Hold up problem in creating derivative works in the current copyright system

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Abstract

We show that a strong moral right in Japanese Copyright Law causes a hold up problem when derivative work is created because of the possibility of the ex-post renegotiation with 100% bargaining power residing with the copyright holder of original work has. By expanding on the Hart and Moore [1999] Model, we show that even if complete plan of the license agreement of the copyright can be written ex-ante, It can not prevent the hold up problem because of the ex-post renegotiation that is caused by moral rights for Integrity. And we also show that stronger moral rights bring more severe hold up problem.

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