The Case for CAPSL: Architectural Solutions to Licensing and Distribution in Emerging Music Markets

Compulsory licensing in music has paved the way for a limited class of new noninteractive services. However, innovation and competition are stifled in the field of interactive or otherwise novel services due to high transaction costs inherent in direct licensing. While the creation of a new compulsory license available to a wider array of services may facilitate growth and diversity in new markets, it is unlikely that the legislative process can deliver a new compulsory regime in time to serve relevant interests. Furthermore, the risk exists that legislation written in response to contemporary technology will likely fail to recognize the diversity within the music industry, and therefore will underserve both artists and potential licensees. As such, this brief argues for the creation and adoption of a new standardized protocol for artists and labels to announce the availability of new content with attached standardized licensing terms for automated integration into the catalogs of new or existing digital music services. Such a protocol would allow for automated systems of pricing, distribution, and tracking to reduce transaction costs, increase market transparency, and commodify user participation

Chinese Experience with Global G3 Standard-Setting

China’s growth strategy as set out in the 11th 5-year plan in 2005 called for upgrading of product quality, the development of an innovation society, and reduced reliance on foreign intellectual property with high license fees. Consistent with this policy, China has been involved in recent years with the development of a Chinese standard in third generation (3G) mobile phone technology, both in negotiating the standard and seeing it through to commercialization. This is the first case of a developing country both originating and successfully negotiating a telecommunications standard and this experience raises issues for China’s future development strategy based on product and process upgrading in manufacturing. We argue that while precedent setting from an international negotiating point of view, the experience has thus far is unproven commercially. But the lessons learned will benefit future related efforts in follow-on technologies if similar Chinese efforts are made.This paper documents Chinese standard-setting efforts from proposal submission to ITU to the current large-scale trial network deployment in China and overseas trial networks deployment. We discuss the underlying objectives for this initiative, evaluate its effectiveness, and assess its broader implications for Chinese development policy.

Dynamic strategies of patent licensing for Latecomer Firms under the constraint of technology gap and cost advantage

Since China's reform and opening up, along with the continuous improvement of China's patent system, Huawei and other Chinese companies, as latecomer firms, have gone through a development process of technology introduction, technology imitation, imitation innovation, independent innovation, and open innovation. In this process, Chinese companies are charged high royalty fees. As their technological capabilities develop and cost advantages weaken, patent licensing renegotiations are initiated, all of which deserves careful review, especially the strategies adopted to reduce royalty fees. The thesis adopts the mathematical model construction and derivation method based on game theory. A patent hold-up model based on the technology gap and cost advantages is then constructed to analyze the dynamic impact of gaps in technological capabilities and cost advantages on patent hold-up. The thesis further verifies the above theoretical research conclusions through empirical analysis and the case study. For example, the technology gap and cost advantages of the latecomer firms are analyzed at two points of time, namely, “ten years ago” and “the recent three years”. One of the important conclusions is that compared with ten years ago, in the recent three years, as the cost advantages of latecomer firms weaken and their technology gap with foreign leading companies narrows, the severity of hold-up encountered by latecomer firms has not mitigated, which demonstrates to some extent that in the case of reduced technology gap and weakened cost advantage, latecomer firms must adopt corresponding strategies to reinitiate negotiations with foreign leading companies in order to obtain lower royalty rates. As a conclusion, the thesis proposes ways to achieve technological progress and patent-holdup to catching-up ICT. The Chinese ICT industry could take effective measures to control the labour cost and increase in investment in R&D, especially in basic research. Chinese companies should optimize the patent portfolio while working on technological advancement, realize the value of patents and establish and contribute to an improved IP system to facilitate IP operations. Foreign frontier firms can adapt and adjust their patent licensing strategies to fully utilize the infringement relief rule brought about by China’ s IP system reform, while actively seeking cooperation with Chinese companies like Huawei in emerging fields and look for the future technological pathways.Desde a abertura económica da China, depois graças ao melhoramento contínuo do sistema de patentes da China, a Huawei e outras empresas retardatárias chinesas passaram por um processo de desenvolvimento de introdução tecnológica, imitação tecnológica, inovação em imitação, inovação independente e inovação aberta. Nesse processo, as empresas chinesas pagam altas taxas de licenciamento de patentes a entidades ocidentais. À medida que suas capacidades tecnológicas se desenvolvem e as vantagens de custo enfraquecem, renegociações de licença de patentes são iniciadas, todas as quais merecem uma revisão cuidadosa, especialmente as estratégias adotadas para reduzir as taxas de patentes. A tese adopta o método de construção e derivação de modelos matemáticos com base na teoria dos jogos. Um modelo de patente "holdup" baseado no fosso tecnológico e vantagens de custo é então construído para analisar o impacto dinâmico do "holdup" dos espaços nas capacidades tecnológicas e vantagens de custo. A tese verifica ainda as conclusões teóricas da pesquisa acima por meio da análise empírica e do estudo de caso. O fosso tecnológico e as vantagens de custo das empresas retardatárias são analisadas em dois momentos, a saber, "dez anos atrás" e "os últimos três anos". Uma das conclusões importantes é que, em comparação com dez anos atrás, nos últimos três anos, à medida que as vantagens de custo das empresas retardatárias enfraquecem e seu fosso tecnológico com as empresas dominantes estrangeiras diminuiu, a gravidade de patente "holdup" encontrado pelas empresas retardatárias não se mitigou, o que demonstra até certo ponto que, no caso de fosso tecnológico reduzido e vantagem de custo enfraquecida, as empresas retardatárias devem adotar estratégias correspondentes para reiniciar as negociações com empresas estrangeiras dominantes a fim de obter acesso mais económico a tecnologias proprietárias. A tese propõe maneiras de alcançar o progresso tecnológico e o gerir o "holdup" nas novas tecnologias de informação e comunicação (TIC). As empresas chinesas de NTIC devem tomar medidas eficazes para controlar os custos de trabalho e aumentar o investimento em I&D (Investigação e desenvolvimento), especialmente em pesquisa básica. As empresas chinesas de NTIC devem optimizar o portfólio de patentes enquanto trabalham no avanço tecnológico, criar confiança em sua tecnologia própria, perceber o valor das patentes e estabelecer e melhorar um sistema de PI (propriedade intelectual) para facilitar as estratégias de operação. As empresas avançadas estrangeiras devem adaptar-se e ajustar oportunamente suas estratégias de licenciamento de patentes, utilizar totalmente a regra de alívio de infração trazida pela reforma do sistema de PI da China, buscar activamente a cooperação com empresas chinesas como a Huawei em campos emergentes e olhar para futuras avenidas tecnológicas

