United Nations Statistics Division ICT, Information and Intellectual Property Products An overview of concepts and how they relate to the CPC Ver. 2

2 We will look at:We will look at: the concepts and definitions used when talking about the information economy.the concepts and definitions used when talking about the information economy. what they meanwhat they mean how they differ from each otherhow they differ from each other how they interacthow they interact How the new Central Product Classification (CPC v2) relates to these concepts.How the new Central Product Classification (CPC v2) relates to these concepts. Scope of presentation

3 Why this presentation? The adaption of new ideas relating to the “information economy” in ISIC/CPC, has caused substantial changes in these classifications.The adaption of new ideas relating to the “information economy” in ISIC/CPC, has caused substantial changes in these classifications. introduction of new subclassesintroduction of new subclasses new concepts used in describing subclassesnew concepts used in describing subclasses changes in structurechanges in structure Some conceptual problems in CPC v1.1 (the previous version) and a rapid change in the actual productsSome conceptual problems in CPC v1.1 (the previous version) and a rapid change in the actual products distinction between original, content and provision services.distinction between original, content and provision services. emerging productsemerging products

4 Key concepts The Information Economy ICT Sector Content/Media Sector ICT Products OriginalsContent Intellectual Property Products

5 United Nations Statistics Division (UNSD)‏United Nations Statistics Division (UNSD)‏ Technical Subgroup on on ISIC/CPCTechnical Subgroup on on ISIC/CPC Working Party on Indicators for the Information Society (WPIIS)‏Working Party on Indicators for the Information Society (WPIIS)‏ Voorburg Group (City group on services statistics)‏Voorburg Group (City group on services statistics)‏ Actors involved

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR

7 ICT sector defined by aggregating complete ISIC classes according to the following guidelines:ICT sector defined by aggregating complete ISIC classes according to the following guidelines: Manufacturing: The products of a candidate industry must be intended to fulfil the function of information processing and communication by electronic means, including transmission and display.Manufacturing: The products of a candidate industry must be intended to fulfil the function of information processing and communication by electronic means, including transmission and display. Services The product of a candidate industry must be intended to enable the function of information processing and communication by electronic means.Services The product of a candidate industry must be intended to enable the function of information processing and communication by electronic means. The ICT sector

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ManufacturingServices electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏

9 It was early recognized that the scope of the “information economy” ought to be extended beyond that of the ICT sector.It was early recognized that the scope of the “information economy” ought to be extended beyond that of the ICT sector. Content and media industries are engaged in the production, publishing and/or the electronic distribution of content products.Content and media industries are engaged in the production, publishing and/or the electronic distribution of content products. Guidelines for identifying a content or media product: “Content corresponds to an organised message intended for human beings published in mass communication media and related media activities. The value of such a product to the consumer does not lie in its tangible qualities but in its information, educational, cultural or entertainment content”Guidelines for identifying a content or media product: “Content corresponds to an organised message intended for human beings published in mass communication media and related media activities. The value of such a product to the consumer does not lie in its tangible qualities but in its information, educational, cultural or entertainment content” The content/media sector are industries that create and disseminate mass market information and cultural products; the ICT sector provides the means for doing so.The content/media sector are industries that create and disseminate mass market information and cultural products; the ICT sector provides the means for doing so. In ISIC 4, all of the content/media sector is contained within ISIC section J: “Information and communication”In ISIC 4, all of the content/media sector is contained within ISIC section J: “Information and communication” The content/media sector

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ManufacturingServices electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities

11 An embodiment of information in some tangible or intangible form, which can be bought and sold.An embodiment of information in some tangible or intangible form, which can be bought and sold. Basically, output of ISIC section J: “Information and Communication”Basically, output of ISIC section J: “Information and Communication” This section contain the content/media sector and parts of the ICT sector.This section contain the content/media sector and parts of the ICT sector. Information Products

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ManufacturingServices electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities ISIC J (58-63) ‏

13 Possible definition: a product coming out of the ICT industryPossible definition: a product coming out of the ICT industry facilitates consistency between product statistics and industry statisticsfacilitates consistency between product statistics and industry statistics Independent definition: gives criteria for what an ICT product is.Independent definition: gives criteria for what an ICT product is. Current approach: use the first definition and admit some exceptions.Current approach: use the first definition and admit some exceptions. ICT products

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ICT PRODUCTS ManufacturingServices Goods ATMs fire alarms burglar alarms Software licencing Telecommunications IT consulting Hosting Repair Software originals Packaged software Software downloads electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities ISIC J (58-63) ‏ Digital cameras

15 The definition and scope is still under discussionThe definition and scope is still under discussion Basic idea: “products coming out of the content/media sector”Basic idea: “products coming out of the content/media sector” Major components are:Major components are: originalsoriginals contentcontent possibly servicespossibly services “Content/media products”

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ICT PRODUCTS products of content/media sector ManufacturingServices Goods Originals Content ATMs fire alarms burglar alarms Software licencing Telecommunications IT consulting Hosting Repair Software originals Packaged software Software downloads electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities ISIC J (58-63) ‏ Digital cameras

