From riches to rags, an economic analysis of DRMs in on-line music distribution

Anne-Gaëlle Geffroy · 2009

Digital Rights Management systems (DRMs) are private technological tools enabling the versioning of digital cultural goods and their protection against unauthorized copying. Their legal protection stands as the main evolution of copyright and author's right laws in the digital environment. This dissertation first recounts the economical, technological and legal history of DRMs and on-line music distribution, in France and in the United States, till January 2009. This historical presentation highlights the surprising evolution of DRMs. At first, DRMs were regarded as an inexpendable asset for on-line music distribution, but their relevance as protection tools, as versioning tools and as legal tools has been gradually questioned. Following three distinct analytical paths, we examine the economic rationale of the use of DRMs by record companies as a protection tool and as a versioning tool and the economic rationale of the choice of the legal protection of DRMs as the main evolution of copyright and author's right laws in the digital environment.

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