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The Empirical Case for Copyright

From within the libertarian camp, one of the stronger anti-copyright arguments is the point that it is hard to prove empirically that copyright in fact fosters creativity, especially as compared to some of the alternatives to copyright. How does one go about showing that in the absence of copyright, there would be fewer created works or fewer quality created works or a lesser range of types of created works? To show this conclusively, one would need to know what would have happened in the absence of a market. For the same reason, though, it is hard to show that copyright (or related laws) do any harm; one would need to know what would have happened in the the absence of copyright.


This difficulty of proving the empirical case one way or the other seems at first to by symmetrical. It is and it isn’t. If one starts with a general preference for free markets, the burden of proof is on anyone who wants to depart from free-market arrangements for things. Which way does this cut? Many libertarians tend to be heavy on beliefs about what a free market must be–a preference for concrete physical property and for rules derived from a state of nature–and for this subset copyright looks like a departure from that. For them, then, the problem of empirical proof is not symmetrical. The burden of proof is on the pro-copyright side; the only arguments that need be made about copyright are skeptical ones. No positive case for the workability of alternatives need be made. So I reasoned some years ago.

For this approach, though, reality is constantly throwing up red flags. Here is a large, waving flag right in our faces: That is the failure of “alternatives business models” to emerge except as experiments or exceptions. Suppose one dismisses the established “content industry” (hardly a homogeneous entity) as incompetent–surely a stretch. Let’s go outside their established territory to the developing world.

People of poorer nations have proven themselves astoundingly inventive when it comes to working around institutions that Westerners tend to believe are essential. Take Guatemala, for example. The public post office is dis-functional, so what has evolved is a remarkable network of private couriers, neatly disproving the case that universal postal service requires government funding. What we “ought” to see in developing countries, therefore, if copyright is really not necessary, is flourishing alternatives to copyright.

But we don’t. Instead we see filmmakers from Korea and China and musicians in Ghana, Mexico, and Uganda asking for the meaningful enforcement of traditional copyright. Within the confines of their more traditional culture, they could exclude free riders (sometimes using methods more cumbersome than any experiment in DRM–for example, at a country dance with live music I once attended in Mexico, ladies could dance for free–but any man had to pay and wear a conspicuous tag on his pocket–patrols circulated constantly and ejected untagged menfolk and enforced a wide “no trespassing” zone between dancers and onlookers to prevent free riders from sneaking in through the crowd). But in the new digital environment, the scope and scale of free-riding is such that they cannot support movement into a digital environment, global markets, and electronic recordings. If there were some really good alternatives, I suspect we will first see them in this inventive environment. So far, nothing. This gap makes a solid case for the view that copyright with meaningful enforcement is needed after all.

Where do the libertarian copy-skeptics go wrong? Perhaps the initial assumptions that even advanced economies can have only physical property and that our concept of justice must always refer back to standards appropriate to a state of nature. One may remain dedicated to free markets without claiming the need or ability to know in advance (given the difficulty of some of the philosophical and technological problems, and the complexity of the business and economic factors) what exact configuration the ground rules that support those markets need to take. Once one accepts that markets can and do adapt differently to different levels of economic and technological development, the assumption that most legal ground rules should be consistent with open markets cuts in favor of copyright, not against it.

Not that this is the end of the argument, of course. No knowing who reality will turn on next…

June 19, 2007 | Comments |

  • What we “ought” to see in developing countries, therefore, if copyright is really not necessary, is flourishing alternatives to copyright.

    But we don’t. Instead we see filmmakers from Korea and China and musicians in Ghana, Mexico, and Uganda asking for the meaningful enforcement of traditional copyright.


    This seems like a non-sequitur to me. The fact that people are asking for a policy that benefits themselves doesn't prove that policy is necessary. Certainly we don't consider it an argument for farm subsidies that a lot of farmers are asking for them. The question isn't whether filmmakers and musicians want copyright protection—everyone wants legal protection from competition—it's whether those filmmakers and musicians would produce more or fewer movies and songs under a different legal regime.

    I don't really understand why we'd look to third-world cultures for examples. Information goods—especially frivolous entertainment—are relatively less important to an economy that's still struggling to fulfill the basic needs of their people. Such an economy isn't going to be able to support a significant number of musicians or filmmakers (at least compared to the support available in the United States) under any conceivable legal regime simply because movies and music are luxury goods, and poor countries can afford fewer of them.

    Wouldn't it make more sense to look at rich countries, which do exhibit at least some examples of creativity that doesn't rely on copyright? The blogosphere, Wikipedia, the free software movement, and a lot of up-and-coming musicians appear to be waiving their rights under copyright and encouraging wide distribution of their creative works. If one wanted to make a case against copyright (which I don't) isn't that where one would look?
  • Tim Lee said exactly what I was intending to, right down to the comparison with farmers everywhere always demanding subsidies.

    So I'll just note one of the ways this argument is biased in favor of copyright. At any given time, the burdens of expanding the scope/length of copyright will disproportionately fall on later generations of artists, so long as--a reasonable assumption--the current generation's own inputs tend to draw more from unprotected sources than their progeny will. This parallels the great deal that the first generation of social security recipients got; this first generation is precisely the group we should least listen to.

    This whole line of thinking--"the market relies heavily on copyright, so libertarians who argue against it are trying to substitute their a priori reasoning for the distributed knowledge of the market!"--is simply misguided. Market efficiency is always only relative to the initial distribution of resources, which crucially includes legal privileges such as copyright. When given such privileges, *of course* people will use them, and *of course* they'll ask for them if they think it will do any good.
  • Tim's answer covers the bases, so there's no need to repeat all of his excellent points... but I also think Solveig is missing out on tons of other examples of business models that ignore copyright emerging. One area to look is China. With "piracy" rampant, the music industry there has evolved in very interesting ways to create new business models that don't rely on copyright. So, even if we accept Solveig's thesis, it would suggest that she's wrong. Alternatives do present themselves.
  • Tim's reply says it all, but "alternative business models" is a pet peeve of mine, so...

    That is the failure of “alternatives business models” to emerge except as experiments or exceptions.


    Most touted "alternative business models" are irrelevant -- they attempt to figure out how to still directly pay creators for their copyable creations. In some cases looking for business models is wrongheaded -- many will create for zero financial gain or even pay to create. In others the "business model" is not "alternative" at all, it just doesn't involve paying for copies. Personal appearance payments have, are, and will constitute the primary earnings of many artists, including in some of the countries mentioned.
  • CodeMonkeySteve
    Well, Tim and the Mikes already made 90% of my point (thanks guys), but I would like to add one thing:



    If we're surveying the content producers of the world in an attempt to judge the validity of strong copyright protection, shouldn't we also consider the opinion of all the content consumers? If we consider every act of copyright infringement as a vote against strong copyright protection, well, there's really no contest. For every litigious rock star there are a million torrent-wielding listeners.



    If the only reason we allow a state-granted monopoly is for the benefit the public, and the public widely rejects it, does that make copyright obsolete? Can society just opt-out?

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