Summary: PIJIP’s research indicates that American firms operating overseas in industries that rely on copyright limitations enjoy better outcomes on average when our trading partners’ limitations are more open – defined as being open to the use of any type of work, by any user, or with a general exception that is open to any purpose subject to protections of the legitimate interests of right holders. Econometric research on both the activities of foreign affiliates of U.S. firms and service exports by U.S. firms illustrate this conclusion. At the same time, firms in the more traditional “copyright sectors” (i.e. – music, movies, and printed media), do not seem to be negatively affected by greater balance and openness in copyright limitations.
My comment to the Special 301 Subcommittee has four key points:
- Affiliates of U.S.-based multinational firms operating abroad in industries that rely on copyright exceptions report higher gross profits, net income and sales figures when their host nations adopt more open copyright limitations.
- BEA data on U.S. multinationals operating abroad does not show harm to the copyright industries when countries have made their copyright limitations more open.
- The Special 301 Committee should include analysis of copyright limitations when evaluating whether a country provides adequate and effective protection of intellectual property.
- The 2017 Special 301 Report should highlight countries that are moving to adopt more flexible copyright practices in its “Best Practices.”