A Little Understanding Motivates Copyright Abusers To Pay Up; Forbes, 5/23/16

Michael Blanding, Forbes; A Little Understanding Motivates Copyright Abusers To Pay Up:

"Obtaining an image from the Internet is as easy as right-clicking and downloading. We’ve all done it—or, ahem, know someone who has. We rarely think about who created these images or whether we have the rights to use them. This leaves the owners of those images with a conundrum: Should they pursue the violators?

First off, the monetary amounts at stake are often small—tens or hundreds of dollars in licensing fees. Is it worth the time, cost, and effort to send a bunch of settlement request letters? Second, few of these types of digital copyright infringements wind up in court. So why bother if the ultimate enforcement mechanism seems so far-fetched?

Harvard Business School Assistant Professor Hong Luo looks at these questions in a 2015 working paper, “Copyright Enforcement: Evidence from Two Field Experiments,” co-written with Julie Holland Mortimer of Boston College and the National Bureau of Economic Research. The paper was updated earlier this year.

Their findings about how to motivate copyright violators to actually pay up are important not only for copyright holders, but also applicable to many disputes involving small amounts."