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Who should own access rights? A game-theoretical approach to striking the optimal balance in the debate over Digital Rights Management

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Abstract

The development of access rights as, perhaps, a replacement for copyright in digital rights management (DRM) systems, draws our attention to the importance of ‚the balance problem’ between information industries and the individual user. The nature of just what this ‚balance’ is, is often mentioned in copyright writings and judgments, but is rarely discussed. In this paper I focus upon elucidating the idea of balance in intellectual property and propose that the balance concept is not only the most feasible way to examine whether past solutions to copyright problems are fair, but it also provides the ability to predict what will be the better solution for all affected parties. Based upon an envy-free contribution towards predicting the efficient balance, game theory is applied in a novel manner to the DRM problem to infer where and what might be the optimal balance in the debate over the nature of access right.

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Acknowledgements

I would like to thank Professor Philip Leith and anonymous reviewers for their helpful comments on this article. Responsibility for all errors, of course, rests with me.

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Correspondence to Yu-Lin Chang.

Notes

Notes

  1. 1

    Dubl, J. and Kevorkian, S. (2001). Understanding DRM systems: an IDC white paper. (Available at  <www.intertrust.com/main/research/whitepapers/IDCUnderstandingDRMSystems.pdf>).

  2. 2

    MIT technology review. (2001). The technology review ten. (Available at  <http://www.nicolelislab.net/NLNet/Load/Media/MITTechnologies2001.pdf>).

  3. 3

    High level group on digital rights management: final report. (2004). (Available at <http://europa.eu.int/information_society/eeurope/2005/all_about/digital_rights_man/doc/040709_hlg_drm_2nd_meeting_final_report.pdf> ; INDICARE (The informed dialogue about consumer acceptability of DRM solutions in Europe). (2004). Digital rights management and consumer acceptability: state-of-the-art report. (Available at <http://www.ivir.nl/publications/helberger/INDICAREStateoftheArtReport.pdf>).

  4. 4

    Ginsburg, J. C. (2000). From having copies to experiencing works: the development of an access right in U.S. copyright law. Journal of the copyright society of the USA 5  <http: papers.ssrn.com/paper.taf?abstract_id = 222493>).

  5. 5

    Ginsburg, J. C. (1999). Copyright legislation for the digital Millennium. Columbia-VLA journal of law and arts. 23  <http://cyber.law.harvard.edu/openlaw/DVD/articles.html>).

  6. 6

    Gasaway, L. (2002). The new access right and its impact on libraries and library users. (Available at  <http://www.unc.edu/unclng/the%20new%20access.htm>).

  7. 7

    Universal city studios v. Reimerdes. 111 F. Supp. 2d 294 (SDNY 2001).

  8. 8

    Bell, T. W. (1998). Fair use vs. fared use: the impact of automated rights management on opyrights fair use doctrine. North Caroline law review 76 (Available at  <http://www.tomwbell.com/writings/FullFared.html>).

  9. 9

    Gasaway. (2002). supra note 6.

  10. 10

    Konard, R. (2002). Trouble ahead. trouble behind. (Available at  <http://news.com.com/2102_1082_3–843349.html?tag = st_util_print>).

  11. 11

    Lessig, L. (1999). Code and other laws of cyberspace. Basics books: New York. 59.

  12. 12

    Mahoney, P. G. and Sanchitico, C. W. (2003). Norms, repeated games, and the role of law. California law review 91: 1288; Sustein, C. R. (1996). On the expressive function of law. University of Pennsylvania Law Review 144: 2021; McAdams, R. H. (2000). A focal point theory of expressive law. Virginia Law Review 86: 1649.

  13. 13

    The balancing mechanisms are built into copyright law like time limits, fair use, first sale doctrine, idea/expression, and public domain etc. see Hunter, C. D. (2000). Copyright and culture.  <http://www.asc.upenn.edu/usr/chunter/copyright_and_culture.html> ; May, C. (2003). Digital rights management and the breakdown of social norms. (Available at <http://www. firstmonday.dk/issues/issue8_11/may/> ; Lemley, M. A. (1997). Romantic authorship and the rhetoric of property. Texas law review 75: 873, 889–890; Loren, L. P. (1997). Redefining the market failure approach to fair use in an era of copyright permission systems. Journal of intellectual property law 5(1) (Available at  <http://www.lclark.edu/loren/articles/fairuse.htm> ; Mcjohn, S. M. (1998). Fair use and privatization in copyright. San Diego law review 35: 89.

