The Political Economy of Audio-Visual Copyright Enforcement
24 Pages Posted: 9 Jun 2005
Date Written: March 22, 2005
There appear to be wide variations in levels of enforcement against piracy and illegal copying in the AV entertainment industries. In particular, copyright holders such as the Motion Picture Association of America appear to be very aggressive, while firms at the retail level, especially cable operators, appear to tolerate or even encourage piracy and illegal copying in some cases. It is argued that these differences exist because of asymmetries of enforcement costs and control, interdependent demand in the movie release system, and inefficiencies due to profit-sharing payment contracts for electronically distributed media. In conclusion, public welfare issues and possible policy solutions are considered, including facilitation of greater vertical integration and the sharing with copyright holders of restitution payments that private firms at the retail level can collect from copyright infringers.
Keywords: copyright, intellectual property, cable television, entertainment
JEL Classification: K42, L82, L86
Suggested Citation: Suggested Citation