Copying and Indirect Appropriability: Photocopying of Journals

Creators and owners of intellectual properties are alarmed by the rise of technologies that ease the task of copying these properties. However, it is demonstrated that the unauthorized copying of intellectual properties need not be harmful and may actually be beneficial. An empirical study directly tests for the existence of indirect appropriability and for photocopying's effects on price discrimination. An examination is also made of publishers' performance as photocopying activity has increased. The evidence suggests that the publishers can indirectly appropriate revenues from users who do not directly buy journals and that photocopying has not damaged journal publishers. Recent efforts promoting ''clearinghouses'' to make the collection of copyright payments more economic may be viewed as possibly redundant or unnecessary.