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Review of Economic Research on Copyright Issues (RERCI)

RERCI Articles

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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Intellectual Property Rights and Cultural Heritage: The Case of Non-Cumulative and Non-Degenerative Creation

Review of Economic Research on Copyright Issues, Vol. 1, No. 2, 97-117, 2004

Veronique Chossat and Christian Barrere

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Abstract

This paper studies the case of cultural and creative goods that onstitute both private and common heritage assets and analyses the difficulties involved in protecting them by the means of IPRs. The specificities of non-cumulative and non-degenerative creative heritage assets prevent any universal model of protection and thus the building of a market of IPRs. The standard model of property rights is partially irrelevant depending on the specificities of cultural heritage assets. So strategic behaviours concerning the uses of cultural heritage assets can arise. Two creative industries are studied: Haute Couture and French Grande Cuisine.

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Royalty Rate Setting for Sound Recordings by the United States Copyright Royalty Board: The Judicial Need for Independent Scholarly Economic Analysis

Review of Economic Research on Copyright Issues, 12(1/2), 1-15, 2015

David R. Strickler

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Abstract

Judges who set copyright royalty rates through litigation, like all trial Judges, are constrained by the evidence and testimony. Thus, we can only determine rates that are supported by the record. For the record to be sufficient, testifying economists must be able to apply a sufficient body of work in the economics of copyrights. In my address to the 2015 SERCI Congress, I emphasized the judicial need for continued and comprehensive research in this field, so that testifying economists can provided a foundation for our determinations. In this article, I explore such issues in more detail.

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Private-Collective Software Business Models: Coordination and Commercialization Via Licensing

Review of Economic Research on Copyright Issues, Vol. 4, No. 1, 47-61, 2007

Heli A. Koski

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Abstract

Private-collective business models that involve both private investment incentives and the production of public goods are not well understood. This empirically oriented research uses a unique data from the software industries of five European countries (Finland, Germany, Italy, Portugal and Spain) to illuminate the patterns of private, entrepreneurial provision of software placed in the public domain. The estimation results strongly suggest that the highly restrictive GPL works as an efficient coordination mechanism for the (leading) developers of the OSS community and spreads particularly via the firms that have participated in the OSS development projects. The software companies supplying the OSS, instead, tend not to aim at using the GPL to coordinate the further development of their own OSS. Rather the firms are the origin of more flexibly licensed OSS products though generally the software firms' OSS business strategies relate to the restrictive licensing strategy choices.

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DRMS, Economics, Copyright and Competition Law: The Australian Experience - The Economic Implications of Stevens v Sony

Review of Economic Research on Copyright Issues, Vol. 3, No. 2, 67-82, 2006

Yee Lim

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Abstract

This paper will examine the Sony Playstation litigation in Australia where Sony claimed the device it used in its Playstation consoles was a technological protection measure ('TPM'). The outcome of the High Court of Australia decision is somewhat different from similar litigation run by Sony in other countries. Section 3 of this paper will examine the economics of TPMs and in particular, the device which Sony claimed in its Australian litigation was a TPM. It will reveal that copyright owners such as Sony already possess strong market incentives to implement TPMs and that the level of competition is inversely related to the incentive to protect works through TPMs. Section 4 of the paper will introduce the competition law landscape in Australia and it will analyse, within the context of Australia's competition laws, the device used by Sony which it claimed was a TPM. It will demonstrate that the use of the device by Sony is arguably conduct in breach of s46 of the Trade Practices Act 1974. Section 5 will examine the role of the law in Australia in terms of incentivising the use of TPMs.

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The Relative Effectiveness of Global Anti-Piracy Policies

Review of Economic Research on Copyright Issues, 2018, 15(1), 1-19

Tylor Orme

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Abstract

In recent decades, the problem of illegal downloading of copyrighted material has emerged as a major concern for governments across the globe. Many countries have implemented policies to limit the impact of online piracy on revenues of creative industries. These policies, while important for a broad range of industries, have been particularly lobbied for and supported by the motion pictures industry. Film production and distribution companies have repeatedly asserted that effective anti-piracy policy is crucial to their continued success. This paper seeks to evaluate whether the anti-piracy regimes in OECD countries have been effective. It also seeks to determine whether there are patterns to the types of policies that have been especially effective or ineffective.

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The Incentives for Contributing Digital Contents Over P2P Networks: An Empirical Investigation

Review of Economic Research on Copyright Issues, Vol. 5, No. 2, 19-35, 2008

Fabrice Rochelandet and Tushar K Nandi

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Abstract

In this paper, we examine the determinants of sharing behaviour by envisaging two types of behaviour, namely contribution against free riding. In doing so, we evaluate the theoretical predictions about reciprocity and altruism in the presence of non-rival goods and anonymity. We use a probit model and primary data from a survey that collects information about P2P sharing behaviour of more than 2000 individuals. Our econometric results suggest that the motivations for contributing are poorly determined by rational self-interested behaviour. We then envisage policy implications in terms of copyright enforcement and business.

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The Measurement of Copyright Industries: The US Experience

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 17-25, 2004

Steve Siwek

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Abstract

This paper outlines the experiences of the economist who elaborated the studies on the economic importance of copyright for the US economy.

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Technological Transformation, Intellectual Property Rights and Second Best Theory

Review of Economic Research on Copyright Issues, Vol. 4, No. 2, 5-28, 2007

Richard G. Lipsey

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Abstract

Over the last decade, the research interests of myself and my co-authors have concerned economic growth, technological change and general purpose technologies - pervasive technologies that transform our whole society. Our many publications culminated in Economic Transformations: General Purpose Technologies and Long Term Economic Growth by Richard Lipsey, Kenneth Carlaw and Cliff Bekar (hereafter LCB). This work has only incidentally raised issues concerning intellectual property rights (IRPs). So what I will cover in this paper is first a brief survey of some of the historical parts of LCB. Then, I give some general discussion of economic policy with emphasis on second best issues and, finally, some of the IPR issues that arose incidentally in our work.

