Copyright in the Music Industry by Volker Lehmann

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EUROPEAN MASTER IN LAW AND ECONOMICS MASTER THESIS August 2005 Copyright in the Music Industry „For whom the bell tolls“ By Ass. iur. Volker Lehmann Supervised by Prof. Dr. Pierre Garello Prof. Dr. Ben Depoorter CONTENTS I. II. Introduction The current dilemma 1. Pirates v. Business 2. Constraints of Copyright and its Enforcement 3. Uncertainty 4. Summing up III. The Notion of Copyright and its Economic Aspects 1. Basic foundations 2. Economic Rationale of Copyright 3. Major Economic Impacts of Copyright Laws a. Monopoly Costs of Copyright aa. Primary Monopoly Costs (DWL) bb.Secondary Monopoly Costs b. Transaction Costs i. Lack of a Central Registry ii. Long Copyright Terms c. Résumé IV. Adjustments of Current Copyright Laws 1. Optimizing Copyright Enforcement 2. Changing the length of copyright a. Finding the Optimal Copyright term b. Renewable Copyright Terms c. Concluding Remarks 3. Changing the Scope of Copyright Laws a. Alternative Compensation Model b. Creative Commons or let the artist decide aa. the licence bb.the code cc. The Registry and the Logo dd.Concluding Remarks V. Towards a “no rights reserved” 2 1. Copyright has little – if any – impact on the incentives for creating music 2. Concluding remarks VI. VII. Current Copyright Developments Conclusions 1. Short Run 2. Long Run VIII. IX. X. XI. Afterword References Authorship Declaration Appendix 3 OMNIS ENIM RES, QUAE DANDO NON DEFICIT, DUM HABETUR ET NON DATUR, NONDUM HABETUR, QUOMODO HABENDA EST1. Aurelius Augustinus (354-430) I. Introduction Copyright protection in the media and especially in the music industry is a widely discussed topic since several years. In fact new technologies based on Internet changed the situation for the classic business model of the music labels dramatically. CDs become more and more superfluous with the advent of digital media

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