Goodridge, Haskel and Mitra-Kahn (2012)

Source Details

Goodridge, Haskel and Mitra-Kahn (2012)
Title:	Updating the value of UK copyright investment
Author(s):	Goodridge, P., Haskel, J., Mitra-Kahn, B.
Year:	2012
Citation:	Goodridge, P., Haskel, J. & Mitra-Kahn, B. (2012) Updating the value of UK copyright investment, IPO, 2012
Link(s):	Definitive , Open Access
Key Related Studies:	Chamberlin, Clayton and Farooqui (2007) Goodridge and Haskel (2011) Kretschmer, Bently, Singh and Cooper (2011)
Discipline:	A10: General
Linked by:

About the Data
Data Description:	The study seeks to measure the value of copyright using two main approaches: Counting the income received from copyright assets. This requires the standard economic assumption that copyright creators will not invest more in a work than they expect to get back. Eurostat recommends that this method is used where a work is created by individuals and input cost data are unavailable, which applies to much of books and music. The study tracks the income flows to creators through primary and secondary channels drawing on data from the Publishers Association, the Author’s Licensing and Collecting Society, the Copyright Licensing Society and PRS for Music. Counting the cost of creating long-lived copyright assets, by looking at firm accounts, annual reports and investment figures. This method is used to estimate the value of investment in Film and TV & Radio in both estimates and those in the National Accounts. The study uses this method to estimate investment in other assets including photography, choreographed routines and artwork. Film: micro-data on the universe of UK productions and their budgets, sourced from the UK Film Council, British Film Institute and the-numbers.com. TV & Radio: data published in the Annual OFCOM reports into UK Public Service Broadcasting. Books: data on capital income that flows to the owners of rights (namely publishing houses and authors) to estimate the value of investment as a cross-sectional sum of royalties that accrue to assets of all vintages. Music: Current estimates for Music, or recording originals, are produced on the same conceptual basis as Books, with a percentage of annual recording sales representing investment. The national accounts have applied an assumed royalty rate of 9.5%. That is investment is estimated as 9.5% of recording sales. Miscellaneous Artwork: At present the National Accounts include no estimates for any other form of artistic assets including photography/images, choreographed routines, theatrical productions, fine art greeting card designs or such like. The estimates here use the upstream input costs by considering the labour costs of the relevant professions from the Annual Survey of Hours and Earnings which at the moment are only available up to 2008
Data Type:	Secondary data
Secondary Data Sources:	Publishers Association Author's Licensing & Collecting Society Copyright Licensing Society PRS for Music UK Film Council British Film Institute OFCOM Annual Survey of Hours and Earnings
Data Collection Methods:	Survey Research (quantitative; e.g. sales/income reporting)
Data Analysis Methods:	Descriptive statistics (counting; means reporting; cross-tabulation)
Industry(ies):	Publishing of books, periodicals and other publishing Sound recording and music publishing Film and motion pictures Creative, arts and entertainment Television programmes Programming and broadcasting
Country(ies):	United Kingdom
Cross Country Study?:	No
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	Yes
Time Period(s) of Collection:	2009
Funder(s):	IPO

Abstract

The role of intangible assets in the System of National Accounts (SNA) reflects the growing role of knowledge investment in firms and the economy. Software and copyright assets (artistic originals) were included in the SNA in 1992, and the UK fully reflected the software change in 2007

Research and Development will be included in the SNA, first as a satellite account, in the next three years, and ONS has already started work on the compilation.

This note reports on collaboration between Imperial College, the Office for National Statistics (ONS), the Intellectual Property Office (IPO), and industry sources to improve measurement of UK investment in artistic originals. We focus on creation of long-lived artistic original assets protected by copyright, as defined by the SNA. This includes new broadcast programmes, books, art, music and films. Investment is part of final Gross Domestic Product (GDP) and copyright works are assets that contribute to economic growth, so we have developed the framework to account for copyright investment, as reported by Goodridge and Haskel in July 2011.

This update to the work suggests that UK investment in copyright was approximately £5.1bn in 2009, or £3.2bn higher (0.3% of Gross Value Added (GVA) higher4) than existing official data recorded in the UK National Accounts, for the comparable series on pure copyright investment.

Main Results of the Study

UK investment in copyright was approximately £5.1bn in 2009, or £3.2bn higher (0.3% of Gross Value Added (GVA) higher than existing official data recorded in the UK National Accounts, for the comparable series on pure copyright investment.

Policy Implications as Stated By Author

None stated.

Coverage of Study

Coverage of Fundamental Issues

Issue	Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
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)
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)
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)

Datasets

Sample size:	5
Level of aggregation:	Industries
Period of material under study:	2009