Transcript ccia-fair-use-study-slides - Association of Research Libraries

Fair Use in the U.S.
Economy:
Economic Contribution of Industries Relying on Fair Use
September 12, 2007
C A P I T A L
T R A D E
I N C O R P O R A T E D
Thomas Rogers and Andrew Szamosszegi
(202) 463-1850
Why Measure the Fair Use
Economy?
Estimates of the economic contribution of
copyright industries are widespread.
Anecdotal evidence suggests that fair use is
increasingly important to the U.S. economy.
– Fair use undergirds important economic activities and
products in the digital age.
– Beneficiaries of fair use are widespread.
Businesses and consumers benefit.
This study aims to quantify the economic
contribution of fair use.
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Summary of Findings
Fair use industries account for
– One-sixth of U.S. GDP
– Nearly one-fifth of economic growth
– More than 17 million workers
– $1.2 trillion in payroll
– High levels of compensation and productivity
in core industries.
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What is Fair Use?
“Fair use” is an important restriction to the rights conferred on
original works by the U.S. Copyright Act of 1976.
For this study, the term “fair use” includes fair use and other related
limitations and exceptions to copyright enumerated in Title 17:
Section
Form of Protection
102(a)
Noncopyrightability of facts
102(b)
Idea/expression dichotomy
105
No copyright in U.S. government works
107
Fair use: criticism, comment, news reporting, browser, cache
copies, reverse engineering, space shifting
108
Library uses
109
First sale doctrine, copies
112
Ephemeral recordings
114(a)
Exception to sound recording performance right
117(a)
Back-up, essential step
302-304
Copyright term
512
ISP safe harbors
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Methodology
Identify industries that benefit from fair use.
– Core industries
– Non-core industries
Determine revenue, employment, and payroll of
those industries.
Estimate value added for those industries.
Compare fair use values with overall economy.
Use 2002 and 2006 data.
Follow the WIPO (World Intellectual Property
Organization) framework of analysis.
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Methodology (ctd.)
Core industries depend in large measure on
the limitations and exceptions to copyright law.
–
–
–
–
Internet service providers and web search portals
Computer and peripheral equipment manufacturing
Legal services
Newspaper publishing, etc.
Non-core industries facilitate output of the fair
use core or are major users of fair use
industries.
– Book, periodical, and music stores
– Consulting
– Communications equipment manufacturing
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Data Sources
2002 sources:
– Census Bureau’s Economic Census (revenues and
payroll)
– Bureau of Labor Statistics (employment)
– Bureau of Economic Analysis (value added estimates)
2006 sources:
– Department of Commerce economic releases and
industry sources (revenues)
– Bureau of Labor Statistics (employment)
– Bureau of Economic Analysis (payroll and value
added estimates based on 2005 relationships)
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Selection of Fair Use Industries
Report Table 1 contains a list of industries,
descriptions, and applicable fair use provisions.
– Links to relevant provisions provided by Professor
Peter Jaszi, American University.
