Models

You can play directly with the model parameters and see what happens, or refer to the explanations below before making your parameter choices.

Your parameters
Country or geographical zone name.
 
If you know only the total population, try 80% for developed countries, 70% for emerging countries.
Number of [household] subscribers to broadband Internet. For households only, substract 10% to total number of subscriptions.
Ex. for Brazil : R$.
Number of contributors to works to be rewarded (by this mechanism) above S in one year. Hint: in Sharing we set it at 0.35 to 0.5% of population aged 16 or more.
“Significant” reward amount (of some real utility, more than symbolic).
Minimum reward to be distributed in one year.
Best-fitting Zipf's law parameter of the distribution of rewards resulting from use data with the possible application of a less-than proportional reward function. To get an idea of the effect of values of α ranging from 0.8 to 1.1 on the concentration of rewards, see this figure (p. 95 of Sharing).
for production of inital copies of new works of all media in one year (fabrication and distribution excluded).
that should be covered by the financing part of the creative contribution.

The Creative Contribution is an additional financing source attached to non-market sharing between individuals. The book discusses the impact of the recognition of the right to share on the other sources of revenues and investment. Our model for evaluating the amount of the Creative Contribution in one country or geographical zone is detailed in chapter 7 of the book. It has 2 components: rewards for the contributors to works that have been shared (R), and upfront financing to the production of new works and the environment for the recognition of interesting works (F). In addition, we have estimated that the management costs will represent 4% of the total amount collected.

  • R depends on four parameters: the total number of people (N) one needs to reward above a "significant"1 amount in a given year (S),  the minimum reward that will be distributed to a person for a given year (M), and the shape parameter of the distribution of rewards (α (alpha)). In our model
    • N has been set to 0.4-0.5% of the population aged 16 or more in developed countries, or 0.8 to 1% of broadband Internet subscribers in emerging countries (our tests have now shown that this last figure for emerging countries is probably too high).
    • S has been set to €150 or $200 per year or the Purchasing Power Parity (PPS) equivalent,
    • M has been set at €30 or $40 per year or the PPS equivalent,
    • α has been defined as the best fitting Zipf's law parameter of the distribution of rewards obtained from use data with the possible application of a power law  less-than proportional reward function. We have studied 3 values for α: 1.0, 0.9, 0.8. A higher α means a more concentrated distribution on few creators. For comparison, the rewards distributed from existing copyright systems have a shape parameter of 1.1 or more (variable among media).
  • F is simply a percentage of the total investment in a year for the production of the first copy of new works of all media in the considered country or geographical zone. We have set this percentage to 5 to 7%2, and we added 10% of the obtained (0.5 to 0.7% of the total investment) for the environment of recognition of quality.

Using the form above, you can run our model with parameters of your choice. You will obtain an estimate of the total cost of the Creative Contribution and some comments on the effect of your parameter choices.

  • 1. Or not insignificant.
  • 2. 5% in the US, 7% for countries where the total investment is significantly lower per capita than in the US.