Revenue Sharing as Compensation for Copyright Holders

Richard Watt ()

ICER Working Papers from ICER - International Centre for Economic Research

Abstract: In the vast majority of the literature on the economics of copyright royalties, it is assumed that the copyright holder is remunerated either by a fixed payment or by a payment that amounts to an additional marginal cost to the user, or both. However, in some significant instances in the real-world, copyright holders are constrained to a compensation scheme that involves revenue sharing. That is, the copyright holder takes as remuneration a part of the user’s revenue. In essence, the remuneration is set as a tax on the user’s revenue. This paper analyses such remuneration mechanisms, establishing and analysing the optimal tax rate, and also the Nash equilibrium tax rate that would emerge from a fair and unconstrained bargaining problem. The second option provids a rate that may be useful for regulatory authorities.

Pages: 33 pages
Date: 2010-10
New Economics Papers: this item is included in nep-ipr and nep-pr~
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:icr:wpicer:23-2010

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