Blockchain Copyright Exchange – A Prototype

The copyright market for creative works such as music and movies traditionally involves a complex web of licensing transactions and exorbitant transaction costs. Out of every dollar that consumers pay, an artist who writes, performs, and produces her own work may receive less than fifteen cents while the rest are diverted to cover the costs of financing new production, marketing new works, and distributing royalties. Although artists are typically scheduled to receive royalties on a quarterly basis, a payment may lag as far as two years after users paid. Furthermore, if a collecting society is unable to identify the rightful owner for a royalty payment, it routinely allocates the royalty among its existing members. This Article proposes a blockchain copyright exchange (“BCE”) that dramatically improves efficiency and accuracy in copyright transactions by hardcoding thousands of copyright rules and license terms in blockchain-based smart contracts. First, BCE allows artists to earn a royalty per stream potentially sixteen times larger than Spotify offers and eighty times larger than YouTube offers. Artists receive payments at a speed millions of times faster, in a matter of seconds instead of months, with zero administrative charges and zero dollars falling through the cracks. Second, BCE allows artists to launch crowdfunding campaigns inviting fans to securely finance creative works in return for a share of copyright ownership in the form of a non-fungible token (“NFT”) or a fungible token (“FT”). It significantly diversifies the investment risks for artists and labels alike. Third, BCE cultivates a healthy ecosystem among artists and users by mobilizing users to mine BCE tokens through distribution and promotion of licensed works. These powerful incentives, together with BCE’s innovative enforcement mechanisms, may effectively eliminate the breeding ground for copyright piracy

Intellectual Property Management in Health and Agricultural Innovation: A Handbook of Best Practices, Vol. 1

Prepared by and for policy-makers, leaders of public sector research establishments, technology transfer professionals, licensing executives, and scientists, this online resource offers up-to-date information and strategies for utilizing the power of both intellectual property and the public domain. Emphasis is placed on advancing innovation in health and agriculture, though many of the principles outlined here are broadly applicable across technology fields. Eschewing ideological debates and general proclamations, the authors always keep their eye on the practical side of IP management. The site is based on a comprehensive Handbook and Executive Guide that provide substantive discussions and analysis of the opportunities awaiting anyone in the field who wants to put intellectual property to work. This multi-volume work contains 153 chapters on a full range of IP topics and over 50 case studies, composed by over 200 authors from North, South, East, and West. If you are a policymaker, a senior administrator, a technology transfer manager, or a scientist, we invite you to use the companion site guide available at http://www.iphandbook.org/index.html The site guide distills the key points of each IP topic covered by the Handbook into simple language and places it in the context of evolving best practices specific to your professional role within the overall picture of IP management

