The Society for Economic Research on Copyright Issues

Review of Economic Research on Copyright Issues (RERCI)

RERCI Articles

The End of Copyright History?

Review of Economic Research on Copyright Issues, Vol. 1, No. 2, 5-10, 2004

Paul A. David

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Abstract

The history of the copyright system appears to be approaching an end. A pressing question now is whether or not the particular manner of its passing will be one that proves seriously destructive for cultural vitality and the advancement of knowledge.

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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

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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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Intellectual Property and the Efficient Allocation of Social Surplus from Creation

Review of Economic Research on Copyright Issues, Vol. 2, No. 1, 45-67, 2005

Michele Boldrin and David K. Levine

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Abstract

In the modern theory of innovation, monopoly plays a crucial role both as a cause and an effect of creative economic activity. Innovative firms, it is argued, would have insufficient incentive to innovate should the prospect of monopoly power not be present. This theme of monopoly runs throughout the theory of growth, international trade, and industrial organization. We argue that monopoly is neither needed for, nor a necessary consequence of innovation. In particular, intellectual property is not necessary for, and may hurt more than help, innovation and growth. We show that, in most circumstances, competitive rents allow creative individuals to appropriate a large enough share of the social surplus generated by their innovations to compensate for their opportunity cost. We also show that, as the number of pre-existing and IP protected ideas needed for an innovation increases, the equilibrium outcome under the IP regime is one of decreasing probability of innovation, while this is not the case without IP. Finally, we provide various examples of how competitive markets for innovative products would work in the absence of IP and critically discuss a number of common fallacies in the previous literature.

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Radio Airplay, Digital Music Sales and the Fallacy of Composition in New Zealand

Review of Economic Research on Copyright Issues, Vol. 7, No. 1, 67-81, 2010

Mehnaz Bandookwala

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Abstract

I examine the effect that radio airplay has on the sale of digital music in New Zealand. This effect is also likely to influence the behavior of various music industry participants, including the record companies, radio industry and listeners. I find that on an industry level, radio airplay has no significant effect on the sale of digital music. However, on average, an increase in radio airplay of a given song is predicted to increase sales of that song, which is the so-called exposure effect. The discrepancy between the aggregate and individual effects is explained by the existence of the fallacy of composition: An increase in the airplay of a particular song usually happens at the expense of another song's airplay, and so if more airplay does give greater sales of a given song, so less airplay will reduce the sales of competing songs, leading to ambiguous aggregate effects. It is also true that while individual songs compete with other songs for airplay, the radio industry competes with other activities and products consumed by listeners. Increases in the total airplay may not increase total sales, as the listener's decision regarding digital single purchase is now made with consideration of their non-music consumption goods, and budget and time constraints.

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Considering the Risk Dimension in the Administration of Copyright

Review of Economic Research on Copyright Issues, Vol. 5, No. 1, 75-87, 2008

Ana Maria Tetrel

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Abstract

In the law and economics literature of copyright, the economic function of collecting societies has been principally treated as a way to diminish transaction costs. However, another possible function, the transfer of risk as a function of collective administration has been, relatively, ignored. Through risk analysis, an author will be able to determine which method of administration of protected rights is most beneficial to him. Due to information asymmetries, authors and users bear a number of risks. These risks can be transferred to a collecting society which is in a better position to bear them more efficiently and to better administer the protected rights.

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Competition Policy, Patent Pools and Copyright Collectives

Review of Economic Research on Copyright Issues, Vol. 8, No. 2, 3-34, 2011

Nancy Gallini

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Abstract

This paper analyzes and compares two types of cooperative agreements that combine Intellectual Property (IP): patent pools and copyright collectives. I evaluate antitrust policy in three environments in which owners of the intellectual property (IP): (1) are vertically integrated into the downstream (product) market; (2) face competition in the upstream (input) market and (3) own downstream products that do not require a license on the pooled IP but compete with products that do. Although patent pools and copyright collectives differ in purpose, membership size and market conditions, their efficiency implications are qualitatively similar in each of the three situations. Therefore, a uniform rather than IP-specific competition policy is appropriate for pools and collectives, thus lending economic support for the approach followed by antitrust authorities toward IP-related cooperative agreements.

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Economics of Copyright Collecting Societies and Digital Rights: Is There a Case for a Centralised Digital Copyright Exchange?

Review of Economic Research on Copyright Issues, Vol. 9, No. 2, 3-30, 2012

Ruth Towse

Downloads:  740


Abstract

Copyright collecting societies have attracted economists' attention for over 30 years and the attention of government regulators for even longer. They have typically been accepted by economists and by courts of law as necessary for reducing transaction costs and enabling copyright to work. The advent of digitization has led to renewed interest in the topic and to the view that though new technologies offer the possibility of improved rights management, collecting societies are not responding sufficiently to these opportunities. That view was evident in recent enquiries into the role of copyright in the digital age in the UK, which proposed the formation of a Digital Copyright Exchange (DCE) that would promote online digital trade. This paper evaluates the case for the DCE in the light of what economists know about collective rights management.

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Patent and/or Copyright for Software: What Has Been Done So Far?

