Copyrights create monopolies. Only one party is allowed to dictate how the copyrighted item is to be used. In a digital environment, copyrights serve as a powerful tool for extracting rental revenue, for control and for maintaining existing business models. Copyrights were not so important in an earlier age when copying things was difficult and expensive. Now computers and digital devices allow for an infinite number of perfect reproductions at a minimal cost. This threatens existing business models in several industries specially the creative ones. As a result, the importance of copyrights has suddenly exploded as companies and many artists use this as a mechanism to protect themselves from a massively unsettling change.
Earlier I argued that copyrights do not enhance innovation. The argument that they do so is based on a misunderstanding of the reasons why people innovate. The other argument passed in favor of copyrights and their strong enforcement is based on the right of the innovator to benefit from his/her innovation. This is a stronger albeit still flawed argument. Copyright law came into existence at a time when individuals were the main source of innovations. The argument that they should benefit from their work had validity then. To make that argument today is to ignore the nature of the copyrights that are now being granted. The majority of copyrighted material today is possessed by corporations. Most of the most iconic symbols of our age are under the copyright and this protection is being enjoyed largely by companies and not by individuals.
Companies are supposed to grow by bringing innovating new products and services. Instead what is happening today? By copyrighting material and preventing others from using it, companies are able to enjoy extraordinary profits which is a violation of economic efficiency which is a foundation of the capitalist system. A more insidious effect is that we have ceded the evolution of our culture to entities whose sole raison d'etre is to make money for a privileged group of individuals (their investors). Take Mickey Mouse as an example. This is an iconic symbol of our childhood - indeed of children around the world. Yet there is only one way in which Mickey Mouse can be presented to the world and that is the Disney way. Alternate expressions using the Mouse are prevented because of copyrights. The result is that our culture is impoverished. What we bequeath to our children and grandchildren will be a vision that has been dictated by a company for purely commercial considerations.
Copyrights also hamper economic development. This is an something that is often not appreciated. Look at the history of development of developed countries. Each and every one of them ignored copyright issues when they were developing. The reason is that ideas are extremely important at all stages of development. Developing countries need access to the latest ideas and techniques in various industries in order to implement them properly and thus grow their economies. The problem is that copyrights raise the cost of ideas and developing countries usually lack resources. For example, access to the latest scientific, management and trade journals is very expensive. If there is strong enforcement of copyrights, then most countries would not be able to access these ideas and as a result will steadily fall behind other countries in developing and growing their economies. It should be kept in mind that this is not just a problem for developing countries. Poor people will move around in search of economic opportunities as they always have. There will be (and has been) an upsurge in economic migrations driven by lack of domestic opportunities which in turn is caused by harsh copyright laws.
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