17 The output of a intellectual / creative activity may be considered a service or an originalThe output of a intellectual / creative activity may be considered a service or an original When the activity is carried out for another party, a service is being provided.When the activity is carried out for another party, a service is being provided. When the output of the creative activity is not carried out for someone else, the output is an original.When the output of the creative activity is not carried out for someone else, the output is an original. Originals  servicesOriginals  services Originals  copiesOriginals  copies This distinction is also made in the SNA.This distinction is also made in the SNA. OriginalsOriginals

18 Examples of intellectual / creative activitiesExamples of intellectual / creative activities writing of manuscripts and other textswriting of manuscripts and other texts audiovisual productionsaudiovisual productions music compositionmusic composition music performancemusic performance research activitiesresearch activities product design activitiesproduct design activities geological surveysgeological surveys Originals (continued)‏

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ICT PRODUCTS products of content/media sector ManufacturingServices Goods Originals Content ATMs fire alarms burglar alarms Software licencing Telecommunications IT consulting Hosting Repair Software originals Packaged software Software downloads electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media sound recordings motion pictures radio/TV prog. product design publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities ISIC J (58-63) ‏ Digital cameras

20 The reproduction, in some form, of an original, regardless of physical mediaThe reproduction, in some form, of an original, regardless of physical media In general, most of the value is in the information content, not the device.In general, most of the value is in the information content, not the device. A copy of content is a product.A copy of content is a product. The System of National Accounts uses the concept of “copies”The System of National Accounts uses the concept of “copies” ContentContent

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ICT PRODUCTS products of content/media sector ManufacturingServices Goods Originals Content ATMs fire alarms burglar alarms Software licencing Telecommunications IT consulting Hosting Repair Software originals Packaged software Software downloads R&D originals Mineral expl. Original writings electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media Books Periodicals Movies Television prog. Music sound recordings motion pictures radio/TV prog. product design publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities ISIC J (58-63) ‏ Digital cameras

22 According to the System of National Accounts: “Intellectual property products are the result of research, development, investigation or innovation leading to knowledge that the developer can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection.”According to the System of National Accounts: “Intellectual property products are the result of research, development, investigation or innovation leading to knowledge that the developer can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection.” Specific forms mentioned are products from:Specific forms mentioned are products from: Research and developmentResearch and development Mineral exploration and evaluationMineral exploration and evaluation Computer software and databasesComputer software and databases Entertainment, literary or artistic originalsEntertainment, literary or artistic originals Uses the notion of “originals” and “copies”Uses the notion of “originals” and “copies” Intellectual Property (IP) products

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ICT PRODUCTS products of content/media sector ManufacturingServices Goods Originals Content ATMs fire alarms burglar alarms Software licencing Telecommunications IT consulting Hosting Repair Software originals Packaged software Software downloads R&D originals Mineral expl. Original writings electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media Books Periodicals Movies Television prog. Music sound recordings motion pictures radio/TV prog. product design publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities ISIC J (58-63) ‏ IP products Digital cameras

24 Some of them are neither goods nor services, but “IP products and similar products”Some of them are neither goods nor services, but “IP products and similar products” Sections 0-4 for the most part limited to transportable goods classified in the HS.Sections 0-4 for the most part limited to transportable goods classified in the HS. These intangible goods have therefore been classified in section 5-9, close to the services that are outputs of the same ISIC industries as the intangible goods.These intangible goods have therefore been classified in section 5-9, close to the services that are outputs of the same ISIC industries as the intangible goods. Content/media products in the CPC?

25 OriginalsOriginals Close to the related services, found in part 5-9Close to the related services, found in part 5-9 ContentContent Content on physical media: in the related products found in part 0-4.Content on physical media: in the related products found in part 0-4. Content not on physical media (downloadable) group: “On-line content”Content not on physical media (downloadable) group: “On-line content” Content/media products in the CPC? (continued)‏ They are not services!

26 New detail added for information productsNew detail added for information products BooksBooks softwaresoftware audio/video tapesaudio/video tapes CPC v2 sometimes goes beyond HS in detail.CPC v2 sometimes goes beyond HS in detail. Pre-existing products

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35 UNSD and WPIIS working on an alternative aggregate for ICT products and content/media products.UNSD and WPIIS working on an alternative aggregate for ICT products and content/media products. The development of this aggregate should not influence the publishing date of the CPC v2.The development of this aggregate should not influence the publishing date of the CPC v2. Next steps

Product (CPC 2)‏ Activity (ISIC 4)‏ Information Economy (ISIC) ‏ ICT SECTOR CONTENT/MEDIA SECTOR ICT PRODUCTS products of content/media sector ManufacturingServices Goods Originals Content ATMs fire alarms burglar alarms Software licencing Telecommunications IT consulting Hosting Repair Software originals Packaged software Software downloads R&D originals Mineral expl. Original writings electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media computer consultancy computer programming web hosting telecommunications repair trade (wholesale) ‏ Software Publishing electronic components computers /peripherals communication equip. consumer electronics magnetic media optical media Books Periodicals Movies Television prog. Music sound recordings motion pictures radio/TV prog. product design publishing of books publishing of newspapers movie production television programme production movie/television programme distribution sound recording radio broadcasting news agency activities ISIC J (58-63) ‏ IP products Digital cameras