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Kill Copyright, Create Jobs

84

Copyright Monopoly

Copyright Monopoly

The copyright industry’s lobby has — again — claimed that unless strong measures are taken to enforce copyright, jobs will be lost across Europe. This claim is false, deceptive and misleading, as it only focuses on copyright-dependent sectors while ignoring the copyright-inhibited sectors. It turns out the latter account for ten times more of the economy.

Executive summary: for every job lost (or killed) in the copyright industry due to nonenforcement of copyright, 11.8 jobs are created in electronics wholesale, electronics manufacturing, IT, or telecom industries — or even the copyright-inhibited part of the creative industries.

A lot of people have pointed out the laughability of the copyright industry’s claim that 1.2 million jobs will be lost until 2015 if not harsh measures are taken to enforce copyright. But assuming a scenario where that happened, when the copyright-inhibited industries are factored into this calculation, a loss of 1.2 million jobs in the copyright industries translate to 14.2 million gained jobs in the copyright-inhibited industry sectors, for a net gain of 13 million jobs in Europe.

Unfortunately, perfectly comparable numbers of the economics here are scarce if they exist at all. I have therefore taken the liberty to compare numbers from the creative industries in Britain with numbers for the electronics and IT industries in Sweden. I am making the assumption that, given the uncertainties overall in these studies, they are comparable enough to get a ballpark impression of what the land looks like. That is what we’re after.

First, a breakdown of the “creative industries”.

According to Beyond The Creative Industries (Peter Higgs et al), the creative industries in Britain indeed account for about 7% of the GDP. But the copyright industry’s lobby likes to equate “Creative Industries” with “Depends on copyright for a living”. This makes the copyright industry look larger than it is. As we shall see, this is not so at all.

The Creative Industries heading breaks down into six subgroups, copyright-dependent or copyright-inhibited as follows:

Breakdown of Creative Industries

  • Advertising and Marketing, 11%. Entirely copyright-inhibited.
  • Architecture, Visual Arts and Design, 19%. This is a tricky one with many subgroups ranging from Architecture (copyright-inhibited) to Fashion Design (copyright-agnostic: fashion isn’t copyrightable). A generous estimate says that 25% of this group is copyright-agnostic and the rest inhibited.
  • Film, TV, radio, photo, 9%. Again, a very mixed group. Some parts of it are clearly copyright-dependent, whereas most is inhibited. Again, a generous estimate says that 25% is copyright-dependent and the rest inhibited.
  • Music and Performing Arts, 13%. Yet another mixed group. Whereas songwriters would be considered copyright-dependent by the publishing industry, dancers and other interpretive artists are obviously not. An estimate says 50% of this group is copyright-dependent.
  • Publishing, 6%. This middleman group is 100% dependent on the copyright monopoly.
  • Software, Games, and Electronic Publishing, 32%. Yet another mixed group. Software accounts for the largest part in other economies in this group, and software services and consultancy (copyright-inhibited) is the largest part by far in software. Still, there is some dependency on licensing the copyright monopoly in this group. An estimate says 25% of this group is dependent on the copyright monopoly, 75% is inhibited by it.

This gives us the following graphics for “Creative Industries”:

Breakdown of Creative Industries

Now, let’s look at the numbers as percentage of contribution to GDP, and add in ICT and consumer electronics here. Unfortunately, I don’t have those numbers for Britain, but let’s assume that the Swedish and British economies are similar enough to get a rough overview picture.

The ICT industry in Sweden tracks its member companies’ revenue quite closely. The entire industry is copyright-inhibited, with the exception of copyright license sales. Discounting that part, we get a total yearly revenue of MSEK 429,105. The Swedish GDP is MSEK 2,900,790. This means that the copyright-inhibited part of ICT accounts for 14.8 per cent of GDP.

(License-selling companies are already counted under “creative industries”, by the way, as we recall.)

Moving on to consumer electronics, which is also fueled by a lack of copyright monopoly enforcement (or “copyright-inhibited”), according to the industry association Elektronikbranschen, their revenue is 30 GSEK, accounting for another 1.0% of GDP.

