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Lost in the Clouds: The Impact of Copyright Scope on Investment in Cloud Computing Ventures

By Chris Borek, Laurits R. Christensen, Peter Hess, Josh Lerner and Greg Rafert


Our analysis seeks to understand the impact of changes in copyright scope on investment in new firms. We begin by analyzing the investment effects of the Cartoon Network, et al. v. Cablevision decision in the U.S. and court rulings in France and Germany on venture capital (VC) investment in U.S. cloud computing firms relative to the EU. Then, we separately analyze the effects of the French and German court rulings on VC investment on cloud computing firms in these countries. Our findings suggest that decisions around the scope of copyrights can have economically and statistically significant impacts on investment and innovation. 1

Year: 2013
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