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Electronic Frontiers attacks AFACT over revenue loss figures

Electronic Frontiers Australia has attacked the Australian Federation Against Copyright Theft over claims that electronic piracy is costing the economy more than $1.3 billion every year. In a blog post, EFA says the assumption is based on correlating downloads with lost sales and that is unproven. โ€œThe survey method cited is better than assuming 100% […]
Patrick Stafford
Patrick Stafford

Electronic Frontiers Australia has attacked the Australian Federation Against Copyright Theft over claims that electronic piracy is costing the economy more than $1.3 billion every year.

In a blog post, EFA says the assumption is based on correlating downloads with lost sales and that is unproven.

โ€œThe survey method cited is better than assuming 100% of downloads are lost sales but there is better analysis in other studies,โ€ it said.

EFA said downloads have an advertising effect, revenue is not the right metric to use and that any flow-on effects for other industries are โ€˜โ€wholly speculativeโ€.

โ€œThe Internet, computer games and mobile telecommunication applications take โ€˜eyeballs and dollarsโ€™ away from DVD and CD sales, but also sports arenas, sales of board games and printed works,โ€ EFA says,

โ€œChange is consumer-driven and it’s futile for the industry to try to hold fast to a business model and methods of content distribution which are dying with or without fierce law enforcement of copyrights.โ€