Copyright holders for illegal digital file sharing

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Reference no: EM131002534

In February 2003, Germany’s patent office proposed a solution to reimburse copyright holders for illegal digital file sharing: charging personal computer manufacturers a fee of $13 per computer that would go into a special fund to reimburse the copyright holders. Two computer makers – Fujitsu-Siemens and Hewlett-Packard – claimed that imposing the fee would do great injury to them because they would be unable to pass any of the fee onto consumers. Under what assumptions about the demand curve and the supply curve would the computer makers’ claim be true? Are these assumptions realistic? Discuss using demand and supply diagrams to support your arguments.

Reference no: EM131002534

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