The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Licensing of Copyright Works

Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_3033

Abstract

The article discusses the microeconomic theory behind copyright licensing. It analyses and mentions (at the least) the general economics of copyrights and how the income that is generated along the value chain can be transferred and shared using contracts, issues related to risk and risk bearing in copyright licensing, issues related to market power, issues related to hold-up and essential inputs, and issues related to collective licensing arrangements. The flavour of the article is theoretic, and it is written at a level of upper undergraduate economics courses. It equips the reader with a good knowledge base for understanding the principle issues that are at play as far as copyright licensing is concerned.

Keywords

Licensing Copyright Economics Efficiency 

JEL Codes

D23 D45 D71 D86 
This is a preview of subscription content, log in to check access.

Bibliography

  1. Alonso, J., and R. Watt. 2003. Efficient distribution of copyright income. In The economics of copyright: Developments in research and analysis, ed. W. Gordon and R. Watt. Cheltenham: Edward Elgar.Google Scholar
  2. Amershi, A.H., and J.H.W. Stoeckenius. 1983. The theory of syndicates and linear sharing rules. Econometrica 51 (5): 1407–1416.CrossRefGoogle Scholar
  3. Bakos, Y., and E. Brynjolfsson. 1999. Bundling information goods: Pricing, profits and efficiency. Management Science 45 (12): 1613–1630.CrossRefGoogle Scholar
  4. Bakos, Y., E. Brynjolfsson, and D. Lichtman. 1999. Shared information goods. Journal of Law and Economics 42 (1): 117–156.CrossRefGoogle Scholar
  5. Besen, S., and S. Kirby. 1989. Private copying, appropriability and optimal copying royalties. Journal of Law and Economics 32 (2): 255–280.CrossRefGoogle Scholar
  6. Besen, S., S. Kirby, and S. Salop. 1992. An economic theory of copyright collectives. Virginia Law Review 78: 383–411.CrossRefGoogle Scholar
  7. Caves, R. 2000. Creative industries: Contracts between art and commerce. Cambridge, MA: Harvard University Press.Google Scholar
  8. Gollier, C. 2001. The economics of risk and time. Cambridge, MA: MIT Press.Google Scholar
  9. Hollander, A. 1984. Market structure and performance in intellectual property: The case of copyright collectives. International Journal of Industrial Organization 2 (3): 199–216.CrossRefGoogle Scholar
  10. Muthoo, A. 2006. Bargaining theory and royalty contract negotiations. Review of Economic Research on Copyright Issues 3 (1): 19–27.Google Scholar
  11. Nash, J. 1950. The bargaining problem. Econometrica 18: 155–162.CrossRefGoogle Scholar
  12. Perez-Castrillo, J., and I. Macho-Stadler. 2014. Copyright licensing under asymmetric information. Review of Economic Research on Copyright Issues 11 (2): 1–26.Google Scholar
  13. Pratt, J. 2000. Efficient risk sharing: The last frontier. Management Science 46 (12): 1545–1553.CrossRefGoogle Scholar
  14. Towse, R. 2001. Creativity, incentive and reward: An economic analysis of copyright and culture in the information age. Cheltenham: Edward Elgar.CrossRefGoogle Scholar
  15. Varian, H. 2000. Buying, sharing and renting information goods. Journal of Industrial Economics 48 (4): 473–488.CrossRefGoogle Scholar
  16. Watt, R. 2000. Copyright and economic theory: Friends or foes? Cheltenham: Edward Elgar.Google Scholar
  17. Watt, R. 2006. Licensing and royalty contracts for copyright. Review of Economic Research on Copyright Issues 3 (1): 1–17.Google Scholar
  18. Watt, R. 2011. Revenue sharing as compensation for copyright holders. Review of Economic Research on Copyright Issues 8 (1): 51–97.Google Scholar
  19. Watt, R. 2013. Copyright law and royalty contracts for copyright. In Handbook of the digital creative economy, ed. R. Towse and C. Handke. Cheltenham: Edward Elgar.Google Scholar
  20. Watt, R. 2015. The efficiencies of aggregation: An economic theory perspective on collective management of copyright. Review of Economic Research on Copyright Issues 12 (1/2): 26–45.Google Scholar
  21. Wilson, R. 1968. The theory of syndicates. Econometrica 36: 119–132.CrossRefGoogle Scholar
  22. Woodfield, A. 2006. Piracy accommodation and the optimal timing of royalty payments. Review of Economic Research on Copyright Issues 3 (1): 43–60.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  1. 1.University of CanterburyCanterburyNew Zealand

Section editors and affiliations

  • Robert Picard

There are no affiliations available