Technological Innovations and Mechanisms for Protection of Copyright in the Phonographic Industry

The recent innovations, related to the computer and electronic industries, have evidenced some (legal and deliberate) motivations to reinforce the copyright system at the music industry. This article analyses the effects of a set of innovations on the forms of artistic creations protection. The basic argument consists on considering that, when the imitation is easy, the profits of the innovation may come from certain complementary assets, more than from the intellectual property. The focus is on the relations among innovations, appropriability regimen, complementary assets and behavioral performance of the industry. It is stated here that, being the content (the songs) of the digital format of the music (computer resource) its property (copyright), the industry (music industry) ends up receiving benefits from the development of the innovation if the know-how in question is used (by means of vertical integration or contractual agreements) together with other capabilities or assets in its commercialization.