Zhu, Madnick and Siegel (2008)

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

Zhu, Madnick and Siegel (2008)
Title: An Economic Analysis of Policies for the Protection and Reuse of Noncopyrightable Database Contents
Author(s): Zhu, H., Madnick, S.E., Siegel, M.D.
Year: 2008
Citation: Zhu, Hongwei, Stuart E. Madnick, and Michael D. Siegel. An economic analysis of policies for the protection and reuse of noncopyrightable database contents. Journal of Management Information Systems 25.1 (2008): 199-232.
Link(s): Definitive
Key Related Studies:
Discipline:
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About the Data
Data Description: This study analyses different models of database creation with various levels of openness and protection, using information from previous empirical studies published from 1989 to 2008. The authors examine these models in the light of the EU Database Directive.
Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: Yes
Comparative Study?: Yes
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 1989 to 2008
Funder(s):

Abstract

The availability of data on the Web and new data extraction technologies have made it increasingly easy to reuse existing data to create new databases and provide value-added services. Meanwhile, database creators have been seeking legal protection for their data, such as the European Union's Database Directive. The legislative development shows that there is significant difficulty in finding the right balance between protecting the incentives of creating publicly accessible databases (including semistructured Web sites) and preserving adequate access to factual data for value-creating activities. We address this issue using an extended spatial competition model that explicitly considers licensing provisions and inefficiencies in policy administration. The results show that, depending on the cost level of database creation, the degree of differentiation of the reuser database, and the efficiency of policy administration, there are different socially beneficial policy choices, such as protecting a legal monopoly, encouraging competition via compulsory licensing, discouraging voluntary licensing, or even allowing free riding. With the appropriate policy in place, both the creators and the reusers should focus on innovation that can increase the variety of databases and create value from database contents.

Main Results of the Study

The results show that, depending on the cost level of database creation, the degree of differentiation of the reuser database, and the efficiency of policy administration, there are different socially beneficial policy choices, such as protecting a legal monopoly, encouraging competition via compulsory licensing, discouraging voluntary licensing, or even allowing free riding. With the appropriate policy in place, both the creators and the reusers should focus on innovation that can increase the variety of databases and create value from database contents.

Policy Implications as Stated By Author

New database regulation will impact all stakeholders in the information economy, in which database creators, data reusers, and the consumers of the creator or reuser database products are the primary ones. One of the important factors to consider in policy formulation is the financial interests in database contents. A creator who invested in creating a database is interested in recouping the investment using the revenues that the database helps to generate. The revenues may be reduced when a free-riding reuser creates a competing database by extracting the contents from the creator's database. Thus, creators would like to have certain means of protecting the contents in their databases. Without adequate protection, the incentives of creating such databases could diminish. On the other hand, overprotection can cause under-utilization of information and make downstream value-added data reuse costly or even impossible. It is important, and often rather difficult, to formulate a policy that reasonably balances the two interests.


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)?
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)
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)
Green-tick.png
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)
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: 2
Level of aggregation: Models for database creation
Period of material under study: 1989-2008