Argument: Graduated response gives assurances needed for investment
Barry Sookman and Dan Glover. "Graduated response and copyright: an idea that is right for the times." Lawyers Weekly. January 20th, 2010: "While graduated response will never eradicate online infringement altogether, it would also give rights holders and ISPs the necessary protection they need to develop innovative business models such as the subscription plans created by European ISPs like Orange and BSkyB, and by mobile providers such as Nokia and Sony Ericsson. Bringing together graduated response with these access-based models would give users a safe, affordable and reliable means to get the creative content they desire while fostering innovation, creativity, competition and investment in intellectual property."
Barry Sookman. "The costs and benefits of graduated response in copyright enforcement." Barry Schookman Blog. February 1st, 2010: "Copyright infringement is a negative externality. It raises transaction costs and inhibits investment in the creative industries. Avatar would never have been able to attract a 500 million dollar investment if this 3D movie was as easy to freely copy (free-riding) as a standard 2D video."