File Sharing: Creative Destruction or Just Plain Destruction?*

@article{Liebowitz2006FileSC,
  title={File Sharing: Creative Destruction or Just Plain Destruction?*},
  author={Stan J. Liebowitz},
  journal={The Journal of Law and Economics},
  year={2006},
  volume={49},
  pages={1 - 28}
}
  • S. Liebowitz
  • Published 1 April 2006
  • Economics
  • The Journal of Law and Economics
The sharing of sound recordings over the Internet is the newest controversy in a long-running battle between copyright owners and copying technologies. In order to provide some context, perspective, and background, this paper examines the short history of file sharing, the longer history of record sales, various explanations for the change in record sales, and some analysis of the economics of copying. Although file sharing has been imperfectly and inconsistently measured, it nevertheless… 
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References

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Although previous forms of copying have been found to often have benign effects on copyright owners the rise in file-sharing has coincided with a steep decline in the sale of sound recordings. This
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TLDR
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File sharing may substantially undermine intellectual property rights of digital goods. This paper concentrates on the music industry. I estimate the effect of music downloads on music sales using
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  • S. Liebowitz
  • Computer Science
    Journal of Political Economy
  • 1985
TLDR
It is shown that the unauthorized copying of intellectual properties need not be harmful and actually may be beneficial and that photocopying has not harmed journal publishers.
Do Artists Benefit from Online Music Sharing?
Music is an information good, and more specifically, an experience good, whose true value is realized only after its consumption. At its fundamental form, artists create (or produce) the music that
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