Arai and Kinukawa (2014)

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

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

Arai and Kinukawa (2014)
Title: Copyright infringement as user innovation
Author(s): Arai, Y, Kinukawa, S.
Year: 2014
Citation: Arai, Y. and Kinukawa, S., 2014. Copyright infringement as user innovation. Journal of Cultural Economics, 38(2), pp.131-144.
Link(s): Definitive
Key Related Studies:
Discipline:
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About the Data
Data Description: This study proposes an economic model and does not use any original data. It utilises a literature review.
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:
Funder(s):
  • This work was supported by JSPS KAKENHI Grant Number 23243042, 24730212.

Abstract

Copyright holders of major manga and anime in Japan have been ignoring copyright infringement by dojinshi (or doujinshi), a Japanese word referring to self-published works created predominately by amateurs. Many of dojinshi are derivative works of popular anime or manga but are sold without official permissions from the copyright holders. Thus, it is highly possible that the activity of dojinshi creators violates Article 28 of the Copyright Law of Japan, which states the rights of original authors in the situation of exploitation by derivative works. We demonstrate that ignoring copyright infringement by a derivative creator can be optimal for the copyright holder based on an economic model that incorporates both positive and negative externalities of derivative work. We also demonstrate that when unauthorized use of the copyrighted work is optimal for the copyright holder, it is also optimal for social welfare although the opposite is not necessarily true.

Main Results of the Study

The authors present an economic model and use this model to demonstrate that ignoring the unauthorized use of an original work can maximize the profits of the copyright holder of the original work, though depending on the derivative work’s new styles and ideas, negative externalities, and market size. Then, we prove that when the unauthorized use of the original work maximizes the copyright holder’s profits, it also maximizes social welfare although the opposite is not necessarily true. It can be inferred that the current situation in Japan, in which major anime studios and manga publishers are ignoring copyright infringement by dojinshi, is socially desirable.

Policy Implications as Stated By Author

The Japanese government is currently considering the introduction of fair use in the Copyright Law of Japan. In the US, copyrighted cartoon characters have been stringently protected despite authorization from the Supreme Court for a broad reading of parody, a form of fair use. To sustain the competitiveness of the Japanese anime and manga industries, the fair use in Japan should be less strict than that in the US with regard to the use of copyrighted graphical characters by derivative creators, unless the resulting negative externalities are sufficiently large.

Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Green-tick.png
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Green-tick.png
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Green-tick.png
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Green-tick.png
Mass digitisation/orphan works (non-use; extended collective licensing)
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)
Green-tick.png

Datasets

Sample size: 1
Level of aggregation: Case study
Period of material under study: 2012