Handke and Towse (2007)

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

Handke and Towse (2007)
Title: Economics of Copyright Collecting Societies
Author(s): Christian Handke and Ruth Towse
Year: 2007
Citation: Handke, Christian, and Ruth Towse. Economics of copyright collecting societies. International Review of Intellectual Property and Competition Law 38.8 (2007): 937-957.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: Kretschmer (2011)
About the Data
Data Description: This study is a literature review of 40 studies examining the role of copyright collecting societies, including 2 reports from the European Commission.
Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: Yes
Comparative Study?: No
Literature review?: Yes
Government or policy study?: Yes
Time Period(s) of Collection:
  • 1975 - 2007
Funder(s):

Abstract

Economists have long recognised that copyright collecting societies (CCS), i.e. organisations that specialise on administering "copyrights held by a large number of owners", play a fundamental role in the copyright system. Indeed, the economic literature explains why without such organisations, copyright law would be ineffective in some markets for copyrighted works: the majority of authors and users would not be able to grant or obtain permission to use many works of art, literature, music, film and other such works that copyright law protects. In economic terms, CCS enable markets to function for the use of copyright works in situations in which the copyright holder cannot contract directly with the user. But because many markets for copyright works have changed rapidly over recent years, we should ask under which circumstances CCS would continue to play a constructive, maybe even essential, role. It has been argued many times that technical solutions to digital rights management (DRM) will render CCS obsolete as the market for copyrights shifts online and policy-makers such as the European Commission have begun to scrutinise the role played by CCS in the dynamic market for copyrighted media content online (REC 2005/737/EC). The purpose of this survey of the specialised economic literature is to take stock and to identify possible gaps in the understanding of the economics of CCS and to advocate attention to this literature in contemporary debates about them.

Main Results of the Study

  • Collecting societies are an efficient way of distributing remittances for copyright to artists by minimising individual transaction costs
  • Collecting societies tend to operate as a monopoly or a bilateral monopoly but despite this the pricing of content licenses tends to be set at a point chosen by the market
  • Digital Rights Management may be able to take over some of the functions of collecting agencies in the future
  • Various for-profit organisations seek to enter the market of collecting license fees but despite increasing competition this is unlikely to result in fairer pricing


Policy Implications as Stated By Author

  • Collecting societies tend to operate as monopolies; despite this they seem to operate efficiently within the market in terms of minimising transaction costs and setting a fair price point
  • Blanket licensing is common to most collecting societies but is less efficient as it does not take into account the higher price that could be set for more popular content
  • Technological advances may allow Digital Rights Management to take over some of the functions of collecting societies in future
  • There may be cause for further regulation to incorporate technological advances such as downloading



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

Datasets

Sample size: 1
Level of aggregation: case study
Period of material under study: 1975 to 2007