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Abstract: This paper studies the impact of software piracy in a two-sided-market setting. Software platforms attract developers and users to maximize their profits. The equilibrium price structure is affected by piracy: license fees to developers are higher with more software protection but the impact on user prices is ambiguous. A conflict between platforms and software developers over software protection may arise: whereas one side benefits from better protection, the other party loses out. Under platform compatibility, this conflict is no longer present. [Copyright &y& Elsevier]

Abstract: This paper studies the impact of business environments on software piracy and provides strategic implications of the findings. The environment of countries is characterised in terms of political economy, social culture, and technology. This study investigates the effect of these characteristics on the degree of software piracy in each country. By examining polarised countries in terms of piracy, this research concludes that multiple factors impact software piracy, as demonstrated in countries with high and low piracy rates. The findings will be useful for businesses dealing with intellectual property issues. [Copyright &y& Elsevier]