This brings us to the following graph, comparing the contribution from industries dependent on the copyright monopoly vs. industries inhibited by the monopoly:

Comparison of GDP contributions, per cent

As we can see, the contribution of the copyright-inhibited industries outweigh the copyright-dependent industries by a factor of 11.8.

Assuming full 1:1 economic proportionality between the these industries, this means that any job lost as a result of nonenforcement of the copyright monopoly in one of the industries that depend on the copyright monopoly will generate 11.8 new jobs in other industries, in the copyright-inhibited industries.

Now, of course, there are a lot of assumptions here. Sweden and Britain’s economies may not map to this precision. The proportionality may be skewed in either direction. The breakdowns of the industries may not be perfect, double-counting or not-counting some specific niches. It might be hard to defend there being exactly 11.8 new jobs created for every job lost in the copyright industry. It may be eight, or seven, or fourteen. But the conclusions stand and are clear:

Prevent copyright enforcement, or weaken or kill copyright, and create jobs. Lots more of them.

When confronted with data like this, the copyright industry usually responds that all ICT and consumer electronics industries depend on them creating monopolized entertainment to fill the gadgets and pipes, so that they would somehow be irreplaceable.

This claim is deceptive, dishonest and bordering on fraudulent. It’s as if water bottling plants would have the audacity to claim that all other industries were dependent on them. As a friend would put it, it’s so far out it doesn’t reflect any visible sunlight.

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About The Author: Rick Falkvinge

Rick is the founder of the first Pirate Party and is a political evangelist, traveling around Europe and the world to talk and write about ideas of a sensible information policy. He has a tech entrepreneur background and loves whisky.

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84

  1. 2

    RT @Falkvinge: on #infopolicy: Kill Copyright, Create Jobs http://goo.gl/fb/of4Wg

  2. 3

    RT @Falkvinge: on #infopolicy: Kill Copyright, Create Jobs http://goo.gl/fb/of4Wg

  3. 4

    Falkvinge on Infopolicy: Kill Copyright, Create Jobs:
    The copyright industry’s lobby has — again — claime… http://tinyurl.com/46s7zhk

  4. 5

    Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  5. 6

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  6. 7

    RT @Falkvinge: on #infopolicy: Kill Copyright, Create Jobs http://goo.gl/fb/of4Wg

  7. 8

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  8. 9

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  9. 10

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  10. [...] This post was mentioned on Twitter by Falkvinge, Pedro Cambra, Xavier Vila, Albert Gasset, David Lecina and others. David Lecina said: RT @Falkvinge: on #infopolicy: Kill Copyright, Create Jobs http://goo.gl/fb/of4Wg [...]

  11. 12

    Kill Copyright, Create Jobs – Falkvinge on Infopolicy http://bit.ly/efG9wL

  12. 13

    RT @falkvinge Kill Copyright, Create Jobs http://is.gd/hOdFUV #infopolicy

  13. 14

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  14. 15

    Kill Copyright, Create Jobs – Falkvinge on Infopolicy: The copyright industry’s lobby has — again — claimed that… http://bit.ly/i6jtJN

  15. 16

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  16. 17

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  17. 18

    Kill Copyright, Create Jobs – Falkvinge on Infopolicy http://bit.ly/i3D3Mr http://bit.ly/a56q5r

  18. 19

    Canada Job Post Kill Copyright, Create Jobs – Falkvinge on Infopolicy http://ow.ly/1bvItm

  19. 20

    @gkjohn @sachinmalhan Please, read some stuff like this before the Pecha-Kucha http://bit.ly/hV9LLN

  20. 21

    RT @falkvinge Kill Copyright, Create Jobs http://is.gd/cRlxwF #infopolicy

  21. 22

    10x more #jawbs inhibited by © than faciliated? http://falkvinge.net/2011/02/25/kill-copyright-create-jobs/ coarse but asked for/deserved

  22. 24

    Kill Copyright, Create Jobs – Falkvinge on Infopolicy: Executive summary: for every job lost (or killed) in the … http://bit.ly/ep8RAI

  23. 25
    Kristofer Pettersson

    I love graphs!

