Liebowitz and Watt (2006)
|Liebowitz and Watt (2006)|
|Title:||How to best ensure remuneration for creators in the market for music? Copyright and its alternatives|
|Author(s):||Liebowitz, S. J., Watt, R.|
|Citation:||Liebowitz, S. J., & Watt, R. (2006). How to best ensure remuneration for creators in the market for music? Copyright and its alternatives. Journal of Economic Surveys, 20(4), 513-545.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|Linked by:||Kretschmer (2011)|
|About the Data|
|Data Description:||The authors analyze the different methodologies used in the existing literature that has examined the impact of file sharing on sales of sound recordings, focussing on three methodologies: using countries or cities as the unit of analysis, using records as the unit of analysis and using surveys.|
|Data Type:||Primary and Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||No|
|Government or policy study?:||No|
|Time Period(s) of Collection:||
The focus of this essay is to examine the market for copyrighted works with a particular emphasis on the sound recording market. This market is currently in a state of flux, some would say disarray, due to the ability of the Internet to lower transmission costs for both authorized and unauthorized copies, with the latter being, at this time, far more prevalent. In this essay we discuss the intent of copyright, the role of copying and file-sharing, and some alternative production/consumption schemes meant to strengthen or to replace copyright.
Main Results of the Study
Although creative efforts in the realm of music are going ahead in spite of the existence of copying, the magnitudes of the estimated losses due to copying are likely to cause serious dislocations in the market. We have noted that all of the possible alternatives are likely second-best solutions to the problem of efficient creation and distribution of information products, where the market failure based on copying renders the first-best solution unworkable.
Policy Implications as Stated By Author
The possibilities that seem most likely to provide some ameliorative impact are DRM and taxes on blank supports. If there are better business models (using bundling) the industry should be able to discover these on its own. Theories based on network effects, on tipping, or auctions seem most unlikely to provide useful guidance. Nevertheless, some of these alternatives are debateable to say the least, in the sense that they may or may not be politically and legally feasible, mainly due to the adverse effects that they imply for the rights of others (above all, music consumers and non-copiers).