The Society for Economic Research on Copyright Issues

Review of Economic Research on Copyright Issues (RERCI)

RERCI Articles

P2P Music Sharing Networks: Why the Legal Fight Against Copiers May Be Inefficient

Review of Economic Research on Copyright Issues, Vol. 2, No. 2, 69-82, 2005

Fabrice Rochelandet and Fabrice Le Guel

Downloads:  1071


Abstract

The paper investigates empirically the behavior of copiers over P2P networks based on an ordered Logit model of intensity using a dataset collected from more than 2,500 French households. In accordance with the prediction of the Beckerian framework, copying behavior is negatively correlated with the willingness to pay for an original when a copy is available. But individuals also make their decisions according to their social neighborhood and to the degree to which they have learned about copying. Furthermore, we find that copiers are motivated by the search for diversified contents, and they are also very concerned about the interests of artists. We then consider the efficiency of anti-copying policies on the copying of music and movies.

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Restricting Access to Books on the Internet: Some Unanticipated Effects of US Copyright Legislation

Review of Economic Research on Copyright Issues, Vol. 5, No. 1, 23-53, 2008

Paul A. David and Jared Rubin

Downloads:  1060


Abstract

One manifestation of the trend towards the strengthening of copyright protection that has been noticeable during the past two decades is the secular extension of the potential duration during which access to copyrightable materials remains legally restricted. Those restrictions carry clear implications for the current and prospective costs to readers seeking "on-line" availability of the affected content in digital form, via the Internet. This paper undertakes to quantify one aspect of these developments by providing readily understandable measures of the restrictive consequences of the successive modifications that were made in U.S. copyright laws during the second half of the twentieth century. Specifically, we present estimates of the past, present and future number of copyrighted books belonging to different publication-date "cohorts" whose entry into the public domain (and consequent accessibility in scanned on-line form) will thereby have been postponed. In some instances these deferrals of access due to legislative extensions of the duration of copyright protection are found to reach surprisingly far into the future, and to arise from the effects of interactions among the successive changes in the law that generally have gone unnoticed.

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The Elusive Symbiosis: The Impact of Radio on the Record Industry

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 93-118, 2004

Stan J. Liebowitz

Downloads:  1027


Abstract

Unlike television broadcasters, who must negotiate with the copyright owners before they can broadcast movies, radio broadcasters need not negotiate with the copyright holders for the sound recordings broadcast on radio. In the United States radio broadcasters have no obligations whatsoever to the copyright owners of the sound recordings (although they do have obligations to the copyright holders of the music contained in the sound recording). The reason for this discrepancy appears to be that radio broadcasters have argued, and it is generally accepted, that radio play benefits record sales and thus there is no need for radio broadcasters to purchase the rights to broadcast the sound recording. This impact of radio play on record sales is commonly referred to as a "symbiotic" relationship between these two industries. Yet there appears to be no systematic examination of this relationship. In this paper I present evidence indicating that radio play does not benefit overall record sales. There are obvious implications for copyright. I also examine, by way of comparison, television's negative impact on the movie industry.

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The Winds of Change. Journey of UK Music from the Old World to The New World

Review of Economic Research on Copyright Issues, 11(2), 27-59, 2014

Maurice C. Samuel

Downloads:  1024


Abstract

Digitisation and adoption of increasingly fast broadband Internet represent the two fundamental 'winds of change' that have transformed the UK music industry since the 1980s. This paper examines the impact of these changes on sales of music and, by extension, on the royalties of creators of music, in both nominal and real terms. It identifies weaknesses and threats in both, opportunities that might be developed as responses, and possible hypotheses for future economic research that are likely to be of interest to the sector in providing evidence in the debates around appropriate strategies and policies.

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Copyright from an Institutional Perspective: Actors, Interests, Stakes and the Logic of Participation

Review of Economic Research on Copyright Issues, Vol. 4, No. 2, 65-97, 2007

Antonina Bakardjieva Engelbrekt

Downloads:  1023


Abstract

This article investigates recent developments in copyright, proceeding from a participation-centred comparative institutional approach (Komesar, 1994). Following institutional theory, the approach implies conceiving of the market, the political process (legislatures and administrative agencies) and the courts as alternative decision-making processes in the area of copyright law and policy. It emphasises the importance of institutional choice, based on careful comparison of the modalities for participation of different interests in these processes.
Novel digital and information technologies influence the conditions for participation in copyright decision-making at all levels and unsettle previously established institutional equilibriums. In the wake of the Infosoc Directive, a dynamic process of institutional adjustment seems to be unfolding in the Member States of the European Union whereby a variety of private, public and mixed institutional schemes for interpretation and enforcement of the new digital copyright are emerging, seeking to reconcile the interests of a variety of old and new stakeholders. This dynamism is interpreted as a search for appropriate decision-making institution to mitigate the consequences of an expansive legislative copyright policy as materialized in the Infosoc Directive and to re-establish a balance of rights and obligations. It is argued that the institutional design of these schemes and the modalities for actor participation will be crucial for their sustainable success and seem therefore to deserve more careful scrutiny. At the same time, the conservative force of institutional legacies is emphasized as a factor deterring institutional innovation.

