented rates, and according to Naím, software manufacturers dread the "one disc" effect: a phenomenon in which a single counterfeited copy can be propagated until it has taken over an entire country, pushing the legitimate product out of the market.

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