1. Christian Handke Erasmus University Rotterdam and University of Amsterdam handke@eshcc.eur.nl

2. Introduction Typical rationalizations for copyright exceptions and limitations include: Innovation and creativity Retain fundamental freedoms Protect vulnerable groups Protect specific public organizations In the economic perspective, this all comes down to two related objectives: Promote follow-up innovation and creativity Allow for use where the social benefits exceed any adverse consequences for rights holders

3. Costs and benefits of a copyright system

8. Conclusions Basic empirical results are: –Unauthorized copying does displace demand for authorized copies –There is no evidence that digital copying would have diminished the supply of new creative works. A puzzle at the heart of the empirical literature on the effects of digital copying: How come that supply does not respond to demand in the expected manner? It seems likely that the copyright system needs to be improved. Tailoring copyright exceptions and limitations to the digital realm may be a way forward. At University of Amsterdam, we are currently studying how a copyright compensation systems could improve the situation. A detailed literature review is found in: Handke, C. 2011. Economic Effects of Copyright – The Empirical Evidence So Far, Report for the National Academies of the Sciences. Online: http://sites.nationalacademies.org/PGA/step/PGA_063399