ABSTRACT

Creative firms, like most businesses, reach first for private ordering strategies and solutions—contracts, private arrangements, licensing and cross-licensing agreements, and mutually agreed upon commons—when seeking to respond to new business challenges. Individual companies that change business models are typically acting competitively, which may or may not promote collective solutions. Increasing emphasis on the propertization of music may be one approach that the music industry has taken to disallow creative borrowing without rights clearing and/or royalty payments being assessed. This may be primarily an outcome of intellectual property (IP)-based solutions that seek compensation for musical borrowing, even in cases where the new artist is not clearly appropriating the original work but may rather be trying to use it in an innovative and transformative manner. Changing IP entitlements in a creative industry involves across-the-board measures that are not privately ordered, open to negotiation ex post (that is, after IP measures have been put in place), or granular at a company-specific level.