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.
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.