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Strategic Use of Copyright Protection to Deter Entry

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  • Kim Jin-Hyuk

    (Cornell University)

Abstract

Copyright protection can be used to raise entry barriers by impairing the demand. When there is a complementary market in addition to the copyrighted goods market, the incumbent prefers stronger copyright protection than is needed to maximize the sales profit in the primary market. Although strong protection can reduce demand substitution by copies, it makes it more difficult for the entrant to reach a large audience and become established. In some cases, the entrant may choose to opt out of copyright protection.

Suggested Citation

  • Kim Jin-Hyuk, 2007. "Strategic Use of Copyright Protection to Deter Entry," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-19, September.
    • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:47
    DOI: 10.2202/1935-1682.1765
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    Cited by:

    1. Handke, Christian, 2012. "Digital copying and the supply of sound recordings," Information Economics and Policy, Elsevier, vol. 24(1), pages 15-29.
    2. Jin-Hyuk Kim, 2008. "Digital Rights Management and Technological Tying," Working Papers 08-05, NET Institute, revised Sep 2008.

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    More about this item

    Keywords

    copyright protection; entry deterrence;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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