Question

Suppose that a writer completes a novel at age 40, which is then covered by copyright. At an interest rate of 10 percent, the present value of $1 paid after 105 years equals much less than 5 cents. What does this fact suggest about whether the efficient duration of copyright is longer or shorter than currently provided by law? Can you suggest an alternative system to incentivize novel writing? Is one necessary?

Answer 1

Duration: It seems that the efficient duration would be for shorter period, since the value of money decreases in long period of time; but this is not true. Copyright must be in longer period for protecting writer’s ownership; it should not be depending upon the time value of money.

Alternative: Publisher of the book used to increase the price of the book time to time; once this is done the copyright amount would increase automatically, since it is based on a specific percentage (say 10%) on the book price. Writing a good novel is therefore necessary. If the novel is good more and more people would like to read it, which makes its demand for longer period with an increasing price. An additional amount in terms of incentive could be provided then to the writer as incentive.

Yes; this is necessary that the writers should get incentive. Such thing motivates them and improves their writing skills.