Abstract
Two recent court rulings have forced both law and economics to seriously reevaluate emerging marketplaces. In Sony Corporation v. Universal Studios (1983), the U.S. Supreme Court ruled that videocassette recorders do not infringe upon the patent rights of a movie producer whose creation is viewed but not purchased (i.e., not bought from the producer or its assignee). This copyright issue has turned into a powerful political issue and a hot subject of conversation…in Hollywood as well as in Washington, D.C.
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