www.oxfirst.com Email: roya.ghafele@oxfirst.com

UNIVERSITY OF OXFORD & UNIVERSITY OF EDINBURGH

Counting the Costs of Collective Rights Management of Music Copyright in Europe

Licensing & royalties balance of payments

Country Balance of Payments (Receipts – Payments)

USA $64,561,000,000Germany -$319,090,723

Japan $4,863,296,302Italy -$783,537,225

France $4,122,533,238South Korea -$3,864,200,000

Russian Federation -$3,613,280,000China -$10,635,818,562

Poland -$1,439,000,000Brazil -$2,078,236,300India -$1,667,728,038

South Africa -$1,610,297,624Morocco -$46,941,982Indonesia -$1,491,979,148

Bolivia -$16,150,000Botswana -$11,068,969

Kenya -$2,261,997Philippines -$419,000,000

Source: International Monetary Fund, Balance of Payments Statistics Yearbook and data files

Quality not quantity

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• Patent value depends on quality, not quantity

Figure. Patent grants, top 10 countries of origin, 2008

(Source: World Intellectual Property Organization)

Quality not quantity• Gap between patent ownership and license revenue

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Table. Licensing and Royalties Balance of Payments, 2009

(Source: International Monetary Fund, Balance of Payments Statistics Yearbook and data files)

© 2013 Oxfirst Ltd. 5

Bilateral licensing is associated with High Transaction CostsSearch and information costs – the costs accrued when soliciting potential contracting partners, which must be identified and information about them supplied and processed.

Bargaining and decision costs – the costs accrued during the negotiation and conclusion of contracts, once a contracting partner is identified. The contract process is time-consuming and legal advice is expensive.

Enforcement costs – the costs accrued after the contract is concluded and compliance must be monitored and often legally imposed.

Adjustment costs – the costs accrued over time when unforeseen need for contractual review may arise

Intellectual Property

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• What are the advantages of patent ownership?

Intellectual Property

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• What are the disadvantages of patent ownership?

• Trade-off between trade secrets and patent protection– BUT, IP protection can serve as a baseline for greater management of

intangible assets in a company– IP protection also helps to manage collaboration among partners