1. Copyright and the Economic Importance of Creative Industries Sub-Regional Seminar on International Publishing Issues WIPO – IPA – LLA Vilnius, Lithuania May 12 2010 Donna M.A. Hill The Culture and Creative Industries Sector

2. Basic Facts about WIPO WIPO’s Mission: To promote the protection of IP rights worldwide and extend the benefits of the international IP system to all member States Status: An int’l intergovernmental organization Member States: 184 Staff: 950 from 101 countries Treaties Administered: 24 Decisions by: GA, CC, WIPO Conference

3. - Berne Convention for the Protection of Literary and Artistic Works - WIPO Copyright Treaty (WCT) (1996) - WIPO Performances and Phonograms Treaty (WPPT) (1996) - The Rome Convention WIPO Treaties most relevant for Publishers

4. Contracting Party Treaty Status: Lithuania Entry into Force Berne Convention - In Force December 14, 1994 Budapest Treaty - In Force May 9, 1998 Hague Agreement - In Force September 26, 2008 Madrid Protocol - In Force November 15, 1997 Nice Agreement - In Force February 22, 1997 Paris Convention - In Force May 22, 1994 Patent Cooperation Treaty- In Force July 5, 1994 Phonograms Convention - In Force January 27, 2000 Rome Convention - In Force July 22, 1999 Singapore Treaty - Signature Trademark Law Treaty - In Force April 27, 1998 UPOV Convention - In Force December 10, 2003 WIPO Convention - In Force April 30, 1992 WIPO Copyright Treaty - In Force March 6, 2002 WIPO Performances and Phonograms Treaty - In Force May 20, 2002

5. New name of Sector - Culture and Creative Industries Sector Copyright Law Division Creators and Performers Support Division Creative Industries Section Collective Management Section Copyright Development Services Division “Copyright and Related Rights” at WIPO

6. What are the Creative Industries? Category confusion? A choice of policy. CreativeIndustries -- largely characterised by nature of labour inputs: “creative individuals” Examples... Advertising Architecture Design Interactive Software Film and TV MusicPublishing Performing arts CopyrightIndustries -- defined by nature of asset and industry output Examples... Commercial art Creative arts Film and video MusicPublishing Recorded media Data processing Software Content Industries -- defined by industry production Examples... Pre-recorded music Music retailing Broadcasting & Film SoftwareMultimediaServices Printing and Publishing (especially books) Cultural Industries -- defined by public policy function and funding Examples... Museums & galleries Visual arts & crafts Arts education Broadcasting & film Music Performing artsLiteratureLibraries Digital content -- defined by combination of technology and focus of industry production Examples... Commercial art Film & video Photography Electronic games Recorded media Sound recordingInformation storage & retrieval: E-books / publishing Source: Cutler & Co/CIRAC, 2003, (see papers by Stuart Cunningham) -- www.creativeindustries.qut.com

7. Copyright and Related Rights “Copyright” : Legal term that describes the rights given to creators for their literary and artistic works. Copyright protects the rights of authors, performers, producers and broadcasters. -- As creators of original works, you hold the exclusive right to use or authorize others to use the work on agreed terms. For example, you can prohibit or authorize - the reproduction of your work in various forms, such as printed publication or sound recording; - its public performance, as in a play or musical work; - recordings of it, for example, in the form of compact discs, cassettes or videotapes; -its broadcasting, by radio, cable or satellite; and its translation into other languages, or its adaptation, such as a novel into a screenplay.

8. Quantitative Factors : National studies on assessing the economic contribution of copyright-based industries. Qualitative Factors : Study on the Social and Cultural Impact of IP on the Creative Industries Quantitative and Qualitative Factors of Development

9. Why Empirical Evidence Matters? Economic analysis of law involves two elements: Prediction of behaviour in response to legal rules, assuming that actors are forward- looking and rational, and Evaluation of outcomes in relation to well- articulated measure of social welfare.

10. Why Empirical Evidence Matters? Growing interest towards measurement of creativity: Is creativity a driver in the knowledge economy? Can creativity bring more development? Can nations capitalize on creative assets? Specific policy objectives leading to specific measurement tools: Variety of approaches - social, economic and cultural Challenge: How to measure the non-economic returns from creativity? impacts A possible approach of studying creativity is through the types of impacts that it produces.

