ccia fair use study slides

Fair Use in the U.S. Economy:Economic Contribution of Industries Relying on Fair UseSeptember 12, 2007: 

Fair Use in the U.S. Economy: Economic Contribution of Industries Relying on Fair Use September 12, 2007 Thomas Rogers and Andrew Szamosszegi (202) 463-1850

Why Measure the Fair Use Economy?: 

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.

Summary of Findings: 

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.

What is Fair Use?: 

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:

Methodology: 

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.

Methodology (ctd.): 

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

Data Sources: 

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)

Selection of Fair Use Industries: 

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)

Core Fair Use Industries: 

Core Fair Use Industries

Non-core Fair Use Industries: 

Non-core Fair Use Industries

Measuring Fair Use Industries: 

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

Results—Revenues of Fair Use Industries: 

Results— Revenues of Fair Use Industries % increase 2002 to 2006—Core: +42%; Non-core: +20%; Total: +31%

Results—Value Added of Fair Use Industries: 

Results— Value Added of Fair Use Industries % increase 2002 to 2006—Core: +39%; Non-core: +18%; Total: +30%

Results— Fair Use Industries’ Contribution to U.S. GDP Growth, 2002 to 2006: 

Results— Fair Use Industries’ Contribution to U.S. GDP Growth, 2002 to 2006

Results—Employment in Fair Use Industries: 

Results— Employment in Fair Use Industries % increase 2002 to 2006—Core: +3.1%; Non-core: +0.4%; Total: +2.0%

Results—Payroll in Fair Use Industries: 

Results— Payroll in Fair Use Industries % increase 2002 to 2006—Core: +39%; Non-core: +17%; Total: +31%

Results—Exports of Fair Use Industries: 

Results— Exports of Fair Use Industries % increase 2002 to 2006—Goods: +40%; Services: +53%; Total: +48%

Results—Productivity and Compensation in Fair Use Industries: 

Results— Productivity and Compensation in Fair Use Industries Productivity and compensation growth have been especially strong in core industries.

Conclusions: 

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