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File Sharing and copyright: new report

p2pnet news view P2P:- A year or so ago, Koleman Strumpf told p2pnet he and Felix Oberholzer-Gee were working on another file-sharing paper.

Their earlier report stated file sharing has zero effect on downloads, setting the entertainment industry back on its heels.

Now,  he and Felix have just released a new Harvard Business School working paper called File Sharing and Copyright, and it, “raises some important points about file sharing, copyright, and the net benefits to society,” blogs Michael Geist, continuing »»»

The paper, which includes a helpful survey of the prior economic studies on the impact of file sharing, includes the following:

1.   The data indicates  [sic] that file sharing has not discouraged creativity, as the evidence shows significant increases in cultural production.  The authors note that:

Overall production figures for the creative industries appear to be consistent with this view that file sharing has not discouraged artists and publishers.  While album sales have generally fallen since 2000, the number of albums being created has exploded.  In 2000, 35,516 albums were released.  Seven years later, 79,695 albums (including 25,159 digital albums) were published (Nielsen SoundScan, 2008).  Even if file sharing were the reason that sales have fallen, the new technology does not appear to have exacted a toll on the quantity of music produced. Obviously, it would be nice to adjust output for differences in quality, but we are not aware of any research that has tackled this question.

Similar trends can be seen in other creative industries.  For example, the worldwide number of feature films produced each year has increased from 3,807 in 2003 to 4,989 in 2007 (Screen Digest, 2004 and 2008).  Countries where film piracy is rampant have typically increased production.  This is true in South Korea (80 to 124), India (877 to 1164), and China (140 to 402).  During this period, U.S. feature film production has increased from 459 feature films in 2003 to 590 in 2007 (MPAA, 2007).

Given the increase in artistic production along with the greater public access conclude that “weaker copyright protection, it seems, has benefited society.” This is consistent with the authors’ view that weaker copyright is “uambiguously desirable if it does not lessen the incentives of artists and entertainment companies to produce new works.”

2.    The paper takes on several longstanding myths about the economic effects of file sharing, noting that many downloaded songs do not represent a lost sale, some mashups may increase the market for the original work, and the entertainment industry can still steer consumer attention to particular artists (which results in more sales and downloads).

3.    The authors’ point out that file sharing may not result in reduced incentives to create if the willingness to pay for “complements” increases.  They point to rising income from performances or author speaking tours as obvious examples of income that may be enhanced through file sharing. In particular, they focus on a study that concluded that demands for concerts increased due to file sharing and that concert prices have steadily risen during the file sharing era.  Moreover, the authors’ canvass the literature on the effects of file sharing on music sales, confirming that the “results are decidedly mixed.”

Noting the authors were among the first to, “challenge the early claims about the effects of file sharing,” yYears later, “many other economists have followed suit (including the study funded by Industry Canada),” says Geist, adding:

” This latest paper does a nice job of expanding the discussion, by using the data to examine incentives for creativity and the effects on aggregate creator and industry income.”

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zero effect on downloads – File sharing: zero effect on downloads, February 12, 2007
Michael Geist
– Harvard Study Finds Weaker Copyright Protection Has Benefited Society, June 17, 2009


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18 Responses to “File Sharing and copyright: new report”

  1. Reader's Write Says:

    Nice to have a bonafide study as a remedy to the ‘diarriaa’ version that gets shoved down everone’s throat.

  2. NO1UNO Says:

    “In 2000, 35,516 albums were released. Seven years later, 79,695 albums ”
    And how many of these 79,695 albums released in 2007 had more than one good track?
    Or how many of them were by “artists” that had any talent in the first place (youtube has
    a set of clips of Spear Brittiany without “enhancements”)
    SO GEE, why are their sales down?? I’m not sure I’m smart enough to figure that out!
    Its the same old thing that gets talked up around here on any given day……..
    Make good music, charge a fair price, and let us use it the way we want to,
    and guess what?? WE WILL BUY MUSIC
    Till then, it is what it is!! :)

    stw

  3. Reader's Write Says:

    Trouble is governments wouldn’t know the truth if it fell on them.
    They are just fed crap from the likes of music and the film industry.
    Stopped buying music years ago, now its time to stop buying films and tv series, as well.

    Fuck them all I say.

