Government Participation in Digital Copyright Licensing in the Cloud Computing Environment - Challenges of Information Management Beyond the Cloud - page 82

1.3 Digital Copyright Licensing in the Cloud Computing Environment

Cloud computing represents the turning point from individual service to centralized
service in the network industry [18]. However, the development of the technology has
not turned over the basic principle of copyright system: creation brings rights while
usage needs permission [19].
As for digital copyright, cloud computing plays an important role in the integration
of the digital copyright supply chain. Cloud computing service charges by rent rather
than buy, so the cost can be reduced. Thus digital copyright industry chain in cloud can
achieve capital flow integration, promoting implementation of digital copyright license
and better profit distribution. How to take advantage of its benefits and avoid its
deficiency and how to coordinate different interests of multiple copyright shareholders
in the new environment have to be settled urgently.

2 Literature Review

2.1 Classical Theories of Government Participation in Economy

Classical theories in economics proposed different views on government's role in the
market while they all affirmed the role of government in economy operation. Adam
Smith is routinely caricatured as a champion of laissez-faire economic policies but he
never made a blanket rejection of government. The Wealth of Nations is a treatise about
economic development through good government [20]. Based on the elements of liberal
economy, he proposed that the functions of government are detailing the work division,
increasing capital and improving the capital usage [7]. According to Werhane [21], Smith
did see many areas that are ripe for government regulation, as did Skinner [22], [8].
According to Goldsmith [8], Adam Smith highlighted three public rights - basic law
and order, the right to property, and the enforcement of contracts [23]. These rights set
the stage for increased bargaining and economic growth [24]. The legal fiction property
is the bedrock for capitalism, since, obviously, people cannot give and get assets they
do not 'own' [20]. In his General Theory of Employment, Interest and Money , Keynes
[25] proposed the government function theory of state interventionism positing that
free competitive market presumed in the liberalism theory did not exist in real life so
market mechanism could not balance supply and demand independently [26].

2.2 Relationship between Government and Market

Follow the vein of free economy and government function study, Professor Zhao [27]
viewed the function of government as economy regulation, market supervision, social
administration and public service, which put the regulation and supervision of economy
and market as the basis of government participation. He argues that free market without
government participation would not exist and whether to participate in the market
depends on whether the government can activate the market and promote the
development of economy.
As for China, Steven N. Cheung further discusses government effect in the market
economy from the angle of inter-country (government) competition and concluded that