The Institute for Policy Innovation’s newest report, “The True Cost of Copyright Industry Piracy to the U.S. Economy,” sheds light on the harm from copyright piracy not just to U.S. copyright producers and industries, but to the overall economy,.
According to IPI’s analysis, widespread theft of copyright-protected products, including motion pictures, video games, sound recordings as well as business software, has cost the U.S. $58 billion in annual economic output and 373,375 jobs.
When people steal, other people lose their means of prosperity and the country suffers. Just as stealing cash from a neighbor’s wallet is wrong and robs him of his economic prosperity, so too does theft of intellectual property rob individuals—and the nation.
But more particularly, because of global and U.S.-based piracy of U.S. copyrighted material:
- The U.S. economy loses $58 billion annually;
- U.S. workers lose 373,375 jobs;
- U.S. workers lose $16.3 billion in earnings annually, including $7.2 billion in earnings from workers in the copyright industry or “downstream” retail industries, and $9.1 billion in earnings by workers in other U.S. industries; and
- The U.S. government loses at least $2.6 billion in tax revenues annually, including $1.8 billion in personal income tax and $800 million in lost corporate income and production taxes.
Not only does everyone understand that piracy of movies, music and software is rampant, but everyone also understands that the U.S. economy is no longer globally competitive in low-cost manufacturing and other economic sectors.
No, in fact, it is precisely the creative industries—the industries that depend on intellectual property rights and enforcement—that the U.S. is counting on to maintain its global competitiveness.
So, as policymakers turn their attention to the competitiveness of the U.S. economy in the global marketplace, it is clear that the problem of copyright piracy should be afforded a prominent place on the policy agenda.
Not only is piracy NOT a victimless crime, but the victims of piracy are not just the industries themselves, but also the entire U.S. economy.