In 2007, the Institute for Policy Innovation (IPI), published a report by Stephen Siwek. The report primarily focused on the economic impacts of sound recording piracy on the U.S. economy. Piracy harms legitimate intermediaries, media creators and governments in the supply chain of media products. On the other hand, consumers of pirated media products do not enjoy some of the benefits they would otherwise enjoy when purchasing legitimate media products (Siwek, 2007). Media products that can be pirated include music, sound recordings, movies, TV shows, books, software, and video games, as well as other media products made under copyright laws. Karaganis (2011) defined piracy as the illegal copying and transmission of copyrighted media without the permission of the copyright owner, particularly when an individual intends to use the pirated media for commercial gain or achieve any other purpose not authorized for which a particular media product is not intended. The legal landscape of piracy is clouded by the lack of a clear definition of piracy, especially when backing up copies of media that you have legally purchased for personal consumption. Despite the legal complexities that permeate the field of media piracy and intellectual property rights, media piracy portends some negative economic effects on the revenues of media content producers and larger economies. How Piracy Causes Small Effects on Global and American Markets The US economy is affected by media piracy more than any other country in the world. According to Siwek (2007), the United States has a major share in the media production industry due to the relatively higher concentration of media production companies in the country. Economists... at the center of the paper... actors in countries like the United States and Australia. However, a close examination of the collapse in sales of physical media products could be countered by the increase in sales of digitized media content. After all, the technologically savvy generation may not be interested in downloading music or movies for unauthorized use, but only in obtaining entertainment services, which is why online sales of digital media products are on the rise. To counter the effect of online piracy, media producers must reshape their business approach to earn more through advertising and in-app purchases, as some video game producers are doing. Overall, the effects of piracy on the media industry could be exploited to increase the revenue of media operators rather than pointing fingers of blame without adopting best practices in line with media consumption trends.