Various alternative compensation systems (ACSes) have been proposed as ways to allow the widespread reproduction of digital copyrighted works while still paying the authors and copyright owners of those works. This article only discusses those proposals which involve some form of government intervention. Other models, such as the street performer protocol or voluntary collective licenses, could arguably be called "alternative compensation systems" although they are very different and generally less effective at solving the free rider problem. Like John says copyright law in the UK is u make something and its copyrighted but in america u must make a patent haaaa ... The Street Performer Protocol (SPP) is a way of encouraging the creation of creative works and intellectual property in the public domain, described by the cryptographers John Kelsey and Bruce Schneier of Counterpane Systems (although the underlying idea is much older). ... In economics and political science, free riders are actors who consume more than their fair share of a resource, or shoulder less than a fair share of the costs of its production. ...

The impetus for these proposals has come from the widespread use of peer-to-peer file sharing networks. A few authors (eg Gervais 2004) argue that an ACS is simply the only practical response to the situation. But most ACS advocates go further, holding that P2P file sharing is in fact greatly beneficial, and that tax or levy funded systems are actually more desirable tools for paying artists than sales coupled with DRM copy prevention technologies. File sharing is the practice of making files available for other users to download over the Internet and smaller networks. ... Digital Rights Management (generally abbreviated to DRM) is any of several technologies used by publishers (or copyright owners) to control access to and usage of digital data (such as software, music, movies) and hardware, handling usage restrictions associated with a specific instance of a digital work. ...

Architectural Details

Where Does the Money Come From

Proposals have included targeted levies on internet connections, blank CDs, digital media players, etc (many of these goods are levied various countries' existing private copying schemes); income taxation; or optional payments by users. A private copying levy (also known as blank media tax or levy) is a government-mandated scheme in which a special tax or levy (additional to any general sales tax) is charged on purchases of recordable media. ...

In terms of economic theory, consumer "opt in" regimes are very different to universal ones, but depending on how the scheme was administered, the differences might not be so large. For example, if the default option for ISP subscribers was to pay an ACS surcharge, which could be avoided by filing a signed commitment not to make unauthorised downloads from P2P networks, the effects might be quite similar.

Where Does it Go

Various proposals have been made to base the distribution of royalties on measures of consumer downloading, usage or voting.

The computer security issues to be addressed in collecting this data are considerable. The privacy and verifiability obstacles are very similar to those encountered in Internet voting; they may be soluble, but only with hardware assistance not currently available on ordinary PCs. The most practical way to deploy an ACS in the short term would be to collect statistical samples from a much smaller population. Electronic voting (also known as e-voting and including Internet voting and other online voting) is any of several means of determining peoples collective intent electronically. ... Sampling is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern, especially for the purposes of statistical inference. ...

The actual distribution of royalties would likely be carried out by a copyright collecting society. A Copyright collective (also known as a copyright collecting agency or collecting society) is a body created by private agreements or by copyright law that collects royalty payments from various individuals and groups for copyright holders. ...

Advantages and Disadvantages

Alternative compensation systems have two very significant advantages over digital copyright. They do not impose artificial scarcity on copyright works: everyone can download as many songs, ebooks and films as they want (in economic terns, ACS eliminate the deadweight loss of copyright monopolies). They also avoid the very high technological and social costs of digital copyright enforcement. In economics, a deadweight loss (also known as excess burden) is a permanent loss of well being to society that can occur when equilibrium for a good or service is not Pareto optimal, (that at least one individual could be made better off without others being made worse off). ... Elektra v. ...

The two greatest drawbacks of ACSes are the excess burden of the taxation that is collected, and the need to decide what tax/levy rates to use for the system (although methods such as contingent valuation may help a little with that question). In economics, the excess burden of taxation, also known as the distortionary cost or deadweight loss of taxation, is an additional social cost that goes beyond the number of dollars collected in tax. ... Contingent valuation is a survey-based economic technique for the valuation of non-market resources, typically environmental areas. ...

Alternative Compensation Systems in Practice

Canada's private copying levy had the unforseen result of temporarily creating an ACS for some kinds of P2P downloading; [1]. In BMG v. Doe, a dictum suggested that this should also apply to uploading; but the dictum was criticised on appeal. A private copying levy (also known as blank media tax or levy) is a government-mandated scheme in which a special tax or levy (additional to any general sales tax) is charged on purchases of recordable media. ... BMG Canada Inc. ... In common law legal terminology a dictum (plural dicta) is any statement that forms a part of the judgment of a court, in particular a court whose decisions have value as precedent under the doctrine of stare decisis. ...

In France, the December 2005 DADVSI amendments that were passed by the Senate would have created an ACS called a "global license". These amendments were removed before the bill finally became law. Coat of Arms of the French Republic DADVSI is the abbreviation of the French language Loi sur le droit dauteur et les droits voisins dans la société de linformation (in English: law on authors rights and related rights in the information society). It is a bill... The Senate amphitheater in the Luxembourg Palace The Senate (in French :le Sénat) is the upper house of the Parliament of France. ...

Bibliography

1. Baker, D. The Artistic Freedom Voucher: Internet Age Alternative to Copyrights 2003.

1. Eckersley, P. Virtual Markets for Virtual Goods: The Mirror Image of Digital Copyright? 18 Harvard Journal of Law and Technology 85, 2004.
2. Fisher, W.W. Promises to Keep: Technology, Law and the Future of Entertainment, Stanford Univ. Press 2004.
3. Gervais, D. "The Price of Social Norms: Towards a Liability Regime for File Sharing", 12 Journal of Intellectual Property Law 39, 2004.
4. Liebowitz, S. Alternative Copyright Systems: The Problems with a Compulsory License, Presened at SERCIAC 2003.
5. Love, J. Artists Want to Be Paid: The Blur/Banff Proposal 2002
6. Netanel, N.W. Impose a Noncommercial Use Levy to Allow Free Peer-to-peer File Sharing 17 Harvard Journal of Law and Technology 1, 2003.
7. Stallman, R.M. The Right Way to Tax D.A.T, Wired, 1992.

External links

• Additional references available at Alternative Compensation Systems (ACS)