Business

Posted: Tue., Jan. 30, 2007, 1:52pm PT

Copyright biz grows in economic impact

Major industry players tout report

WASHINGTON -- Hollywood, the music labels and other major players in the copyright industry shook their collective economic booty Tuesday, trumpeting a report about their increasing contributions and importance to U.S. gross domestic product.

Actual makers of copyrighted material -- referred to as "core" copyright industries -- accounted for an estimated $819 billion, or 6.56% of GDP, in 2005, according to a report prepared by Economists Inc. for the Intl. Intellectual Property Alliance.

"Total" copyright industries -- which include secondary businesses such as videostores -- accounted for an estimated $1.38 trillion, or 11.12% of GDP.

Both figures showed growth: In 2004, core accounted for 6.48% of GDP; total, 11.09%.

Employment also rose, from 5.34 million workers in 2004 to 5.38 million in 2005 in core industries and from 11.2 million to 11.3 million in total industries during the same period.

Foreign sales and exports of core copyright industries' product -- which also climbed in 2005, to $110.8 billion -- led other major industries with typically strong foreign sales, such as aircraft ($50 billion), motor vehicles ($76 billion) and chemicals ($97 billion), according to the biennial report.

"The 2006 edition of this study shows how significantly the U.S. copyright industries contribute to U.S. job and revenue growth, wages and U.S. international trade," said IIPA topper Eric H. Smith at a Capitol Hill event for the release of the report.

"We have a positive balance of trade with intellectual property," said Rep. Adam Schiff (D-Calif.) "You can't say that about many industries these days."

Representatives of the core industries bristled at the suggestion that the rising numbers and overall glowing trends contradict the industries' oft-heard claims that piracy is severely damaging their revenues.

"Yes, we're doing well," said Doug Lowenstein, outgoing head of the Entertainment Software Assn. "But we can't ignore piracy. We ought to be growing more than we are."

"Too much product sold around the world is illegal product," said Recording Industry Assn. of America prexy-chief Mitch Bainwol. "Piracy threatens investment in new artists."

Motion Picture Assn. of America topper Dan Glickman argued that in many foreign countries, intellectual-property laws are under "serious challenge," making real the threat of even more piracy.

Glickman said the report, while not intended to generate or motivate any immediate legislation, is "a lobbying tool" that will let lawmakers know how important the copyright industries are to the U.S. economy.

"It could be the foundation for some future legislative or enforcement action," he said.


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