How to slice the pie: Regulating the distribution of copyright revenue in the music industry

Abstract

This paper argues that the different bargaining strengths between music creators and music companies results in inefficient and unfair copyright revenue distrribution. On that basis it suggests two forms of regulatory intervnetion. Fair Trade Music is a voluntary certification scheme which would set a satndard of ‘fair remuneration’. The second option is mandatory regulation of the distribution of copyright revenue to ensure a minimum proportion goes to the music creator. Both schemes are considered against the benefits and obstacles in their practical implementation, ability to achieve the regulatory goal, political reactions and international obligations. Ultimately, this paper does not recommend adoption of a mandatory regulation and advises a cautionary approach to Fair Trade Music. Ostensibly it is unlikely the government will pursue either regulatory response without some politcal impetus.