Alternative compensation system

Various Copyright Alternatives in an alternative compensation systems (ACS) have been proposed as ways to allow the widespread reproduction of digital copyrighted works while still paying the authors and copyright owners of those works. This article only discusses those proposals which involve some form of government intervention. Other models, such as the or voluntary collective licenses, could arguably be called "alternative compensation systems" although they are very different and generally less effective at solving the free rider problem.

The impetus for these proposals has come from the widespread use of peer-to-peer file sharing networks. A few authors argue that an ACS is simply the only practical response to the situation. But most ACS advocates go further, holding that P2P file sharing is in fact greatly beneficial, and that tax or levy funded systems are actually more desirable tools for paying artists than sales coupled with DRM copy prevention technologies.

The artistic freedom voucher (AFV) proposal argues that the current copyright system providing a state enforced monopoly leads to “enormous inefficiencies and creates substantial enforcement problems”. Under the AFV proposed system, individuals would be allowed to contribute a refundable tax credit of approximately $100 to a “creative worker”, this contribution would act as a voucher that can only be used to support artistic or creative work.

Recipients of the AFV contribution would in turn be required to register with the government in similar fashion to that of religious or charitable institutions do so for tax-exempt status. The sole purpose of the registration would be to prevent fraud and would have no evaluation of the quality or work being produced. Alongside registration, artists would also now be ineligible for copyright protection for a set period of time (5 years for example) as the work is contributed to the public domain and allowed to be freely reproduced. The AFV would not affect creative workers ability to receive funds via live performances.

Proponents claim that this system could create up to $20 billion annually to pay artists, which is far greater than what currently flows to them through copyrighted material. At $100 per adult voucher, over 500,000 writers, musicians, singers, actors, or other creative workers could be paid some $40,000 a year. Baker also states that it is realistic to assume that the savings from the reduced expenditures on the copyrighted work would vastly exceed the cost of the AFV. The majority of these savings would come from individuals deciding to use AFV supported work in place of copyrighted work as well as lower advertising costs because the AFV material would be public domain. Copyright enforcement demand would also decrease as AFV material increased. The assumptions made are that in the low end direct costs to the public of copyrighted material would be reduced around 20 percent while in the high end all the way up to 60 percent. Over time it is also likely that the savings would increase due to the lesser costs of the system and brighter prospects.

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