Profitable Piracy in Music Industries

11 Pages Posted: 21 Jul 2009  

Koji Domon

Waseda University

Tran D. Lam

affiliation not provided to SSRN

Date Written: July 19, 2009

Abstract

This paper considers how optimal copyright enforcement is affected by the development of those media industries promoting musicians. Accounting for situations in both developing and developed countries, we point out two cases, a strictly convex and a strictly concave profit function with respect to the level of copyright enforcement. In the first case a copyright holder prefers a minimal level of enforcement under immature media industries, and a maximal level of enforcement under mature ones. This means that optimal copyright enforcement switches from minimum to maximum along with the development of media industries. In the second case, optimal copyright enforcement gradually increases concomitant with the development of media industries. If there are various levels of singers, a conflict regarding optimal copyright enforcement among them is more sever in a convex case than in a concave one.

Suggested Citation

Domon, Koji and Lam, Tran D., Profitable Piracy in Music Industries (July 19, 2009). Review of Economic Research on Copyright Issues, Vol. 6, No. 1, pp. 1-11, 2009. Available at SSRN: https://ssrn.com/abstract=1436155

Koji Domon (Contact Author)

Waseda University ( email )

1-6-1, Nishi-Waseda
Shinjuku-ku
Tokyo, 169-8050
Japan

Tran D. Lam

affiliation not provided to SSRN

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