Chiou and Tucker (2011)

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Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Chiou and Tucker (2011)
Title: Copyright, Digitization, and Aggregation
Author(s): Chiou, L., Tucker, C.
Year: 2011
Citation: Chiou, Lesley and Tucker, Catherine, Copyright, Digitization, and Aggregation (December 13, 2011). NET Institute Working Paper No. 11-18.
Link(s): Definitive
Key Related Studies:
Discipline:
Linked by: Nera Economic Consulting (2015)
About the Data
Data Description: Dataset on Internet users derives from Hitwise, which documents sites that users visit after navigating to an aggregator. Hitwise “develops proprietary software that Internet Service Providers (ISPs) use to analyze website logs created on their network." Once the ISP aggregates the anonymous data, the data are provided to Hitwise.
Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 2010
Funder(s):
  • NBER Innovation Policy Group and NET Institute

Abstract

The digital revolution means that consumers can now quickly and easily access content that is aggregated from many online sources. However, digital aggregation has tested the boundaries of copyright law. It is not clear whether allowing extracts of copyrighted works to be distributed by others benefits or harms copyright holders. We ask whether digital aggregation encourages users to "skim" or to investigate content in depth. We exploit a contract dispute that led a major aggregator to remove information from a content provider. We find that after the removal, users were less likely to investigate additional content in depth. The relaxation of copyright protection benefited horizontally or vertically differentiated content the most.

Main Results of the Study

This survey measures how a platform's expansion or contraction of copyrighted content affects navigation by users from that platform to the copyright holder's website, and suggests that aggregator users visit content websites after visiting an aggregator. More specifically, it shows that:

  • Users do not view an aggregator as a perfect substitute for copyrighted content. When users encounter content summarized by an aggregator, they are more likely to be provoked to seek additional sources and read further rather than merely being satisfied with a summary.
  • Websites with either a very national or very local audience suffered the steepest decline in downstream visits after the removal of online content. Aggregation benefits content that is either vertically differentiated, such as nationally recognized sites with acclaimed standards of quality, or horizontally differentiated, such as local sites that would not otherwise find a broad audience. Aggregation of content from hyperlocal sites may encourage consumer traffic to these sites and help expand the user base.
  • When digital advances reduce search costs, this promotes a greater search for information rather than simply reducing the time that a person spends on a predefined set of information. Digital aggregation does benefit high quality sources and that even with the plethora of sources available in the Internet age, users still do seek sources with acclaimed standards of quality.

Policy Implications as Stated By Author

- Producers of primary content may actually benefit from relaxing their restrictions on copyright and by allowing others to disseminate their content, particularly if it is either a niche or a high-quality offering.

- The relaxation of intellectual property rights may benefit content that is either horizontally differentiated, such as local sites, or vertically differentiated, such as national sites with acclaimed standards of quality.


Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Green-tick.png
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Green-tick.png
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Green-tick.png
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size: 98,730
Level of aggregation: Website visits
Period of material under study: 2009-2010