Review of Economic Research on Copyright Issues, Vol. 4, No. 1, 3-14, 2007

Richard Watt

Downloads:  739


Abstract

The particular case of software seems to have stretched the patent-copyright divide to the point of breakage. Inspite of being traditionally excluded from patent, software is an obvious case of a single creation that embodies both expression and innovation, and so strong arguments exist for software to be both copyrightable and patentable material. The legal profession has looked carefully at the patentability of software over the past 15 years or so, both from a fully legal perspective, and using economic-type arguments. But we are still waiting for the economics profession per sé to set to work on this issue. Here, I shall go through some of the most well known arguments surrounding the protection of software, and then put forward a personal opinion as to what theoretical economists are likely to add, if and when they include this important question on their research agendas.

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Digital File Sharing and the Music Industry: Was There a Substitution Effect?

Review of Economic Research on Copyright Issues, Vol. 2, No. 2, 41-52, 2005

Norbert J. Michel

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Abstract

Several empirical studies exist that measure the impact of filesharing services on music sales, and most suggest that there was a negative impact on sales. Still, most of these studies do not examine (at the household level) whether consumers substituted out of music and into movies. This paper uses micro-level data from the Consumer Expenditure Survey (1998 through 2003) to test for this possible substitution effect. The data do not support the hypothesis that music consumers spent less on music because they spent more on either movie tickets or prerecorded movies (purchases or rentals).

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The Efficiency of Droit De Suite: An Experimental Assessment

Review of Economic Research on Copyright Issues, Vol. 9, No. 1, 93-121, 2012

Maryam Dilmaghani and Jim Engle-Warnick

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Abstract

Droit de suite entitles visual artists to a percentage share of the resale price every time their works are resold over a given time span. The legal systems of the world do not universally accept the concept of droit de suite, and its economic efficiency has been a matter of debate for a few decades. In this paper, we model a work of art as a lottery to investigate experimentally the impact of this right on the art market. We find evidence that a number of known behavioral biases in decisions under uncertainty affect a seller’s willingness to accept. In light of our results, we conclude that the interaction of these biases and droit de suite can reduce the number of transactions in the art market to a larger extent than previously suggested in the literature.

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The Past and the Future of the Economics of Copyright

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 151-171, 2004

Richard Watt

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Abstract

The economics of copyright as such has certainly come of age. About 70 years has passed since the very first time that economists gave serious thought to the copyright system, although it has been only during the last 20 years that the literature has flourished. In this paper an overview of the general topic of the economics of copyright is given, and the areas that have already be touched upon are discussed. Then, a speculative answer is attempted to the question of what the near future will hold.

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Introduction to RERCI Vol 14(1/2)

Review of Economic Research on Copyright Issues, 14(1/2), 0, 2017

Richard Watt

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Abstract

Introductory comments to the present issue of the journal.

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Free Software and Intellectual Property in Brazil: Threats, Opportunites and Motivations

Review of Economic Research on Copyright Issues, Vol. 2, No. 2, 95-109, 2005

Antonio M. Buainain and Cassia I. C. Mendes

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Abstract

This article discusses the implications of the intellectual property system as applied to software, especially the use of patents, for innovation in developing countries; it also assesses the possible consequences of the appearance of free software and a new intellectual property system in the innovation process in countries such as Brazil; finally, it attempts to analyse the new dimension of intellectual property as well as its context in the current debate on 'global patents' as opposed to a more flexible copyright system. Some of the questions discussed are: Is a more flexible copyright system an instrument to promote technological innovation? Does the reduction of the income of some software companies in developed countries point toward an exhaustion of the sales model of user licenses for software? What are the threats and opportunities for the new business model based on free software and copy left in Brazil? Can the motivations for the use and development of free software promote the Brazilian software industry?

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The Spanish Copyright Commission (Section I) Within the European Legal Framework

Review of Economic Research on Copyright Issues, 14(1/2), 39-44, 2017

Raul Rodriguez

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Abstract

Directive 2014/26/EC foresees that EU member States shall ensure that disputes between collective management societies and users concerning, in particular, existing and proposed licensing conditions or a breach of contract can be submitted to a court, or if appropriate, to another independent and impartial dispute resolution body where that body has expertise in copyright law. The Spanish Copyright Commission (Section I) aims to be that body in Spain. In order to reach this objective, the Commission has been empowered with new functions that will probably reduce the existing conflicts related to copyright licensing.

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The Economic Contribution of Copyright-Based Industries in Singapore

Review of Economic Research on Copyright Issues, Vol. 5, No. 2, 127-148, 2005

Kit B. Chow

Downloads:  720


Abstract

Started in November 2003, the study is the first in Asia to adopt the new comprehensive WIPO framework for measuring the economic magnitude of copyright-based industries. Singapore's copyright-based industries generated in 2001 an output of S$30.5 billion and value added of S$8.7 billion which was equivalent to 5.7% of GDP. The 29 copyright-based industries provided employment to 118,600 persons or 5.8% of Singapore's workforce in 2001. Through linkages with the rest of the economy, the combined nine core copyright industries are found to have greater-than-average impact on the economy as reflected in their higher output, value added and employment multipliers than that for the whole economy.

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