Copying and Copyright
Hal R. Varian
School of Information Management and Systems
Haas School of Business
Department of Economics
University of California, Berkeley
April 2004
Revised: March 29, 2005
Today most newly created textual, photographic, audio, and video content is available in
digital form. Even older content that was not "born digital" can relatively easily
converted to machine-readable formats. At same time, the world has become more
networked, making it easy to transfer digital content from one person to another. The
combination of technological progress in both digitization and computer networking has
been a challenge for traditional ways of managing intellectual property. Some observers
have even questioned whether current models for intellectual property can or should
survive in a digital world.
For example, there is widespread concern about piracy of popular music and film, both
via the network and via bootleg CDs and DVDs. There is also concern about the
economic viability of the current model for scholarly publication, or, for that matter
traditional forms of publishing such as newspapers and TV network news.
These developments have led to a revival of interest in the economics of copying and
copyright.1 In this brief review we examine some of the economic issues in this area, and
describe some of the insights that have emerged from this work. We end with some
reflections on alternative business models for provision of creative works.
A brief history of copyright
The origins of copyright date back to seventeenth century England. Prior to the invention
of the printing press in the late fifteenth century, the English royalty controlled
information dissemination by punishing ...