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Decreasing Copyright Enforcement Costs: The Scope of a Gradual Response

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  • Olivier Bomsel

    () (CERNA i3 - Centre d'économie industrielle i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)

  • Heritiana Ranaivoson

    (CERNA i3 - Centre d'économie industrielle i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - 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://hal-mines-paristech.archives-ouvertes.fr/hal-00446189v2
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Hal R. Varian, 2005. "Copying and Copyright," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 121-138, Spring.
    4. Landes, William M & Posner, Richard A, 1989. "An Economic Analysis of Copyright Law," The Journal of Legal Studies, University of Chicago Press, vol. 18(2), pages 325-363, June.
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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.

    More about this item

    Keywords

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

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