CCIA: Fair Use Economy Represents One-Sixth of U.S. GDP

Fair Use exceptions to U.S. copyright laws are responsible for more than $4.5 trillion in annual revenue for the United States, according to the findings of a economic study released today. The study, commissioned by the Computer and Communications Industry Association (CCIA) and conducted in accordance with a World Intellectual Property Organization methodology, shows that companies benefiting from limitations on copyright-holders’ exclusive rights, such as “fair use” – generate substantial revenue, employ millions of workers, and, in 2006, represented one-sixth of total U.S. GDP.

The report, detailed at a briefing this afternoon on Capitol Hill, quantifies for the first time ever the critical contributions of fair use to the U.S. economy. The timing proves particularly important as the debates over copyright law in the digital age move increasingly to center stage on Capitol Hill. 

“Fair use is an under-appreciated essential backbone to the U.S. economy,” says Gary Shapiro, President and CEO of the Consumer Electronics Association. “We are pleased groups are working to quantify the crucial role fair use and carefully balanced copyright law play in our innovation economy and we hope more analysis will be done."

Fair use is a key motivating factor for consumer electronics innovation, Shapiro contends, because it allows experimentation and creation of new products for the benefit of the public. It also protects the intellectual freedom of consumers, librarians and educators.

“But fair use is threatened by some copyright owners who seek to tip the Constitutional copyright balance for the benefit of a few at the expense of consumers," he says. "CEA calls on Congress to rigorously protect fair use rights to preserve a strong American economy. Specifically, we urge rapid action on H.R. 1201, the Fair Use Act, which will protect fair use rights in the digital age and reduce catastrophic damages from unintentionally infringing innovators.” 

To download the CCIA's complete study results on Fair Use and it's impact on the U.S. economy, click here (warning: PDF link).