Why protecting copyright is important for the economy

Why protecting copyright is important for the economy

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‘…countries with high level of competitiveness have a strong presence of creative industries in the economy, as creative industries are symbols of advanced knowledge, ideas and innovation.’[1]

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Copyright concerns products of the intellect or mind. Products of the mind appear to be intangible. Ideas need to be expressed in a tangible form for the author or originator to claim copyright.

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These tangible forms can be traded. Governments and intergovernmental organisations recognise the importance of measuring the economic benefits of trade in the copyright industries.?

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The?World Intellectual Property Organization (WIPO) supports research into the economic contributions of copyright industries. A group of renowned economists developed a Guide which classifies the wider copyright industries based on the level of their dependence on copyright material. More than 50 countries have already applied the WIPO guidelines.[2]

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The main indicators of the Guide identify how the contribution of the copyright industries to value generation (‘output’) and employment relate to general economic growth and development. Two factors combine to define the percentage contributions to overall growth and development of a sector, namely: the share of the sector in gross domestic product (GDP); and the real growth generated by the sector. The sector with which the copyright industries are closely associated is the capital sector, the main growth engine of every economy, and defined as ‘the cluster of industries that can produce output that is used as input into the production of goods and services’[3].

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The 2021 WIPO Overview of studies assessing the economic contribution of the copyright industries found that ‘...the copyright industries can be relatively more important contributors to output than many other sectors. In the data collection period, in many countries it contributed a larger share of output than traditionally important economic sectors such as agriculture, and hotels and restaurants. In other cases, its contribution was fully comparable with key capital sectors such as education and construction’[4].

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WIP also found that the largest subsector that produces core copyright output is press and literature with 39 percent of the output and 43 percent of the jobs[5].

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The Overview concludes, ‘...the copyright industries make a substantial contribution to real growth and other aspects of economic performance. There was a strong and positive relationship between the copyright shares of an economy and the extent to which it can innovate, as well as with the extent to which its institutions develop to boost competitiveness. Countries can significantly boost their capacity to achieve their development goals by investing in ways that increase the share of the copyright industries in GDP and the creation of good jobs’[6].

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A report compiled for the US International Intellectual Property Alliance (IIPA) on the copyright industries in the US economy found that the ‘...core copyright industries of the United States – those industries whose primary purpose is to create, produce, distribute, or exhibit copyright materials – provide significant value added to Gross Domestic Product (GDP); a significant number of high-paying jobs; real growth that outpaces the rest of the economy...; and substantial foreign sales and exports, surpassing many industry sectors...’[7]

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South Africa might learn from the following conclusion, ‘As new technologies support the development of new distribution methods for legitimate copyrighted products, the US copyright-based industries represented in the IIPA remain optimistic that economic growth, combined with strong laws, effective enforcement, and steps to open markets, will continue to pave the way for economic growth both in the US and abroad’[8].

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In South Africa, as reported in government’s Creative Industries Masterplan, ‘The creative based industries are responsible for almost 4.11% of the total economy in terms of value-added (GDP) in 2008 with core copyright-based industries being the highest contributor (2.05%)…’[9].

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The report continues, ‘… the mapping study of 2022 shows that the total GVA [Gross Value Added] of the CCIs [Core Creative Industries] was R161 billion in 2020. This…represents 2.97% of South Africa’s total economic production in 2020 and makes the sector approximately the same size as agriculture.’[10]

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On employment, the Masterplan states, ‘Overall, the creative economy accounted for 6% of all jobs in South Africa, which translates into just under 1 million jobs’[11].

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The fact is that in the creative industries, there are long value chains contributing to and benefitting from copyright products: authors, composers, producers, sound technicians, booksellers and many more. This interlinked value chain contributes to cultural and social heritage and to the flow of knowledge and information. The pirate is a selfish shark feeding off the labours of others, destroying economic value and contributing only in a miniscule way to the economy.

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Unprotected or inadequately protected copyright is no good for the South African economy.

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Disclaimer:

“The views expressed in this article or by any article or comment or blog associated with this article do not necessarily coincide with the views of PASA or any of its members. Authors invited to express their views are responsible for their content and also for having the necessary rights to submit any article for publication or re-publication (with permission), for not infringing any third-party rights, including copyright and intellectual property, privacy and publicity rights. Authors are also responsible and must avoid causing injury or prejudice beyond what is permitted in an open, free and democratic society and under freedom of expression principles applicable in South Africa by virtue of the genuine content they submit for publication and/or public dissemination.”

[1] Department of Sport, Arts & Culture. May 2022. ‘Creating and Designing for Growth. South Africa’s Creative Industry Masterplan to 2040. A Report of the South African Creative Industry Masterplan Project.’ Page 16.

[2] WIPO. 2015. Guide on Surveying the Economic Contribution of the Copyright-Based Industries. Geneva: WIPO. Publication No 893 (E), ISBN 978-92-805-1225-7.

[3] WIPO. 2021. The Economic Contribution Of The Copyright Industries. An Overview of the Results from WIPO Studies Assessing the Economic Contribution of the Copyright Industries. Geneva: WIPO. Page 7.

[4] WIPO. 2021. Page 46.

[5] WIPO. 2021. Page 60.

[6] WIPO. 2021. Page 62.

[7] Copyright Industries in the U.S. Economy: The 2022 Report, by Robert Stoner and Jéssica Dutra of Secretariat Economists, prepared for the IIPA, December 2022, available at www.iipa.org. Page 8.

[8] IIPA. 2022. Pages 29.

[9] Department of Sport, Arts & Culture. May 2022. Page 8.

[10] Department of Sport, Arts & Culture. May 2022. Page 9.

[11] Department of Sport, Arts & Culture. May 2022. Page 13.