Industries based on 2002 North American
Industrial Classification System (NAICS):
– Detailed industry descriptions
– Better coverage of Internet
Used the most specific industry definition
available (3-or-more-digit codes)
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Core Fair Use Industries
Photographic & photocopying equipment mfg
Motion picture and video industries
Computer and peripheral equipment manufacturing
Sound recording industries
Audio & video equipment manufacturing
Other financial investment activities
Semiconductors and related device manufacturing
Insurance carriers
Manufacturing and reproducing magnetic and optical
media
Other investment pools and funds
Electronic shopping
Video tape and disc rental
Electronic auctions
Legal services
Newspaper publishers
Architectural, engineering, and related services
Directory, mailing list, and other publishers
Graphic design services
Software publishers
Scientific research & development services
Internet publishing and broadcasting
Education services
Internet service providers and web search portals
Performing arts companies
Other information services
Independent artists, writers, and performers
Data processing, hosting, and related services
Computer and office machine repair and
maintenance
Securities, commodity contracts, and investments
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Non-core Fair Use Industries
Printing and related support activities
Cable networks
Communications equipment manufacturing
Wired telecommunications carriers
Communication and energy wire and cable
manufacturing
Wireless telecommunications carriers (except
satellite)
Computer & peripheral equip merchant wholesalers
Cable and other program distribution
Computer software (packaged) merchant
wholesalers
Other telecommunications
Business to business electronic markets
Securities and commodity exchanges
Electric appliance, TV & radio merchant wholesalers
Agencies, brokerages, and other insurance
related activities
Communications equipment & supp merchant
wholesalers
Insurance & employee benefit funds
Electrical & electronic goods agents & brokers
Computer system design and related services
Radio, television & other electronics stores
Management, scientific, & technical consulting
services
Computer & software stores
Education services
Book, periodical, and music stores
Promoters of performing arts, sports, and
similar events
Radio & television broadcasting
Agents and managers for artists, writers, and
performers
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Measuring Fair Use Industries
Revenues—value of net sales
Value added—value of output minus
value of purchased inputs
– Measures firm’s contribution to Gross
Domestic Product (GDP)
– No double counting
Payroll—all forms of compensation
Employment—number of workers
Trade—export value
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Results—
Revenues of Fair Use Industries
Total Revenue = $4.5 trillion in 2006
$4.5 tril.
5,000
4,500
$3.5 tril.
Billions of Dollars
4,000
$2,005
3,500
3,000
$1,671
2,500
2,000
$2,542
1,500
1,000
$1,791
500
0
2002
2006
Core
Non-core
% increase 2002 to 2006—Core: +42%; Non-core: +20%; Total: +31%
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Results—
Value Added of Fair Use Industries
Total Value Added = $2.2 trillion in 2006
$2.2 tril.
2,500
$1.7 tril.
Billions of Dollars
2,000
1,500
$832
$707
1,000
$1,368
$986
500
0
2002
2006
Core
Non-core
% increase 2002 to 2006—Core: +39%; Non-core: +18%; Total: +30%
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Results—
Fair Use Industries’ Contribution to U.S.
GDP Growth, 2002 to 2006
Fair use industries accounted for 18.3 percent
of U.S. GDP growth from 2002 to 2006.
$507 billion
18.3%
Fair use industries
Other industries
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Results—
Employment in Fair Use Industries
Total Employment = 17.3 million workers in 2006
Thousand Employees
15,000
17.3 mil.
16.9 mil.
20,000
6,434
6,457
10,479
10,801
10,000
5,000
0
2002
2006
Core
Non-core
% increase 2002 to 2006—Core: +3.1%; Non-core: +0.4%; Total: +2.0%
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Results—
Payroll in Fair Use Industries
Total Payroll = $1.2 trillion in 2006
$1.2 tril.
1,200
$0.9 tril.
$407
Billions of Dollars
1,000
800
$347
600
$781
400
$561
200
0
2002
2006
Core
Non-core
% increase 2002 to 2006—Core: +39%; Non-core: +17%; Total: +31%
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Results—
Exports of Fair Use Industries
Total Exports = $194 billion in 2006
$193.7 bil.
200
Billions of Dollars
$131.1 bil.
150
100
50
118.4
77.4
75.3
53.6
0
2002
2006
Goods
Services
% increase 2002 to 2006—Goods: +40%; Services: +53%; Total: +48%
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Results—
Productivity and Compensation in
Fair Use Industries
Productivity and compensation growth have
been especially strong in core industries.
Measure
Type
Payroll per Employee
Value Added per Employee
2002
2006
Change
Compensation
$53,558
$72,312
+$18,754
Productivity
$94,097
$126,628
+$32,531
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Conclusions
Fair use industries play an important role
in the U.S. economy.
One sixth of the economy
Nearly one-fifth of economic growth
One in eight U.S. workers (17 million)
$1.2 trillion payroll
High levels of compensation and
productivity in core industries
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