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Overlapping Rights in Different Business Models

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Remuneration of Copyright Owners

Part of the book series: MPI Studies on Intellectual Property and Competition Law ((MSIP,volume 27))

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Abstract

This chapter provides an overview of the problems stemming from the fragmented copyright system. The multitude of rights and right holders has led to huge transactions costs for the exploitation, license, dissemination, and enforcement of copyright. Copyright divisibility and fragmentation also result in legal issues surrounding overlapping exclusive rights in a single subject. This problem may not only bring about controversies over copyright license, but also generate uncertainties for startup companies that build their business models on digital content. This chapter then evaluates current policy proposals addressing the issues of fragmented copyright and overlapping exclusive rights. Those proposals include consolidating current bundles of exclusive rights, and adopting an implied license doctrine to the incidental use of copyrighted work based on one single exclusive right. Finally, this chapter assesses whether a more streamlined collective copyright management mechanism can solve the issue of overlapping rights.

Jyh-An Lee is Assistant Professor at the Faculty of Law at the Chinese University of Hong Kong.

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Notes

  1. 1.

    17 U.S.C. §106.

  2. 2.

    CDPA 1988 ss. 16-23.

  3. 3.

    17 U.S.C. §201(d)(2); CDPA 1988 ss.90(2)(b).

  4. 4.

    A. Kohn / B. Kohn (2000), 362; M.A. Lemley (1997), 570; J. Litman (2010), 20; J.W. Natke (2007), 486, 495.

  5. 5.

    M.A. Leaffer (2010), 294.

  6. 6.

    M.A. Lemley (1997), 574; J.W. Natke (2007), 486.

  7. 7.

    J.W. Natke (2007), 486.

  8. 8.

    Text accompanying note 1-2.

  9. 9.

    P. Goldstein (2003), 189.

  10. 10.

    Text accompanying note 3; W. Cornish / D. Llwelyn / T.F. Aplin (2013), 525; D. Gervais (2010), 10.

  11. 11.

    J. Litman (2004), 18.

  12. 12.

    N.Y. Times Co. v. Tasini, 533 U.S. 483, 495-96 (2001).

  13. 13.

    D. Gervais (2010), p. 10.

  14. 14.

    See, e.g., P. Mysoor (2013), 183-84; J.W. Natke (2007), 497.

  15. 15.

    See, e.g., M.A. Lemley (1997), 570.

  16. 16.

    D. Gervais / A. Maurushat (2003), 15, 20.

  17. 17.

    D. Gervais (2010), 13.

  18. 18.

    See, e.g., D. Gervais (2000), 81; D. Gervais / A. Maurushat (2003), 21. Some commentators argue that by allowing each contracting country to decide upon the relationship between audiovisual performers and film producers, Article 12 of the Beijing Treaty on Audiovisual Performances actually weakens the protection for performers, who are principally in an inferior bargaining position. G. Pessach (2014), 86-89. Similar criticisms are made on the “statutory presumptions,” a proposal that copyrights are systematically transferred to corporate entities. T. Lüder (2007), 26-27.

  19. 19.

    See, e.g., D. Gervais (2010), 10, 12; T. Lüder (2007), 23-24, 41; W.W. Fisher III (2004), 59-67.

  20. 20.

    See, e.g., T. Lüder (2007), 23-24; W.W. Fisher III (2004), 46-59.

  21. 21.

    See, e.g., E. Vanheusden (2007), 47; S. Dusollier / C. Colin (2011), 834.

  22. 22.

    Information Infrastructure Task Force (1995), 213-225.

  23. 23.

    D. Gervais / A. Maurushat (2003), 22.

  24. 24.

    See, e.g., D. Gervais (2010), 2.

  25. 25.

    See, e.g., J. Litman (2007), 1917; J.W. Natke (2007), 495-498.

  26. 26.

    Information Infrastructure Task Force (1995), 213-225.

  27. 27.

    M.A. Lemley (1997), 570; J. Litman (2004), 21.

  28. 28.

    R.P. Merges (1996), 1317; J.W. Natke (2007), 500.

  29. 29.

    T. Lüder (2007), 24-25.

  30. 30.

    M.A. Heller (1998), 621.

  31. 31.

    Id., 637-639.

  32. 32.

    Id., 39.

  33. 33.

    Id., 633-635.

  34. 34.

    Id., 633-635, 659.

  35. 35.

    Id., 624.

  36. 36.

    M.A. Heller (1998), 626.

  37. 37.

    M.A. Heller / R.S. Eisenberg (1998), 698, 700.

  38. 38.

    Id., 699.

  39. 39.

    M.A. Heller (1998), 625.

  40. 40.

    N. Elkin-Koren (2005), 381.

  41. 41.

