Traditionally, if I bought a (copy-righted) book, there is no illegality involved if I loaned it to my friends to read. Or even if I keep this in a public library where members can borrow the book. Many public libraries are totally free -- or involve only minimal administrative charges.
Is it ethically wrong if I pass on an e-book (which I purchased legally) to other people for their reading? What if I place these e-books in a public site where "members" can freely access this?
The grey area is when, in the first place, I had electronically (illegally) "copied" the e-book -- rather than purchased this. I agree such copying is increasingly getting to be easier -- and there would thus be (theoretically) little "need" for people to "buy" original books any more. (With cheap offset printing technology, even books in print can be "copied" with ease!)
But I have a feeling that this "theory" is flawed (or simplistic). Almost all newspapers and news magazines are now made available FREE in the internet by the publishers themselves! Theoretically, there is no reason why people need to buy print versions of The Outlook, The Frontline, The Week -- or even The Hindu, The Times of India or The Hindustan Times. But sufficient number of people (even those with broadband internet access at home) still continue to pay for print versions of these. And moreover, these publications remain economically viable -- probably with extra advertisement revenue from the free websites.
The internet will no doubt result in changes in the ethics (and rules of the game) of "copy right". This is no doubt great for the "consumers". According to me, the authors and creative people too are not the sufferers for this trend. They too would benefit from the tremendous publicity that the Internet offers for their thinking, viewpoints and creativity.
An example of this is the success of Arundhati Roy as a commercially successful author of printed books that contain her essays that were first made popular through free availablity in the internet! These essays are still available for free legal access -- and at multiple websites. Yet her books do sell! Even the "pirated" versions of her books sell like hot cakes on the streets of Chennai and Mumbai!
Amartya Sen was greatly amused when he was accosted by a young chap as his car stopped at a traffic light in Mumbai. The boy tried to sell him a pirated copy of his own book, The Argumentative Indian. "Great book -- and very cheap price" was the refrain!
Recommend