McCalman (2004)

Source Details

McCalman (2004)
Title:	Foreign direct investment and intellectual property rights: evidence from Hollywood's global distribution of movies and videos
Author(s):	McCalman, P.
Year:	2004
Citation:	McCalman, P. (2004) Foreign direct investment and intellectual property rights: evidence from Hollywood's global distribution of movies and videos. Journal of International Economics, 62(1), 107-123
Link(s):	Definitive
Key Related Studies:	Horstmann and Markusen (1987) Ferrantino (1993) Markusen (1995) Chung (1999) Smith (2001)
Discipline:	F23: Multinational Firms • International Business O34: Intellectual Property and Intellectual Capital
Linked by:

About the Data
Data Description:	Data on Hollywood film production, distribution, and exhibition, were obtained from Screen Digest (1998), with coverage of 40 foreign markets. The unit of analysis for the study is a studio’s mode of market service in a given country, with data coded according to whether the country is a foreign affiliate or recipient of a licensing agreement.
Data Type:	Primary and Secondary data
Secondary Data Sources:	Screen Digest (1998)
Data Collection Methods:	Survey Research (quantitative; e.g. sales/income reporting)
Data Analysis Methods:	Correlation and Association Multivariate Statistics
Industry(ies):	Film and motion pictures Television programmes
Country(ies):	Multiple
Cross Country Study?:	Yes
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	1997
Funder(s):	IGCC and UCSC Committee on Research UGSC Division of Social Sciences

Abstract

“Traditional thinking about intellectual property rights (IPR) suggests that as a country strengthens its IPR standards, firms will move their governance structures away from equity based institutions such as foreign direct investment (FDI) towards more market-based relations such as licensing agreements. This hypothesis is explored by examining the behavior of Hollywood studios in both the feature film and video markets in 40 foreign countries. The analysis reveals that the behavior of Hollywood studios is more complex than this: although moderate IPRs are associated with a high degree of licensing, both high and low standards of IPR encourage more integrated governance structures.”

Main Results of the Study

• Hollywood studios decision-making about servicing foreign markets is influenced by the degree of copyright protection offered in that market. Hollywood studios are more likely to service foreign markets where their country offers a moderate (secure) degree of copyright protection.

Policy Implications as Stated By Author

The study does not make any explicit policy recommendations.

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

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