Copyright Protection Strategy for Digital Information Innovation Products with Network Externalities

Copyright protection for innovation products is an important issue concerned by innovators, especially for those of digital information products. The innovation products easily to be pirated generally have an important nature of network externalities, which may influence the copyright protection strategy for innovation products. This paper develops mathematical models to describe the interrelationship of an original innovation product and its piracy product, for analyzing the copyright protection strategy for innovation products with network externalities. The study shows that network externalities might change the nature of the interrelationship between an original innovation product and its piracy product from competition to mutualism, which will influence the market shares of both products, and the success or failure of innovation further. According to the study, this paper also analyzes and suggests the copyright protection strategy for innovation products.