DeCSS, crypto, law, and economics

Birger Toedtmann birger at takatukaland.de
Thu Jan 9 10:17:23 EST 2003


David Turner schrieb am Wed, Jan 08, 2003 at 01:29:39PM -0500:
> On Wed, 2003-01-08 at 05:50, Pete Chown wrote:
> 
> > With DVDs we have a complex situation.  Supposedly studios can make more 
> > per film, so they can afford to make more marginal films. 
> 
> To make films which will not make money is not an economically rational
> action even if one is making other films which do make money. This is
> the point the 17 economists made in their Eldred amicus.  

It depends.  In not-so-simple-scenarios, one may use it on behalf of
PR (attracting people to one's product portfolio) or bind a promising
new director who will later create a big profit-making film.  Studios
and publishers use the latter quite frequently I guess.

If a product is definitely beyond any profit, it won't get produced
by market forces, thus resulting in a pure common good.  Society may
then agree upon whether it wants that good to be produced anyway,
paying it with taxes, presumably.  You can see this with theatre,
arts, opera etc.  This is "economically rational" as well but works
outside markets only.  Don't mix rationality and market forces.


[ The same applies to goods where a producer is not able to discriminate
  usage.  If he cannot prevent some people (e.g. those who have not
  paid) to use his product, nobody would pay for it, everyone would
  freeride.  A common example is the ordinary lamp post:  How can I 
  prevent someone using its light?  As a consequence, market forces
  won't provide the public with street light, so it (the public) had
  to agree to pay taxes such that the community could set up the lamps.

  From an economic point of view, excessive copying could result into
  a situation where music/films become common goods because no one
  is able to prevent others from using it.  Exit Labels/Studios/Publish-
  ers.
 
  (Just to summarize the very obvious, excuses.) ]


Regards,

Birger Tödtmann
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