The Role and Contribution of the Copyright Industry for Economic Growth and

Development

By Getachew Mengistie, Intellectual property Law Consultant and Attorney

Presented at

National Intellectual (IP) Policy Workshop: Elaboration of a national IP policy National Intellectual (IP) Policy Workshop: Elaboration of a national IP policy and strategy for namibiaand strategy for namibia

organized bythe World Intellectual Property Organization (WIPO) in cooperation with in cooperation with

the Government of Namibiathe Government of Namibia

  Windhoek , Namibia, September 15, 2015

Outline of Presentation

• What is copyright/creative Industry?• Contribution of Creative Industry for economic

development• Current Status and potential contribution of

Creative industry in socio economic development in Africa

• Major Challenges of the Creative Industry• Measures that should be taken • Reasons for Action• Conclusion

What is creative industry?

• WIPO defines Creative industries or Copyright based industries as consisting of core, interdependent copyright industries, partial copyright industries , non dedicated support industriesCore copyright industries- industries

which are wholly engaged in creation, production manufacturing,performance,broadcast, communication and exhibition, or distribution and sales of works -ex- press and literature, motion picture, music, software, photography etc.;

What is creative industry? Interdependent copyright industries-engaged in

manufacture and sale of equipment –facilitate the creation, production or use of works- ex. TV sets, CDs, DVD

Partial copyright industries-engaged partly in activities is related to works and other protected subject matter and may involve creation, production and manufacturing, performance, broadcast, communication and exhibition or distribution and sales ex. Crafts, fashion

Non dedicated support industries-support- facilitate broadcast, communication, distribution or sale of works. Ex. Telecommunication, Internet

Indicators of economic contribution• Value added

– Percentage of GDP attributable to copyright and related rights industries

• Job creation– Ratio of industries’ employment to the total

employment • Export volume (International trade – imports and

exports)

- Volume in relation to other industries in the economy and share of trade revenue etc;

Contribution of CI for economic development• Studies conducted in developed and developing

countries• USA 2002

generated$1,254 trillion or 12 % of the economy, an increase of more than 54% to 2001,which was 7.75%

provided employment opportunity for 11,476,000 or 8.41% of the total work force-entire health care& social assistance sector (15.3 mill) or the entire manufacturing sector (14.5 mil)

foreign sales and exports-estimated $89.26 billion- CCI exceeded chemicals & related products, food & animals, motor vehicles, parts& accessories, aircraft &associated equipment sectors

Contribution of CI

• A survey of 15 EU countries shows that CR-based industries contributed between 1.5% to 7% to the GDP and 2% to 4.3% of the total workforce

• Argentina-1999-2.3 % employment, 3% of GDP-exceeded food, chemical substance & products, electricity, gas & water services, extraction of petroleum

• Brazil-1998-$33 billion or 6.7%, 1.3 million employment, export gain 2000-$ 450mil

• CI not affected by the recent economic down turn- 12% decline in global trade in 2008 but 14% annual growth of CI

Current Status, potential & economic significance of CI in Africa

• Creative industries account for close to 6% of the World Trade, Africa’s share in global trade of creative products is less than 1 per cent of world exports

• African countries have huge potential for CI

- Rich culture and tradition that may serve as a basis for CI

- Potential to enter into international market & stay completive

Current Status, Potential & economic Significance of CI in Africa

• Emergence and growth of CI in a number of African countries- example Nigeria, South Africa, Egypt, Mali, Congo, Kenya, Ethiopia, Tanzania etc.,

• No comprehensive study yet• Few studies and concrete examples

Nigeria's film industry is the third largest in the world, following the US and India. 'Nollywood' produces more than 1,000 films annually, and is the country's second most important industry after oil, generates US$2.75 billion and provides employment opportunity

Current Status, Potential & economic Significance of CI in Africa

A 2013 survey CR-based industries in Malawi contributed 3.46% to GDP, (ranking 8th in country) and 3.35% to total employment

2011 study in south Africa showed CI contributes to 4.11% to the GDP, provides for 4.08% of employment and generated 4.07% export revenue

Current Status, Potential & economic Significance of CI in Africa

Kenya- ccopyright-based industries in 2007 contributed 5.32% of GDP and employ 3.26% of the total national workforce

ongoing studies in Ethiopia, Tanzania etc

Huge potential and resource pool for CI in

a number of African countries

Challenges to African CI- - lack of conducive policy and inadequate legal

framework- - Absence of clear policy direction - -Piracy

is a global problem- WCO estimate- 5% of world trade, IFPI- 40 % of musical products

No comprehensive study made but preliminary surveys and estimates reveal that it is a serious problem- KCB- More than 90%, Zanzibar- 100% & Ethiopia- 90%

Challenges to African CI- Inadequate appreciation of the significance of CI - Lack or inadequate support to the industry-

Access to capital, fiscal incentives and privileges etc

--Inadequate enforcement capacity -Lack of or Inadequate organization/

organizational capacity-Competing works - Publication of music, film and books outside the

country etc.,

What is needed to strengthen CIs

• Clear IP Policy and supportive policies• Comprehensive and adequate law• Implementation of policies & laws• Support institutions involved in the

administration & promotion of copyright • Build human resource capacity- training in

creative arts, copyright administration, management, and entrepreneurship.

• Design and implement target oriented awareness program

What is needed to strengthen CIs

• Incorporate IP into the curriculum of educational establishments

• Develop and implement enforcement strategy based on a study on the root causes and sources of piracy

• Improve access to finance, credit, and business support services for and emerging and export-ready firms and artists.

• Stimulate local creative activities• Support the emergence & thriving of creative

industry that contribute to GDP, creation of employment opportunity and generate trade revenue

• Contributes to the preservation of culture and heritage

• Difficult to live in a world without copyrightable works

Reasons for taking Measures

Reasons for taking Measures

• Tap huge cultural pool & opportunity that may serve as a basis for CI in African countries such as Namibia

• Easy to enter into and stay competitive in the growing and stable international market

Conclusion• CI can make meaningful contribution to socio-

economic development • Huge untapped potential in Namibia• Need to:-

Recognize importance of the industry and nurture it

Undertake a study on the actual and potential contribution of CI to development in Namibia

Design and implement IP and related polices

Thank you very much for your attention!!getachewal@gmail.com