$12.5 Billion in Economic Damage and 71,000 Jobs Lost Every Year in U.S. Due to Recorded Music Piracy

$12.5 Billion in Economic Damage and 71,000 Jobs Lost Every Year in U.S. Due to Recorded Music Piracy

DALLAS, Texas, Aug. 21 /PRNewswire-USNewswire/ -- According to a report released today by the Institute for Policy Innovation (IPI), rampant global piracy of recorded music has cost the U.S. $12.5 billion in economic output and 71,060 jobs annually.

The report, "The True Cost of Sound Recording Piracy to the U.S. Economy," is the first of its kind to credibly estimate the impact of sound recording piracy not just on the recording industry, but also on the U.S. economy as a whole.

   Because of global and U.S.-based piracy of sound recordings, every year:   -- The U.S. economy loses $12.5 billion;   -- U.S. workers lose 71,060 jobs;  

-- U.S. workers lose $2.7 billion in earnings, including $1.1 billion in earnings from workers in the sound recording industry or "downstream" retail industries, and $1.6 billion in earnings by workers in other U.S. industries; and

-- The U.S. government loses at least $422 million in tax revenues, including $291 million in personal income tax and $131 million in lost corporate income and production taxes.

"Piracy harms not only the owners of intellectual property but also U.S. consumers and taxpayers," says Stephen E. Siwek, author of the report and principal with Economists, Inc. "Moreover, the impact of music piracy appears to be intensifying."

Policy makers must realize the threat of global piracy and recognize that intellectual property products, such as sound recordings, are the most important growth drivers in the U.S. economy, responsible for nearly 40% of economic growth and nearly 60% of growth in U.S. exports.

The study is the second in a series of intellectual property papers examining the overall economic impact of copyright piracy and patent infringement. IPI will be publishing an analysis of the combined copyright industries (movies, music, software and video games) in a forthcoming study.

For report copies, visit http://www.ipi.org/ or contact Erin Fitch at (972) 874-5139. IPI experts are available for interview.

IPI is a national economic public policy organization based in Dallas, Texas.

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Source: Institute for Policy Innovation

CONTACT: Erin Fitch of the Institute for Policy Innovation,
+1-972-874-5139, erinfitch@ipi.org

Web Site: http://www.ipi.org/

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Profile: International Entertainment