GIPC Report Underscores Economic Contribution of Copyright-Reliant Industries

Today, the U.S. Chamber of Commerce’s Global Innovation Policy Center (GIPC) issued a report titled Unlocking Creativity: A Study of the Socioeconomic Benefits of Copyright, which highlights the economic importance of copyright-intensive industries in the U.S. and across the globe. Surveying a growing body of literature on the significant financial and social benefits of maintaining strong intellectual property protections for original works of authorship, the GIPC’s report finds that copyright-intensive industries account for nearly one-tenth of all U.S. employment, and that they have cemented a valuable trade surplus in the digitally deliverable services sector.

Copyright protections provide ownership interests incentivizing the dissemination of original works while ensuring that creators have a mechanism to ensure they are fairly compensated for uses of their works. As the GIPC’s report notes, core copyright-reliant industries that heavily leverage this form of IP protection span a wide range of sectors from architectural services, television broadcasting, performing arts, software publishing and commercial photography. Because these industries have traditionally focused on commercializing creative endeavors, the GIPC adds that these sectors are generally identified by economists as “creative industries.”

U.S. Trade Surplus in Digitally Deliverable Services Increases 408% Since 1999

In the United States alone, core copyright-reliant industries contribute $1.8 trillion to the U.S. economy, accounting for 7.8% of U.S. gross domestic product according to statistics published in the 2022 Copyright Industries in the U.S. Report published by the International Intellectual Property Alliance (IIPA). When taking non-core copyright-reliant industries into account, including interdependent industries like TV manufacturing, industries with partial copyright protections like interior design, and non-dedicated support industries like retail, the total contribution of copyright-reliant industries as a share of U.S. GDP rises to 12.5%.

Copyright-reliant industries also contribute significantly to American employment numbers. While core copyright-reliant industries account for 4.9% of U.S. jobs, total employment contributed by all copyright-reliant industries reached 8.1% in 2021, representing 16.1 million full-time jobs in this country. Jobs created by core copyright-reliant industries also enjoy a salary premium compared to the average $81,000 annual job compensation in the United States, with average wages for core copyright-reliant industries reaching $120,000 while average salaries for all copyright-reliant industries are approximately $100,000. Statistics drawn from multiple sources including Oxford Economics and the U.S. Copyright Office shows that 1.76 million jobs were contributed by the computer system design and software publishing industries, the top two job creators among core copyright-reliant industries.

Despite the United States’ longstanding deficit in international trade, copyright-reliant industries contribute hundreds of billions of dollars worth of trade surplus to American GDP. According to data from the U.S. Bureau of Economic Analysis (BEA), the United States’ trade surplus for digitally deliverable services has grown by 408% since 1999, the year after the Digital Millennium Copyright Act was enacted. IIPA statistics further indicate that core copyright-reliant industries contribute 56% of U.S. digital trade, with all copyright-reliant industries contributing 65% to this economic sector, underscoring the critical importance of copyright protection to American economic competitiveness.

Copyright Protections Enable $10 Billion Economic Impact from Taylor Swift’s Eras Tour

Importantly, the GIPC’s report includes several real-world examples that help drive home the reality that copyright protections provide the foundation for commercializing many of humanity’s most entertaining forms of performing arts. For example, American pop superstar Taylor Swift’s Eras tour generated a total of $10 billion in economic impact, with fans spending an average of $1,300 on tickets and other economic activities supporting a wide variety of jobs in the live music industry. Statistics from the U.S. Travel Association indicate that two concerts in Denver during July 2023 contributed a total of $140 million to Colorado’s GDP. The GIPC’s report also highlights that this kind of economic phenomenon is not limited to recent history, citing research showing that copyright adoption led directly to an increase in the number and quality of Italian operas during the Napoleonic Age.

Surveying literature on the economic impacts of copyright piracy, GIPC notes that piracy’s drain on revenues often eliminates funds that would be invested in riskier productions and negatively impacts the overall quality of works produced. Piracy also undermines American trade competitiveness, reducing U.S. domestic revenues for TV and film anywhere from 11% to 24%. The negative impacts of piracy pose a major risk to the prospects of American small businesses, as other economic literature cited by GIPC shows that small businesses are able to improve performance and hire more employees by out-licensing their own copyrights.

While other countries don’t enjoy the same degree of economic success from copyright-reliant industries, the benefits they enjoy from these industries support the overall conclusion that copyright protection is critical to international competitiveness. In Europe, the digital services industry contributed €420 billion to total GDP in 2020 alone, contributing nearly 5 million jobs to the EU’s economy across Facebook platforms, Amazon small sellers and Android platforms. Mexico, which counts the U.S. as its largest trading partner, saw $228.8 billion contributed to its GDP during 2024 from audiovisual industries, increasing foreign direct investment in that country and facilitating innovation in cameras and other related technologies.

The GIPC’s report does not call for specific policy action but it affirms the viewpoint that copyright plays a crucial role in generating significant economic activity. With trillions of dollars worth of international trade hinging on the strength of copyright protections, American policymakers should take note that supporting domestic creative industries improves economic prospects across their constituencies.