This chapter discusses essential elements of an economic analysis regarding the socio-economic implications of intellectual property. The aim is to help scholars from various disciplines interested in the economic reasoning behind IP for creative industries to recognize logically consistent and well-rounded assessments or to develop them themselves. The chapter covers: (1) a general introduction to the economic perspective on IP; (2) the application of economic theory to address the implications of unauthorized use and copyright protection; (3) empirical evidence on the effects of copyright protection on rights holder revenues and innovation as well as alternatives to copyright to help finance creativity; (4) key topics in the relatively extensive economic literature on patents and how it may inform research on IP in creative industries. It also (5) points out new issues regarding IP in creative industries in the context of digitization.
Edited by Ruth Towse and Christian Handke
Christian Handke and Erwin Dekker
Christian Handke, Paul Stepan and Ruth Towse
Cultural economics is concerned with the supply, demand and markets for creative goods and services. As suppliers of information goods and services, the arts, heritage organizations and cultural industries are greatly involved in the changes accompanying the diffusion of ever-new Internet-based services and digitization. Much Internet traffic consists of reproducible cultural works, such as music recordings and movies. Moreover, the Internet has had an impact on cultural services that require ‘live’ participation. Accordingly, this chapter addresses changes in the production, consumption and distribution of the output of the cultural sector due to the Internet.