P2P Music Distribution: a Burden or a Blessing?

Abstract

Traditions and habits shaped the music business. In the online environment, new players, some of them are peer-to-peer system providers, are entering the arena and struggling to obtain a position in the value chain. They may displace other actors who currently play a major role. The law - in particular copyright law - determines to a large extent whether they will succeed. In this paper, the question is addressed whether the law should support record companies in their efforts to remain the key intermediaries in the music industry. Additionally, different legislative approaches are discussed which might ensure that artists are rewarded for p2p distribution and that competition may evolve in the area of online music distribution.

Keywords: Copyright, p2p, peer to peer, economics, compulsory license, network effects, music