Copyright Contributes $1 Trillion To The U.S. Economy

For the first time, the core copyright industries added over $1 trillion in value to the U.S. economy in a single year, accounting for almost 6.5% of the total U.S. GDP, according to a new study released by the International Intellectual Property Alliance (IIPA). The study tracks the economic impact and contributions of U.S. industries creating, producing, distributing, broadcasting or exhibiting copyright materials, including computer software, videogames, books, newspapers, periodicals and journals, motion pictures, music, and radio and television programming. In other key findings for 2012, the study concluded that the core copyright industries:
* Employed nearly 5.4 million U.S. workers – nearly 5% of the total private employment sector – with jobs paying an average of 33% more than the rest of the workforce.
* Grew at an aggregate annual rate of 4.7%, more than twice the rate of growth for the U.S. economy.
* Accounted for $142 billion in foreign sales and exports, far more than sectors such as aerospace, agriculture, food, and pharmaceuticals and medicines.

“This study represents a milestone as the U.S. copyright industries now contribute more than $1 trillion value added to the U.S. GDP and 5.4 million direct jobs,” said Steven J. Metalitz, IIPA.

“In order to preserve and enhance jobs, exports and economic contributions, it is critical that we have strong legal protections for U.S. creativity and innovation in the U.S. and abroad.”

The study, Copyright Industries in the U.S. Economy: The 2013 Report, was prepared by Stephen E. Siwek of Economists Incorporated for the IIPA, and updates 13 previous studies. It is based on data from the Bureau of Economic Analysis and other government agencies and it demonstrates the vibrancy of copyright and creativity as an engine for growth for the U.S. economy.

In reaction to the study, Representative Judy Chu, co-chair of the Congressional Creative Rights Caucus, said: “This study demonstrates that not only do U.S. copyright industries develop the creative works that inspire and entertain so many, they also provide high paying jobs and spur economic activity, consistently contributing to a trade surplus and adding substantial value to our GDP. This is why we must preserve and protect the works of our creative industry, so they can continue to drive economic growth and innovation with a uniquely American product.”

Matt Loeb, International President of the International Allian ce of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied Crafts (IATSE), said: “This report makes it crystal clear that workers in the creative industries make a huge contribution to America’s economy. It also underscores the urgent need to do more to build, strengthen and protect employment in this dynamic part of our nation’s economy.”

Metalitz added: “To foster continued growth of this dynamic sector, we need strong and modern copyright laws that take into account changes in technology and the continuing harm caused by copyright piracy, especially as legitimate digital distributors continue to emerge. Vigorous enforcement of those laws is also critical to ongoing efforts to create and preserve good U.S. jobs, reduce persistent trade deficits, and foster durable economic growth.”

Source: IIPA