  4. Jack from Nashville Says:

    I download what I want, and support the few artists that deserve it. The ones that earn it with quality get my loyaty, and money. Hey MAFRIAA, simple American economics, and enterprise, works!

  5. Devil's Advocate Says:

    “diarriaa” shoved down someone’s throat?!
    EWWW! Nasty!!!
    (sick puppy!)
    : )

  6. loubat Says:

    I emailed Jon yesterday recounting my recent experiences with door-to-door evangelists, even though I’ve clearly got a “No Solicitation” sign on my front door. I was wondering if anything existed which I could give the Mormons/Jehovah’s Witnesses/Baptists/Etc in return. Specifically I thought it would be cool if there was a pro-P2P/filesharing, anti-RIAA lies type pamphlet or something.

    This paper would be great!

    Except that it’s 46 pages long, LOL. I guess I could just print one and hand the next group of door-knockers a whole freakin’ book to read! :D

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    W.DVDRip.XviD-NeDiVx
    Welcome to Macintosh.avi
    X-Men.3_Final_Stand.x264.DVD.mkv
    Zack.and.Miri.Make.A.Porno.R5.LINE.XViD-BaLD

    a couple of my movies archived…

  8. loubat Says:

    Actually… looks like my email didn’t go through… isn’t his email jon[at]p2pnet[dot]net?

  9. Devil's Advocate Says:

    @surfer:

    Yeah, but do you have any GOOD ones?
    : )

  10. Devil's Advocate Says:

    @surfer:

    Yeah, but do you have any GOOD ones?
    : )
    Sorry… forgot to say great post – can’t wait to read your next one!

  11. Jon Says:

    Nope – p2pnet @ shaw dot ca

    Cheers!

  12. surfer Says:

    @DA

    star wars in 1080p rocks on the 52″ !

  13. Devil's Advocate Says:

    @Jon:

    I think the spambot’s got a hard-on for me!
    8 S

  14. Devil's Advocate Says:

    @surfer:

    Hmmm.
    Don’t be surprised if the Devil knocks on your door one day!
    : )

  15. Dreddsnik Says:

    ” I think the spambot’s got a hard-on for me! ”

    He’s right jon, another one ….

    The post containing this

    “Sorry… forgot to say great post – can’t wait to read your next one!”

    Has DA’s name linking to a Consumer Grant site,
    which by virtue of it being forced in as spam, I will never
    visit and have everyone I know blacklist it so it won’t get hits.

    I’m thinking that you’re right and it’s not a bot.

  16. Devil's Advocate Says:

    “Has DA’s name linking to a Consumer Grant site”

    The spammed-in link is always a different every time, though.
    You can blacklist one, but I’m sure there’s a rotating list of hundreds more that are positioned to be inserted the same way.

    I’m thinking of compiling a list of all the ones I’ve seen attached to my handle, and seeing if there’s any relationship, such as a common domain registrant. At first glance I’d say I won’t find one, which is why I suspect a process like AdSense or similar is somehow being exploited to insert URLs that point to the same bullshit that AdSense is posting elsewhere…
    - “Get $5,000/WEEK posting on Google!”
    - “Did you know the Government gives away over *40 BILLION DOLLARS* in grants…?”
    - “They deposited $50,000 to my account this month!…”

  17. Jon Says:

    I do my best to nail these spams, but inevitably, I miss one or two.

    Sorry.

    Cheers!

  18. Devil's Advocate Says:

    @Jon:

    I don’t think it’s something you need to apologize for.
    I sincerely doubt a site operator can nail ‘em all in realtime.

    It’s everywhere, thanks to the relentless efforts of corporately-contracted hackers, and all the greedy asshats, with their hands on everything from providers to software companies, that want the exploitation holes open.

    The possible “Google exploit” was something I was considering looking in on a little while back when I asked you about how the Google ad processes interact with your site. (At that time, it was just a casual question I wasn’t really looking for a quick answer on.) Back then, I was talking with Rob Krall about how his OEN site was chock full of questionable “Google” ads (similar BS to what our spam links are pointing to here).

    Though Rob asked for screenshots and replied a few times, he didn’t appear to want to continue the discussion, and the ads continue to appear all over his site to this day. From my vantage point, it’s hard not to assume he’s getting revenue from these ads and is reluctant to look at this practice for what it is. OEN has been screaming “money shortage” for a while now.

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