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Decreasing Copyright Enforcement Costs: The Scope of a Gradual Response

Author

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  • Olivier Bomsel

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Heritiana Ranaivoson

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

The digitization of copyrighted goods and the dematerialization of their distribution over the Internet have weakened copyright, a key institution of the creative industries. One factor affecting the value of copyright stems from the broadband roll-out, wherein copyright enforcement costs have become higher than the estimated benefits of copyright. This paper analyzes the causes of this situation and suggests how a graduated response to infringers may durably decrease copyright enforcement costs. Beginning with a review of the economic literature on copyright focusing on its industrial aspects, the study then analyzes how the consumers' impunity provides incentives to "free ride" on copyright all along the vertical distribution chain. This rapidly increases copyright enforcement costs. Next, the paper describes both the graduated response mechanism and the voluntary agreement which initiated this system in France. In conclusion, this study argues that increasing the cost of free-riding for the final consumer should lead to a decrease of copyright enforcement costs and, therefore, higher returns in the creative industries.

Suggested Citation

  • Olivier Bomsel & Heritiana Ranaivoson, 2009. "Decreasing Copyright Enforcement Costs: The Scope of a Gradual Response," Post-Print hal-00446189, HAL.
    • Handle: RePEc:hal:journl:hal-00446189
    Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-00446189v2
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    File URL: https://minesparis-psl.hal.science/hal-00446189v2/document
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    References listed on IDEAS

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    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    2. Joëlle Farchy & Heritiana Ranaivoson, 2005. "DRMS : a new strategic stake for contents industries : the case of the online music market," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00273807, HAL.
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    5. Hal R. Varian, 2005. "Copying and Copyright," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 121-138, Spring.
    6. Joëlle Farchy & Heritiana Ranaivoson, 2005. "DRMS : a new strategic stake for contents industries : the case of the online music market," Post-Print halshs-00273807, HAL.
    7. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    8. Richard Watt, 2000. "Copyright and Economic Theory," Books, Edward Elgar Publishing, number 2023.
    9. Michael L. Katz & Carl Shapiro, 1994. "Systems Competition and Network Effects," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 93-115, Spring.
    10. Demsetz, Harold, 1970. "The Private Production of Public Goods," Journal of Law and Economics, University of Chicago Press, vol. 13(2), pages 293-306, October.
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    Cited by:

    1. Matttia De' Grassi Di Pianura, 2012. "Subsidising network technology adoption the case of publishers and E-readers," Working Papers hal-00714447, HAL.
    2. Olivier P. Bomsel, 2013. "Copyright And Brands In The Digital Age: Internalizing The Externalities Of Meaning," Contemporary Economic Policy, Western Economic Association International, vol. 31(1), pages 126-134, January.
    3. Olivier BOMSEL, 2011. "Do you speak European ? Media Economics, Multilingualism and the Digital Single Market," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(82), pages 43-62, 2nd quart.
    4. Olivier Bomsel, 2014. "Free-Riding and Luxury Brands on the Internet," Post-Print hal-01110929, HAL.

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    Keywords

    Graduated response; Copyright; Creative industries; Regulation enforcement costs; Digitization; Graduated response.;
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