1. THE IMPORTANCE OF IP FOR DEVELOPMENT IN THE CREATIVE INDUSTRIES
Visit to WIPO by Students from the University of the West Indies
Geneva
14 May 2008
Brigitte Vézina
Creative Industries Division
World Intellectual Property Organization

2. THE CREATIVE INDUSTRIES DIVISION AGENDA
Support policy-oriented research
Provide expertise
Assist in institutionalizing the measurement process
Promote review of strategies in related areas
Contribute to conceptualizing the creative industries
endorse the IP approach
Methodology development
improve measurement tools
guidelines for measuring copyright piracy
data collection models
Develop tools for individual creators in specific industries
– music, publishing, film, design, management of creative enterprises
Further expand the surveys
Revise and adapt the guidelines to country specifics
Publish new studies
Collaboration on data collection methods with UNESCO, UIS, UNDP and UNIDO

3. CREATIVITY FOR DEVELOPMENT
Domestic creativity and talent: abundant resources available in all countries
Enriches society and helps a country keep pace in the creative economy
But, in order to achieve development, creativity must be cultivated
A country’s development is in direct relation with the creativity of its people and the ability to economically exploit creative assets
Is creativity a driver in the knowledge economy? Can creativity bring more development?
Creativity = act of manifesting original expressions through works (music, software, literary works, artistic works and performances). Can be found in all individuals or societies independently of the level of education, cultural background or development. It can be generated either individually or collectively.
The oversimplified syllogism: creativity brings wealth, thus development, and IP exists as an incentive for creativity, so indirectly IP brings development.
Obtain maximum economic benefits for developing countries from resources in indigenous creation (traditional knowledge and arts, crafts and folklore)
Teaching material created by authors originating in the community to which the works are addressed. Recourse to foreign works sometimes desirable, to facilitate cultural interchange and reciprocal flow of ideas. Shortage of specialists. Incentives and subsidies required to encourage national authorship. Need guarantees to the author of adequate remuneration for his efforts, to enable him to devote time and attention. Copyright protection involves ensuring payment of royalties and suitable protection for publishers (opportunity for an author to have his works disseminated). Also required is copyright education of the public.
Protection of authors and creators = protection of traditional manifestations of culture which are the expression of their national identity.
Cliché that only developed countries can benef from the CIs (most rapidly growing sector)
Undeniable role of culture for development. Because CIs can reach in traditional, non-formal parts of society: key to poverty reduction thru participatory and community-based development

4. COPYRIGHT AND CREATIVITY
Purpose of system: protect and promote expressions of creativity to capture its benefits
Balance between the interests of:
creators to be remunerated for their creative investment, and protect their moral and material interests
society to have access to a diversity of creative products for their socio-economic and cultural benefits
Protection → more creativity in society?
Is the basis of the common law copyright legal system, but not as straightforward—Relationship proved by empirical research: look at how creative outputs flourish once the appropriate protection system is in place
IP is one of the incentives for creativity. Of course, not the only one. (Very few artists actually think about copyright during their creative process). There are many motivations: cultural, religious, self-expression, personal history, etc. “From inside”
Identify the importance of IP as a specific factor, among others, contributing to economic performance
But copyright is better than cultural subsidies because the reward received is directly related to the demand for that product (but for avant-garde art?)
IP laws alone are insufficient. Need effective infrastructure: laws, professionals, police, customs, judiciary…
IP= tool to ensure the extension of creative enterprise to a broader segment of the population

5. WHY MEASURE THE CREATIVE INDUSTRIES?
Knowledge-based economy
Wealth, jobs, and trade
A figure on the intangible
Policy making
Strong interest in measuring creative outputs
Knowledge-based economy: creativity = growth factor
Identify what the creative industries represent in terms of job creation, wealth and trade generation
Put a figure on the intangible
Major benefit: providing evidence for policy making to appropriately support them
Activities never considered of major economic importance and mostly studied in a cultural perspective
Important for developing countries:
Can spur development
Diversify the economy
Internet: level playing field (except film)
High-arts (status among developing countries)
In developed countries: done regularly: Canada, Finland, UK, Netherlands
WIPO’s role: channel resources and expertise

6. COPYRIGHT TO MEASURE CREATIVITY
A well defined concept
bundle of rights
equilibrium
financial mechanism
Well defined economic characteristics and functions
A basis for huge industries
Why use copyright as a benchmark for economic analysis?
Copyright = well defined concept
a bundle of economic and moral rights
an equilibrium between interests of creators and the public
a financial mechanism to reward creators who can:
Control economic use of the works
Receive payment (royalties)
Protect the reputation and integrity
Clearly defined economic characteristics and functions
Copyright = basis for huge industries, hence widely available statistics
Creativity ≈ subjective definition
Equilibrium between: an exclusive property right and a system of limitations and exceptions
Copyright goods and services can be defined.
Creative industries produce their own data (IFPI, BSA, MPAA, etc.) and monitor themselves, which facilitates the analysis

7. THE WIPO GUIDE ON SURVEYING THE ECONOMIC CONTRIBUTION OF THE COPYRIGHT-BASED INDUSTRIES
Through
linking copyright to quantifiable indicators
practical guidelines for measurements
consistency of approach
To enable
positioning of the creative sector in the national economy
international and cross-sectoral comparisons
identification of competitive advantages
And provide
input for policy formulation
adjustment of national policies and practices
Basis for undertaking a comparative analysis between countries on the size of their creative sector