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Copyright, Evidence and Lobbynomics: The World after the UK's Hargreaves Review

Review of Economic Research on Copyright Issues, Vol. 8, No. 2, 65-100, 2011

Benjamin Mitra-Kahn

Downloads:  1016


Abstract

This paper tries to convey the problems we government economists face in weighing up the evidence around copyright policy, and how the academic and grey literature plays a role in this. This is with particular reference to the recent review of the IP framework in the UK - the Hargreaves Review - and the reforms which are now being planned. The paper outlines the proposed changes and tries to raise the research questions which will need to be answered for Government to take these reforms forward. My primary aim in this paper is to emphasise that we are looking for help in gathering this evidence, and secondly to show that the institutions of Government can make it very hard for us civil servants to find all the relevant answers, as we often don't know who to ask, or have the time to ask. I try to illustrate this by going through one aspect of the evidence we believe we have, and look in some detail at a very influential piece of 'lobbynomics' on the cost of infringement. The purpose of this is to share the view from the other side of the policy debate, and to invite the reader inside the bubble that can be government policy making, all the while trying to get out of said bubble.

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Transactions Costs and Administered Markets: License Contracts for Music Performance Rights

Review of Economic Research on Copyright Issues, Vol. 3, No.1, 61-74, 2006

Michael A. Einhorn

Downloads:  1005


Abstract

Performance rights organizations (PROs) provide transactional efficiency for music users and copyright owners by negotiating contracts, collecting revenue, and paying royalties for the rights to publicly perform musical compositions, thereby replacing their need to deal individually with one another in bilateral licensing. Historically, performance rights for catalogued works have been made available to users through blanket licenses, which convey the rights to perform, or have performed on licensed premises, all registered works in the corresponding catalog of registered works. While blanket licenses may enhance transactional efficiency, the same licenses are sometimes recognized as anticompetitive restrictions that compel each user to make an all or nothing choice that may force acceptance of a full license contract in place of a less inclusive alternative that may actually be preferred. Competitive concerns at the Antitrust Division of the U.S. Justice Department regarding blanket licensing at ASCAP and BMI led to a separate series of Consent Decrees for each of the two major PROs in the U.S.
To explore the disparate claims of economic efficiency, the paper finds that concepts from public utility regulation may be particularly helpful. Three characteristics are considered: where prices are subsidy-free, whether license provision is a natural monopoly, and whether any competitive submarkets can be structurally separated from the regulated core.

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Exclusion, Competition and Change: The Shifting Boundaries of the Television Market

Review of Economic Research on Copyright Issues, Vol. 5, No. 1, 55-74, 2008

Giovanni Battista Ramello and Francesco Silva

Downloads:  977


Abstract

The aim of this work is to analyse the evolution of pay-TV as an example of the dynamics that characterise the media sector and in which copyright has played a pivotal role. In one simplified representation, we can identify two crucial levels on which the market is shaped: that of content, governed by copyright, and that of distribution. Control over each of these levels offers, in different ways, leverage for orienting the market, and has thus been an object of the strategies of firms. On the whole we can say that the innovation path characterising media markets extends beyond the purely technological sphere to also embrace the market as an "organisational technology" for production and exchange. Hence, the competitive process, so important for defining the market configurations, must be discussed from an intertemporal perspective in which technological choices, the regulatory framework and control of copyrights can be viewed as both exogenous and strategic variables manipulated by firms to obtain profits.

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Copyright: A Plea for Empirical Research

Review of Economic Research on Copyright Issues, Vol. 3, No. 2, 3-13, 2006

Ivan P. L. Png

Downloads:  977


Abstract

I review empirical research into the economic impact of copyright law. A key difficulty is that there is little systematic measurement of creative output and copying: there are only fragmentary statistics for the various industries. Studies of U.S. copyright registrations provide conflicting results: one shows that small changes in fees have large impacts on renewals, while another shows that many movies and books have long lives. All but one studies find that music piracy - whether conventional or digital - has hurt legitimate CD sales. Studies of extensions of copyright duration yield conflicting results: one focusing on U.S. registrations finds no effect, while a multi-country study finds that extensions are associated with substantial increases in movie production. I conclude with directions for future empirical research.