11. A Copyright Approach To Measuring Creativity Creativity poses definitional problems Copyright is a well defined concept - a set of economic and moral rights - a balance between individual and public interests - a financial mechanism to reward creators, i.e. royalties - serves as the basis of huge industries - enhances and enriches cultural heritage and cultural life Can be used a tool to estimate -Employment -value added -export -productivity

12. Economic Fundamentals of Copyright Economic characteristics  private property right  a public good  different from means of delivery Economic functions  sets the rules of the trade  contributes to economic efficiency  helps creators to get the market value of their works Consequences of economic nature  enhances economic welfare  redistributes income/costs  increases market power Conditions for economic efficiency of copyright  monitor and control misuse  consumer valuation > production and distribution costs

13. The WIPO Measurement Model Objective - provide a basis for consistency - enable international and cross-sectoral comparisons - provide solid data as input for policy formulation Main features - a reinforced link to copyright - relating copyright to economic activities - new definition of the creative industries - a more transparent link to statistical reporting

15. The Copyright - Based Industries a. General wholesale & retailing b. General Transportation c. Telephony & Internet Non- Dedicated a. Apparel, textiles & footwear b. Jewelry & coins c. Other crafts d. Furniture e. Household goods, china & glass f. Wall coverings & carpets g. Toys & games h. Architecture, engineering, i. Interior Design j. Museums Partial a. TV sets, Radios, VCRS, CD Players, Cassette Players b. Computers & Equipment c. Musical Instruments d. Photographic & Cinematographic Instruments e. Photocopiers f. Blank Recording Material g. Paper Inter- dependent a. Press & Literature a. Press & Literature b. Music, Theatrical Productions & Operas c. Motion Picture & Video d. Radio & TV e. Photography f. Software & Databases g. Visual & Graphic Arts h. Advertising Services i. Copyright Collecting Societies Core 15.

16. Press and Literature Standard (national) Industrial Classifications that best describe the ‘core’ copyright industries generally begin with a list of the ultimate products that most depend on copyright protection. So in the case of the publishing industry we have, under press and literature: Authors, writers, translators Newspapers News and feature agencies Magazines/periodicals Book publishing Cards and maps Directories and other published materials Pre-press, printing, and post-press of book, magazines, newspapers, advertising materials Wholesale and retail of press and literature (book stores, news stands); and libraries.

17. The Book Publishing Industry The Book

18. Contribution to GDP Contribution to Employment

19. Mexico * The calculations on Mexico contribution to GDP have been made on the basis of table 4.2 of the study ** The Total share of the contribution of copyright industries to GDP and employment refers only to core and interdependent industries. Economic Contribution of Copyright-based Industries

20. What’s the story? Specific patterns of economic behavior - results are not necessarily a function of the overall economic development - strong influence of economic cycles Impressive dynamics – 2.5 times the average Strong employment multipliers Indicative of structural changes in the economy Useful in identifying - competitive advantages - drivers - problem areas

21. 1. Current mapping and evaluation of the creative industries provide only limited evidence in respect of the likely trade-offs between the economic, social and cultural realms affected by IP regimes. 2. WIPO Project : A study to examine the potential development and use of indicators to not only measure or rather assess the economic impact but also the social and cultural impact of intellectual property onthe creative industries. The intention of this, and future studies, is to point the way towards a more holistic understanding of modern intellectual property regimes, specifically those that operate in relation to the creative industries. Qualitative Factors Social and Cultural ‘Impact Assessments’

22. WIPO products, initiatives and other tools and activities for the Publishers and the community at large.

24. WIPO Distant Learning Courses Copyright in Action: distance learning modules on Publishing Module 1: The author-publisher relationships This module considers the copyright issues that a publisher needs to address before publishing a work. 1.1 Negotiating with authors: copyright ownership This unit examines the original ownership of content and examines what rights can, and should, be transferred 1.2Moral rights and ethical responsibilities This unit explains the creator's moral rights in their work, and how this differs from the ethical responsibilities of both authors publishers. 1.3Publisher-author contracts This unit provides guidance regarding what should be included within an author-publisher contract, and what constitutes a legally-binding agreement. 1.3Negotiating with authors: financial agreements This unit evaluates the different financial agreements that can be agreed with authors and other content creators 1.5Working with other content suppliers This unit reviews the other content providers the publisher will work with, and what rights the publisher must agree with them. 1.6Terminating the agreement This unit describes conditions under which a contract may be terminated. 1.7Module 1 revision unit This unit revisits the topics within this module, and tests participants to ensure understanding of the module contents.

25. Facilitating Access to Copyright Works for Visually Impaired Persons Vision IP - www.visionip.org With the support of its partners, WIPO has created a dedicated website as a platform for expressions of support, exchange of views, and dissemination of information to all parties interested in the issue of access to information and cultural content by VIPs and other reading- disabled persons.

