Piracy, the unauthorized use of IPR, is a critical issue in the entertainment industry. Various file$-$sharing services, such as USENET, BitTorrent, and Limewire, allow users to download movies, TV programs, and music for virtually no cost$.$ A principal means by which firms have sought to combat file$-$sharing is through Digital Rights Management $($DRM$),$ various technologies that restrict the use of digital content. DRM has been the target of extreme criticism, blamed for everything from hurting legitimate users to hampering viral marketing and presenting a significant barrier to free trade. What is worse, most DRM systems have been cracked with relatively little difficulty.

Given both the ease of piracy and the relative lack of success of preventive measures, how should media firms protect their IPR and ensure their profitability?

Should they pursue alternative IPR technologies?

Should they aggressively pursue and prosecute offenders? Or$,$ are there ways in which firms can earn a profit while allowing open access?