Posts Tagged ‘music’

De-linking intellectual property from exclusive rights

Wednesday, November 9th, 2011

The videocast of the 3rd Annual Francis Gurry Lecture is now available:

De-linking intellectual property from exclusive rights

by James Love, Director, Knowledge Ecology Limited. The blurb says:

The traditional justification for IP rights-atemporary monopoly to stimulate innovation and inverstment-is increasingly being questioned. If knowledge is more valuable when widely shared, and if freedom to use knowledge is socially and economically important, we need to de-link intellectual property protection from exclusive rights. But how?

I personally found the Q & A session helped crystallise what Mr Love was arguing. Very thought-provoking.

Apparently, the written paper will provide more explanation and amplification in due course. In the meantime, you may get an understanding of how Mr Love’s proposals could work in a pharmaceutical context here and here

Lid dip: Andrew Christie

How much to pay for a music download?

Tuesday, May 25th, 2010

The Canadian Federal Court of Appeal has ruled that no royalty is payable for downloads (should that be “streaming”?) of those 30 second previews of music. Apparently, it falls with the fair dealing provisions for “research”. The “1709” blog has the story.

Meanwhile, last year, the Australian Copyright Tribunal accepted that music download services such as iTunes, Bigpond Music, Sony and Universal should pay composers a royalty of:

  • the higher of 9% of retail price or 9 cents per track, for music downloads; and
  • the higher of 8% of retail price or 8 cents per track,

for single track downloads. There is a sliding scale for the track rates where an album, rather than a single track, is downloaded.

As the price on iTunes is typically $1.69 per “song”, I guess the % rate will usually apply for single track downloads.

(This is just what the composers get paid for the transmission and reproduction on the ‘buyer’s’ computer; not what the record companies or performers (will) get.

The composers’ collecting societies, APRA and AMCOS, had started out trying to get 12% but, in the end, the monopolies and the monopsonistic buyer(s) wound up reaching agreement. Even the ACCC, after some twisting and turning seems to have gone along with the deal, perhaps in recognition of the fact that the Copyright Act specifically gives the Copyright Tribunal power to fix these rates.

By way of comparison, the Copyright Tribunal reported that the corresponding rates were:

• United Kingdom – 8%.
• Canada – 11%.
• United States – 9.1 cents.
The rate in the United States is a fixed monetary rate. The vast majority of single track downloads in the United States at present are supplied at a price of 99 cents per download. Thus the monetary rate is equivalent to 9.1% of the sale price.

Australasian Performing Right Association Limited and Australasian Mechanical Copyright Owners Society Limited [2009] ACopyT 2

Harvard Bus School on the impact of file sharing

Monday, June 22nd, 2009

Felix Oberholzer-Gee at Harvard and Koleman Strauss at Uni. of Kansas take an empirical look at the effect of file sharing on copyright industries.

They accept that file sharing has weakened copyright protection (although they are quite sceptical about the studies trying to prove this). They argue this is only part of the question, however, for policy-makers. They contend that, if the role of copyright is to provide incentives to create new works, it is necessary to look rather more widely.

For example, they note:

  • the publishing of new books increased by 66%
  • the number of new albums released more than doubled;
  • the number of feature films produced has increased by 30%,

in the early years of the 21st century.

They also note that revenues from concert sales and merchandising and the like has also increased.

Exploring this, their tentative conclusion for policymakers:

The role of complements makes it necessary to adopt a broad view of markets
when considering the impact of file sharing on the creative industries. Unfortunately, the
popular press – and a good number of policy experts – often evaluate file sharing looking
at a single product market. Analyzing trends in CD sales, for example, they conclude that
piracy has wrecked havoc on the music business. This view confuses value creation and
value capture. Record companies may find it more difficult to profitably sell CDs, but
the broader industry is in a far better position. In fact, it is easy to make an argument that
the business has grown considerably.

The role of complements makes it necessary to adopt a broad view of markets when considering the impact of file sharing on the creative industries. Unfortunately, the popular press – and a good number of policy experts – often evaluate file sharing looking at a single product market. Analyzing trends in CD sales, for example, they conclude that piracy has wrecked havoc on the music business. This view confuses value creation and value capture. Record companies may find it more difficult to profitably sell CDs, but the broader industry is in a far better position. In fact, it is easy to make an argument that the business has grown considerably.

Download the pdf here.

Lid dip Joshua Gans

YouTube and IP

Saturday, December 20th, 2008

Indications are that Universal Music is now making “tens of millions of dollars” from the use of its music on YouTube.

Slightly different outcome to the apparently stalled Viacom approach to social networking sites?

Concurrently, there are newspaper reports that the RIAA, famously suing grandparents and 12 years olds, may be changing its litigation strategy.

Howard Knopf worries that this might be because “sweet heart” deals are being reached with ISPs. Anyone want to sue, say, iiNet?

The sky is falling

Sunday, August 17th, 2008

with apologies to Chief Vitalstatistix:

ARIA’s half year figures for 2008 show that sales of recorded music are still falling – down 4% on the corresponding period last year.

But guess what, the decline in sales of physical copies is almost all set off by the rise in digital sales: 12 million digital tracks up from 8 million for the 6 month period last year.  

According to ARIA:

“… figures which demonstrate the beginning of a remarkable transition to a whole new economy that is still only in its infancy.”

Perhaps in a sign of gloom for music industry executives, a lot of these downloads were single tracks rather than albums, but digital albums still increased by 55%.

ARIA press release here; full stats here.