nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒07‒11
five papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Innovation and Employment in Patenting Firms: Empirical Evidence from Europe By Van Roy, Vincent; Vertesy, Daniel; Vivarelli, Marco
  2. Online Copyright Enforcement, Consumer Behavior, and Market Structure By Luis Aguiar; Jorg Claussen; Christian Peukert
  3. Revenue, New Products, and the Evolution of Music Quality since Napster By Luis Aguiar; Joel Waldfogel
  4. Developments in Promotion Strategies Review on Psychological Streams of Consumers By Alam Kazmi, Syed Hasnain
  5. Language, copyright and geographic segmentation in the EU Digital Single Market for music and film By Estrella Gomez Herrera; Bertin Martens

  1. By: Van Roy, Vincent (European Commission, Joint Research Centre); Vertesy, Daniel (European Commission, Joint Research Centre); Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: This paper explores the possible job creation effect of innovation activity. We analyze a unique panel dataset covering almost 20,000 patenting firms from Europe over the period 2003-2012. The main outcome from the proposed GMM-SYS estimations is the labour-friendly nature of innovation, which we measure in terms of forward-citation weighted patents. However, this positive impact of innovation is statistically significant only for firms in the high-tech manufacturing sectors, while not significant in low-tech manufacturing and services.
    Keywords: technological change, innovation, patents, employment, GMM-SYS
    JEL: O31 O33
    Date: 2015–06
  2. By: Luis Aguiar (European Commission - JRC - IPTS); Jorg Claussen (Copenhagen Business School); Christian Peukert (University of Zurich)
    Abstract: Taking down copyright-infringing websites is a way to reduce consumption of pirated media content and increase licensed consumption. We analyze the consequences of the shutdown of the most popular German video streaming website - - in June 2011. Using individual-level clickstream data, we find that the shutdown led to significant but short-lived declines in piracy levels. The existence of alternative sources of unlicensed consumption, coupled with the rapid emergence of new platforms, led the streaming piracy market to quickly recover from the intervention and to limited substitution into licensed consumption. Our results therefore present evidence of a high elasticity of supply in the online movie piracy market, together with relatively low switching costs for users of copyright infringing platforms. The fact that the post-shutdown market structure was much more fragmented - and therefore more resistant to future interventions - further questions the effectiveness of the intervention.
    Keywords: Anti-Piracy Intervention, Copyright, Movie Industry, Natural Experiment
    JEL: K42 L82 O34 O38
    Date: 2015–01
  3. By: Luis Aguiar (European Commission - JRC - IPTS); Joel Waldfogel (University of Minnesota - Carlson School of Management)
    Abstract: Recorded music revenue has fallen sharply since the appearance of the first digital sharing technology (Napster) in 1999. By 2012, it was down by about 70 percent in North America and Europe compared to 1999. Several factors may have contributed to this decline in revenue, including the change from physical CD formats to digital downloading and widespread file sharing. The fall in revenue raises a serious question about the viability of continued investment in new recorded music products, but it is not by itself the only question of interest for public policy. The purpose of copyright is precisely to protect investment in new artwork and give artists and producers a financial incentive to invest in new recordings. If that incentive is no longer strong enough to ensure a steady stream of new high-quality products, there may be a need for policy makers to intervene to reinforce copyright protection in music. From this perspective, the correct barometer for the health of the copyright system is whether creators bring forth valuable new products. The paper investigates the impact of recent technological change - that on may collectively term \digitization" - on the quantity and quality of music products produced in North America and 15 European countries. The number of new works has risen significantly since 2000; but the number of new products is a poor indicator of the value that society derives from music given the skew in sales distributions. Instead, one should take into account the evolution of the quality of new music products as well. The evolution of vintage quality can be inferred from consumption data by year and by vintage. In any given year, older music tends (on average) to sell less due to depreciation. Given data on sales by vintage for multiple calendar years, one can ask whether different vintages sell more or less than others, after accounting for depreciation. Using this approach on fragmentary sales data for the US only, Waldfogel (2012) found that the quality of music in the eyes of US consumers has grown sharply since Napster.
    Keywords: recorded music sales, digitization, internet, quality of music
    Date: 2015–03
  4. By: Alam Kazmi, Syed Hasnain
    Abstract: Theoretical decision-making models and theories in context to promotions at both brand and product level have focused and studied on several thought-provoking research explorations with three steams of research in promotion strategies. Researchers have studied the impact of price promotion strategies on consumers in several distant behaviors. Developmental theoretical models provide managers and researchers insights with deep understandings for many vital concerns like, why need in-depth study to the practice of promotion strategies, dilemmas like stock pressure, sales promoting decline after promotion events and its consequences. Branding and pricing have vital influence on decisions by consumers. Psychophysiological models are useful in the context, for instance, in decision and media research. Many theoretical researches in promotions have focused its aspects on pricing and its impact on consumer decision making. This is might because much of the literature has focused on building and evaluating price promotion strategies. This paper provides an indepth review on theoretical models, which are valuable for both researchers and for marketing executives.
    Keywords: decision-making models, promotion strategies, theory, consumer, brand, sales promotion
    JEL: C90 M1 M31
    Date: 2015–05–31
  5. By: Estrella Gomez Herrera (European Commission – JRC - IPTS); Bertin Martens (European Commission – JRC - IPTS)
    Abstract: The EU seeks to create a seamless online Digital Single Market for media products such as digital music and film. The territoriality of the copyright regime is often perceived as an obstacle that induces geographical segmentation. This paper provides empirical evidence on the extent of market segmentation in the EU on the supply and demand side and measures the contribution of several drivers of this market segmentation. We use data from the Apple iTunes country stores in 27 EU Member States to measure geographical market segmentation in supply (availability), demand (sales) and prices across the EU for downloadable digital music and film. We find that availability of EU media products across country stores in the EU is close to 80% for music and 40% for films but only 27% for EU-produced films. Recent industry initiatives to reduce the transaction costs of making digital music available across borders result in a reasonably wide availability though still short of the 100% mark. Vertical agreements in the supply chain of films remain an obstacle for wider availability of digital films. Consumer preference variables such as cultural proximity, a shared language or border and inherent preferences for home market products are the main drivers for the observed geographical market segmentation in supply and demand patterns. Supply side factors including copyright-related trade costs probably still play a role though we can only infer this indirectly in the absence of data on copyright licensing arrangements at product level. Commercial strategies in general and competition-restricting territorial agreements in film distribution in particular will also reduce availability. We also find evidence of price differentiation across iTunes EU country stores, correlated with overall country price levels.
    Keywords: digital music, online trade, music downloads, trade in cultural products, gravity model, cultural diversity
    JEL: F15 O52
    Date: 2015–04

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