    Besides, the 1996 WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty clearly declare their balance purpose stated in the preamble. In Europe. two Commissions documents Green Paper: Copyright and Related Rights in the Information Society and Follow-up to the green paper on Copyright and Related Rights in the Information Society also state their aim is to maintain the copyright balance between the interest of competing groups in the new environment.

  14. 14

    Kreiss, R. A. (1995). Accessibility and commercialization in copyright theory. UCLA law review 43: 1, 8–9; Ewing, John. (2003). Copyright and authors. (Available at  <http://www.firstmonday.dk/issues/issue8_10/ewing> ; Netanel, N. W. (1996). Copyright and a democratic civil society. Yale law journal 106: 385; Karjala, D. S. (1997). Federal preemption of shrinkwrap and on-line licenses. Dayton law review 22: 518; Elkin-Koren, N. (1995). Copyright law and social dialogue on the information superhighway. Cardozo arts & entertainment law journal. 13: 345, 388; Reichman, J. H. and Franklin, J. A. (1999). Privately legislated intellectual property rights: reconciling freedom of contract with public good uses of information. University of Pennsylvania law review 147: 912.

  15. 15

    Sony Corp. v. Universal City Studios. Inc. 464 U.S. (1984); American Geographysical Union v. Texaco Inc. 60 F. 3d (2d Cir. 1994); Morseburg v. Baylon. 621 F.2d (9th Cir 1980); Recording Indus. Assn of America v. Copyright Royalty Tribunal 662 F.2d (D.C. Cir. 1981).

  16. 16

    Burell, R. and Coleman, A. (2005. Copyright exceptions: the digital impact. Cambridge university press: UK. 189–190; Ginsburg (2000). supra note 4; Bell, T. (2001). Escape from copyright: Market success vs. statutory failure in the protection of expressive works. University of Cincinnati law review 69: 780; Gordon, W. J. (1982). Fair use as market failure: a structural and economic analysis of the Betamax case and its predecessors. Columbia law review 82: 1636.

  17. 17

    Rasmusen, E. (2001). Games and information: an introduction to game theory. B. Blackwell: Cambridge, Mass.; Baird, D. G. et al. (1994). Game theory and the law. Harvard University Press: Cambridge, Mass.; Davis, M. D. (1997). Game theory :a nontechnical introduction. Dover Publications: Mineola, N.Y.; Kreps, David M. (1990). Game theory and economic modelling. Oxford University Press: New York.; Dixit, A. and Skeath, S. (2004). Game of strategy. W. W. Norton & Company: USA.

  18. 18

    There are plenty of related examples found in the website of Game theory.net (Available at  <http://www.gametheory.net/resources.html>).

  19. 19

    Kerans, M. (2002).Computational game theory: a tutorial. Neural Information Processing Systems. (Available at  <http://www.cis.upenn.edu/%7Emkearns/nips02tutorial/>).

  20. 20

    Baird, et. al. (1994). supra note 17. at 10–21 (examining how the tort laws work and what their impact is on the liability between motorists and pedestrians); Curry, P. A. (2003). Applications of game theory: evolution and the law. PhD thesis, the university of Western Ontario, Canada. 70–71(examining the property division rule widespread used in North America for divorced couples and make an inference that when the 50–50 division rule upon divorce will lead to the marriage more stable than when spouses can keep their own wealth and assets); Seidmann, D. J. and Stein, A. (2000). The right to silence helps the innocent: a game-theoretic analysis of the Fifth Amendment privilege. Harvard law review 114: 431–510. (prove that the criminal is not the exclusive beneficiary of the right to silence. but the innocent suspect); Taylor, R. (1995). A game theoretic model of gun control. International review of law and economics 15: 269–288 (asserts that the modest gun control law only targeting on criminal is optimal state. but not stringent universal disarmament); Matz, J. A. (2001). We are all winners: game theory. the adjusted winner procedure and property division at divorce. Brooklyn law review 66(4): 1339–1392 (bringing the idea of the adjusted winner procedure which is analogous to the prisoners Dilemma in order to avoid an unfair divorce agreement deriving from the power balance between the couple); Crump, D. (2001). Game theory, legislation, and the multiple meanings of equality. Harvard journal on legislation 38: 331–411. (using several types of games to discuss equality and legislative problems involving equality).

