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Review of Economic Research on Copyright Issues (RERCI)

RERCI Articles

Book Review: The Economics of Copyright: Developments in Research and Analysis, by W. J. Gordon and R. Watt (Eds.)

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 173-175, 2004

Michael J. Rushton

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Abstract

The ten papers in this book were first presented at the SERCI annual congress in Madrid in 2002. In her introduction to the volume, co-editor Wendy Gordon notes that the technology that enables us to preserve and make reproductions of creative works changes the entire cultural landscape, as it provides authors with a means of earning income from the general public as consumers, and not just from patronage appointments. This shift in the source of income will change the kind of works that are created. Importantly, "it was to harness the extra value enabled by technology that copyright was invented" (p. xviii). It is therefore appropriate that much of this valuable volume of new research on the economics of copyright is concerned with the response of copyright policy and market contractual arrangements to changing technology.

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Piracy Accommodation and the Optimal Timing of Royalty Payments

Review of Economic Research on Copyright Issues, Vol. 3, No.1, 43-60, 2006

Alan E. Woodfield

Downloads:  97


Abstract

This paper generalizes the two-period model of Watt (2000) who demonstrates the possibility of optimal accommodation of a pirate when the royalty rate applying to a creation is uniform and second-period Cournot competition applies. Admitting nonlinear contracts with period-specific royalty rates that leave total payments unchanged, simulation analysis shows that a producer of originals does better to increase the royalty rate in period 1 and decrease the rate to a negative level in period 2, thereby more than offsetting the usual cost advantage available to a pirate. Watt's illustrative examples regarding piracy accommodation (but not piracy exclusion) are overturned when a nonlinear contract is chosen optimally, although accommodation remains optimal in some other cases. Further, where exclusion is impossible under uniform royalties, cases exist where exclusion is feasible under nonlinear royalties. Even so, accommodation may be a preferable strategy.

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A Comment: Number-Crunching is Not Just a Neutral Activity

Review of Economic Research on Copyright Issues, Vol. 1, No. 1, 79-82, 2004

Ruth Towse

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Abstract

Many of the concerns expressed here were brought up in WIPO meetings in which I took part. Excellent work has been done on the preparation of the WIPO Handbook and by the various researchers in the classification of data and of solving measurement problems. They are a testimony to the power of rigorous economic thinking and professionalism.

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Guest Editor's Introduction

Review of Economic Research on Copyright Issues, Vol. 4, No. 2, 1-3, 2007

Christian W. Handke

Downloads:  77


Abstract

The Society of Economic Research on Copyright Issues (SERCI) Annual Congress 2007 was hosted by the Centre for British Studies at Humboldt University Berlin. The congress was fully subscribed with well over 90 registered participants from 18 different countries. It attracted 48 academic researchers who presented 27 papers, four of which make up this special issue of the Review of Economic Research on Copyright Issues. The SERCI Annual Congress 2007 also featured a special session on the economics of copyright collecting societies. This session proved particularly interesting to policy-makers and practitioners and triggered a diverse debate.

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Guest Editors' Foreword

Review of Economic Research on Copyright Issues, Vol. 1, No. 2, 1-3, 2004

Francesco Silva and Giovanni Battista Ramello

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Abstract

The Information Society is closely linked to both communication processes and to the market exchange of information goods. Therefore the production of copyrighted works represents today a significant part, both quantitatively and qualitatively, of the economies of post-industrial countries. And in this scenario copyright is increasingly playing a pivotal role in markets.

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Copyright Licensing Under Asymmetric Information

Review of Economic Research on Copyright Issues, 11(2), 1-26, 2014

Inés Macho-Stadler and David Pérez-Castrillo

Downloads:  49


Abstract

In this paper we aim to contribute to the discussion on the role of royalties in copyright agreements by concentrating on the incentives that they provide to the creator and the intermediary when the success of the work depends on their involvement with the commercialization process. We also consider the effect of this moral hazard on the matching among creators and intermediaries and their gains.

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The U.S. Copyright Termination Law, Asymmetric Information, and Legal Uncertainty

Review of Economic Research on Copyright Issues, 2019, vol. 16(1), pp. 1-39

Michael Karas

Downloads:  47


Abstract

This paper investigates the conflict between authors and their publishers that occurs as a result of publishers using an ambiguous “work made for hire” clause to sue the author for copyright infringement. A Bayesian signaling model allows a publisher to send an informative signal to the uninformed author that includes his reaction towards a license termination to induce termination deterrence. The model is used to examine the effectiveness of the statutory intervention. The results reveal that complete termination deterrence is an equilibrium outcome only if a publisher sues with certainty. The mere threat to sue is not sufficient for complete termination deterrence. Under most parameter settings, the results indicate positive termination probabilities. The highest probability for a neutral publisher type is obtained in situations where an author has weak outside options or is strongly dependent on his publisher. An author with valuable outside options increases the probability that a publisher will threaten to pursue legal action. If courts tend to favor authors, then termination incentives increase, which may lead to more friction between authors and their publishers.

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Music-Use Tariffs, Options, Regulation and Bargaining

Review of Economic Research on Copyright Issues, 2019, vol. 16(1), pp. 40-67

Frank Mathewson, E. Jane Murdoch and Gerry Wall

Downloads:  45


Abstract

This paper discusses the connection between rate regulation and bargaining out- comes. We consider the case of licensing musical works for radio broadcasting. Our model illustrates the impact when music broadcasters can switch to a talk format. Using a generalized Nash bargaining setting, we interpret the revenue sharing rules established within the regulatory regimes in the US and Canada. In any negotiations over a sharing rule with the collectives that own the musical works rights, the ability of broadcasters to switch from a music to a talk format constitutes the threat point for the broadcasters. Using US and Canadian data for 2014 and 2015, we derive the bargaining weights that would generate the same revenue flows for broadcast- ers and collectives as those produced under the shadow of a copyright regulatory regime. These numerical examples show a higher weight to collectives than appears from the stated tariff rates.

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Is a Picture Worth a Thousand Words? The Division of Private Copy Remuneration between Authors of Text and Images

Review of Economic Research on Copyright Issues, 13(1), 29-60, 2016

Juan Santaló

Downloads:  37


Abstract

I propose and implement a method to divide the collection of private copy remuneration between the authors of text and the authors of images. I propose that the division should be based on the economic value added by text and images in the original work. Using a unique dataset of books and magazines copied in Spain, I estimate the economic value of each item, text and image, according to different characteristics of the written creative work. My estimates indicate that the average economic value of the images is between 6.35% and 20.00% of the average economic value of the text. These numbers are close to estimates that simply use the proportion of space occupied by images to proxy their economic value.

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Exploring a Better Design of Copyright Law

Review of Economic Research on Copyright Issues, 14(2), 55-80, 2017

Shinya Kinukawa

Downloads:  28


Abstract

This study proposes a simulation model aimed at exploring how copyright law should be designed; that is, a desirable combination of copyright length and breadth. The model incorporates the specific properties of creative industries but is hard to deal with analytically because of its dynamic characteristics. Changes in social welfare under different copyright designs are thus examined by using numerical simulation. The simulation results reveal that a short and narrow copyright is the best, whereas a long and broad copyright is the worst. Moreover, in the long run, a long copyright can reduce social welfare even if the breadth is narrow.

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