2013
DOI: 10.1177/056943451305800205
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The Decreasing Excludability of Digital Music: Implications for Copyright Law

Abstract: Since the advent of the file-sharing program Napster in June of 1999, copyright infringement has plagued the recorded music industry. We review the evidence on piracy and its effect on record industry profits. We then model the behavior of file sharers and music producers under different remuneration and legal regimes using a stage game. We find that under certain conditions, the removal of copyright laws for recorded music is welfare improving. There is also a parameter space where public sector music distrib… Show more

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Cited by 6 publications
(3 citation statements)
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“…In the context of online piracy, peer-to-peer file sharing, consumers anonymously connecting with others for the purpose of copying electronic content, has significantly affected the software and entertainment industries. For example, total music sales have been declining steadily and growth in digital music sales has slowed to only six percent in 2010 (Arias and Ellis, 2013). While some authors note that sharing does not hurt the survival of topranked albums or movies, it has a negative impact, especially on low-ranked albums and can lead to an accelerated decline in box-office revenue for major studio movie releases leading to millions of dollars in lost revenue (Bhattacharjee et al, 2007;Vany and Walls, 2007).While illegally downloading a song or a movie might not seem like a significant criminal act, in a culture where piracy is accepted, many parties risk not getting paid, which range from the artist or creator of content, to related and indirect contributors (RIAA 2014; Rob and Waldfogel, 2006).…”
Section: Online Piracymentioning
confidence: 99%
See 1 more Smart Citation
“…In the context of online piracy, peer-to-peer file sharing, consumers anonymously connecting with others for the purpose of copying electronic content, has significantly affected the software and entertainment industries. For example, total music sales have been declining steadily and growth in digital music sales has slowed to only six percent in 2010 (Arias and Ellis, 2013). While some authors note that sharing does not hurt the survival of topranked albums or movies, it has a negative impact, especially on low-ranked albums and can lead to an accelerated decline in box-office revenue for major studio movie releases leading to millions of dollars in lost revenue (Bhattacharjee et al, 2007;Vany and Walls, 2007).While illegally downloading a song or a movie might not seem like a significant criminal act, in a culture where piracy is accepted, many parties risk not getting paid, which range from the artist or creator of content, to related and indirect contributors (RIAA 2014; Rob and Waldfogel, 2006).…”
Section: Online Piracymentioning
confidence: 99%
“…The development of digital music and online sharing platforms has significantly impacted the ability and the cost of enforcing copyright laws. Researchers have even focused on finding other ways of dealing with income for copyrighted content, including the removal of copyright protection only and the removal of copyright protection combined with a government distribution and subsidy for music production (Arias and Ellis, 2013). This is especially due to a rather difficult endeavor of enforcing copyright laws and making consumers understand the legal risks they are taking.…”
Section: Perceived Risks and Legalitymentioning
confidence: 99%
“…This freedom gets specific legal guarantees in the form of copyright. The rapid development of information technologies and their wide application in all the countries is a social phenomenon called "information revolution" (Arias & Cameron, 2013). Society has refused material copies of work in connection with shift towards turnover of works in digital form.…”
Section: Introductionmentioning
confidence: 99%