Transcript Role & Contribution of the Copyright Industry for Economic Growth

The Role and Contribution of the Copyright
Industry for Economic Growth and
Development
By
Getachew Mengistie, Intellectual property Law Consultant and Attorney
Presented at
National Intellectual (IP) Policy Workshop: Elaboration of a national IP policy
and strategy for namibia
organized by
the World Intellectual Property Organization (WIPO) in cooperation with
the Government of Namibia
Windhoek , Namibia, September 15, 2015
Outline of Presentation
• What is copyright/creative Industry?
• Contribution of Creative Industry for economic
development
• Current Status and potential contribution of
Creative industry in socio economic development
in Africa
• Major Challenges of the Creative Industry
• Measures that should be taken
• Reasons for Action
• Conclusion
What is creative industry?
• WIPO defines Creative industries or
Copyright based industries as consisting of
core, interdependent copyright industries,
partial copyright industries , non dedicated
support industries
Core copyright industries- industries which
are wholly engaged in creation, production
manufacturing,performance,broadcast,
communication
and
exhibition,
or
distribution and sales of works -ex- press
and literature, motion picture, music,
software, photography etc.;
What is creative industry?
 Interdependent copyright industries-engaged in
manufacture and sale of equipment –facilitate the
creation, production or use of works- ex. TV sets,
CDs, DVD
 Partial copyright industries-engaged partly in
activities is related to works and other protected
subject matter and may involve creation, production
and
manufacturing,
performance,
broadcast,
communication and exhibition or distribution and
sales ex. Crafts, fashion
 Non dedicated support industries-support- facilitate
broadcast, communication, distribution or sale of
works. Ex. Telecommunication, Internet
Indicators of economic contribution
• Value added
– Percentage of GDP attributable to copyright
and related rights industries
• Job creation
– Ratio of industries’ employment to the total
employment
• Export volume (International trade – imports and
exports)
- Volume in relation to other industries in the
economy and share of trade revenue etc;
Contribution of CI for economic development
• Studies conducted in developed and developing
countries
• USA 2002
 generated$1,254 trillion or 12 % of the
economy, an increase of more than 54% to
2001,which was 7.75%
provided employment opportunity for 11,476,000
or 8.41% of the total work force-entire health
care& social assistance sector (15.3 mill) or the
entire manufacturing sector (14.5 mil)
 foreign sales and exports-estimated $89.26
billion- CCI exceeded chemicals & related
products, food & animals, motor vehicles, parts&
accessories, aircraft &associated equipment
sectors
Contribution of CI
• A survey of 15 EU countries shows that
CR-based industries contributed between
1.5% to 7% to the GDP and 2% to 4.3%
of the total workforce
• Argentina-1999-2.3 % employment, 3% of GDPexceeded food, chemical substance & products,
electricity, gas & water services, extraction of
petroleum
• Brazil-1998-$33 billion or 6.7%, 1.3 million
employment, export gain 2000-$ 450mil
• CI not affected by the recent economic down turn12% decline in global trade in 2008 but 14%
annual growth of CI
Current Status, potential & economic
significance of CI in Africa
• Creative industries account for close to 6% of
the World Trade, Africa’s share in global
trade of creative products is less than 1 per
cent of world exports
• African countries have huge potential for CI
- Rich culture and tradition that may serve as
a basis for CI
- Potential to enter into international market
& stay completive
Current Status, Potential & economic
Significance of CI in Africa
• Emergence and growth of CI in a number of
African countries- example Nigeria, South
Africa, Egypt, Mali, Congo, Kenya, Ethiopia,
Tanzania etc.,
• No comprehensive study yet
• Few studies and concrete examples
 Nigeria's film industry is the third largest in the
world, following the US and India. 'Nollywood'
produces more than 1,000 films annually, and is
the country's second most important industry after
oil, generates US$2.75 billion and provides
employment opportunity
Current Status, Potential & economic
Significance of CI in Africa
 A 2013 survey CR-based industries in
Malawi contributed 3.46% to GDP,
(ranking 8th in country) and 3.35% to total
employment
2011 study in south Africa showed CI
contributes to 4.11% to the GDP, provides
for 4.08% of employment and generated
4.07% export revenue
Current Status, Potential & economic
Significance of CI in Africa
Kenya- ccopyright-based industries in
2007 contributed 5.32% of GDP and
employ 3.26% of the total national
workforce
 ongoing studies in Ethiopia, Tanzania etc
Huge potential and resource pool for CI in
a number of African countries
Challenges to African CI
- - lack of conducive policy and inadequate
legal framework
- - Absence of clear policy direction
- -Piracy
is a global problem- WCO estimate- 5% of
world trade, IFPI- 40 % of musical products
 No comprehensive study made but
preliminary surveys and estimates reveal
that it is a serious problem- KCB- More
than 90%, Zanzibar- 100% & Ethiopia90%

Challenges to African CI
 - Inadequate appreciation of the significance
of CI
 - Lack or inadequate support to the industryAccess to capital, fiscal incentives and
privileges etc
 --Inadequate enforcement capacity
 -Lack of or Inadequate organization/
organizational capacity
 -Competing works
 - Publication of music, film and books outside
the country etc.,
•
•
•
•
•
•
What is needed to strengthen CIs
Clear IP Policy and supportive policies
Comprehensive and adequate law
Implementation of policies & laws
Support
institutions
involved
in
the
administration & promotion of copyright
Build human resource capacity- training in
creative
arts,
copyright
administration,
management, and entrepreneurship.
Design
and
implement
target
oriented
awareness program
What is needed to strengthen CIs
• Incorporate IP into the curriculum of educational
establishments
• Develop and implement enforcement strategy
based on a study on the root causes and
sources of piracy
• Improve access to finance, credit, and business
support services for and emerging and exportready firms and artists.
Reasons for taking Measures
• Stimulate local creative activities
• Support the emergence & thriving of creative
industry that contribute to GDP, creation of
employment opportunity and generate trade
revenue
• Contributes to the preservation of culture and
heritage
• Difficult to live in a world without copyrightable
works
Reasons for taking Measures
• Tap huge cultural pool & opportunity that may
serve as a basis for CI in African countries such
as Namibia
• Easy to enter into and stay competitive in the
growing and stable international market
Conclusion
• CI can make meaningful contribution to
socio-economic development
• Huge untapped potential in Namibia
• Need to: Recognize importance of the industry and
nurture it
Undertake a study on the actual and
potential contribution of CI to development
in Namibia
 Design and implement IP and related
polices
Thank you very much
for your attention!!
[email protected]