8. MAIN FEATURES OF THE MODELIP
Business
Definition
those involved directly or indirectly in the creation, manufacture, production, broadcast and distribution of copyright works
Statistics
Step-by-step
Techniques
A reinforced perspective on IP and copyright
Relating copyright to business activities
A new definition of the copyright-based industries
those involved directly or indirectly in the creation, manufacture, production, broadcast and distribution of copyright works
A more transparent link to statistical reporting
A step-by-step methodology
A set of measurement techniques
Business activities: (“industry” = economic activity, may include individual activities)
Definition: (main criterion: level of dependence on and use of copyright protected material)

9. THE COPYRIGHT INDUSTRIES
Core copyright industries
fundamentally
Interdependent industries
facilitate
Partial copyright industries
a portion
Non-dedicated support industries
delivery
Core copyright industries
fundamentally exist to produce/distribute copyright materials
Interdependent industries
facilitate the creation, production or use of works
Partial copyright industries
a portion of the activities is related to copyright
Non-dedicated support industries
Induced impact, delivery modes, spillover effects
Main criterion: level of dependence on and use of copyright protected material
Industry may include individual activities, it is a synonym of economic activity

10. FINDINGS A substantial contribution Drivers of the economy?
Adequate policy measures
All studies show a substantial contribution of the creative industries to the national economy
Allow us to see which parts of the economy are the real drivers/leaders
The sector deserves adequate policy measures
Substantial: position among other industry groups. Ex.: bigger than agriculture in Bulgaria
The real question: is there growth?

11. Country Contribution to GDP % of Employment USA 11,12 8,49
Singapore 5,70 5,80
Canada 4,50 5,55
Latvia 4,00 4,50
Hungary 6,67 7,10
Philippines 4, ,10
Bulgaria 3,42 4,31
Mexico 4, ,01
Lebanon 4,75 4,49
Jamaica 4,80 3,03
Russia 6, ,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
Ongoing: Brazil, China, Colombia, Kenya, Malaysia, Morocco, Nigeria, Pakistan, Sudan, Tanzania Source: WIPO

13. FINDINGS (contd.) Overall economic development level Growing interest
THE RECORD
THE PERCEPTION
Overall economic development level
Economic cycles and classification systems
Dynamics
Multiplier effect
Structural changes
Growing interest
5 languages, over 27 surveys, new edition in preparation
Copyright awareness
Copyright profile
Individual specifics
Objectives
Available information
Available financing
Links to policy development
Results not necessarily a function of overall economic development level of the country
Strong influence of economic cycles and classification system
Impressive dynamics
Multiplier effect
Indicative of structural changes in the economy
Economic cycles: (in times of economic booming: creative industries outperform the overall economy, and vice versa)
Dynamics: Bulgaria: x 3, Canada: x 2
Multiplier effect:
Singapore: “7”: investment in this sector would create 7 times more jobs than if investing in traditional sectors
Growing interest in surveys underpinning policy action
5 languages, over 27 surveys, new edition in preparation
Raises awareness about copyright
Becomes an element of the copyright profile
Individual specifics depend on:
Objectives
Available information
Available financing
Links to policy development

14. MAIN CHALLENGE
Practical and reliable, but not possible to apply uniformly everywhere
Specific context of countries:
systems for statistical information
economic environment and traditions
policymakers
WIPO methodology: practical and reliable model, but not possible to apply uniformly everywhere
Specific context of countries:
systems for statistical information
economic environment and traditions
need and readiness of policymakers to accept and apply results

15. ISSUES Policy issues Statistical issues match level of expectations
Scope and coverage
copyright limited to what is protectable
gray economy and piracy not surveyed
social and cultural aspects not surveyed
Statistical issues
industrial approach/ individual activities
production, not consumption based approach
underdeveloped statistical framework
Technical issues
Consumption based approach traditionally used in culture field
Conservative estimates
Despite impressive record and interest in research, always challenges with IP framework to research on the creative industries. Difficulty of reconciling the industrial approach to individual creative activities. Careful work and adjustments in data collection and data analysis. WIPO studies do not disclose data on public or private spending on culture. They focus on macroeconomic indicators. The overall underdeveloped statistical framework in the field of culture, copyright and creativity adds to the cost of the studies.
Copyright protects only creative expressions, hence the scope of the survey is linked to what is protected under the national legislation. As a result some creative expressions may not be accounted for if they do not fall within the protection provisions.
Based only on official data sources, meaning that the entire grey economy or piracy production is excluded from the scope of the survey. Establishment of the level of dependence on copyright, calculation of value added, and others which have to be dealt with by every individual research team. WIPO offers assistance in this field based on its experience so far.
adds to the cost

16. CONCLUSIONS The model works A basis for policy action
Social, cultural…
International cooperation
The model works, problems are solved differently from country to country
Studies provide information for countries and a basis for policy action, when desired
Better results if complemented by social, cultural studies, like impact assessments
Challenges can be solved more easily through international cooperation (Example: work with UNESCO, OECD, ILO, UNCTAD)

17. THANK Y©U!