[Politech] What's so bad about extending copyrights? Economists weigh in [ip]

From: Declan McCullagh (declan@private)
Date: Wed Feb 18 2004 - 21:18:57 PST

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    This appears to be the 17-person amicus brief in question:
    http://eon.law.harvard.edu/openlaw/eldredvashcroft/supct/amici/economists.pdf
    
    -Declan
    
    ---
    
    http://www.aei-brookings.org/publications/abstract.php?pid=421
    Seventeen Famous Economists Weigh in on Copyright: The Role of Theory, 
    Empirics, and Network Effects
    Stan Liebowitz, Stephen Margolis. Related Publication 04-01. Jan 2004.
    
    View PDF
    Downloads: 112
    
    
    The case of Eldred v. Ashcroft, which sought to have the Copyright Term 
    Extension Act (CTEA, aka Sonny Bono Copyright Act) declared 
    unconstitutional, was recently decided by the Supreme Court. A remarkable 
    group of seventeen economists including five Noble laureates, representing 
    a wide spectrum of opinion in economics, submitted an amicus curie brief in 
    support of Eldred. The economists condemned CTEA on the grounds that the 
    revenues earned during the extension are so heavily discounted that they 
    have almost no value, while the extended protection of aged works creates 
    immediate monopoly deadweight losses and increases the costs of creating 
    new derivative works.
    
    More important, we believe, than the particulars of this case, is the 
    articulation of the economic issues involved in copyright extension. These 
    issues are not fully developed in the brief, nor is the case as one sided 
    as the Eldred economists claimed. First, private ownership of creative 
    works may internalize potentially important externalities with respect to 
    the use of existing works and the creation of derivative works. Second, the 
    Eldred economists neglect the elasticity of the supply of creative works in 
    their analysis, focusing instead solely on the benefits received by 
    authors. Consequently, they may underestimate the potential for additional 
    creativity, which confers benefits immediately. Third, the Eldred 
    economists neglect certain features of copyright law, such as fair use, the 
    distinction between idea and expression, and the parody exemption, which 
    mitigate the costs of copyright. Finally, we present data that counters a 
    common claim that copyright extension so far out in the future can have 
    little effect on creativity. The small fraction of books that have the 
    majority of commercial value when they are new appear to remain valuable 
    for periods of time that are consistent with the expanded term of copyright 
    under CTEA.
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