    I haven’t quite digested this yet but what about the reverse implication? What if copyright is fuelling the copyright inhibited market by increasing the value of copyrighted material which you can (obviously) get for free? People make weird choices like buying a tablet for 5000SEK for reading books when you can get more books for the same price than most will be able to consume in a lifetime. Maybe people buy expensive electronics and bandwidth because they are miscalculating or making a very optimistic estimation of their future activities?

  24. 26

    RT @partit_pirata: Matar el copyright, crear llocs de treball: http://bit.ly/fg4iSp

  25. 27

    USA Job News Kill Copyright, Create Jobs – Falkvinge on Infopolicy http://ow.ly/1bw44t

  26. [...] finns det iofs andra aspekter av upphovsrätten som behöver ändras för att det leder till fler jobb. Det här inlägget postades i Ekonomi, upphovsrätt och har märkts med etiketterna Erik [...]

  27. 28

    ผลศึกษาUK+สวีเดน: จะมีการเลิกจ้างจริง ถ้าไม่บังคับใช้กม.ลิขสิทธิ์ แต่จะมีการจ้างงานใหม่รวมมากกว่าที่เสียไปเกิน 10 เท่า http://bit.ly/hNIUf9

  28. 29

    RT @ccth: ผลศึกษาUK+สวีเดน: จะมีการเลิกจ้างจริง ถ้าไม่บังคับใช้กม.ลิขสิทธิ์ แต่จะมีการจ้างงานใหม่รวมมากกว่าที่เสียไปเกิน 10 เท่า http://bit.ly/hNIUf9

  29. 30

    RT @ccth: ผลศึกษาUK+สวีเดน: จะมีการเลิกจ้างจริง ถ้าไม่บังคับใช้กม.ลิขสิทธิ์ แต่จะมีการจ้างงานใหม่รวมมากกว่าที่เสียไปเกิน 10 เท่า http://bit.ly/hNIUf9

  30. 31

    RT @subirats9: Por cada lugar de trabajo perdido en la industria del copyright se crean 12 nuevos via @mbauwens http://bit.ly/hnN9hM

  31. 32

    RT @subirats9: Por cada lugar de trabajo perdido en la industria del copyright se crean 12 nuevos via @mbauwens http://bit.ly/hnN9hM

  32. 33

    RT @Falkvinge: on #infopolicy: Kill Copyright, Create Jobs http://goo.gl/fb/of4Wg

  33. 34

    RT @subirats9: Por cada lugar de trabajo perdido en la industria del copyright se crean 12 nuevos via @mbauwens http://bit.ly/hnN9hM

  34. 35

    RT @subirats9: Por cada lugar de trabajo perdido en la industria del copyright se crean 12 nuevos via @mbauwens http://bit.ly/hnN9hM

  35. 36

    Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  36. 37

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  37. 38

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  38. 39

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  39. 40

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  40. 41

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  41. 42

    RT @JulioAlonso: RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9

  42. 43

    RT @AlbertoNahum: Muy interesante. RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM (via @JulioAlonso)

  43. 44

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  44. 45

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  45. 46

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate

  46. 47

    RT @cuerdagm: Por cada empleo perdido en la industria del copyright se crean 12: http://bit.ly/hnN9hM via @subirats9 #leysinde #sindegate #nolesvotes

  47. 48

    RT @subirats9: Por cada lugar de trabajo perdido en la industria del copyright se crean 12 nuevos via @mbauwens http://bit.ly/hnN9hM

  48. 49

    Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves #economics

  49. 50

    RD @glynmoody: Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology agai … http://ur1.ca/3d69i

  50. 51

    RT @glynmoody: Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves #economics

  51. 52

    RT @glynmoody: Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves #economics

  52. 53

    RT @glynmoody: Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves #economics

  53. 54

    RT @glynmoody: Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves #economics

  54. 55

    RT @glynmoody: Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves #economics

  55. 56

    Kill Copyright, Create Jobs – Falkvinge on Infopolicy http://goo.gl/QE788 destruam o copyright, e criem postos de trabalho.

