Working Paper: NBER ID: w20364
Authors: Joshua S. Gans
Abstract: This paper examines an environment where original content can be remixed by follow-on creators. The modelling innovation is to assume that original content creators and remixers can negotiate over the ‘amount’ of original content that is used by the follow-on creator in the shadow of various rights regimes. The following results are demonstrated. First, traditional copyright protection where the original content creators can block any use of their content provides more incentives for content creators and also more remixing than no copyright protection. This is because that regime incentivises original content creators to consider the value of remixing and permit it in negotiations. Second, fair use can improve on traditional copyright protection in some instances by mitigating potential hold-up of follow-on creators by original content providers. Finally, remix rights can significantly avoid the need for any negotiations over use by granting those rights to follow-on innovators in return for a set compensation regime. However, while these rights are sometimes optimal when the returns to remixing are relatively low, standard copyright protection can afford more opportunities to engage in remixing when remixing returns are relatively high.
Keywords: Copyright; Remix Rights; Fair Use; Creative Works
JEL Codes: O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Traditional copyright protection (O34) | more incentives for content creators (O31) |
| Traditional copyright protection (O34) | more remixing (Y60) |
| Fair use (Y60) | improve on traditional copyright protection (O34) |
| Fair use (Y60) | mitigate potential holdup of follow-on creators (O36) |
| Remix rights (Y60) | reduce need for negotiations over original content (C78) |
| Remix rights (Y60) | grant rights to follow-on innovators (O36) |
| Remix rights (Y60) | create environment conducive to innovation (O36) |
| Traditional copyright protection (O34) | more opportunities for remixing when returns are high (D29) |