Thursday, March 17, 2011

Big Media Royalties

Given that the enforcement of monopolies is grounded in violence, we can see that IPR is contrary to free markets, which are nonviolent.  Having said that, a monopoly is a lovely thing, for a while, for he who owns one.

Media houses offer advances on royalties, and costs, to their clients.  This is terribly attractive, since an author can live on the advance while he finishes the book.  But note, in essence, you are being paid from your own efforts to write, someone is merely loaning you the money.

But so happy is the artist that he does not notice "the costs" which are being charged to his account.  Fancy offices, private jets, luxury lunches and champagne soirees.  I may be exaggerating slightly to make the the point, but you see that although publishing houses spend a lot of money getting a book out, it is not true that it costs a lot of money to get a book out.  So it is with any big business that contracts with creative.

  The implicit reverse is, designers get a very good deal working with small and start -up compaines, with the straight royaltiy deal.  The small business is keen on keeping costs down, but regardless, the designer gets a straight royalty, no matter what the costs.  And should the small business fail, the designer still "owns" the item, to license elsewhere.


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