compensation systems

Truce in the Copyright War? The Pros and Cons of Copyright Compensation Systems for Digital Use external link

Review of Economic Research on Copyright Issues, vol. 15, num: 2, pp: 23-56, 2019

Abstract

This paper discusses copyright compensation systems (CCS) -- that provide licenses for downloading and non-commercial use of copyright works in return for a fee -- in the light of welfare economics and transaction cost economics. Recent empirical studies suggest that CCS could improve social welfare at least for recorded music. The general theme of the theoretical discussion in this paper is a simplicity-flexibility trade-off. On the one hand, CCS seek to reduce the costs of administering and trading copyrights online. On the other hand, standard copyright licenses distort the market mechanism. This paper discusses the costs and benefits of various CCS proposals compared to alternative ways of managing copyright online.

Bibtex

Article{HandkeBodoQuintais2018,
	title = {Truce in the Copyright War? The Pros and Cons of Copyright Compensation Systems for Digital Use},
	author = {Handke, C.W. and Quintais, J. and Bodó, B.},
	url = {https://ssrn.com/abstract=3311019},
	year = {2019},
	date = {2019-01-16},
	journal = {Review of Economic Research on Copyright Issues},
	volume = {15},
	number = {2},
	pages = {23-56},
	abstract = {This paper discusses copyright compensation systems (CCS) -- that provide licenses for downloading and non-commercial use of copyright works in return for a fee -- in the light of welfare economics and transaction cost economics. Recent empirical studies suggest that CCS could improve social welfare at least for recorded music. The general theme of the theoretical discussion in this paper is a simplicity-flexibility trade-off. On the one hand, CCS seek to reduce the costs of administering and trading copyrights online. On the other hand, standard copyright licenses distort the market mechanism. This paper discusses the costs and benefits of various CCS proposals compared to alternative ways of managing copyright online.},
	keywords = {compensation systems, Copyright, frontpage},
}

Copyright in the Age of Online Access: Alternative Compensation Systems in EU Law external link

Quintais, J.

Kluwer Law International, 2017, Series: Information Law Series, ISBN: 9789041186676

Abstract

This book examines pragmatic legal solutions that enable Internet users to access works in the digital environment by exploring the flexibilities in EU copyright law in search of a consistent regulation of non-commercial online use. In addition to proving virtually impossible, online enforcement of copyright may be undesirable because it risks encroaching upon fundamental rights and freedoms. However, the problem remains that creators are often not fairly remunerated for the online use of their works. This book addresses the need for legalisation schemes that favour remunerated access over exclusivity and enforcement for large-scale online use by individuals, while assuring remuneration to rights holders and promoting the development of the information society.

Links

https://pure.uva.nl/ws/files/7607912/QUINTAIS_Doctoral_Dissertation_Final_Manuscript.pdf

Berne Convention, Charter of Fundamental Rights of the European Union, CJEU, collective rights management, communication to the public right, compensation systems, Copyright, Digital Single Market, EU copyright law, exceptions and limitations, fair balance, Internet, Kluwer Information Law Series, online intermediaries

Bibtex

Book{Quintais2017,
	title = {Copyright in the Age of Online Access: Alternative Compensation Systems in EU Law},
	author = {Quintais, J.},
	url = {https://pure.uva.nl/ws/files/7607912/QUINTAIS_Doctoral_Dissertation_Final_Manuscript.pdf},
	year = {2017},
	date = {2017-05-29},
	volume = {40},
	pages = {},
	abstract = {This book examines pragmatic legal solutions that enable Internet users to access works in the digital environment by exploring the flexibilities in EU copyright law in search of a consistent regulation of non-commercial online use. In addition to proving virtually impossible, online enforcement of copyright may be undesirable because it risks encroaching upon fundamental rights and freedoms. However, the problem remains that creators are often not fairly remunerated for the online use of their works. This book addresses the need for legalisation schemes that favour remunerated access over exclusivity and enforcement for large-scale online use by individuals, while assuring remuneration to rights holders and promoting the development of the information society.},
	keywords = {Berne Convention, Charter of Fundamental Rights of the European Union, CJEU, collective rights management, communication to the public right, compensation systems, Copyright, Digital Single Market, EU copyright law, exceptions and limitations, fair balance, Internet, Kluwer Information Law Series, online intermediaries},
}

Going means trouble and staying makes it double: the value of licensing recorded music online external link

Handke, C.W., Bodó, B. & Vallbé, J.

Journal of Cultural Economics, 2015

Abstract

This paper discusses whether a copyright compensation system (CCS) for recorded music—endowing private Internet subscribers with the right to download and use works in return for a fee—would be welfare increasing. It reports on the results of a discrete choice experiment conducted with a representative sample of the Dutch population consisting of 4986 participants. Under some conservative assumptions, we find that applied only to recorded music, a mandatory CCS could increase the welfare of rights holders and users in the Netherlands by over €600 million per year (over €35 per capita). This far exceeds current rights holder revenues from the market of recorded music of ca. €144 million per year. A monthly CCS fee of ca. €1.74 as a surcharge on Dutch Internet subscriptions would raise the same amount of revenues to rights holders as the current market for recorded music. With a voluntary CCS, the estimated welfare gains to users and rights holders are even greater for CCS fees below €20 on the user side. A voluntary CCS would also perform better in the long run, as it could retain a greater extent of market coordination. The results of our choice experiment indicate that a well-designed CCS for recorded music would simultaneously make users and rights holders better off. This result holds even if we correct for frequently observed rates of overestimation in contingent valuation studies.

Bibtex

Article{nokey,
	title = {Going means trouble and staying makes it double: the value of licensing recorded music online},
	author = {Handke, C.W. and Bodó, B. and Vallbé, J.},
	url = {http://link.springer.com/article/10.1007%2Fs10824-015-9251-8},
	year = {2015},
	date = {2015-06-11},
	journal = {Journal of Cultural Economics},
	abstract = {This paper discusses whether a copyright compensation system (CCS) for recorded music—endowing private Internet subscribers with the right to download and use works in return for a fee—would be welfare increasing. It reports on the results of a discrete choice experiment conducted with a representative sample of the Dutch population consisting of 4986 participants. Under some conservative assumptions, we find that applied only to recorded music, a mandatory CCS could increase the welfare of rights holders and users in the Netherlands by over €600 million per year (over €35 per capita). This far exceeds current rights holder revenues from the market of recorded music of ca. €144 million per year. A monthly CCS fee of ca. €1.74 as a surcharge on Dutch Internet subscriptions would raise the same amount of revenues to rights holders as the current market for recorded music. With a voluntary CCS, the estimated welfare gains to users and rights holders are even greater for CCS fees below €20 on the user side. A voluntary CCS would also perform better in the long run, as it could retain a greater extent of market coordination. The results of our choice experiment indicate that a well-designed CCS for recorded music would simultaneously make users and rights holders better off. This result holds even if we correct for frequently observed rates of overestimation in contingent valuation studies.},
	keywords = {Auteursrecht, collective rights management, compensation systems, Contingent valuation, Copyright, Intellectuele eigendom, Internet, Recorded music},
}