Reimers (2019)

Source Details

Reimers (2019)
Title:	Copyright and Generic Entry in Book Publishing
Author(s):	Reimers, I.
Year:	2019
Citation:	Reimers, I. (2019) Copyright and Generic Entry in Book Publishing. American Economic Journal: Microeconomics 11(3), pp. 257-84
Link(s):	Open Access
Key Related Studies:	Heald (2008) Handke (2011) Li, MacGarvie and Moser (2015) Heald (2018)
Discipline:	L11: Production; Pricing; and Market Structure • Size Distribution of Firms L17: Open Source Products and Markets L82: Entertainment • Media O34: Intellectual Property and Intellectual Capital
Linked by:

About the Data
Data Description:	Data were obtained from a selection of ten bestselling fiction titles from 1910 to 1936 consisting of 249 titles. The titles were split into two datasets in order to determine availability and prices, using a directory confirming in-print status and sales/retail data.
Data Type:	Primary and Secondary data
Secondary Data Sources:
Data Collection Methods:	Survey Research (quantitative; e.g. sales/income reporting) Web analytic (online user trace data)
Data Analysis Methods:	Regression Analysis
Industry(ies):	Publishing of books, periodicals and other publishing
Country(ies):	USA
Cross Country Study?:	No
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	1910-1936 August 2013 2011-2012
Funder(s):

Abstract

“Taking works off copyright promotes their availability, but it also allows generic entry to dissipate producer surplus. This paper examines the effect of a copyright on the availability and price of books when incentives to create new works are not affected. Evaluating the welfare impact of the 1998 Copyright Term Extension Act, I find that a copyright significantly limits the availability of works, leading to a decrease in consumer surplus, which is significantly larger than any increases in profits to copyright holders. Without changing incentives to create new content, the copyright extension was economically inefficient.”

Main Results of the Study

Books available in the public domain are more widely available than those with in-copyright status. Furthermore, in-copyright books are up to 35% more expensive than public domain works.

Books whose copyright term was extended by The Sonny Bono Copyright Term Extension Act 1998 are similarly less available and more expensive relative to their public domain counterparts. Overall, the copyright term extension decreased welfare for the publishing industry, particularly in regards large stocks of titles which have since become orphan works, and decreased total surplus of the majority of works (being low and medium quality which have since lost appeal).

Policy Implications as Stated By Author

The study concludes that any policy which extends copyright’s term is likely to be welfare decreasing (unless it’s able to selectively apply to “superstars” which have ongoing appeal, e.g. Gone With The Wind)

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)
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)
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:	249
Level of aggregation:	Books
Period of material under study:	1910-1936, August 2013, 2011-2012