A BUSINESS-ORIENTED OVERVIEW OF
INTELLECTUAL PROPERTY FOR LAW AND
MANAGEMENT STUDENTS
Harnessing Creativity
Florence Rojal,
Creative Industries Division,
World Intellectual Property Organization
Geneva, May 29, 2007
The Creative Economy and the Creative
Industries
– The Creative Economy
– Creative Industries: industries which have their origin in individual
creativity, skill and talent and which have a potential for wealth
and job creation through the generation and exploitation of IP
(UK Department for Culture, Media and Sports, creative industries mapping
document 2001)
– Here I will focus on the industries where copyright plays an
identifiable role. These industries are also known as “copyrightbased industries”
Reminder: Copyright and Related rights
•
Copyright designates the rights given to creators for their literary
and artistic works (exclusive right to use the work/ legal monopoly)
– Ex: literary,dramatic and choreographic wks, artistic, graphic wks,
architecture, advertisements...
•
Related rights: they protect those who assist intellectual creators in
disseminating their wks to the public
– three kinds: rights of performing artists, rights of producers of
sound recordings, rights of broadcasting organizations
Economic and Moral Rights
Economic Rights
– Reproduce or make copies
– Distribute to public
– Sell, rent*, lend*
Moral Rights
– Right of authorship: acknowledgement
– Right of integrity: object against
mutilation and/or distortion
– Display or perform to public
– Adapt and translate
– Make available on the Internet
* Generally applies only to certain types of works: Cinematographic works, musical works, or
computer programs.
Related Rights
Rights of
performers
Rights of producers of sound
recordings
Rights of broadcasting
organizations
(phonograms)
•
actors
•
musicians
•
singers
•
dancers
•
or generally people who
perform
in their recordings (cassette
recordings, compact discs, etc.)
in their radio and television
programs and in Internet
broadcasts such as ‘podcasts’
Multiple Economic Effects of Copyright
Production of equipment for the consumption
Consumption and use of the work
Marketing and promotion
Distribution materials
Distribution
Production of equipment
Production
Formatting
Creation
Development of creative industries
• Target audience:
– Policy makers:
awareness raising
• evidence-based material:
– the WIPO Guide
– Preparation of an econometric model for measuring
copyright piracy
– Creators and creative enterprises:
support
professional
The WIPO Guide on Surveying the CopyrightBased Industries - Background
 Strong interest by the WIPO Member-States
 some research had already been done, however there were
considerable differences in methodologies
– scope, categorization of the industries, choice of indicators,
purpose
 A need for a harmonized approach in order to
– facilitate policy-oriented research worldwide
– compare meaningfully the results across countries
– position the industries in the national economy
– adjust policies and practices
– identify competitive advantages
The WIPO Guide
•
a) purpose of the guide:
– to summarize the existing experience in surveying the copyright and
related-rights industries
– to develop a practical instrument in the form of guidelines,
recommendations and survey methods to determine size and economic
contribution of a nation’s creative and information sector
– to establish a basis for comparison for future surveys (common
methodology)
•
b) contents of the guide:
– designed to provide guidance to countries wishing to measure the
size of their creative sector
– size is determined by using three main indicators: the value added
generated by such industries (GDP), their share in employment and
their contributions to foreign trade
Defining the Copyright-Based Industries:
Classification under the WIPO Guide
Core copyright industries - industries that are wholly engaged
in creation, production and manufacturing, performance,
broadcast, communication and exhibition, or distribution and
sales of works and other protected subject matter
fundamentally exist to produce or distribute copyright
materials
Nine groups according to product or service:





