The "content industries" like to make claims about their economic losses. At last, VCs and startups are starting to point out how much they have to lose from overreaching IP laws. Booz Allen just published a study based on interviews with VCs and other investors. (Disclosure: I was among those interviewed.)

From the study:


• Increasing liability for content providers would have a greater negative impact on
early-stage investment than would a weak economy and an increased competitive
environment combined.
• Holding Digital Content Intermediaries liable for the content uploaded by users would have a significantly negative effect on investment in this space, reducing the pool of interested angel investors by 81 percent.
• Regulations making users more easily prosecuted for copyright violations would have a negative effect on investment in this space, reducing the pool of interested angel investors by 48 percent.
• A large majority of angels and venture capitalists support increased clarity in copyright law, especially if it would decrease the level of ambiguity surrounding the probability of facing a lawsuit in cases of copyright infringement, as well as the size of damages in the event of liability. Fully 80 percent report being uncomfortable investing in business models in which the regulatory framework is ambiguous.
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