  56. 57

    RT @clovisml: Kill Copyright, Create Jobs – Falkvinge on Infopolicy http://goo.gl/QE788 destruam o copyright, e criem postos de trabalho.

  57. 58

    RT @clovisml: Kill Copyright, Create Jobs – Falkvinge on Infopolicy http://goo.gl/QE788 destruam o copyright, e criem postos de trabalho.

  58. 59

    RT @glynmoody: Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves #economics

  59. 61

    RT @glynmoody Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves / #ACTA

  60. 62

    RT @StopActaNow: RT @glynmoody Kill Copyright, Create Jobs – http://bit.ly/gupMka turning the #copyright maximalists’ methodology against themselves / #ACTA

  61. 63
    Craig Rickel

    @Kristofer: I have over a thousand physical books on my bookshelves at home I’ve acquired over the years, and have read all of them. Many of them, several times. I’m not sure how much you can get books over there for, but over here, that much money would only get me about a hundred books. My Kindle was very much worth it.

    I also have enough books from Project Gutenburg (all in the public domain) to make an equivalent stack of physical books approximately another ten feet high. Many of these I’ve read when I was much younger in English class. They’re still classics, and now and I again I still read them.

    If you don’t think that you’ll read more than 50 books in your future, then a Kindle is not for you. I also pity your future.

  62. 64

    Turnabout is fair play (if a little cute): Every job lost in © industries = 12 jobs gained elsewhere! http://bit.ly/gFGSfd (via @techdirt).

  63. 65

    RT @falkvinge Kill Copyright, Create Jobs http://is.gd/Jh711w #infopolicy [for every job lost in copyright industry, 11.8 jobs are created]

  64. 66

    RT @ARLpolicy: Turnabout is fair play (if a little cute): Every job lost in © industries = 12 jobs gained elsewhere! http://bit.ly/gFGSfd (via @techdirt).

  65. [...] really talking about – the industries benefiting from the copyright monopoly, which are about one-tenth the size of those being held back by it. Want to create jobs? Kill the [...]

  66. [...] really talking about – the industries benefiting from the copyright monopoly, which are about one-tenth the size of those being held back by it. Want to create jobs? Kill the [...]

  67. [...] really talking about – the industries benefiting from the copyright monopoly, which are about one-tenth the size of those being held back by it. Want to create jobs? Kill the [...]

  68. [...] really talking about – the industries benefiting from the copyright monopoly, which are aboutone-tenth the size of those being held back by it. Want to create jobs? Kill the [...]

  69. [...] really talking about – the industries benefiting from the copyright monopoly, which are about one-tenth the size of those being held back by it. Want to create jobs? Kill the [...]

  70. [...] really talking about – the industries benefiting from the copyright monopoly, which are about one-tenth the size of those being held back by it. Want to create jobs? Kill the [...]

  71. [...] korelacji z tym, co mówisz. Gałęzie gospodarki, które korzystają na systemie praw autorskich są dziesięć razy mniejsze niż te, które są przez niego blokowane. Chcesz tworzyć miejsca pracy? Skończ z [...]

  72. [...] really talking about – the industries benefiting from the copyright monopoly, which are about one-tenth the size of those being held back by it. Want to create jobs? Kill the [...]

  73. […] inhibited by the copyright monopoly are contributing more to the economy by almost a factor of twelve-to-one compared to the copyright industry. In other words, for every job lost in the copyright industry, […]

  74. […] inhibited by the copyright monopoly are contributing more to the economy by almost a factor of twelve-to-one compared to the copyright industry. In other words, for every job lost in the copyright industry, […]

  75. […] inhibited by the copyright monopoly are contributing more to the economy by almost a factor of twelve-to-one compared to the copyright industry. In other words, for every job lost in the copyright industry, […]

  76. […] inhibited by the copyright monopoly are contributing more to the economy by almost a factor of twelve-to-one compared to the copyright industry. In other words, for every job lost in the copyright industry, […]

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Rick is the founder of the first Pirate Party and is a political evangelist, traveling around Europe and the world to talk and write about ideas of a sensible information policy. He has a tech entrepreneur background and loves whisky.

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