1. www.oxfirst.com Email: roya.ghafele@oxfirst.com UNIVERSITY OF OXFORD & UNIVERSITY OF EDINBURGH Counting the Costs of Collective Rights Management of Music Copyright in Europe

2. Licensing & royalties balance of payments Country Balance of Payments (Receipts – Payments) USA $64,561,000,000 Germany -$319,090,723 Japan $4,863,296,302 Italy -$783,537,225 France $4,122,533,238 South Korea -$3,864,200,000 Russian Federation -$3,613,280,000 China -$10,635,818,562 Poland -$1,439,000,000 Brazil -$2,078,236,300 India -$1,667,728,038 South Africa -$1,610,297,624 Morocco -$46,941,982 Indonesia -$1,491,979,148 Bolivia -$16,150,000 Botswana -$11,068,969 Kenya -$2,261,997 Philippines -$419,000,000 Source: International Monetary Fund, Balance of Payments Statistics Yearbook and data files

3. Quality not quantity 9/15/12© 2011 Oxfirst Ltd.3 Patent value depends on quality, not quantity Figure. Patent grants, top 10 countries of origin, 2008 (Source: World Intellectual Property Organization)

4. Quality not quantity Gap between patent ownership and license revenue 9/15/12© 2011 Oxfirst Ltd.4 Table. Licensing and Royalties Balance of Payments, 2009 (Source: International Monetary Fund, Balance of Payments Statistics Yearbook and data files)

5. © 2013 Oxfirst Ltd.5 Bilateral licensing is associated with High Transaction Costs S earch and information costs – the costs accrued when soliciting potential contracting partners, which must be identified and information about them supplied and processed. Bargaining and decision costs – the costs accrued during the negotiation and conclusion of contracts, once a contracting partner is identified. The contract process is time-consuming and legal advice is expensive. Enforcement costs – the costs accrued after the contract is concluded and compliance must be monitored and often legally imposed. Adjustment costs – the costs accrued over time when unforeseen need for contractual review may arise

6. Intellectual Property 9/15/11© 2011 Oxfirst Ltd.6 What are the advantages of patent ownership?

7. Intellectual Property 9/15/11© 2011 Oxfirst Ltd.7 What are the disadvantages of patent ownership? Trade-off between trade secrets and patent protection – BUT, IP protection can serve as a baseline for greater management of intangible assets in a company – IP protection also helps to manage collaboration among partners