Abstract

This article examines the economic nature and effects of copyright law. Applying the so-called method of law and economics, it attempts to balance the positive effect on authors' creativity as an economic incentive with the costs of granting an exclusive right - that is to say a legal monopoly - to competitors in the market. The results show that if all the dynamic consequences of copyright are taken into account - that is to say the effect of changing market structure and behaviours of economic agents - the efficiency of the copyright can be questioned and this evidence suggests a cautious attitude in extending it.