Toward an Ecology of Intellectual Property: Lessons from Environmental Economics for Valuing Copyright\u27s Commons

The fair use defense in copyright law shields an intellectual commons of protected uses of copyrighted material from infringement actions. In determining whether a given use is fair, courts must assess the new use\u27s potential effect on the market for the copyrighted work. Fair use jurisprudence too often fails to address the complementary, network, and long-range effects of new technologies on the market for copyrighted works. These effects parallel the indirect, direct, and option values of biodiversity recently recognized by environmental economists. Their sophisticated methods for valuing natural resources in tangible commons can inform legal efforts to address the intellectual commons\u27 effect on the market for copyrighted works

Embedded Advertising and the Venture Consumer

Embedded advertising—marketing that promotes brands from within entertainment content—is a thriving, rapidly changing practice. Analysts estimate that embedded advertising expenditures will exceed $10 billion in 2010. The market continues to grow even as traditional advertising revenues contract. The relatively few legal scholars who have studied embedded advertising believe that it is under-regulated. Ineffective regulation, they claim, is deeply troubling because corporations may, with legal impunity, deceptively pitch products to trusting viewers. Critics charge that embedded advertising creates hyper-commercialism, distorts consumers\u27 tastes, taints the artistic process, and erodes faith in public discourse. This Article argues that the critics are wrong. Sponsorship disclosure law under the Communications Act of 1934 and related regulations is indeed largely ineffective, in part because the media industry has consolidated considerably and in part because the drafters could not imagine the diverse ways we create and consume media content in the twenty-first century. Congress conceived the law not only for yesterday\u27s marketplace, but also for yesterday\u27s consumer. The media consumer today is a venture consumer. Often, she knows what she wants, knows where to get it, and is aware of the risks and costs involved. The mismatch between regulators\u27 imagined consumer and the contemporary consumer means that expanded regulation of embedded advertising according to current reform proposals could end up harming consumers more than helping them. Moreover, embedded advertising is not especially amenable to effective regulation, given the incentives for artists and advertisers to collaborate in the production of entertainment content. In light of both the difficulty of correcting the regime\u27s flaws and the consumer interests threatened by expanded regulation, this Article concludes that maintaining the law as-is—rather than expanding it through the proposed reforms—better serves the consumer

The Economics of Internet Media

We survey the economics literature on media as it applies to the Internet. The Internet is an important driver behind media convergence and connects information and communication technologies. While new Internet media share some properties with traditional media, several novel features have appeared: On the content side, aggregation by third parties that have no editorial policy and user-generated content have become increasingly important. On the advertiser side, fine-tuned tailoring and targeting of ads based on individual user characteristics are common features on many Internet media and social networks. On the user side, we observe increased possibilities of time-shifting, multi-homing, and active search. These changes have gone hand-in-hand with new players entering media markets, including search engines and Internet service providers. Some of these players face novel strategic considerations, such as how to present search results. In response to these changes, an emerging economics literature focuses on the allocative and welfare implications of this new media landscape. This paper is an attempt to organize these contributions and provide a selective account of novel economic mechanisms that shape market outcomes of Internet media. A large body of work has focused on the advertising part of the industry, while some studies also look at content provision and the interaction between the two

Pre-approval of Prescription Drug Advertisements in the Shadow of Central Hudson

The article examines the effects of prescription drug advertising on patients and physicians, and explains how a requirement of pre-approval by the FDA for prescription drug advertisements could eliminate many of the problems such advertisements create, without limiting the benefits of advertising or violating the First Amendment of the U.S. Constitution

Social Media and the Press

The Internet and social media are transforming news as we knew it, yet the precise consequences of these changes are not yet clear. Journalists now rely on Twitter, crowdsourcing is available through social media, facts and stories are googled, traditional print newspapers have websites and reporter blogs, open newsrooms invite community participation in the editorial process itself, video from citizen journalists is commonly used in mainstream media storytelling, bloggers consider themselves journalists, and media consolidation marries entities like AOL and the Huffington Post. In turn, changes in the news-access practices of readers are increasingly influencing the length, breadth, and subjects of reporting, whether online or in print. While recognizing the reality of the many positive changes facilitated by social media-including the potential for an Internet-mediated renaissance of public engagement with news-this Article explores some particular challenges posed for the democratic press by the new reality of social media