The economics of publishing: The consequences of library and research copying

Abstract

Copyright is a crucial property right. Two distinct, but intertwined, economic effects depend upon the ability to control use of that property right and to gain revenue from that use: the first is the incentive effect, and the second, the enabling effect. These two principles underpin the incentive for creating and the means for disseminating copyrighted works. Changes in copyright law can have far-reaching and large influences on the workings of these economic principles and the greater economy. Photocopying, interlibrary loan, and extensions of fair use all potentially lessen sales of copyrighted works, increasing the difficulty scholarly publishers have in underwriting and disseminating scholarly works. Broad interpretations of fair use may erode copyright protection and assuredly further erode the services of scholarly publishers that support the dissemination of academic writing.