In this essay, they discuss the currently available research that sheds light on the effects of file sharing, particularly in music where its effects have been most pronounced. They start by describing the new technology and how consumers are using it. Section 4 reviews the evidence that file sharing reduces the profitability of creating and selling new works. They discuss the importance of complements to original works in Section 5 and describe the artistic and corporate response to file sharing in section 6. The concluding section offers policy implications.
“…in the industry with the largest purported impact – music – consumer access to recordings has vastly improved since the advent of file haring. Since 2000, the number of recordings produced has more than doubled. In our view, this makes it difficult to argue that weaker copyright protection has had a negative impact on artists’ incentives to be creative.”
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