Alternative Compensation System - Advantages and Disadvantages

Advantages and Disadvantages

Alternative compensation systems have two very significant advantages over digital copyright. They do not impose artificial scarcity on copyright works: everyone can download as many songs, ebooks and films as they want (in economic terns, ACS eliminate the deadweight loss of copyright monopolies). They also avoid the very high technological and social costs of digital copyright enforcement.

The two greatest drawbacks of ACSes are the excess burden of the taxation that is collected, and the need to decide what tax/levy rates to use for the system (although methods such as contingent valuation may help a little with that question).

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