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More on How the London School of Economics Got it Wrong | MUSIC • TECH • POLICY
Old 14th October 2013
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More on How the London School of Economics Got it Wrong | MUSIC • TECH • POLICY

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More on How the London School of Economics Got it Wrong |MUSIC • TECH • POLICY

For those of you who haven’t heard about it, the London School of Economics allowed some lecturers to post a “study” on the LSE’s website that has some very questionable assumptions in it–not to mention overtly misquoting actual econometric studies.

If the LSE lecturers are interested in getting at the true cost of piracy, a fruitful area of research for them would be to investigate this advertising revenue. These are known numbers. Someone is paying the illegal sites and Google is one of those people by their own admission.

You don’t have to agree with my estimate–it may be high or, more likely, it may be low. But it is impossible to argue that the number doesn’t exist or relies on an estimate. This payment is taxable income–even in the UK Google does make some payment to Inland Revenue. It’s taxable to Google when it is paid by the advertiser, Google takes a deduction for the share paid to the pirate, and Google has an obligation on some level to report the corresponding income paid to the pirate to justify the tax deduction.
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