The copyright-based industries contribute substantially to the national economy in the form of value addition, tax revenues, trade and employment. This study highlights both the core and non-core copyright-based industries in Pakistan. With the technical guidance of World Intellectual Properly Organisation (WIPO) and National Institute of Cultural Studies (NICS), we conducted the first ever survey of the copyright-based industries in Pakistan. The estimates of contribution to GDP, tax revenues, trade and employment were also validated through focus group discussions and key informant interviews. Our findings reveal that copyright-based industries contributed Rs 136 billion to GDP (on 1999-2000 base year prices of Pakistan Bureau of Statistics). These industries also contributed Rs 18 billion to the government in indirect taxes. On the trade side, the exports of these industries totalled $ 943 million and imports amounted to $2130 million in 2007-08. In terms of job creation one of the core sub-sectors i.e. electronic media employed around 47,000 persons by the end of 2011.

JEL Classification: 034, F10, E24

Keywords: Copyright, Economic Growth, Trade and Employment

1. INTRODUCTION

Trade Related Intellectual Property Rights (TRIPS) are one of the milestone achievements of the World Trade Organisation (WTO). The most significant development of the Uruguay Round of Trade Negotiations (1986-94) was the inclusion of intellectual property rights (IPRs) issue on the agenda of the multilateral trading system. Before the TRIPS agreement, this issue was regulated by Paris Agreement (1863), Berne Convention (1886), Madrid Agreement (1891), Universal Copyright Convention (1952), Rome Convention (1961), Geneva Convention (1971) and IPIC Treaty (1989) [Bagchi (2007)]. The agreement has five important components, namely: patents, trademarks, copyrights, geographical indications and industrial designs. (1)

TRIPS had opened a new avenue for countries wishing to pursue comparative advantages in copyright-based industries. WIPO (2003) categorised the copyright-based industries into four types i.e. core, interdependent, partial and non-dedicated support industries. The enterprises, which are entirely employed in the creation, production, manufacturing, performance, broadcasting and communications, are core copyright-based industries. This includes press and literature, music, theatrical production and opera, motion pictures and videos, radio and television, photography, software and databases, visual and graphic arts and advertising services.

The interdependent copyright industries are those industries, which have equipment or activities related to copyright industries like TV sets, Radios, VCRs, CD players, DVD players, cassette players, electronic game equipment, computers and musical instruments. The partial copyright industries are those in which activities and production depend on the activities and materials protected by copyright and neighbouring rights e.g. textile, leather and footwear, wood, metal crafts, sports, jewellery. Finally, the non-dedicated copyright industries provide support to the copyright industries e.g. transportation, telephony and general retailing.

The protection of copyright industries is now gaining importance in national regulations; therefore WIPO is concerned to find their economic contribution in the form of trade, employment and GDP contribution. In this regard the pioneering work was done by Arnold (1934), published in a book Economica. (2) After 1970s several countries including Canada, Sweden, USA, New Zealand, Germany, the United Kingdom, Holland, Austria, Finland, Japan, Argentina, Chile, Brazil, Paraguay and Uruguay have conducted studies using their own methodologies and classifications to a large extent. More recently a number of countries like the Philippines, Mexico, Jamaica, Bulgaria, Lebanon and Singapore followed WIPO (2003), which harmonises the methodology for assessing the economic contribution of copyright industries.

It will be pertinent to mention here a few of the recent efforts in this area. Pickard and Toivonen (2000) used Gross Value Addition to GDP as an economic indicator to measure the contribution of copyright-based industries, and it also presents share of the total employment and value of the foreign trade in copyright-based industry. ACG (2001) measured the economic contribution of copyright industries using industry value added (IVA). (3) State University of Campinas and WIPO (2002) (4) conducted a study on economic importance of industries and activities, protected by copyright and related rights in MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) and Chile using the share in GDP, employment and foreign trade. For estimating the economic contribution of the copyright based sector in Netherlands, Tueeuwes (2004) used the same methodology. The author estimated value addition, job creation in copyright based industries, exports and imports. Canadian Heritage (2006) used value addition to measure economic contribution. In addition it examined employment and trade levels (with the shortcoming of not considering services contribution in total exports like exhibition rights) and provided comparisons with respect to other industries (agriculture, accommodation and food services, utilities etc.). In most of the above studies both the secondary and primary data collection has been carried out.

