Putting all of this together this means that one would need to find a minimum ratio of general (not marginal) welfare to deadweight loss in the range of 21 to 90. These are very high numbers and we find it difficult to imagine that the ratio is this high. As a consequence we believe it very likely that a term extension of the type under consideration would cause a net welfare loss to society. As it may be useful to the Gowers Team we attempt to provide an explicit estimate of the likely welfare change. Using a set of conservative parameter values (as detailed in the appendix below) we estimate the present value of welfare loss equal to approximately 7.8% of total current annual revenue, which expressed in monetary terms amounts to 155 million pounds.
Wednesday, December 06, 2006
Term extension would cost UK £155m per year
The Treasury has just published the report commissioned by the Gowers review on the economic evidence on copyright term extension. It has a resounding conclusion: