The Levitation of Copyright: An Economic View of Digital Home Copying, Levies and Drm
12 Pages Posted: 3 Apr 2005
Date Written: July 2004
Abstract
Many European countries introduced a levy scheme in order to compensate rightholders for the losses suffered through home copying. The Copyright Directive of 2001, however, appears to require them to abolish levy schemes as regards private copying that can technologically be controlled by way of DRM systems. This contribution assesses the merits of this approach, mainly from an economic point of view. Is direct control over private copying preferable to a levy scheme? It is concluded that economic theory cannot provide a clear-cut answer to this question. Arguments can be made both in favor and against maintaining the levy system.
Keywords: copyright, levies, economics, private copying, DRM, technological measures, liability rules
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