An equilibrium analysis of software damages in end-users group infringement

Preventing the group infringement of software endusers has great significance in improving knowledge management and realizing the knowledge assets´ value. And damages system is important measures of preventing the group infringement. This paper analyzes the characteristic and equilibrium condition of compensation of software end-users group infringement based on the theory of equilibrium in economics. Then an equilibrium model of determining software damages in end-users group infringement is put forward. At last, this paper makes an empirical analysis by using a practical case. This paper suggests that we should consider the balance of interests between the owner of software and the software end-users. The software endusers in group infringement are usually at large, and punitive damages for software end-users should be applied in more cases. This paper also suggests that several factors should be considered when determining damages including the profit of the owner of software, network externalities of software, the probability of detecting the software end-users infringement, the probability of bearing liability if detecting infringement, the number of the software end-users, and the number of the consumers buying authorised software.