Intellectual Products And The Property Right Of An Author

1568 Words7 Pages
Intellectual products are considered as ‘non-excludable’ and ‘non-rival’ goods. Since intellectual products neither prevents a person to enjoy the benefits of a product over others nor does the use by the first person diminish the value of the product. Therefore, if property right over creative works are vested to the society then the price of a product will be zero, the prospect of any revenue will diminish and the incentive to create will fade. As such, there was a strong reason to implement efficient copyright term of protection. However, it is wrong to assume that copyright products are public goods because copyright law can exclude others over a fee paying consumer.

The Australian copyright law accepts the ‘justice theory’ and protects the property right of an author. As the average life expectancy of a person increased, the authors argued that copyright protection should be increased to provide adequate benefits for their future generation. However, there is no economic justification for this argument because the real beneficiaries of copyrighted works are the intermediaries such as publishers and record companies. Intermediaries are benefiting from the excessive copyright term of protection through a clever drafted contract. Despite the wider marketing scope of the internet, many authors are forced to transfer their copyrighted works for a few thousand of dollars to the intermediaries. Equally, it is difficult to reconcile that economic incentives will
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