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Volumn 5, Issue 2, 1985, Pages 209-238

The competition of technologies in markets for ideas: Copyright and fair use in evolutionary perspective

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EID: 0006243032     PISSN: 01448188     EISSN: None     Source Type: Journal    
DOI: 10.1016/0144-8188(85)90007-9     Document Type: Article
Times cited : (24)

References (102)
  • 1
    • 84914356925 scopus 로고    scopus 로고
    • 104 S. Ct. 774, 782 (1984).
  • 2
    • 84914356924 scopus 로고    scopus 로고
    • 487F.2d 1345 (Ct. Cl. 1973), affirmed by an equally divided court, 420U.S. 376 (1975) (per curiam).
  • 12
    • 0006196459 scopus 로고
    • Fair Use as Market Failure: A Structural and Economic Analysis of the Betamax Case and its Predecessors
    • See, for example, Gordon's essay predates the Supreme Court's decision in Sony, but her discussion of the lower court opinions in that case strongly suggests that she would endorse at least the framework for analysis adopted by the Supreme Court. We discuss these cases in Section III, infra.
    • (1982) Col. L.R. , vol.82 , Issue.1600 , pp. 1615-1616
    • Gordon1
  • 15
    • 84914356918 scopus 로고    scopus 로고
    • By this we mean both the technology of production, the technical means and organizational forms which combine to transform primary resources into finished products which can be reliably directed to purchasers, and the less often discussed technology of consumption, those means by which consumers extract personal satisfaction or welfare from the various material objects which purchase or opportunity place in their possession in the stream of commerce. Both these technologies figure prominently in the analysis which follows.
  • 16
    • 0001394870 scopus 로고
    • Toward a Theory of Property Rights
    • Papers and Proceedings
    • (1967) Am. Econ. Rev. , vol.57 , Issue.347
    • Demsetz1
  • 17
    • 0001394870 scopus 로고
    • Toward a Theory of Property Rights
    • Papers and Proceedings
    • (1967) Am. Econ. Rev. , vol.57 , Issue.347 , pp. 350
    • Demsetz1
  • 19
    • 84914356916 scopus 로고    scopus 로고
    • Engineering students, for example, occasionally test their skills by constructing devices from readily available components which allow free long-distance calls to be made from pay telephones, a practice which telephone companies understandably seek to stop.
  • 23
    • 84914356915 scopus 로고    scopus 로고
    • See, generally, Adelstein, supra, note 18.
  • 24
    • 0018665499 scopus 로고
    • Informational Paradox and the Pricing of Crime: Capital Sentencing Standards in Economic Perspective
    • (1979) J. Crim. L. & Crimin. , vol.70 , Issue.281
    • Adelstein1
  • 25
    • 84914356914 scopus 로고    scopus 로고
    • See, generally, Adelstein, supra, note 18.
  • 26
    • 84914356913 scopus 로고
    • About the Notions of Communication and Structure: A Perspective
    • L. Thayer, We borrow this term from the communications theorist Masanao TodaCompare the discussion in the House and Senate Reports of the ‘reproduction right’ established by § 106(1) of the Copyright Revision Act of 1976, § 101 et seq. (1982 ed.): [T]he right ‘to reproduce the copyrighted work in copies or phonorecords’ means the right to produce a material object in which the work is duplicated, transcribed, imitated, or simulated in a fixed form from which it can be ‘perceived, reproduced, or otherwise communicated, either directly or with the aid of machine or device’.
    • (1967) Communication: Concepts and Perspectives , pp. 25-52
    • Toda1
  • 29
    • 84914356912 scopus 로고    scopus 로고
    • See Adelstein, supra, note 18, pp. 80–99.
  • 30
    • 84914356911 scopus 로고    scopus 로고
    • Cf. Cordon, supra, note 4, pp. 1610–1612.
  • 35
    • 0039346296 scopus 로고
    • A complete discussion of the history of copyright is, of course, beyond the scope of this essay. In addition to those works cited in the text, an excellent survey of this historical development is
    • (1968) Copyright in Historical Perspective
    • Patterson1
  • 39
    • 84914356908 scopus 로고    scopus 로고
    • Compare K. Arrow, supra, note 21, p. 40: ‘[T]here tends to be a cycle in which an innovation in artistic vision first occurs and is diffused; then, as it becomes more familiar, the value of repetition of similar signals decreases... ’.
  • 40
    • 84914356907 scopus 로고    scopus 로고
    • Cf. Demsetz, supra, note 16, p. 350.
  • 41
    • 84914356906 scopus 로고    scopus 로고
    • [1774] 4 Burrow's Reports 2408. An analogous result was reached sixty years later by the United States Supreme Court in Wheaton v. Peters, 33 U.S. (8 Pet.) 591 (1834).
  • 42
    • 84914356905 scopus 로고    scopus 로고
    • Stat. 1075, § 1.