    M.A. Heller (1998), 625-626; M.A. Heller / R.S. Eisenberg (1998), 698.

  42. 42.

    M.A. Heller (1998), 659.

  43. 43.

    D. Gervais (2010), 13; J.W. Natke (2007), 500.

  44. 44.

    M.A. Lemley (1997), 57-72.

  45. 45.

    L.P. Loren (2003), 698.

  46. 46.

    M.A. Lemley (1997), 571.

  47. 47.

    L.P. Loren (2003), 700; L. Lessig (2004), 223.

  48. 48.

    M. Heller (2008), 37-43.

  49. 49.

    L.P. Loren (2003), 677.

  50. 50.

    M.A. Heller (1998), 659.

  51. 51.

    J.W. Natke (2007), 496.

  52. 52.

    H.R. Rep. No. 94-1476 (1976), 61-62.

  53. 53.

    J. Litman (2007), 1916-1917; M.A. Lemley (1997), 571.

  54. 54.

    D. Gervais (2010), 10-11; M.A. Lemley (1997), 568; J.W. Natke (2007), 486.

  55. 55.

    J. Litman (2010), 42; D. Gervais (2010), 10.

  56. 56.

    J. Litman (2004), 19-20; M.A. Lemley (1997), 567-68; J.W. Natke (2007), 486.

  57. 57.

    M.A. Lemley (1997), 571; see also J.W. Natke (2007), 498, 501.

  58. 58.

    M.A. Lemley (1997), 568; L.P. Loren (2003), 716; J.W. Natke (2007), 495-496.

  59. 59.

    M.A. Heller / R.S. Eisenberg (1998), 698-699.

  60. 60.

    FAPL EWHC 1411 (2008) (Ch); 3 C.M.L.R. 12 (2008).

  61. 61.

    FAPL EWHC 1411 (2008) (Ch); 3 C.M.L.R. 12, 262 (2008).

  62. 62.

    FAPL (C-403/08)(2011) E.C.D.R. 8, 202-203.

  63. 63.

    P. Mysoor (2013), 173.

  64. 64.

    FAPL EWHC 108 (2012) (Ch); 2 C.M.L.R. 16, 63 (2012).

  65. 65.

    T. Lüder (2007), 14.

  66. 66.

    WCT Art. 9(4); WPPT Art. 7, 11, and 16; E.C. Copyright in the Information Society Directive Art. 2.

  67. 67.

    WCT Art. 8; E.C. Copyright in the Information Society Directive Art. 3.

  68. 68.

    WCT Art. 8; WPPT Art. 10, 14, and 16; E.C. Copyright in the Information Society Directive Art. 3.

  69. 69.

    D. Gervais (2000), 81.

  70. 70.

    K.E. Beyer (2014), pp. 6-7; P. Goldstein / P.B. Hugenholtz (2010), 328.

  71. 71.

    Berne Convention, 1971 Paris Text Art. 11, 11bis, and 11ter.

  72. 72.

    P. Mysoor (2013), 168.

  73. 73.

    WCT Art. 8; EU Copyright Directive Art. 3(1).

  74. 74.

    P. Goldstein / P.B. Hugenholtz (2010), 329; T. Lüder (2007), 33-36.

  75. 75.

    D. Gervais (2000), 82; T. Lüder (2007), 26. There is one distinction between the right of making available to the public and the traditional right of communication to the public: the former is granted to authors, performers, and producers; whereas the latter is only accorded to authors. EU Copyright Directive Art. 3.

  76. 76.

    K.E. Beyer (2014), 11.

  77. 77.

    M.A. Lemley (1997), 574; W.W. Fisher III (2004), 160; D. Gervais (2010), 10.

  78. 78.

    J. Litman (2004), 19.

  79. 79.

    Country Road Music, Inc. v. MP3.com, Inc., 279 F. Supp. 2d 325, 333 (S.D.N.Y. 2003).

  80. 80.

    Id., 327.

  81. 81.

    Id., 327-328.

  82. 82.

    R.M. Hilty / S. Nérisson (2013), 229.

  83. 83.

    J. Drexl (2014), 483.

  84. 84.

    Id.

  85. 85.

    J. Drexl / S. Nérisson / F. Trumpke / R.M. Hilty (2013), 328-329.

  86. 86.

    Id.

  87. 87.

    J. Litman (2007), 1917; M.A. Heller / R.S. Eisenberg (1998), 700; J. Litman (2010), 20.

  88. 88.

    P.B. Hugenholtz / M. van Eechoud / S. van Gompel / L. Guibault / N. Helberger (2006), 164; T. Lüder (2007), 26; see also J. Litman (2010), 43.

  89. 89.

    J. Litman (2006), 180-186; J. Litman (2010), 43-45.

  90. 90.

