The Use of Vertical Market Prices in Setting Copyright Tariffs and Rates

17 Pages Posted: 23 Jan 2017  

Gerry Wall

Wall Communications Inc.

Bernie Lefebvre

Wall Communications Inc.

Date Written: December 31, 2017

Abstract

With the lack of direct markets to examine, copyright setting agencies often adopt a total proxy approach whereby other markets are used to formulate benchmark prices. In this paper, we utilize a "downstream" market to estimate the value to a commercial "rights user" of distant television signals. This "partial proxy" approach has two advantages: it uses data drawn from the distant signal market (i.e. vertical market information) and it uses actual market pricing data from buyers and sellers of programming content.

Using this data, we derive estimates of the wholesale market value of distant TV signals. Based on our analysis we find that the current per signal payment to distant signal rights-holders (as certified by the Copyright Board of Canada) is less than the actual market value of those signals.

Suggested Citation

Wall, Gerry and Lefebvre, Bernie, The Use of Vertical Market Prices in Setting Copyright Tariffs and Rates (December 31, 2017). Review of Economic Research on Copyright Issues, 2016, 13(2), 66-82. Available at SSRN: https://ssrn.com/abstract=2903419

Gerry Wall (Contact Author)

Wall Communications Inc. ( email )

238 Buena Vista Rd
Rockcliffe Park, Ontario K1M 0V7
Canada

Bernie Lefebvre

Wall Communications Inc. ( email )

238 Buena Vista Rd
Rockcliffe Park, Ontario K1M 0V7
Canada

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