Answer to Question #91109 in Microeconomics for Rimie

Question

3. Copyright duration in Canada is the creator of the works lifetime, plus 50 years from the end of the calendar year that the creator died. Presumably, the copyright creates incentives to produce creative work (because the author or copyright holder receives the royalties for the use of the copyrighted materials). But the author obviously cannot keep receiving the royalty after he or she dies! Explain how extending the copyright protection beyond the author life creates the incentives to produce creative work.

Answer 1

Extending the copyright protection beyond the author life creates the incentives to produce creative work, because the author knows, that expected term of paying royalty will be higher and the total value of royalty received will be greater.