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12 Rev. Econ. Rsch. on Copyright Issues 1 (2015)

handle is hein.journals/rvwoecrh12 and id is 1 raw text is: 













Review of Economic Research on Copyright Issues, 2015, vol. 12(1/2), pp. 1-15


   ROYALTY RATE SETTING FOR SOUND RECORDINGS BY THE UNITED
      STATES COPYRIGHT ROYALTY BOARD: THE JUDICIAL NEED FOR
               INDEPENDENT SCHOLARLY ECONOMIC ANALYSIS


                                THE HON. DAVID  R. STRICKLER


        ABSTRACT. Judges who set copyright royalty rates through litigation, like all trial Judges, are con-
        strained by the evidence and testimony. Thus, we can only determine rates that are supported by the
        record. For the record to be sufficient, testifying economists must be able to apply a sufficient body
        of work in the economics of copyrights. In my address to the 2015 SERCI Congress, I emphasized
        the judicial need for continued and comprehensive research in this field, so that testifying economists
        can provided a foundation for our determinations. In this article, I explore such issues in more detail.



        The truism that judicial analysis, economic or otherwise, takes place only in the
        context of lawsuits between two or more parties imposes a practical constraint on the
        Judge's ability to use economic analysis.... [A] judge will, for the most part, be limited
        by what the parties serve up to her. (Patricia Wald, 1987, p. 228)


                                      1. INTRODUCTION

   In September 2015, I had the privilege of addressing SERCI's Annual Congress.  My  speech

was  on the  subject of Royalty  Rate Setting for Sound   Recordings by  the United  States

Copyright  Board:  The  Judicial Need  for Independent  Scholarly Analysis. The  purpose of

this article is to expand briefly on some of the issues addressed in my speech, and to follow-up

on several subjects discussed during the Q and A and the discussions that followed my address

to the Congress.

   The United States Copyright Royalty Board  (CRB)  establishes rates and terms for statutory

licenses of copyrights on sound recordings. The  CRB  is a three-judge panel, and one of the

three (the author of this article) by law shall be an attorney who has significant knowledge in

the field of economics. The other two Judges are the Chief Judge, who shall have experience in

The statements contained herein are the personal statements of Judge Strickler, and do not necessarily reflect the opinions
of the U.S. Copyright Royalty Board.

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