Decreasing Copyright Enforcement Costs: The Scope of a Graduated Response

17 Pages Posted: 1 Feb 2010  

Olivier Bomsel

École Nationale Supérieure des Mines de Paris - Centre d'Économie Industrielle (CERNA)

Heritiana Ranaivoson

Vrije Universiteit Brussel (VUB) - IBBT-SMIT

Date Written: December 31, 2009

Abstract

The digitization of copyrighted goods and the dematerialization of their distribution over the Internet have caused a weakening of copyright, a key institution of the creative industries. One reason is that, during the broadband roll-out, copyright enforcement costs have become superior to the estimated benefits of copyright. This paper analyses the causes of this situation and suggests how a graduated response to infringers can decrease copyright enforcement costs.

The paper starts with a review of the economic literature on copyright that focuses on its industrial aspects. It then analyses how, all along the distribution vertical chain, the consumer's impunity provides incentives to free ride on copyright, which rapidly increases copyright enforcement costs. It finally depicts the graduated response mechanism and the voluntary agreement that initiated this system in France. In conclusion, the increase in the cost of free-riding for the final consumer should lead to a decrease in copyright enforcement costs and to higher returns in the creative industries.

Suggested Citation

Bomsel, Olivier and Ranaivoson, Heritiana, Decreasing Copyright Enforcement Costs: The Scope of a Graduated Response (December 31, 2009). Review of Economic Research on Copyright Issues, Vol. 6, No. 2, pp. 13-29, 2009. Available at SSRN: https://ssrn.com/abstract=1545465

Olivier Bomsel (Contact Author)

École Nationale Supérieure des Mines de Paris - Centre d'Économie Industrielle (CERNA) ( email )

60, boulevard Saint Michel
75272 Paris Cedex 06, 75272
France

Heritiana Ranaivoson

Vrije Universiteit Brussel (VUB) - IBBT-SMIT ( email )

Pleinlaan 2
Brussels, 1050
Belgium

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