The relationship between copyright and contract law

Contracts lie at the heart of the regulatory system governing the creation and dissemination of cultural products in two respects: (1) The exclusive rights provided by copyright law only turn into financial reward, and thus incentives to creators, through a contract with a third party to exploit protected material. (2) From a user perspective purchases of protected material may take the form of a licensing contract, governing behaviour after the initial transaction. Thus, a review of the relationship between copyright and contract law has to address both supply- and demand-side issues. On the supply side, policy concerns include whether copyright law delivers the often stated aim of securing the financial independence of creators. Particularly acute are the complaints by both creators and producers that they fail to benefit from the exponential increase in the availability of copyright materials on the Internet. On the demand side, the issue of copyright exceptions and their policy justification has become central to a number of reviews and consultations dealing with digital content. Are exceptions based on user needs or market failure? Do exceptions require financial compensation? Can exceptions be contracted out by licence agreements? This report (i) reviews economic theory of contracts, value chains and transaction costs, (ii) identifies a comprehensive range of regulatory options relating to creator and user contracts, using an international comparative approach, (iii) surveys the empirical evidence on the effects of regulatory intervention, and (iv) where no evidence is available, extrapolates predicted effects from theory

Towards a Model of Determinants of Web Services Platform Adoption by Complementers

The recent surge of interest in web services has called attention to the increasingly intense competition between owners of the platforms on which these services run. Given that widely adopted operating systems and middleware platforms have yielded sizable economic returns for their owners, many web services platform owners are aggressively pursuing strategies that can give them a competitive advantage and, it is hoped, similarly sizable returns. A review of the broader literature on software platform competition reveals widespread acceptance of network effect theory as an explanatory framework. Network effect theory posits that the value of a software platform to a potential user is associated positively with the number of existing users of the platform (who generate direct network effects) and the number of developers of complementary software applications (who generate indirect network effects) (see, e.g., Katz and Shapiro, 1986; Zhu et al., 2006). Users realize direct network effects when, for example, they share compatible files with other users (Gao and Iyer, 2006; Lin and Kulatilaka, 2006) or participate in ???trading communities??? (Zhu et al., 2006). Indirect network effects are realized through the availability of useful, innovative and compatible software applications (Lin and Kulatilaka, 2006). Users of widely adopted software platforms also gain value from the reduced likelihood of being ???stranded with a failed and unsupported platform??? and consequent switching costs (Gallaugher and Wang, 2002, p. 306). In the presence of network effects, then, software platform owners pursue strategies that will secure them an ???installed base??? of users and complementers that is sufficiently large to attract more and more new users (Shapiro and Varian, 1998; Suarez, 2005). While one set of strategies is aimed at promoting adoption by new users, another set emphasizes the value generated for users by indirect network effects and aims instead at promoting adoption by complementers. (This distinction reflects the idea that platform markets are two-sided, with (end) users populating one side and complementers populating the other.) There appears to be considerably more research on strategies for increasing user adoption (see Gallaugher and Wang (2002), von Westarp (2003) and Zhu and Iansiti (2007) for reviews) than on complementer adoption strategies. Nonetheless, three studies of the latter merit mentioning here. First, in their study of the U.S. video game industry from 1976 to 2002, Venkatraman and Lee (2003) find that platform dominance (i.e., largest installed base), together with complementers??? path dependency and level of experience with platform architecture, largely determine platform adoption by complementers. Second, in his investigation of how software platform owners maintain a balance between ???adoption and appropriation,??? West (2003) concludes that software platform owners who disclose some proprietary code will attract more complements (thereby fostering innovation), but cautions against disclosing any code that confers a competitive advantage. Finally, Cusumano and Gawer???s (2002) landmark study of Intel???s platform management strategies culminated in the endorsement of four ???levers??? for platform leadership, with one of these levers aimed at managing relations with ???external complementers???. Specific strategies include building a consensus on technical specifications and standards, handling potential conflicts of interest and letting complementers keep any intellectual property they develop on the platform. Both West (2003) and Cusumano and Gawer (2002) also underscore the importance of providing complementers with an interface to connect to the platform. Beyond West???s (2003, p. 1260) suggestion that software platform owners ???create and evolve application programming interfaces (APIs),??? though, the varied ways in which these APIs might influence a complementer???s choice to adopt have not been sufficiently explored by these or other authors. The research-in-progress described in the following section aims to bolster the somewhat scant literature on software platform adoption by complementers. More specifically, the proceeding research design outlines a proposed investigation of the determinants of complementer adoption of geo-mapping web services platforms. The reasons for including independent variables are discussed, and some methodological details are introduced. The paper concludes with a brief discussion of anticipated outcomes of the study

Music 2025 : The Music Data Dilemma: issues facing the music industry in improving data management

© Crown Copyright 2019Music 2025ʼ investigates the infrastructure issues around the management of digital data in an increasingly stream driven industry. The findings are the culmination of over 50 interviews with high profile music industry representatives across the sector and reflects key issues as well as areas of consensus and contrasting views. The findings reveal whilst there are great examples of data initiatives across the value chain, there are opportunities to improve efficiency and interoperability