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Forever Minus a Day? Some Theory and Empirics of Optimal Copyright

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  • Pollock, Rufus

Abstract

The optimal level for copyright has been a matter for extensive debate over the last decade. This paper contributes several new results on this issue divided into two parts. In the first, a parsimonious theoretical model is used to prove several novel propositions about the optimal level of protection. Specifically, we demonstrate that (a) optimal copyright is likely to fall as the production costs of `originals' decline (for example as a result of digitization) and that (b) the optimal level of copyright will, in general, fall over time. The second part of the paper focuses on the specific case of copyright term. Using a simple model we characterise optimal term as a function of a few key parameters. We estimate this function using a combination of new and existing data on recordings and books and find an optimal term of around fifteen years. This is substantially shorter than any current copyright term and implies that existing copyright terms are too long.

Suggested Citation

  • Pollock, Rufus, 2007. "Forever Minus a Day? Some Theory and Empirics of Optimal Copyright," MPRA Paper 5024, University Library of Munich, Germany, revised 07 Aug 2007.
    • Handle: RePEc:pra:mprapa:5024
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    References listed on IDEAS

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    Cited by:

    1. Christopher C. Klein, 2015. "The Music Industry as a Vehicle for Economic Analysis," The Journal of Economic Education, Taylor & Francis Journals, vol. 46(4), pages 403-411, October.
    2. Hana Moravcová, 2018. "Korekce tří metodologických omylů ekonomie autorského práva [Correction of Three Methodological Errors in the Economics of Authors' Rights]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(3), pages 384-398.

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    More about this item

    Keywords

    Copyright; Intellectual Property; Copyright Term; Technological Change;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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