Camerani, Grassano, Chavarro and Tang (2013)

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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

Camerani, Grassano, Chavarro and Tang (2013)
Title: Private Copying
Author(s): Camerani, R., Grassano, N., Chavarro, D., Tang, P.
Year: 2013
Citation: Camerani, R., Grassano, N., Chavarro, D. & Tang, P. (2013) Private Copying, IPO, 2013
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: Music: The dataset consists of 18,958 observations including albums in several formats (digital files, CDs, Vinyl discs, audio cassettes, etc.). The analysis covers 17,272 albums and focused on digital albums and CDs (for which details on number of tracks were available).

Film: The dataset contains 3,515 products, which includes both digital films and films embedded in physical media (Blu-ray discs, DVDs, and VHS). The dataset also covers bundles, i.e. packages in which the same film is offered in multiple formats, and which may also include the possibility to download a digital copy of the film.

Books: 2,071 observations on books (534) and e-books (1,537) sold by five online retailers: Amazon, GooglePlay, iTunes, Kobo and Waterstones, selected according to top-100 sales and review lists.

Software: 1,008 observations across several types of software categorised by: operating systems, software for productivity, utilities, design & publishing, photography, music & audio, finance, and other software types.

Data Type: Primary 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?: Yes
Time Period(s) of Collection:
  • Not stated
Funder(s):
  • IPO

Abstract

This study was commissioned by the UK IPO to collect data on whether and how four copyright industries – music, film, publishing and software – have (or not) adopted private copying measures, and on whether the price of the products in the UK reflect a right to private copying.

Main Results of the Study

Music

  • No evidence in support of a widely-held view that stores are including in their price the permission to copy. All digital albums are allowed to be copied for personal use, as opposed to CD albums that cannot be copied.
  • In spite of this, digital music is associated with a lower price compared to a CD. Whether the lower price depends on the store, on the intangible nature of the product, or on the possibility to copy, cannot be determined due to the lack of variability in the explanatory variables.
  • As private copying for personal use is widespread and allowed in the UK, it is plausible that private copying is already largely or fully priced in the UK market. Consumers and producers of music appear to expect that music will be copied for personal non-commercial use and all downloads are sold on these terms.

Film

  • In parallel with traditional films, which come with only one license (e.g. Blu-Ray and DVD), the film industry has found different ways to allow users to have more than one copy of the films they purchase. Examples can be found in the sales of digital films (which could be copied onto a number devices), by bundling multiple formats in the same package (which may also include a complimentary downloadable digital copy), or through new kinds of licenses, such as Ultraviolet.
  • The study found a positive relationship between price and film copies. In particular, since different types of formats have different impacts on price, we can conclude that film stores charge users not simply to have more copies, but to have the opportunity to choose from a higher variety of available choices.

Books

  • All the bookstores in the sample allow users to make copies of their eBooks. In particular, the copying terms and conditions are enforced using technologies embedded in the eBooks (DRMs) which are able to limit the number of copies that users is allowed and the kinds of devices in which the eBooks may be read on (e.g. smartphones, tablets, eBook readers).
  • The influence of the number of copies allowed and the number of allowable devices on the price could not be determined because (1) of the lack of variability in the explanatory variables, and (2) to the fact that the large majority of price dissimilarities were captured by the difference between traditional books and eBooks.
  • However, when considering that they are allowed to be copied, eBooks are on average less expensive than physical books (which are not allowed to be copied). This premium for a physical book is of course likely to be explained by manufacturing costs and the value consumers place on physical features, rather than on the number of copies that can be made from it.

Software

  • This market case was used partly as a control case as it would notionally not be affected by a private copying exception. However, it is a sector, which actively tries to price for additional copies.
  • The analysis suggests that software producers charge a price that reflects the possibility of making additional copies. In other words, a higher number of copies is associated with an increase in the price. However, this effect becomes smaller as the number of copies increases.

Policy Implications as Stated By Author

None stated.

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)?
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)
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)
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)
Green-tick.png
Fair remuneration (levies; copyright contracts)
Green-tick.png
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size: 17272
Level of aggregation: Music
Period of material under study: Not Stated


Sample size: 3515
Level of aggregation: Film
Period of material under study: Not Stated


Sample size: 2071
Level of aggregation: Books
Period of material under study: Not Stated


Sample size: 1008
Level of aggregation: Software
Period of material under study: Not Stated