press and literature

motion picture and video

photography

visual and graphic arts

copyright collecting societies
music, theatrical productions, operas
radio and television
software and databases
advertising services
Interdependent Copyright Industries
• Interdependent industries - industries that are engaged in
production, manufacture and sale of equipment whose function
is wholly or primarily to facilitate the creation, production or use
of works and other protected subject-matter
•
manufacture, wholesale and retail of TV sets, radios, CD and DVD
players, electronic game equipment, computers, musical
instruments, photographic and cinematographic instruments,
photocopiers, blank recording material, paper
– depend on the output of the core industries
– deal predominantly with facilitation equipment
– mostly consumer durables
Partial and non-dedicated support industries
•
Partial copyright industries: industries in which a portion of the activities is
related to works and other protected subject matter and may involve creation,
production or distribution and sales (crafts, fashion, textiles and footwear,
jewelry)
•
Support industries: industries in which a portion of the activities is related to
facilitating broadcast, communication, distribution or sales of works and other
protected subject matter (ex: general wholesale and retailing, general
transportation, telephony, Internet)
Categories of Copyright - Based Industries
Core
a.
Press & Literature
b. Music, Theatrical
Productions &
Operas
c. Motion Picture &
Video
d. Radio & TV
e. Photography
f. Software &
Databases
g. Visual & Graphic
Arts
h. Advertising
Services
i. Copyright
Collecting
Societies
Interdependent
Partial
NonDedicated
a. TV sets, Radios,
VCRS, CD Players,
Cassette
Players
a. Apparel, textiles &
footwear
a. General wholesale
& retailing
b. Jewelry & coins
b. Computers &
Equipment
c. Other crafts
b. General
Transportation
c. Musical
Instruments
d. Furniture
e. Household goods,
china & glass
d. Photographic &
Cinematographic
Instruments
f. Wall coverings &
carpets
e. Photocopiers
g. Toys & games
f. Blank Recording
Material
h. Architecture,
engineering,
g. Paper
i. Interior Design
j. Museums
c. Telephony &
Internet
Survey Methodology
•
Core Copyright
Industries
Interdependent
Copyright
Industries
Partial
Copyright
Industries
Non-Dedicated
Support Industries
1. Legislative &
Data Review
4. Numerical Methods
Economic Contribution
•Output
•Value Added
•Employment
•Foreign Trade
3. Interviews
2. Industry
Survey
Survey Results
Country
Contribution to GDP Employment
(2005)
USA
11,12
8,49
(2001)
Singapore
5,70
5,80
(2004)
Canada
4,5
5,55
(2000)
Latvia
4,00
4,50
(2002)
Hungary
6,67
7,10
Philippines(1)
8,17
8,89
Russia(2)
5,06
4,59
Ongoing WIPO surveys - Brazil, Mexico, Romania, Croatia, Colombia,
Jamaica, Peru, Bulgaria, Tanzania, Malaysia, Lebanon, Ukraine
Individual studies - Australia, Azerbaijan, Finland, Denmark
(1)preliminary
data
(2)preliminary
data, % of GVA
Source: WIPO
Highlights
The Copyright-Based Industries
 In Singapore - employed 1 out of 17 people
 In Latvia provided 7 times more employment than
manufacturing
 In Hungary contributed to 7 -9% of the overall economic
performance of the country
 In Canada average annual growth rate in the copyright
industries was twice the rate of the general economy
 In the US employment in the copyright industries was higher
than the total employment levels of the entire health care and
social assistance sectors and exports were higher than in the
aircraft industry
Adoption of policy measures to foster
creativity and support creative
entrepreneurs
 Studies can assist in determining the policy framework that
needs to be put in place to support the creative industries and
enhance their economic contribution to the national economy
•
the policy intervention could consist in:
– facilitating market access for small players
– assisting creators in receiving equitable rewards for their creativity
(proper IP legal framework, enforcement)
– education & skills (management and technical skills)
– support the digital shift
– support institutions/networks/facilities
– finance (subsidies, tax incentives, private investors)
– encourage public-private sector partnerships
– establish intermediary institutions to forge collaboration among
various stakeholders (producers’ associations, cooperatives…)
Specificities of the creative market and the
creative enterprises
• Three main sub-sectors:
– arts & culture
– media & entertainment
– creative services sector
•
Dual nature of their output: both a cultural asset and a tradable
commodity
•
Uncertainty/ high risks
•
Short product life cycles/ need for constant renewal
•
Intense competition
•
Rely on creative talent/ multidisciplinary teamwork
•
Lack of management skills
How can IPR’s help? Effective
exploitation of IP rights
• -Protection/ ownership
• -Competition
• -Generate revenue
• -Raise funds
• -Take action against infringers
• -Partnerships/business operations with other sectors
• -Digital opportunities
– technological advances
– digital piracy
– protection of works in electronic form
Overview of national and regional initiatives to
support the development of managerial capabilities
in the creative industries
•
-Local Government: Queensland Government and the “creative
industries toolbox”
•
-National level: UK creative industries task force
– University level: Own-it
– Bocconi University (Milan) will launch a Master Program in
Economics and Management in Arts, Culture, Media and
Entertainment in September
•
Regional level: NORDERN (Nordic Innovation Centre)
•
European level: “Strategies for a Creative Europe”
– Economic Clusters of Cultural Entreprises (ECCE)
– Virtual Incubators (Leonardo project). On-line resources
Work in Progress CID
•
Preparation of an econometric model for measuring copyright
piracy
•
Preparation of booklets on IP issues for the film, publishing and
music industries
•
Preparation of a study on the management of creative enterprises
•
Preparation of a study on the economic, social and cultural impact
of IP in the creative industries
•
Cooperation with UNCTAD, UNESCO, UNDP, ILO and ITC on the
preparation of the Creative Economy Report
•
Launch of a WIPO intensive course on economics of the creative
industries and the role of IP- Rotterdam, Netherlands
•
Organization of an international conference on IP and the creative
industries in October 2007
Ongoing WIPO surveys - Brazil, Mexico, Romania, Croatia,
Colombia, Jamaica, Peru, Bulgaria, Tanzania, Malaysia, Lebanon
and Ukraine
Thank You!