The methodology which has been used in this study is borrowed from UN-WIPO. We have used the methodology defined/developed by UN-WIPO. Every country study is using the same methodology; therefore, there is no disagreement about the usefulness of this methodology. Unfortunately, the critical review of this existed methodology is also not available.

Despite respectable macroeconomic performance of Pakistan (Table 1), intellectual property (IP) enforcement situation in Pakistan is very weak, that in turn curtails the growth of creative entrepreneurs and foreign investment. Even a decade ago (in 2001), International Intellectual Property Alliance (IIPA) filed a petition, and questioned Pakistan's eligibility for preferential duty free treatment, under the generalised system of preferences (GSP) program due to their concern about piracy in books and software. (5) Simultaneously they also blamed Pakistan for export of these pirated discs (this is obsolete stuff now), which are costing their economy hugely; therefore, they are uncomfortable with the weak IP situation in Pakistan. The existing weak IP situation in Pakistan is resulting in gradual lowering of intellectual activities that make it to mainstream production processes. This has implied brain drain of intellectual and creative workforce over the long run, which in turn means low future export receipts and weak prospects for foreign direct investments Ahmed, et al. (2010).

It is the weak enforcement of IP laws over time that has also curtailed the growth of creative businesses in Pakistan. The Business Software Alliance (BSA) showed in 2008 that a 10 percent reduction in computer software piracy would deliver 11,700 new jobs, $23 million in tax revenue and additional $160 million in economic growth of Pakistan [BSA (2008)].

In order to address these issues the government created Intellectual Property Organisation (IPO) in 2005 with the support of WIPO. The IPO Pakistan greatly revised and brought reforms in IP management, like empowering the Federal Investigation Agency (FIA), activating Pakistan Customs and bringing all their office operations under one window. The present IPO Pakistan is one of the few organisations in the world which are integrated with the FIA and the Customs departments. (6) However, this organisation still faces challenges in the form of improvement in the expertise of the IP laws; preparation for access to Madrid Protocol and Patent Cooperation Treaty; aligning IP laws with IPO Pakistan Ordinance; establishment of technology incubation centres and technology licenses offices.

The next section explains in detail the methodology used and data sources. Section 3 provides the estimated results and Section 4 concludes with policy recommendations.

2. DATA AND METHODOLOGY

Our key source of data on value addition of the core and non-core copyright sectors is the Pakistan Bureau of Statistics (PBS) supply and use tables which were updated for 2007-08. (7) State Bank of Pakistan (SBP) (8) made the disaggregated data on export and import available for this study. Data on employment has been taken from both the primary and secondary sources. For primary sources, questionnaires were developed and sent to copyright relevant industries and associations for primary level information. For secondary sources, the Labour Force Survey and Census of Manufacturing Industries were used. With the technical guidance of WIPO and leading role of the National Institute of Cultural Studies, Islamabad, we conducted the first ever survey of the copyright and related Rights Industries in Pakistan. For policy issues, labour market reforms and related matters we conducted focus group discussions and key informant interviews.

The questionnaire was initially sent to producer and trade associations. These include Pakistan Handicrafts (25 registered firms), Associated Press of Pakistan (APP, 243 registered firm), Pakistan Association of Printing and Graphic Arts Industry (PAPGAI, 594 registered firm), Pakistan Electronic Media Regulatory Authority (PEMRA, 2400 registered firms), Pakistan Film Producers Association (PFPA, 376 registered firms), Pakistan Advertising Association (PAA, 90 registered firms) and Photographic Society of Pakistan (PSP, 70 registered firms). Similarly, to validate the questionnaire information and overcome the low response rate we interviewed the heads of these institutions, including the Pakistan Bureau of Statistics (PBS), Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP). Moreover, we conducted the focus group discussions with the executive bodies of the above mentioned organisations.

