Band (2013b)

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Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Band (2013b)
Title: Profitability of firms in copyright-intensive industries
Author(s): Band, J.
Year: 2013
Citation: Band, J. (2013). Profitability of firms in copyright-intensive industries. Bandwidth. Available at SSRN 2333844
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: The study examines the performance of a total of 30 firms: five leading firms in three copyright-intensive industries: motion pictures, publishing, and software - and five leading firms in three other industries: construction, transportation, and mining.
Data Type: Primary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: Yes
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 2003-2012
Funder(s):
  • Not stated

Abstract

Firms in the copyright-intensive industries frequently complain that copyright infringement causes significant lost sales, lost revenues, lost profits, and lost jobs. However, as has been noted in numerous impartial studies, the actual impact of infringement on individual firms, on industry sectors, and on the U.S. economy as a whole, is extremely difficult to quantify. In contrast, what can be quantified with relative ease is the performance of firms in the copyright-intensive industries in terms that matter to investors: revenue, profit, and most importantly, profitability. Furthermore, the performance of firms in the copyright-intensive industries can readily be compared with the performance of firms in other industries. While such a comparison may not demonstrate the effect of infringement, it could provide guidance to policymakers as to whether the copyright-intensive industries require additional government assistance in the form of new legislation or law enforcement resources. In this study, the authors have examined the performance over the past ten years of five leading firms in three copyright-intensive industries: motion pictures, publishing, and software. They then examined the performance of five leading firms in three other industries: construction, transportation, and mining. Finally, they compared the profitability of the firms in these six industries. We found that the firms in the copyright-intensive industries were more profitable than the firms in the other industries in every period examined.

Main Results of the Study

  • The authours found that the firms in the copyright-intensive industries were more profitable than the firms in the other industries. Additionally, in this ten-year period, the copyright-intensive industries’ profit margins on average grew by 3.98%, while the other industries’ profit margins on average decreased by 0.75%.
  • There certainly may be other industry sectors that are more profitable than some of the copyright-intensive industries. Moreover, the firms in the copyright-intensive industries may have been even more profitable if they did not have to contend with copyright infringement.
  • Nonetheless, the high level of profitability of the copyright-intensive industries suggests that the copyright system serves these industries effectively, and that they are not in need of special assistance from Congress or the Executive Branch. Because so many of the firms in the copyright-intensive industries are foreign owned, the profitability of these industries does not indicate that U.S. trade policy should favour them.

Policy Implications as Stated By Author

The high level of profitability of the copyright-intensive industries suggests that the copyright system serves these industries effectively, and that they are not in need of special assistance from Congress or the Executive Branch.

Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Green-tick.png
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Green-tick.png
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)
Green-tick.png

Datasets

Sample size: 30
Level of aggregation: Firm
Period of material under study: 2003-2012