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How Copyright Drives Innovation: A Case Study of Scholarly Publishing in the Digital World

Adam Mossoff

George Mason University - Antonin Scalia Law School, Faculty

January 2015

Michigan State Law Review, 2015
George Mason Law & Economics Research Paper No. 13-25

Today, copyright policy is framed solely in terms of a trade off between the benefits of incentivizing authors to create new works and the losses from restricting access to those works. This is a mistake that has distorted the policy and legal debates concerning the fundamental role of copyright within scholarly publishing, as the incentive-to-create conventional wisdom asserts that copyright is unnecessary for researchers who are motivated for non-pecuniary reasons. As a result, commentators and legal decision-makers dismiss the substantial investments and productive labors of scholarly publishers as irrelevant to copyright policy. Furthermore, widespread misinformation about the allegedly “zero cost” of digital publication exacerbates this policy distortion.

This paper fills a gap in the literature by providing the more complete policy, legal and economic context for evaluating scholarly publishing. It details for the first time the $100s of millions in ex ante investments in infrastructure, skilled labor, and other resources required to create, publish, distribute and maintain scholarly articles on the Internet and in other digital platforms. Based on interviews with representatives from scholarly publishers, it reveals publishers’ extensive and innovative development of digital distribution mechanisms since the advent of the World Wide Web in 1993. Even more important, this paper explains how these investments in private-ordering mechanisms reflect fundamental copyright policy, as copyright secures to both authors and publishers the fruits of their productive labors. In sum, copyright spurs both authors to invest in new works and publishers to invest in innovative, private-ordering mechanisms to distribute these works. Both of these fundamental copyright policies are as important today in our fast-changing digital world as they were in yesteryear’s world in which publishers distributed scholarly articles in dead-tree format.

Number of Pages in PDF File: 34

Keywords: American Chemical Society, American Institute of Physics, commercialization, Copyright Clearance Center, CrossRef, DMCA, Eldred, Glynn S. Lunney, Golan, Kirtsaeng, McCabe, New England Journal of Medicine, open, peer review, publishers, Reed Elsevier, Richard A. Posner, SAGE, Wiley, William M. Landes

JEL Classification: O34, O38

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Date posted: April 4, 2013 ; Last revised: February 4, 2016

Suggested Citation

Mossoff, Adam, How Copyright Drives Innovation: A Case Study of Scholarly Publishing in the Digital World (January 2015). Michigan State Law Review, 2015; George Mason Law & Economics Research Paper No. 13-25. Available at SSRN: https://ssrn.com/abstract=2243264 or http://dx.doi.org/10.2139/ssrn.2243264

Contact Information

Adam Mossoff (Contact Author)
George Mason University - Antonin Scalia Law School, Faculty ( email )
3301 Fairfax Drive
Arlington, VA 22201
United States
703-993-9577 (Phone)

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