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Intellectual Property in Software Development: Trends, Strategies and Problems

Review of Economic Research on Copyright Issues, Vol. 4, No. 1, 15-25, 2007

Knut Blind

Downloads:  967


Abstract

This paper analyses the impacts of the recent discussion to extend patentability to computer-implemented inventions, i.e. to allow software patents, in Europe. Based on two surveys among the German software sector referring to the use and importance of IPR in the year 2000 and 2004, the analysis finds that the share of companies using patents in the software sector remains constant, but the relevance of this instrument increased significantly for the active users of patents. Based on a set of hypotheses on the determinants for the use of patents, we also find changes. The size bias of patent use increased, whereas there is a dichotomy between using patents and following the open source model in the software sector and not a convergence, as has been suggested by the anecdotal evidence of some large multinationals. These changes in the software sector generate several new challenges for policy makers responsible for the IPR regime relevant for software in addition to the still unsolved question of extending patentability to software in Europe.

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The Recording Industry's Digital Dilemma: Challenges and Opportunities in High Piracy Markets

Review of Economic Research on Copyright Issues, Vol. 2, No. 2, 83-94, 2005

Brett Keintz

Downloads:  962


Abstract

Globally, the recording industry has experienced significant revenue decline and piracy growth within the last five years. In some countries like the United States, piracy is comprised mainly of the illegal sharing of digital recorded music files such as MP3s. In other countries like Spain, recorded music piracy is dominated by the physical production and sale of CD-Rs by organized crime networks. While there have been a number of legislative and law-enforcement changes made in many countries across the globe, these defensive efforts have at best served to slow piracy's growth. The next step for the recording industry is to develop a recorded digital music strategy for each country in an effort to restore revenue growth and reduce piracy by offering consumers a compelling digital music value proposition. In this paper, I explain why.

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Issues in Assessment of the Economic Impact of Copyright

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 27-40, 2004

Robert Picard and Timo Toivonen

Downloads:  954


Abstract

This article explores methods and issues in measuring the contributions of copyright industries to national economies. It reveals the importance of copyright value creation, identifies copyright industries and activities that make economic contributions, discusses problems of measurement, compares methods used and reveals difficulties in comparability of existing research, and provides suggestions for improving and undertaking future research.

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Open Standards and Interoperability in EU Digital TV: Economics and Policy Issues

Review of Economic Research on Copyright Issues, Vol. 5, No. 2, 45-70, 2008

Nicola Matteucci

Downloads:  939


Abstract

The quest for interoperability of interactive TV has been a major concern of the EU Institutions. Its policy foundations were built on the enabling role of open standards, whose peculiar standardization process should guarantee affordable and widespread intellectual property rights. After having received considerable public support and financial funds, the interactive TV roll-out appears disappointing, and the diffusion of the main concerned standard, the multimedia home platform, stagnates. We conduct a comprehensive analysis of the main market facts and passages of interactive TV policy, to derive a multifaceted assessment of its technological, economic and institutional drivers. Several important issues stand out. Besides the inner complexity of the policy, a few normative inconsistencies and conflicting aims adversely impacted its feasibility. Several logical ambiguities also dampened the correct choice of instruments. In particular, the existing literature clarifies two main points: open standards cannot be uncritically assimilated to open source software, and the role of open standards along the broadcasting value chain is largely unexplored. Consequently, their effects here might differ from those experienced in traditional information and communication technologies markets. Finally, a certain evidence of regulatory capture of the EU policy-maker emerges.

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Efficiency Considerations in Copyright Protection

Review of Economic Research on Copyright Issues, Vol. 1, No. 2, 11-27, 2004

Marcel Boyer

Downloads:  931


Abstract

Many countries are revisiting their Copyright law in the light of new communication and information technologies, which make possible the generalized digitization of copyrighted material and in so doing hallenge the protection and enforcement of copyrights. As the laws are modified to adapt to this new environment, the foundations of copyright have been questioned. I claim here that the affirmation and protection of a strong and transparent copyright framework is a second best efficient institutional arrangement to foster cultural development and diversity and promote the emergence of new market-like institutions reducing the costs of transactions between creators and users.

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A Taxonomy of Empirical Research on Copyright - How Do We Inform Policy?

Review of Economic Research on Copyright Issues, Vol. 9, No. 1, 47-92, 2012

Christian Handke

Downloads:  926


Abstract

This paper summarizes key results in the empirical literature on unauthorized copying and copyright, and puts them into context. Casting the net more widely than previous surveys, it highlights noteworthy gaps and contradictions in the literature. There is initial evidence, for example, that the economic effects of digital copying vary between different industries, but these differences are not yet well understood. Most importantly, the empirical literature is unbalanced. The bulk of econometric research has focused on unauthorized copying and rights holder revenues. Little is known about the implications for user welfare, for the supply of copyright works, or about the costs of running a copyright system - and the preliminary evidence is often quite surprising. Much work on these issues remains to arrive at reasonable implications for copyright policy.

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