  • 43
    • 84914356904 scopus 로고    scopus 로고
    • Shortly after the Lords' decision in Donaldson, the Company again sought relief from the House of Commons, claiming that large sums had been invested in reliance upon their own construction of the statute. This time, however, their pleas were denied, prompting one scholar to remark of the entire episode that ‘The Statute of Anne suggests that it was not the Australians who discovered the boomerang’. Pforzheimer, supra, note 30, p. 272.
  • 44
    • 84914356903 scopus 로고    scopus 로고
    • Cf. Sony Corp v. Universal City Studios, 104 S.Ct. 774, 792 (1984).
  • 45
    • 84914356902 scopus 로고    scopus 로고
    • 9 Fed. Cas. 342 (C.C.D. Mass. 1841).
  • 46
    • 84914356901 scopus 로고    scopus 로고
    • 9 Fed. Cas. 342 (C.C.D. Mass. 1841), p. 348. The decision to grant fair use, wrote Justice Story, should consider ‘the nature and objects of the selections made, the quantity and value of the materials used, and the degree in which the use may prejudice the sale, or diminish the profits, or supersede the objects of the original work’. 9 Fed. Cas. 342 (C.C.D. Mass. 1841), p. 348.
  • 47
    • 84914356900 scopus 로고    scopus 로고
    • Sony Corp. v. Universal City Studios, 104 S.Ct. 774,806 (1984)(opinion of Blackmun J., dissenting).
  • 48
    • 84914356899 scopus 로고    scopus 로고
    • H.R. Rep. No. 94-1476, at 66 (1976). See also S. Rep. No. 94-473, p. 62 (1975).
  • 49
    • 84914356898 scopus 로고    scopus 로고
    • Copyright Revision Act of 1976, 17 U.S.C. §107 (1982 ed.): 'In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include (1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for and value of the copyrighted work’.
  • 50
    • 84914356897 scopus 로고    scopus 로고
    • 17 U.S.C. §108 (1982 ed.).
  • 54
    • 84914356895 scopus 로고    scopus 로고
    • Dellar v. Samuel Coldwin, Inc., 104 F. 2nd 661, 662 (2nd Cir. 1939).
  • 57
    • 84914356894 scopus 로고    scopus 로고
    • Compare Demsetz, supra, note 16, pp. 348–350; 'What converts a harmful or beneficial effect into an externality is that the cost of bringing the effect to bear on the decisions of one or more of the interacting persons is too high to make it worthwhile...... [Property rights develop to internalize externalities when the gains of internalization become larger than the cost of internalization'.
  • 58
    • 84914356893 scopus 로고    scopus 로고
    • Compare our earlier quotation of Gordon on this point, supra, note 8.
  • 59
    • 84914402746 scopus 로고
    • New Technology and the Law of Copyright: Reprography and Computers
    • UCLA Project
    • (1968) U.C.L.A. L. Rev. , vol.15 , pp. 939
  • 60
    • 84914402746 scopus 로고
    • New Technology and the Law of Copyright: Reprography and Computers
    • UCLA Project
    • (1968) U.C.L.A. L. Rev. , vol.15 , pp. 959
  • 61
    • 84914356892 scopus 로고
    • Reprographic Technology: Present and Future
    • 4th ed., National Commission on Libraries and Information Science, ‘Library Photocopying in the United States: With Implications for the Development of a Copyright Royalty Payment Mechanism’ (1977) p. 3. As one commentator has noted, this is 'a far cry indeed from the day when only a fairly large library with adequate funds could consider the purchase, installation, and operation of a several thousand dollar photostat camera'. Hawken
    • (1964) Reprography and Copyright Law , pp. 45
    • Bush1    Mattery2
  • 62
    • 84914356891 scopus 로고    scopus 로고
    • Saunders, supra, note 44, p. 317.
  • 64
    • 84914356890 scopus 로고    scopus 로고
    • Williams & Wilkins Co. v. United States, 487 F.2d 1345, 1347-8 (Ct.Cl. 1973).
  • 65
    • 84914356889 scopus 로고    scopus 로고
    • So limited were the potential markets for their journals, and so razor thin the profit margins, that in 1965 one Williams & Wilkins journal saw its profits cut in half when just thirty-seven subscriptions were cancelled. See UCLA Project, supra, note 50, at 944.
  • 66
    • 84914356888 scopus 로고    scopus 로고
    • Williams & Wilkins Co. v. United States, 487 F.2d 1345 (Ct.Cl. 1973), affirmed by an equally divided court. 420 U.S. 376 (1975) (per curiam).
  • 67
    • 84914356887 scopus 로고    scopus 로고
    • 487 F.2d, p. 1358.
  • 68
    • 84914356886 scopus 로고    scopus 로고
    • 487 F.2d, p. 1366 (Cowen C.J., dissenting).
