Rogers, Corrigan, and Tomalin (2010)

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

Rogers, Corrigan, and Tomalin (2010)
Title: The economic impact of consumer copyright exceptions: a literature review
Author(s): Rogers, M., Corrigan, R, Tomalin, J.
Year: 2010
Citation: Rogers, M., Corrigan, R., & Tomalin, J. (2010). The economic impact of consumer copyright exceptions: A literature review.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: The authors analyse 37 published academic studies on the economic impact of copyright exceptions.
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?: Yes
Government or policy study?: Yes
Time Period(s) of Collection:
  • Non stated
Funder(s):
  • Consumer Focus

Abstract

Advances in the technology available to consumers have fundamentally altered the relationship between authors, rights-holders and consumers with regard to copyrighted creative works. The copyright system in the UK is undergoing a gradual process of reform to reflect this new reality. In 2006, Andrew Gowers, a former editor of the Financial Times, presented a report into the state of intellectual property in the U.K. Among his policy recommendations were three proposed changes to the copyright exceptions system which alter the way in which consumers can interact with copyrighted works. Gowers proposed introducing copyright exceptions for:

  • Format shifting, for instance the transfer of a piece of music from a CD to an mp3 player.
  • Parody, caricature and pastiche.
  • Creative, transformative or derivative works. In our context, this definition includes user-generated content.

Our review examines the existing literature on the possible economic effects of these proposed changes to the copyright exceptions system, specifically whether the introduction of these proposed changes would cause economic damage to rights-holders. Whilst the economic issues surrounding copyright infringement via file-sharing and commercial "mash-ups" are interesting and important, our review is focused solely on copyright.

Main Results of the Study

  • A creator automatically extracts value from copyright exceptions, since these directly influence the demand for the original creative work* The two most commonly cited economic studies into the effects of Private Copying Remuneration (PCR) systems – Econlaw (2007) and Nathan Associates (2006) – do not provide any useful evidence that consumer copyright exceptions cause economic damage to rights-holders, or that a copyright levy is justified on these grounds.* The economic evidence that format-shifting, parody and user-generated content cause any kind of economic damage to rights-holders simply does not exist.* Arguments that support tighter copyright law, or support PCR systems, tend to confuse economic damage with consumer value. Any future analysis on this issue needs to investigate the conditions under which the proposed consumer copyright exceptions would have any impact on demand for creative work.* Many countries have now introduced a levy on blank media and digital storage hardware.* It is not appropriate to claim that increased consumer value derived from the interaction of copyrighted works and new technology is damaging either to artists now, or decreases their incentive to supply creative works. Copyright exceptions lead to an increase in consumer value which is significantly greater than the economic damage to rights-holders in the case of format-shifting.


Policy Implications as Stated By Author

  • Arguments that support tighter copyright law, or support PCR systems, tend to confuse economic damage with consumer value. Any future analysis on this issue needs to investigate the conditions under which the proposed consumer copyright exceptions would have any impact on demand for creative work.* The introduction of the three new consumer exceptions proposed by Gowers would cause a) little or no damage to rights-holders and hence would not alter incentives create and b) would result in consumers deriving increased economic value from copyrighted works.


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)
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)
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)
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: 37
Level of aggregation: Publications
Period of material under study: Not stated