ABSTRACT
This chapter studies the implications of new digital technology on the duration of copyright protection. Copyright protection remains the fundamental legal underpinning in the provision and consumption of information. Within the duration of copyright protection, each publisher is a monopoly in reproducing and distributing copies of products developed by itself. Thus, it can charge a copy price higher than the marginal cost of reproducing and distributing the copy. In general, the duration of copyright protection should be shorter for digital information to the extent that barriers to entrance to digital publication are lower, allowing for more publishers. Thus, if a publisher enjoys a natural monopoly, a longer protection for copyright is needed to maximize social welfare. Copyright protection is needed for any publisher to recover costs and stay in operation. From a global point of view, globalization does not affect optimal duration of copyright protection to the extent that it increases demand for a given set of information products.
