Essential inputs are an important topic of debate for economics. One common essential input is intellectual property, in the form of either patents or copyrights, which the producers of goods and services for final consumption must necessarily purchase from the input supplier. The ensuing monopoly power of the input supplier leads in many cases to controversial outcomes, in which social inefficiencies can occur. In much of the literature on the economics of intellectual property, it is assumed that the right holder is remunerated either by a fixed payment or by a payment that amounts to an additional marginal cost to the user, or both. However, in some significant instances in the real-world, right holders are constrained to use (or may choose to use) a compensation scheme that involves revenue sharing. That is, the right holder takes as remuneration a part of the user's revenue. In essence, the remuneration is set as a tax on the user's revenue. This paper analysis such remuneration mechanisms, establishing and analysing the optimal tax rate, and also the Nash equilibrium tax rate that would emerge from a fair and unconstrained bargaining problem. The second option provides a rate that may be useful for regulatory authorities. The model is calibrated against a (hypothetical) scenario in which the copyright holders in music are paid a regulated share of the revenue of music radio stations, a topic that is presently at the fore-front of the economics of copyright pricing.

Featuring expert contributors from around the world, this book offers insight into the vital theoretical and practical aspects of the economics of copyright. Topics discussed include fair use, performers� rights, copyright and trade, online music strea

Over the course of several decades, copyright protection has been expanded and extended through legislative changes occasioned by national and international developments. The content and technology industries affected by copyright and its exceptions, and in some cases balancing the two, have become increasingly important as sources of economic growth, relatively high-paying jobs, and exports. Since the expansion of digital technology in the mid-1990s, they have undergone a technological revolution that has disrupted long-established modes of creating, distributing, and using works ranging from literature and news to film and music to scientific publications and computer software. In the United States and internationally, these disruptive changes have given rise to a strident debate over copyright's proper scope and terms and means of its enforcement-a debate between those who believe the digital revolution is progressively undermining the copyright protection essential to encourage the funding, creation, and distribution of new works and those who believe that enhancements to copyright are inhibiting technological innovation and free expression. Copyright in the Digital Era: Building Evidence for Policy examines a range of questions regarding copyright policy by using a variety of methods, such as case studies, international and sectoral comparisons, and experiments and surveys. This report is especially critical in light of digital age developments that may, for example, change the incentive calculus for various actors in the copyright system, impact the costs of voluntary copyright transactions, pose new enforcement challenges, and change the optimal balance between copyright protection and exceptions.

Providing a vital economic incentive for much of society's music, art, and literature, copyright is widely considered "the engine of free expression^"--but it is also used to stifle news reporting, political commentary, historical scholarship, and even artistic expression. In Copyright's Paradox, Neil Weinstock Netanel explores the tensions between copyright law and free speech, revealing the unacceptable burdens on expression that copyright can impose. Tracing the conflict across both traditional and digital media, Netanel examines the remix and copying culture at the heart of current controversies related to the Google Book Search litigation, YouTube and MySpace, hip-hop music, and digital sampling. The author juxtaposes the dramatic expansion of copyright holders' proprietary control against the individual's newly found ability to digitally cut, paste, edit, remix, and distribute sound recordings, movies, TV programs, graphics, and texts the world over. He tests whether, in light of these and other developments, copyright still serves as a vital engine of free expression and assesses how copyright does--and does not--burden free speech. Taking First Amendment values as his lodestar, Netanel offers a crucial, timely call to redefine the limits of copyright so it can most effectively promote robust debate and expressive diversity--and he presents a definitive blueprint for how this can be accomplished.