Final summary
The experiences related by creative industry firms in this study offerinsight into the relationship between IP regimes and PCI. Like the maker-entrepreneurs described by Troxler and Wolf (2017), creative firms that engage PCI communities are linked to value generation activities beyond their boundaries. Previous research on PCI overlooked the importance of IP licensing environments in the success of collective projects. This study illustrates that an open IPenvironment can enable business models that rely on user co-creation. For certain PCI-engaged firms, the requirement for strict IP protection appears lower than for firms pursuing traditional product-based strategies. This is somewhat counterintuitive, because openness requires that works circulate widely beyond creators’ direct control, making them easier to copy. However, the absence ofcopyright protectionoffersopportunities for PCIby inviting audience circulation, reuse, and product enhancement. Strong copyright protection has been considered necessary for creative industries to thrive by giving firms the ability to fully control downstream uses of their IP. Copyright remains important for many traditional firms that rely on revenue from licensing or selling their products. This study has shown that some creative businesses rely on alternative mechanisms of value generation and value capture. These firms do not use public domain materials only because they are free. The ability to freely and openly use material is critical to business models in which value is generated or captured via the collective participation of users.
