The Legal Framework in the Digital Environment the

The Legal Framework in the Digital Environment: the Importance of the Copyright to the Economy ENHANCING THE CULTURE OF READING AND BOOKS IN THE DIGITAL AGE FRANKFURT BOOK FAIR, 2009 Richard Owens, Director Copyright E-Commerce, Technology and Management Division

The State of Copyright: Challenges and Opportunities - Development of technology to support creativity and growth of the creative industries; - Incentivizing creativity and culture; - Striking the balance between the interests of creators, distributors and consumers. 2

The international legal framework • WIPO Copyright Treaty (WCT) (1996) – In force March 6, 2002; 70 contracting parties • WIPO Performances and Phonograms Treaty (WPPT) (1996) – in force May 20, 2002; 68 contracting parties • Membership mostly developing countries, but also Japan, Singapore, United States of America and Belgium; EU accessions imminent • Complex interplay among legal, political and market factors 3

The international legal framework “To provide adequate solutions to the questions raised by new economic, social, cultural and technological development” - Definition and scope of the right of reproduction in the digital context; - Creation of the right of “making available” to the public; - Protection of software and collection of data as literary works; - Extension of the 3 -step-test for Limitations and Exceptions (L&Es) to the digital environment; - Protection of Technological Protection Measure (TPMs) and Rights Management Information (RMI), including text identifiers. 4

The international legal framework • Implementation of 1996 Treaties: – General framework for the dissemination of content online – DMCA and European Directive as “prototype” laws – Public policy flexibilities in sensitive areas – A number of countries meet standards but are not party yet • Sources of other international obligations, that may exceed WIPO treaties obligation - European Copyright Directive 2001/29/EC (entered into force in 06/2001) - Free Trade Agreements (More than 300 FTAs worldwide concluded or under negotiation, similar but not identical IPR provisions) (e. g. U. S. -Korea, April 2007; U. S. -Singapore, January 2003; U. S. Australia, March 2004) - TRIPS (1994) 5

Copyright for the Digital Economy • The value of assets lies in intellectual, rather than physical, capital (2006, intellectual assets represented over 80% of the value of the top S&P 500 companies); • IP related business opportunities are increasing, either for the area of creation of product (i. e. upstream), either for the service of assuring the diffusion and application of content (i. e. downstream). 6

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Contributions of Copyright-Based Industries The Empirical Evidence Country USA Contribution to GDP % of Employment 11, 05 8, 51 Singapore Canada 5, 80 4, 50 5, 90 5, 55 Latvia 4, 00 4, 50 Hungary 6, 67 7, 10 Philippines 4, 92 11, 10 Bulgaria 3, 42 4, 31 Mexico 4, 77 11, 01 Lebanon 4, 75 4, 49 Jamaica 4, 80 3, 03 Russia 6, 06 7, 30 Romania 5, 54 4, 17 Croatia 4, 42 4, 65 Peru 3, 60 2, 51 Ukraine 3, 47 1, 91 Korea 8, 67 4, 31 Malaysia 5, 80 7, 50 Colombia 3, 30 5, 80 Netherlands 5, 90 8, 80 Australia 10, 30 8, 00 Kenya 5, 32 3, 26 Average 5, 57 5, 89 8 Ongoing: Brazil, China, Brunei, Bhutan, Indonesia, Morocco, Nigeria, Panama, Pakistan, Slovenia, Sudan, Tanzania, Thailand 8.

Contribution to GDP by Industry (2) 9

Contribution to Employment by Industry (2) 10

Economic Contribution of Copyright-Based Industries to the Global Economy • • Surprisingly significant contribution Drivers – publishing, R/TV, software, music, film, advertising Results do not follow development patterns Impressive dynamics Higher capital and labour productivity vs. traditional sectors Stronger employment multipliers Indicative of structural changes in the economy Useful in identifying competitive advantages, drivers, problem areas • Specific patterns of economic behavior – results not necessarily a function of overall economic development – strong influence of economic cycles – no direct link with copyright protection regimes 11

International Conference on Intellectual Property and Cultural Heritage in the Digital World - October 29 -30, 2009 (Madrid), organized with the Ministry of Culture of Spain - CHIs as users as well as rightowners and managers of IPRs - New business models, the “Experience Economy”, the role of search engines (Google) - Museums’ and libraries’ legal concerns, preservation and documentations issues - http: //wipo. int/meetings/en/2009/cr_mad/index. html 12

http: //www. wipo. int/copyright richard. owens@wipo. int 13