  21. 21

    Baird. et al. (1994). supra note 17. (comprehensively discussing issues including corporations, international negotiations tort settlement labour relations and contract law); Leslie, C. R. (2004). Trust, distrust, and antitrust. Texas law review 82(3): 515–680. (Discussing the relationship between cartel and antitrust law); Zane, Phillip C. (2003). The price fixers dilemma: applying game theory to the decision of whether to plead guilty to antitrust crimes. The Antitrust Bulletin 48: 1–31 (discussing the civil liability for price-fixing behaviour); Powers, M. R. & Shubik, M. (1998). On the tradeoff between the law of large numbers and oligopoly in insurance. Mathematics and economics 23: 141–156 (oligopolistic behaviour); Wiley, J. S. Jr. (1998). Reciprocal altruism as a felony: antitrust and the prisoners dilemma. Michigan law review 86: 1906–1928. (predatory pricing).

  22. 22

    Gordon, W. J. (1992). Asymmetric market failure and prisoners dilemma in intellectual property. University of Dayton law review 17(3):.853–869 (explaining the existence of copyright); Shultz, C. J. & Nill, A. (2002). The social conundrum of intellectual property rights: a game theoretic approach to the equitable management and protection of IPR. European journal of marketing 36(5/6): 667–689 (suggesting the stronger protection for IPR because of the problem of counterfeit brands); Gbosh, S. (2004). Patents and the regulatory state: rethinking the patent bargain metaphor after Eldred. Berkeley technology law review 19: 1314–1388. (criticizing the regulatory goals of patent law).

  23. 23

    Hardin, G. (1968). The tragedy of the commons. Science 162. (Available at  <http://dieoff.com/page95.htm>  The Tragedy of the Commons is, simply put, that individuals will destroy the wealth of the commons because of the overusing problem.

  24. 24

    Gordon (1992). supra note 22. at 865; Mcjohn (1998). supra note 13. at 64. 74.

  25. 25

    Heller, M. A. (1992). The tragedy of the anticommons: property in the transition from marx to markets. Harvard law review 111(3): 622.

  26. 26

    Loren (1997). supra note 13; Mcjohn (1998). supra note 13. at 72.

  27. 27

    Stallman, R. Misinterpreting copyright. (Available at  <http://www.gnu.org/philosophy/misinterpreting-copyright.html>).

  28. 28

    Gordon (1992). supra note 22. at 853–869.

  29. 29

    Sandler, T. (2001). Economic concepts for the social sciences. Cambridge university press: NY. 36.

  30. 30

    Zane (2003). supra note 21. at 10–11; Sandler (2001). supra note 29. at 33–55; Baird. et al. (1994). supra note 17. at 6–46; Matz (2001). supra note 20. at 1366–1368; Gibbons, R. (1997). An introduction to applicable game theory. Journal of economic perspectives 11(1): 130–137.

  31. 31

    Baird et al. (1994). supra note 17. at 8.

  32. 32

    Gibbons (1997). supra note 30. at 128.

  33. 33

    Baird. et al. (1994). supra note 17. at 53.

  34. 34

    Ibid. p.11.

  35. 35

    Zamir, D. L. (1998). Consumer preference, citizen preferences, and the provision of public goods. The Yale law journal 108(2): 389.

  36. 36

    Mahoney and Sanchirico (2003). supra note 12. at 1284; Olson, M. (1971). The logic of collective action. Harvard University press: Cambridge, Mass. 60–61.

  37. 37

    Sandler (2001). supra note 29. at 38.

  38. 38

    Baird et al. (1994). supra note 17. at 33.

  39. 39

    Einhorn, M. A. Digitization and its discontents: digital rights management. access protection. and free markets. (Available at  <http://cyber.law.harvard.edu/digitalmedia/einhorn.htm>).

  40. 40

    Ginsburg, J. C. (1997). Authors and users in copyright. Journal copyright society of the USA 45: 1–20.

  41. 41

    Sandler (2001). supra note 29. at 36.

  42. 42

    Schneider v. State 308 U.S. (1939).

  43. 43

    Frantz, L. B. (1961). The first amendment in the balance. The Yale law journal 71:1425.

  44. 44

    Bell (2001). supra note 16. at 741, 787.

  45. 45

    Stallman supra note 27.

  46. 46

    Burell and Coleman (2005. supra note 16. at 187–191.

  47. 47

    Stallman supra note 27.

  48. 48

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  49. 49

    Fisher, W. Theories of intellectual property. (Available at  <http://cyber.law.harvard.edu/people/tfisher/iptheory.pdf>).

  50. 50

    Crump (2001). supra note 20. at 332.

  51. 51

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Chang, YL. Who should own access rights? A game-theoretical approach to striking the optimal balance in the debate over Digital Rights Management. Artif Intell Law 15, 323–356 (2007). https://doi.org/10.1007/s10506-006-9026-9

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