Copyright Levies as an Alternative Compensation Method for Recording Artists and Technological Development

15 Pages Posted: 21 Jul 2008  

Ville Oksanen

Aalto University - Institute of Strategy and Intl. Business

Mikko Valimaki

Aalto University - School of Science and Technology; University of Eastern Piedmont - A. Avogadro; Swedish School of Economics and Business Administration

Abstract

The idea of alternative compensation methods for recording artists has gained increasing popularity as Internet copying has started to seriously threaten record sales. We start this article by looking at the general theory on alternatives to copyright royalties and show that recording artist income is in practise not dependent on record sales. Then we move forward and map the features of the current alternative proposals and construct yet another iteration of a levy-based compensation method. As an example, we analyze what our model would imply for Finland. In the end we reflect on the idea of a levy-based compensation method to the current predictions of technical advances in communication networks and note that the traditional copyright royalty model is seriously threatened by tremendous personal copying covering practically all the music ever created. We conclude this article by discussing what this will mean for the alternative compensation proposals and the music industry in general.

Keywords: Copyright, Compensation, Recording Artists

Suggested Citation

Oksanen, Ville and Valimaki, Mikko, Copyright Levies as an Alternative Compensation Method for Recording Artists and Technological Development. Review of Economic Research on Copyright Issues, Vol. 2, No. 2, pp. 25-39, 2005. Available at SSRN: https://ssrn.com/abstract=1144894

Ville Oksanen (Contact Author)

Aalto University - Institute of Strategy and Intl. Business ( email )

Finland

Mikko Valimaki

Aalto University - School of Science and Technology ( email )

02015 Espoo
Finland

University of Eastern Piedmont - A. Avogadro ( email )

Corso Borsalino 50
15100 Alessandria
United States

Swedish School of Economics and Business Administration ( email )

P.O. Box 479
FI-00101 Helsinki, 00101
Finland

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