Property, Liability and Market Power: The Antitrust Side of Copyright
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Antonio Nicita
Abstract
This paper investigates the interplay between copyright law and antitrust law in two distinct respects. We first argue that the origin of copyright seems to be rooted not only in the need to foster the production and the spread of knowledge but also in the necessity of limiting market power on the side of distributors. We then show the potential impact on market competition of the evolution of copyright as a property rule. While property rules reduce transaction costs in the standard case of bilateral monopoly over the exchange of information goods, they might increase transaction costs. When coupled with market power, a property rule enables the right holder to control uses and prices so as to implement entry deterrence strategies against potential competitors. Conversely, we argue that reversing property rules in favor of competitors or switching to liability rules for copyright may restore competitive outcomes. This conclusion brings new insights on the application of the essential facility doctrine to copyrighted works.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Articles in the same Issue
- Article
- New Directions in Copyright Law and Economics
- Evaluating the Demsetzian Trend in Copyright Law
- What Can the Economics of Intellectual Property Learn from the Economics of Insurance?
- Theory of Deterrence and Individual Behavior. Can Lawsuits Control File Sharing on the Internet?
- Copyright Doctrines, Abstraction and Court Error
- The Singer or the Song? Developments in Performers' Rights from the Perspective of a Cultural Economist
- Property, Liability and Market Power: The Antitrust Side of Copyright
- Copyright Infringement, Product Quality and Producer's Profit
Articles in the same Issue
- Article
- New Directions in Copyright Law and Economics
- Evaluating the Demsetzian Trend in Copyright Law
- What Can the Economics of Intellectual Property Learn from the Economics of Insurance?
- Theory of Deterrence and Individual Behavior. Can Lawsuits Control File Sharing on the Internet?
- Copyright Doctrines, Abstraction and Court Error
- The Singer or the Song? Developments in Performers' Rights from the Perspective of a Cultural Economist
- Property, Liability and Market Power: The Antitrust Side of Copyright
- Copyright Infringement, Product Quality and Producer's Profit