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The Efficiencies of Aggregation: An Economic Theory Perspective on Collective Management of Copyright

Review of Economic Research on Copyright Issues, 12(1/2), 26-45, 2015

Richard Watt

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Abstract

The existing economic theory of copyright collectives, or copyright management organizations (CMOs) is strongly focused on the benefits of sharing of transaction costs. Here, we appeal to the contractual environment of CMOs to offer a different perspective. Copyright collectives form contracts at two principle points along the supply chain. First, there are the contracts between the collective's members themselves (the copyright holders) for distribution of the collective's income. And second there are the licensing contracts that the collective signs with users of the repertory. Using standard economic theory, the paper argues that there are significant efficiency benefits from having copyrights managed as an aggregate repertory, rather than individually, based on risk-pooling and risk-sharing through the contracts between the members themselves. Similarly, there are also aggregation benefits (at least in terms of the profit of the CMO) of licensing only the entire repertory, rather than smaller sub-sets. Both of these theses are defended by appealing to existing economic theory literature in related fields. Interestingly, there is a link between these two theories of the efficiency of aggregation which lies at the heart of the theory of syndicates, and the characteristics that imply that the group (or syndicate as a whole) can be considered as a valid "representative", sharing the same preferences as each individual syndicate member.

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When Should the Bell Toll? The Economics of New Zealand's Debate on Indirect Liability for Internet Copyright Infringement

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 119-149, 2004

Alan E. Woodfield

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Abstract

This article evaluates proposed changes to New Zealand's copyright legislation in respect of potential secondary liability for copyright infringement by Internet service providers. Minor changes were envisaged in order to align the legislation with new international standards, with limitation of ISP liability along the lines of the UK Electronic Commerce Regulations 2002 recommended. Both zero liability and strict liability for web-hosting ISPs are correctly rejected, but the proposed uniform regulatory approach provides limited incentives for ISP monitoring effort and while proposed knowledge-based standards should largely prevent excessive permanent removal of legitimate material, the constructive knowledge test may be insufficient to encourage the removal of many infringing items. The counter-notification procedure may not prevent liability-conscious ISPs from removing excessive legitimate material on a temporary basis, and more radical solutions involving ISP purchase of their subscribers' posted material or compulsory ISP purchase of copyrights did not feature. The design of optimal copyright law is fraught with difficulties, however, and the Ministry's consultative processes and careful deliberations have done much to maintain a reasonable balance between the conflicting interests concerned.

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Decreasing Copyright Enforcement Costs: The Scope of a Graduated Response

Review of Economic Research on Copyright Issues, Vol. 6, No. 2, 13-29, 2009

Olivier Bomsel and Heritiana Ranaivoson

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Abstract

The digitization of copyrighted goods and the dematerialization of their distribution over the Internet have caused a weakening of copyright, a key institution of the creative industries. One reason is that, during the broadband roll-out, copyright enforcement costs have become superior to the estimated benefits of copyright. This paper analyses the causes of this situation and suggests how a graduated response to infringers can decrease copyright enforcement costs.
The paper starts with a review of the economic literature on copyright that focuses on its industrial aspects. It then analyses how, all along the distribution vertical chain, the consumer's impunity provides incentives to free ride on copyright, which rapidly increases copyright enforcement costs. It finally depicts the graduated response mechanism and the voluntary agreement that initiated this system in France. In conclusion, the increase in the cost of free-riding for the final consumer should lead to a decrease in copyright enforcement costs and to higher returns in the creative industries.

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The WIPO Guide on Surveying the Economic Contribution of the Copyright Industries

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 5-15, 2004

Dimiter Gantchev

Downloads:  260


Abstract

In July of 2002, the World Intellectual Property Organisation organised a working group of economists to study the methodologies that are appropriate when attempts are made to measure the economic contribution of copyright to a national economy, with the final objective being to produce a guide-book that will enable future studies to be made, all within a common methodological framework. Dimiter Gantchev, a consultant with WIPO, was encharged with the task of writing the resulting Guide-book.

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Sunk Costs, Free-Riding Justifications, and Compulsory Licensing of Interfaces

Review of Economic Research on Copyright Issues, Vol. 1, No. 2, 29-53, 2004

Net Le

Downloads:  259


Abstract

This paper addresses two popular arguments against a compulsory license of software interface, using risk analysis methodology. These concerns are the non-recovery of sunk costs and the threats posed by free riders. My argument is that while both concerns are legitimate, they are remediable. The purpose of the law is not to allow the incumbent to recover its 'sunk costs', but to give sufficient incentives for it to innovate. These two incentives are the monetary incentives (finding fair access fees and stimulating cooperation with the entrants after the license) and the time incentive (finding a period during which refusal to license is acceptable). With respect to the fair amount of access fees, it is better to provide a mechanism so that the licensor and the licensee can negotiate the fees themselves, rather than to impose a strict method of fee calculation. If the monetary incentives alone are sufficient to generate motivation for innovation, the time incentive should not be used.

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Remarks to the SERCI Panel on Regulatory Copyright Tariff Setting

Review of Economic Research on Copyright Issues, 14(1/2), 45-54, 2017

Gerry Wall

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Abstract

This Panel concerns possible lessons for European copyright practitioners learned from the North American experience. I pose two key questions that arise from our existing copyright tariff setting processes: 1) do we need regulatory intervention to achieve appropriate prices?; and 2) how has the process worked so far and how can we make the process better?

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