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An Empirical Analysis of the Economics of Copyright: How Valid are the Results of Studies in Developed Countries for Developing Countries?

By most accounts, the exploitation of copyright forms a relatively large part of most developed and developing economies. A small but growing body of literature suggests that 5 per cent of GDP or more can be attributed to industries that are dependent (to a greater or lesser degree) upon copyright, and that this figure is increasing over time. (For an overview of this literature, and a discussion of the methodological issues involved, see the symposium papers in volume 1(1) of the Review of Economic Research on Copyright Issues, available at http://www.serci.org.) Clearly, if copyright can be properly managed and protected, the recent advances in digital technologies that allow for greater distribution opportunities for cultural products point to even more impressive figures in the future.1