Digital Rights Management and Technological Tying

This paper analyzes DRM-based technological tying, where the content and hardware form a system. A closed DRM system makes the legal content incompatible with a rival’s hardware, whose users must then obtain illegal copies. The main finding is that the tying firm gains market power in a competitive hardware market and invests in product upgrades at a later stage. Welfare implications of the policy that requires an open DRM system are also discussed.

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Year of publication:	2008-09
Authors:	Kim, Jin-Hyuk
Institutions:	NET Institute
Subject:	digital rights management \| copying \| tying

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 08-05 43 pages
Classification:	L12 - Monopoly; Monopolization Strategies ; L41 - Monopolization; Horizontal Anticompetitive Practices ; M21 - Business Economics ; O32 - Management of Technological Innovation and R&D
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005622683