On December 6, 2016, the
International Intellectual Property Alliance (IIPA) published its 2016 report
entitled “Copyright Industries in
the U.S. Economy.”
The new report, authored by Stephen E. Siwek, finds that the “core copyright
industries,” – that is, industries whose primary purpose is to create, produce,
distribute or exhibit copyright materials – generated $1.2 trillion in economic
activity in 2015, accounting for 6.88% of the U.S. economy. In the same year, the
core copyright industries employed 5.5 million workers, which is 3.87% of the
entire U.S. workforce.
At a time when much
attention is focused on reviving America’s economic growth and job creation
prospects, these figures should not be lightly dismissed.
The core copyright
industries do not just comprise a substantial portion of the American economy;
they continue to grow at an above average pace. Between 2012 and 2015, the core
copyright industries grew at an aggregate annual rate of 4.81%. This is 127%
greater than the growth rate (2.11%) for the entire U.S. economy over the same
period. Furthermore, the average annual compensation paid to core copyright
workers is $93,221, which is 38% higher than the average annual compensation
paid to all U.S. workers, $67,715.
Additionally, the core copyright
industries are a key contributor to U.S. exports. The new report finds that
sales of selected U.S. copyright products in overseas markets amounted to $177
billion in 2015, a significant increase from $164 billion in 2014. This is
impressive considering that other major industries, such as chemicals,
pharmaceuticals and medicines, agriculture, and electronics saw little or no
growth in their respective exports over the same period. (See the chart below.)
Foreign Sales & Exports for Selected U.S.
Industries (Billions of U.S. Dollars)
|
2014
|
2015
|
Selected
Copyright Industries (Motion Pictures, TV, Video, Recorded Music, Newspapers,
Books, periodicals, Software Publishing)
|
$164.4
|
$177.0
|
Chemicals
|
$145.9
|
$135.8
|
Aerospace
Products and Parts
|
$129.0
|
$134.6
|
Agricultural
Products
|
$72.9
|
$62.9
|
Electrical
Equipment, Appliances & Components
|
$60.6
|
$60.3
|
Pharmaceuticals
& Medicines
|
$54.5
|
$58.3
|
In a December 2016 blog, Michael Horney
discussed why it is important for President-elect Donald Trump to reconsider
his apparently negative perception towards the Trans-Pacific Partnership (TPP)
and similar trade agreements. By implementing strong Intellectual Property protections
for 12 member countries, TPP would incentivize creation and innovation among
American (and foreign) entrepreneurs. If TPP is adopted, the U.S. would see a
significant increase in the amount the U.S. exports, including core copyright
and IP-intensive industries.
The IIPA’s report shows
that the core copyright industries play a large role in the U.S. economy and that
these market segments are growing at a faster rate than most U.S. markets. The
United States’ robust protection of intellectual property rights has
incentivized creation and entrepreneurial activity that has not only benefitted
American consumers and workers, but also has spurred economic activity overseas.
The core copyright
industries continue to boost the U.S. economy!
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