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Strategic Use of Copyright Protection to Deter Entry

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  • Kim Jin-Hyuk

    ()
    (Cornell University)

Abstract

Copyright protection can be used to raise entry barriers by impairing the demand. When there is a complementary market in addition to the copyrighted goods market, the incumbent prefers stronger copyright protection than is needed to maximize the sales profit in the primary market. Although strong protection can reduce demand substitution by copies, it makes it more difficult for the entrant to reach a large audience and become established. In some cases, the entrant may choose to opt out of copyright protection.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2007)
Issue (Month): 1 (September)
Pages: 1-19

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Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:47

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Cited by:
  1. Handke, Christian, 2012. "Digital copying and the supply of sound recordings," Information Economics and Policy, Elsevier, vol. 24(1), pages 15-29.
  2. Yuanzhu Lu & Sougata Poddar, 2009. "Accommodation or Deterrence in the Face of Commercial Piracy: the Impact of Intellectual Property Rights (IPR) Protection," CEMA Working Papers 389, China Economics and Management Academy, Central University of Finance and Economics.

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