27. Towards a new role for WIPO beyond norm-setting in the field of copyright and related rights.

28. I. Defining the new role for WIPO beyond norm-setting New Focus on the exercise and exploitation of IP in the new environment. New licensing modalities and business models developed in the network environment and adapted to collaborative creativity.

29. II. New activities and new issues. New activities: Research and information gathering Facilitating Dialogue among stakeholders Dispute resolution Emphasis on Infrastructure New issues: Responsibility of Internet Intermediaries Interplay between collective and individual management Facilitating a consensual approach to rights and limitations Development Agenda Issues: Orphan Works Public Domain Registration Documentation and RMI Competition Law Access to Creativity and Information

30. Digital World Google Book Search UGC Digital Preservations DRM Software New Licensing + Public Domain

31. III. Collective Management Traditional role: technical assistance. New Issues: Competition Law Governance issues Precedents To Governance Issues in WIPO: 1989 Governing Bodies mandated the Secretariat to prepare a Study on CM as a basis for advice, (Group of Consultants, published in 1990); 1991 Memorandum Submitted to the first Committee of Experts on a Protocol to the BC (license fees must be distributed according to actual use); 2000 DC on the protection of AV performances (no collection without distribution)

32. III. Collective Management (2) Developmental dimension of Copyright and collective management Developing countries: Striking contrast between thriving cultural industries and shortcomings of CM Most urgent needs: International Exchange of Data and Revenues. Efficient and Standardized Automation Processes

33. IV. COPYRIGHT AND DEVELOPMENT When formally establishing the Development Agenda in October 2007, the WIPO General Assembly adopted a set of 45 recommendations to enhance the development dimension of the Organization’s activities. A number of them look at exploring the synergic relation between copyright and creativity. With the intention of implementing the adopted recommendations in an effective and coherent manner, the Secretariat took in 2009 the initiative of grouping recommendations which address the same or similar subject matter and could be implemented jointly through thematic projects. 3 Thematic Projects closely relate to Copyright.

34. IV. COPYRIGHT AND DEVELOPMENT (2) IP and the Public Domain (3 recommendations) Second Survey on voluntary Registration and deposit systems The new survey would expand on the 2005 Survey in at least four different respects, namely, (i) digital environment and available search tools; (ii) orphan works; (iii) solicit information on recorded/registered public domain subject matter; and (iv) attempt to include all Member States.

35. IV. COPYRIGHT AND DEVELOPMENT (3) IP and the Public Domain Survey on private copyright documentation systems and practices Use of copyright documentation, including in the form of RMI, by entities such as collective management organizations or the Creative Commons System, and would examine how these systems identify, or might contribute to identifying, content that is protected or in the public domain.

36. IV. COPYRIGHT AND DEVELOPMENT (4) IP and the Public Domain Scoping study on copyright and related rights and the public domain Comparison of national legislation that directly, or indirectly, defines the public domain, survey of initiatives and tools, technical and legal, which facilitate access, use, identification and location of public domain material, and, finally, recommendations for further work to be undertaken by WIPO in regard to the public domain as far as copyright is concerned. Conference on copyright documentation and infrastructure

37. IV. COPYRIGHT AND DEVELOPMENT (5) IP AND COMPETITION (Rec. 7, 23 & 32) Global meeting on emerging copyright licensing modalities This two ‑ day meeting would gather an array of stakeholders who are implicated in copyright licensing practices, to examine new challenges in this area, including from a competition standpoint. Multiple issues such as the compatibility between traditional copyright licenses and newer forms of licensing, including the competitive impact of territorially-limited versus multi ‑ jurisdictional licenses, etc.

38. IV. COPYRIGHT AND DEVELOPMENT IP, ICTs, THE DIGITAL DIVIDE AND ACCESS TO KNOWLEDGE (Rec. 19, 24 &27) A Study on “ Using Copyright to Promote Access to Information and Creative Content ” : use of the copyright system in order to enhance access to information and creative content, in three key areas: education and research (including issues such as open- access); software development practices, including free and open- source software; and e ‑ information services (e.g., e ‑ journals, public sector information).

39. IV. COPYRIGHT AND DEVELOPMENT IP, ICTs, THE DIGITAL DIVIDE AND ACCESS TO KNOWLEDGE (Rec. 19, 24 &27) The Study will be developed in three different stages: Research, information ‑ gathering and first draft of the individual contributions; A workshop, hosted at WIPO headquarters, devoted to collective analysis and evaluation individual contributions; and Finalization and delivery of the Study, which will include recommendations on future activities to be undertaken by WIPO.

40. Thank Y©u Donna M. A. Hill