Economic Analysis of Private Copy Remuneration (PCR), Requested by GESAC

Economic analysis of copyright legislation: be prepared to see more of it in the future.
The Econlaw Study focuses on the music sector.
"..(W)e find that the incentives put in place by the PCR system should translate into an increase in the stock of music titles of around 1.5 percent in a period of 25 years. This increase would in turn compensate for the short-term negative effects on the joint welfare of consumers and producers of CE products, increasing total welfare by around 2.8 percent in a period of 25 years, although three fourths of the positive effects would already be in place after a period of 5 years. Regardless of the particular assumptions, the base-line conclusion is that the dynamic mid- and long- term effects of the PCR system on content supply compensate for the negative short-term effects calculated in our static analysis. In sum, the economic impact of the PCR system is not negative and could increase total welfare", p. 11.
According to the Study, exemption systems from payment in favour of certain types of users would be inefficient : more information and transaction costs, and this would in the end impact all participants (also the beneficiaries of the exemption), p. 13.