Legal and Technological Battle in Music Industry: Information-Push vs. Information-Pull Technologies
21 Pages Posted: 9 Apr 2004
Date Written: April 5, 2004
Peer-to-Peer (P2P) technologies are often seen as a threat by copyright owners because they encourage piracy by making digital copies easier. In response, major record companies have come up with new devices designed to protect original material, and lobbied to reinforce legal protection. We view traditional distribution as an information-push technology in which the firm pays to provide information to consumers and P2P as an information-pull technology where consumers spend resources to acquire information on products they have a potential interest in by searching, downloading and testing digital copies of original products before they make their purchase decision. We determine copyright owners' protection strategies according to the level of legal protection, and we study their effects on profits and consumers' surplus with the two different information transmission technologies.
Keywords: Copyright, Protection, Internet, Distribution, Music, Piracy, Digital copies, Fair Use, Digital Rights Management
JEL Classification: D61, K11, L11, L15, O34
Suggested Citation: Suggested Citation