Economic analysis of CDSM Article 17: two arguments in support
and two arguments against

k 2022

Economic analysis of CDSM Article 17: two arguments in support and two arguments against

WOZNICA, Ondřej

Basic information

Original name

Economic analysis of CDSM Article 17: two arguments in support and two arguments against

Authors

WOZNICA, Ondřej

Edition

The Italian Society of Law and Economics (SIDE) 18th Annual Conference, 2022

Other information

Type of outcome

Prezentace na konferencích

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

Web vydavatele

Organization unit

Faculty of Law

Keywords in English

Coase Theorem, Copyright, CDSM Directive, Information Asymmetry, Licensing, Platform Liability, Social Production, Transaction Costs, User-Generated Content, Value Gap

Abstract

V originále

The contribution aims to provide background into the centrepiece of online copyright regulation, the Article 17 CDSM Directive. The insight provided applies the theory of Economy and Law to rapidly developing technology to identify tendencies previously sidelined by normative research. The analysis builds predominantly on Coasean economics. Article seeks to provide legal background and consider broader policy reasoning, namely the value gap argument, as the driving force behind the implementation and as a moral panic. Article 17 CDSM Directive provides rightsholders with a better position to leverage copyright by extending legal bundle of rights to previously public domain uses, namely the sharing of user-generated content online where only users performed copyright-relevant acts. Accordingly, Article 17 requires platforms to license, remove, and prevent the re-emergence of content. In addition, it provides rightsholders with legal access to CRM tools to prevent reappearances. Lastly, Article 17 contains several mechanisms for balancing that have been empirically demonstrated to be poorly implemented by platforms. The article concludes that Article 17 significantly reduces information asymmetry by assigning decision-making status to platforms. It also resolves the observed market failure of value gap, provided the policy reasoning described is valid, which is not supported by the article. CDSM, however, also increases legal fragmentation between jurisdiction and forms of copyright-relevant use. Finally, the risk of overblocking and overpolicing is potent. Subsequently, safeguards introduced in the legislative text and the recent CJEU ruling are crucial.

Citovat

WOZNICA, Ondřej. Economic analysis of CDSM Article 17: two arguments in support and two arguments against. In The Italian Society of Law and Economics (SIDE) 18th Annual Conference. 2022.

@proceedings{2240179,
   author = {Woznica, Ondřej},
   booktitle = {The Italian Society of Law and Economics (SIDE) 18th Annual Conference},
   keywords = {Coase Theorem, Copyright, CDSM Directive, Information Asymmetry, Licensing, Platform Liability, Social Production, Transaction Costs, User-Generated Content, Value Gap},
   title = {Economic analysis of CDSM Article 17: two arguments in support and two arguments against},
   url = {https://www.side-isle.it/conference/2022},
   year = {2022}
}

TY  - CONF
ID  - 2240179
AU  - Woznica, Ondřej
PY  - 2022
TI  - Economic analysis of CDSM Article 17: two arguments in support and two arguments against
KW  - Coase Theorem, Copyright, CDSM Directive, Information Asymmetry, Licensing, Platform Liability, Social Production, Transaction Costs, User-Generated Content, Value Gap
UR  - https://www.side-isle.it/conference/2022
N2  - The contribution aims to provide background into the centrepiece of online copyright regulation, the Article 17 CDSM Directive. The insight provided applies the theory of Economy and Law to rapidly developing technology to identify tendencies previously sidelined by normative research. The analysis builds predominantly on Coasean economics. Article seeks to provide legal background and consider broader policy reasoning, namely the value gap argument, as the driving force behind the implementation and as a moral panic. Article 17 CDSM Directive provides rightsholders with a better position to leverage copyright by extending legal bundle of rights to previously public domain uses, namely the sharing of user-generated content online where only users performed copyright-relevant acts. Accordingly, Article 17 requires platforms to license, remove, and prevent the re-emergence of content. In addition, it provides rightsholders with legal access to CRM tools to prevent reappearances. Lastly, Article 17 contains several mechanisms for balancing that have been empirically demonstrated to be poorly implemented by platforms. The article concludes that Article 17 significantly reduces information asymmetry by assigning decision-making status to platforms. It also resolves the observed market failure of value gap, provided the policy reasoning described is valid, which is not supported by the article. CDSM, however, also increases legal fragmentation between jurisdiction and forms of copyright-relevant use. Finally, the risk of overblocking and overpolicing is potent. Subsequently, safeguards introduced in the legislative text and the recent CJEU ruling are crucial.
ER  -

WOZNICA, Ondřej. Economic analysis of CDSM Article 17: two arguments in support and two arguments against. In \textit{The Italian Society of Law and Economics (SIDE) 18th Annual Conference}. 2022.

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