|Title:||Understanding the costs and benefits of introducing a ‘fair use’ exception|
|Citation:||PricewaterhouseCoopers Australia Report 'Understanding the costs and benefits of introducing a ‘fair use’ exception', 2016.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|About the Data|
|Data Description:||This study uses World Bank economic data combined with Consumers International rankings, collected for research conducted by Lateral Economics, the Standing Committee of Legal and Constitutional Affairs, and PricewaterhouseCoopers. The data is used to analyse and compare three different systems of fair use and the effects on copyright industries, using publishing as a case study.|
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||Yes|
|Government or policy study?:||Yes|
|Time Period(s) of Collection:||
The Australian Law Reform Commission report recommended that the Copyright Act should be amended to introduce a new copyright exception, based on the United States ‘fair use’ exception, which would allow the use of copyright material for any purpose if the use is ‘fair’ having regard to four factors. The ALRC’s recommendation in favour of fair use is based predominantly on a legal analysis and did not include an economic cost-benefit analysis (CBA). From an economic perspective it is clear that they may be new disincentives to create works with the introduction of a 'fair use' provision. As a result, the core task of this analysis is to determine, based on the available evidence, whether it is likely that the economic benefits arising from secondary use will more than offset the economic loss for original local producers. This report provides some insights into elements that should be considered in any formal CBA of the proposed introduction of fair use.
Disclaimer: This Report was prepared for APRA AMCOS, PPCA, Copyright Agency│Viscopy, Foxtel, News Corp Australia and Screenrights. In preparing this Report we have only considered the requirements of these organisations. Our Report is not appropriate for use by persons other than these organisations, and we do not accept or assume responsibility to anyone other than these organisations in respect of our Report.
Main Results of the Study
Based on Canada’s experience, if all Australian secondary licensing agencies were to lose revenue similar to the losses in Canada when fair use was introduced then this would represent a loss of GDP in the order of $1.3 billion in Australia. An introduction of a fair use right would lead to a reduction of available copyright works. The resulting loss of economies of scale would lead to an increase in transaction costs, compliance costs and enforcement costs. Both quantitative analyses suggest that there is no firm evidence supporting a direct causational relationship between fair use and improved economic outcomes for the Australian economy as a whole; the linkages between economic growth and innovation are likely a confluence of factors that interact to support a country’s economic outcomes.
Policy Implications as Stated By Author
Both quantitative analyses suggest that there is no firm evidence supporting a direct causational relationship between fair use and improved economic outcomes for the Australian economy as a whole; the linkages between economic growth and innovation are likely a confluence of factors that interact to support a country’s economic outcomes.
Coverage of Study
|Level of aggregation:||Systems of fair use in copyright|
|Period of material under study:||2011 to 2015|