[x-pubpol] New Study: The Profitability of Copyright-Intensive Industries

[Joly MacFie]

http://infojustice.org/archives/29916

Firms in the copyright-intensive industries frequently complain that
copyright infringement causes significant lost sales, lost revenues, lost
profits, and lost jobs. However, as has been noted in numerous impartial
studies, the actual impact of infringement on individual firms, on industry
sectors, and on the U.S. economy as a whole, is extremely difficult to
quantify.

In contrast, what can be quantified with relative ease is the performance
of firms in the copyright-intensive industries in terms that matter to
investors: revenue, profit, and most importantly, profit margin.
Furthermore, the performance of firms in the copyright-intensive industries
can readily be compared with the performance of firms in other industries.

In this study, we have examined the performance over the past ten years of
five leading firms in three copyright-intensive industries: motion
pictures, publishing, and software. We then examined the performance of
five leading firms in three other industries: construction, transportation,
and mining. Finally, we compared the profitability of the firms in these
six industries.

We found that the firms in the copyright-intensive industries were
significantly more profitable than the firms in the other industries in
every period examined. Moreover, in this ten-year period, the
copyright-intensive industries’ profit margins on average grew by 3.98%,
while the other industries’ profit margins on average decreased by 0.75%.

The high level of profitability of the copyright-intensive industries
suggests that the copyright system serves these industries effectively, and
that they are not in need of special government assistance in the form of
new legislation or law enforcement resources.

Full Report: Profitability of Copyright-Intensive Industries
http://infojustice.org/wp-content/uploads/2013/06/Profitability-of-Copyright-Industries.pdf


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