Rochelandet and Le Guel (2005)
|Rochelandet and Le Guel (2005)|
|Title:||P2P music sharing networks: Why the legal fight against copiers may be inefficient|
|Author(s):||Rochelandet, F., Le Guel, F.|
|Citation:||Rochelandet, F., & Le Guel, F. (2005). P2P music sharing networks: Why the legal fight against copiers may be inefficient. Review of Economic Research on Copyright Issues, 2(2), 69-82.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|Linked by:||Nandi and Rochelandet (2008), Sheehan, Tsao and Yang (2010)|
|About the Data|
|Data Description:||Analysis based on primary data gathered in January and February 2005. 2533 individuals were surveyed using a paper survey and a Web-based survey.|
|Data Type:||Primary 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 paper investigates empirically the behavior of copiers over P2P networks based on an ordered Logit model of intensity using a dataset collected from more than 2,500 French households. In accordance with the prediction of the Beckerian framework, copying behavior is negatively correlated with the willingness to pay for an original when a copy is available. But individuals also make their decisions according to their social neighborhood and to the degree to which they have learned about copying. Furthermore, we find that copiers are motivated by the search for diversified contents, and they are also very concerned about the interests of artists. We then consider the efficiency of anti-copying policies on the copying of music and movies.
Main Results of the Study
- Herding behavior can favor the expansion of sharing practices in spite of the copyright reinforcement (increased sanctions, stronger liability rules, and so on). It depends on the sensitivity of current users — particularly, ’fashion leaders’ — to such signals. This study suggests that the perception of legal risks is not significant.
- More generally, P2P sharing is only a small part of copying behavior: it is mainly grounded on more general copying practices. Unauthorized sharing is primarily embedded in social networks: family, friends and office. In other words, file-sharing and physical exchanges of CD and MP3 files. Therefore, fighting only P2P is not only insufficient to eradicate file sharing in the long run but also somewhat iniquitous.
- P2P users search for a certain level of access to diversity of works. In comparison with P2P supply, the current models of online delivery such as iTunes seem to suffer from a lack of cultural diversity.
Policy Implications as Stated By Author
Copyright stakeholders should focus on designing new business models to compete with P2P networks and other sharing technologies. From both positive and normative viewpoints, the majors have to eliminate all kinds of sharing behaviors (if one considers that they actually result in a net social loss). Record and movie producers should focus on increasing the willingness to pay for originals (e.g. by supplying new formats). Instead of reinforcing copyright, governments should care about stimulating competition by eliminating barriers to entry in those new markets as it prevails in the CD and DVD markets.
Coverage of Study
|Level of aggregation:||Individual|
|Period of material under study:||2005|