The issue of intellectual property - copyright in particular - is a central issue that has the potential to divide creative industries practitioners, policy makers and researchers. This chapter analyses the interaction between subsidies and copyright using the European film industry as a case in point. There is evidence to suggest that incentives deriving from copyright are completely or partially cancelled out by the incentives given by subsidies. This is a study from a welfare economic perspective of the potential for welfare losses as well as gains from copyright’s interaction with other state support for copyright-based creative industries. As such, it highlights the theme raised in the Introduction of the parlous state of debate about intellectual property policy in the creative industries.
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