    J.W. Natke (2007), 505.

  91. 91.

    J. Litman (2007), 1917; see also J.W. Natke (2007), 504.

  92. 92.

    H.G. Henn (1955), 418.

  93. 93.

    J.W. Natke (2007), 493-494.

  94. 94.

    Id., 494.

  95. 95.

    Id.

  96. 96.

    Id., 492.

  97. 97.

    J.W. Natke (2007), 503; R.C. Cooter / T. Ulen (2012), 165.

  98. 98.

    J.W. Natke (2007), 505.

  99. 99.

    M.B. Nimmer / D. Nimmer (1992), 14-121.

  100. 100.

    17 U.S.C. §1202(c).

  101. 101.

    M.A. Heller / R.S. Eisenberg (1998), 700.

  102. 102.

    M.A. Heller (1998), 626, 640.

  103. 103.

    M.A. Heller / R.S. Eisenberg (1998), 698.

  104. 104.

    M.A. Heller (1998), 641.

  105. 105.

    M.A. Heller (1998), 655.

  106. 106.

    R.C. Cooter / T. Ulen (2012), 166.

  107. 107.

    J. Litman (2007), 1917.

  108. 108.

    Id.

  109. 109.

    Copyright reform can even go further to implement the concept of “implied license” in other transactions concerning any single exclusive right, see J. Litman (2010), 46-47.

  110. 110.

    See, e.g., Effects Associates, Inc. v. Cohen, 908 F.2d 555 (9th Cir. 1990).

  111. 111.

    See text accompanying note 87.

  112. 112.

    G. Calabresi (1982); R. Oman (1994), 21-22, n.8 (describing the difficulty of changing the IP law).

  113. 113.

    D.J. Bainbridge (2007), 87.

  114. 114.

    Id.

  115. 115.

    D. Gervais / A. Maurushat (2003), 15.

  116. 116.

    M. Heller (2008), p. 72; R. Aoki / A. Schiff (2008), 199; S. Dusollier / C. Colin (2011), 817-818; J. Drexl / S. Nérisson / F. Trumpke / R.M. Hilty (2013), 18-19; R.P. Merges (1996), 1295.

  117. 117.

    D. Gervais / A. Maurushat (2003), 16.

  118. 118.

    J.H. Cohen (2001), 135; M.A. Lemley (1997), 571.

  119. 119.

    M. Heller (2008), 190.

  120. 120.

    M.A. Lemley (1997), 571.

  121. 121.

    D. Gervais (2010), 11; M. Bouchard (2010), 311.

  122. 122.

    D. Gervais / A. Maurushat (2003), 20; J. Litman (2010), 20.

  123. 123.

    D. Gervais (2010), 12.

  124. 124.

    S. Stoke (2002), 169-170.

  125. 125.

    M. Bouchard (2010), 320.

  126. 126.

    A. Gowers (2006), 45; R.P. Merges (1996), 1377.

  127. 127.

    However, CPCC only focuses on royalties associated with music works. M. Bouchard (2010), 314.

  128. 128.

    See text accompanying supra note 139 and note 21.

  129. 129.

    Cf. R.C. Cooter / T. Ulen (2012), 140; M.A. Heller (1998), 760; Id., 657.

  130. 130.

    M.A. Heller (1998), 642-643.

  131. 131.

    J.-A. Lee (2010), 291-292.

  132. 132.

    R.P. Merges (2008), 1187-1188.

  133. 133.

    J.-A. Lee (2010), 292-293.

  134. 134.

    R.H. Coase (1937), 386.

  135. 135.

    R.C. Ellickson (1991), 64-166; E. Ostrom (1990), 182-184; M.A. Heller / R.S. Eisenberg (1998), 698; C. Rose (1986), 711.

  136. 136.

    M.A. Heller / R.S. Eisenberg (1998), 700; R.P. Merges (1996), 1319, 1340-1342.

  137. 137.

    R.P. Merges (1996), 1321.

  138. 138.

    J.W. Natke (2007), 504 (predicting that “the Supreme Court is not likely to revive indivisibility in the absence of legislative action”).

  139. 139.

    D. Gervais / A. Maurushat (2003), 23-25; D. Gervais (2010), 17.

  140. 140.

    D. Gervais / A. Maurushat (2003), 24.

  141. 141.

    M. Ricolfi (2007), 297-301; R.P. Merges (1996), 1298 (proposing the “electronic clearinghouses” where all copyright transactions can take place in one electronic marketplace).

  142. 142.

    T. Lüder (2007), 19.

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Lee, JA. (2017). Overlapping Rights in Different Business Models. In: Liu, KC., Hilty, R. (eds) Remuneration of Copyright Owners. MPI Studies on Intellectual Property and Competition Law, vol 27. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-53809-8_1

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