Study Adds To Link Between Venture Capitalist Investment, Legal Certainty On Copyright Liability For U.S. Cloud Computing Companies
11/4/2011
A new economic study adds to evidence that more legal certainty
about liability can lead to increased venture capitalist investment in a
growing industry -- cloud computing.
Harvard Business School Professor Josh Lerner, whose
research often focuses on venture capital investment and innovation, has examined
the impact of the 2008 Cartoon
Network v. Cablevision decision, which resolved uncertainty around
copyright liability in favor of U.S. cloud computing companies.
Lerner is presenting the
results of his study, “The Impact of Copyright Policy Changes on Venture
Capital Investment in Cloud Computing Companies,” via webcast Monday in
Washington DC. The Computer & Communications Industry Association commissioned
the study to find out if venture capitalists actually invested more in US
companies once a looming liability risk for cloud computing was resolved.
WHEN:
Monday, November 7, 10:30am
WEBCAST
LINK: http://event.on24.com/r.htm?e=376143&s=1&k=D76DD379BC29B67C1D436778451916DC
DIAL
IN INFORMATION (for audio and Q&A): 877-709-8156
Participant
Passcode: 382698
“We have conducted multiple
statistical analyses to determine whether investment in venture-backed U.S.
cloud companies rose subsequent to the Q3 2008 Cablevision appeals court
ruling,” Lerner said. “After controlling for other factors, the numbers show
increased venture capitalist investment in the US compared to Europe, which
does not have as clear liability protections.”
CCIA President and CEO Ed
Black said it’s certainly logical that venture capitalists look at whether
profits can be eroded by lawsuits before investing. “But even so, it is important
to have statistics to illustrate just how much R&D and investment can be
freed in a growing area like cloud computing when companies and their investors
are not paralyzed by looming legal clouds on the horizon.”
“While this study tracks the
results of one legal case, the research is useful as lawmakers consider policy
issues that could increase copyright liability for growing areas of our economy
like cloud computing and Internet services that allow user generated content,”
Black said.
Lerner’s research is
encompassed in the books “The Venture Capital Cycle,” “The Money of Invention”
and the recent “Boulevard of Broken Dreams.”