  • 69
    • 84914356885 scopus 로고    scopus 로고
    • 487 F.2d, p. 1366. See also M. Nimmer, Nimmer on Copyright (1973-ed.). §145, p. 650.
  • 70
    • 84914356884 scopus 로고    scopus 로고
    • 487 F.2d, p. 1351.
  • 71
    • 84914356883 scopus 로고    scopus 로고
    • 487 F.2d, p. 1356.
  • 72
    • 84914356882 scopus 로고    scopus 로고
    • 487 F.2d, p. 1356.
  • 73
    • 84914356881 scopus 로고    scopus 로고
    • Sony Corp. v. Universal City Studios, 104S.Ct.774, 809(1984) (Blackmun J., dissenting).
  • 74
    • 84914356880 scopus 로고    scopus 로고
    • See text accompanying notes 3-15, supra.
  • 75
    • 84914356879 scopus 로고    scopus 로고
    • 487 F.2d, pp. 1354–1360.
  • 76
    • 84914356878 scopus 로고    scopus 로고
    • Cf. Gordon, supra, note 4, pp. 1648–1650.
  • 81
    • 84914356877 scopus 로고    scopus 로고
    • See Macneil, supra, note 20, pp. 886–901.
  • 83
    • 84914356876 scopus 로고    scopus 로고
    • See, for example, the discussions in Nimmer,supra, note 47, pp. 1525–1534.
  • 84
    • 84914356875 scopus 로고    scopus 로고
    • Quoted in J. Marke, supra, note 66, p. 72., This dilemma was well put by Arthur Rosenthal, counsel for Williams & Wilkins, before a Senate Committee: And here is the rub, as far as publishers of specialized journals are concerned. For as the cost of printing and publishing inexorably rises, and the charges for photo reproduction increasingly become cheaper, the journal publisher finds himself unable to pass on the higher costs to the consumer who at some point on the scale will prefer photocopying to subscribing. The final result, if carried to its logical conclusion, of course is self-defeating; the erosion of the journal's subscription list will sooner or later compel the publisher to cease publication of the journal altogether-and then the scholar will have nothing to copy. The publisher, the scholar, the rest of us will be poorer as a result.Hearings before the Subcommittee on Patents, Trademarks, and Copyright of the Senate Committee on the [[Truncated]]
  • 85
    • 84914356874 scopus 로고    scopus 로고
    • Remedies of this kind are discussed in Nimmer, supra, note 47, pp. 1525–1533., Note, Universal City Studios, Inc. v. Sony Corp: “Fair Use” Looks Different on Videotape (1980) 66 Virg. L.-R. 1005, 1025.Note, ‘The Betamax Case: Accommodating Public Access and Economic Incentive in Copyright Law’, (1979) 31 Stan. L.R. 243.
  • 86
    • 84914356873 scopus 로고    scopus 로고
    • See Macneil, supra, note 20, pp. 886–901.
  • 87
    • 84914356872 scopus 로고    scopus 로고
    • 487 F.2d, p. 1360.
  • 88
    • 84914356871 scopus 로고    scopus 로고
    • Universal City Studios v. Sony Corp. of America, 480 F.Supp. 429 (C.D. Cal. 1979).
  • 89
    • 84914356870 scopus 로고    scopus 로고
    • Universal City Studios v. Sony Corp. of America, 659 F.2d 963 (9th Cir. 1982).
  • 90
    • 84914356869 scopus 로고    scopus 로고
    • Sony Corp. of America v. Universal City Studios, 104 S.Ct. 774 (1984). The majority consisted of Justices Stevens, Brennan, White, O'Connor, and Chief Justice Burger, while Justices Marshall, Powell, and Rehnquist joined Justice Blackmun's dissent.
  • 91
    • 84914356868 scopus 로고    scopus 로고
    • 104 S.Ct., pp. 806–815 (Blackmun J., dissenting).
  • 92
    • 84914356867 scopus 로고    scopus 로고
    • 104 S.Ct., pp. 785–789, 789.
  • 93
    • 84914356866 scopus 로고    scopus 로고
    • 104 S.Ct., pp. 791–796.
  • 94
    • 84914356865 scopus 로고    scopus 로고
    • 104 S.Ct., p. 810, 810 n.35 (Blackmun, J., dissenting).
  • 95
    • 84914356864 scopus 로고    scopus 로고
    • 222 U.S. 55 (1911).
  • 96
    • 84914356863 scopus 로고    scopus 로고
    • 104 S.Ct., p. 786.
  • 97
    • 84914356862 scopus 로고    scopus 로고
    • 104 S.Ct., p.786.
  • 98
    • 84914356861 scopus 로고    scopus 로고
    • 487 F.2d, p. 1362.
  • 99
    • 84914356860 scopus 로고    scopus 로고
    • 104 S.Ct., pp. 792–795.
  • 100
    • 84914356859 scopus 로고    scopus 로고
    • 487 F.2d, p. 1362.


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