Using data from Federal Board of Revenue, another effort was made to consolidate the contribution of copyright-based industries in Pakistan towards overall tax revenues. It has been easier to get a one-point estimate for net indirect taxes (i.e. indirect taxes minus subsidies) from the 1999-2000 supply use tables; however, for the years beyond 2000 and for detailed tax classification, the team contacted Pakistan Revenue Automation Ltd. which is a data warehouse arm of Federal Bureau of Revenue. Monthly statistics were available on sectoral and client-wise sales tax receipts. However, information on corporate and personal income tax was not provided due to data security protocols.

In Pakistan sales tax is a single levy tax on total sale (consumer price) of goods or services and is levy-able on copyright based industries too. The data was up to date and it was also possible for us to calculate an estimate of tax evasion in copyright-based industries.

Once our primary information was complied, an important step was the mapping of WIPO categories with classifications currently followed by Pakistan (i.e. International Standard Industrial Classification ISIC-rv.3.1). (9) However, such mapping involves estimation and segregation by 'copyright factors', which are explained below.

Estimation of 'Copyright Factors'

It is difficult to eliminate the elements that cannot be fully attributed to copyright. (10) As a starting point we benefited from Boey and Mun (2005), who derived the copyright content factors using methodology from Watt (2004). Both studies use the guidelines framed by WIPO.

In order to make copyright factors country-specific we referred to the productivity estimates, provided by the industry or association members/experts during our consultative sessions (Table 2). Studies such as Kemal (1993) and Kemal, et al. (2003) provide some help in organising the industries in terms of their relative creative content. Other methodologies include Kwan (2002) who proposed the estimation of "sophistication index" for exported goods, where the sophistication of product equals weighted average of the exporting country's per capita GDP.

The biggest challenge in establishing the copyright factor is how to eliminate elements that are not fully attributed to copyright. It was a challenging task to establish how to measure and asses exactly, if a copyright component exists in a product. The WIPO guide (2003) explains this as a problem of inclusiveness and exclusiveness. To reduce these uncertainties to an acceptable minimum, we first categorise industries in Pakistan into core copyright, interdependent, partial and non-dedicated copyright based industries. According to the WIPO guide (2003), the core and interdependent copyright-based industries have 100 copyright factors, because in these industries all of the components are 100 percent attributed to copyright. It was difficult to exactly assign copyright factors to partial and non-dedicated industries. We conducted key informant interviews with the expert in related fields to try to assign the values, which are acceptable to the experts. These values are subjective and might vary but we, at all stages, took guidance from WIPO experts and national experts to measure adequately the proportion of the copyright-based component of an industry.

The copyright factors mentioned above have been validated in the light of WIPO guidelines and published literature from other countries. It is expected as a consequence of this study that IPO Pakistan will conduct sector specific studies in order to refine the estimates of copyright content factors.

Economic Contributions of Copyright Based Industries

This section has been split in four levels of contribution by copyright based industries. First using the copyright factors discussed above, we estimate the creative value addition in core, interdependent and non-dedicated copyright based industries. This is done in real terms i.e. using base year prices of 1999-2000 as used by Pakistan Bureau of Statistics.

Once the value added estimates are known, one moves on to calculate the tax contribution of copyright based industries. We split the indirect taxes into general sales tax (at local purchase and import stage), federal excise duty and customs duty at import stage. This is followed by the contribution of copyright based industries towards exports and imports. The data on selected categories was made available for the period 2003-2008 by the State Bank of Pakistan. Finally jobs created in copyright industries have been extrapolated, based on labour force survey, census of manufacturing industries, 2006 employment survey values, provided by Pakistan Electronic Media Regulatory Authority (PEMRA).

Table 3 depicts the creative proportion of value added elements in the core, interdependent and non-dedicated copyright sectors.

In the light of the calculations mentioned above, it can be observed that core copyright sector contributes 35 percent in the creative value addition. The data processing and information technologies have the largest share of 42 percent in the total value addition by this category, followed by social and cultural services with 36 percent. Furthermore, the interdependent copyright sector contributes 13 percent in the creative value addition and the most important contributor in this category is the paper and paper products with 81 percent contribution followed by musical instrument with 19 percent. Paper and Paper products have a strong forward linkage with most services sectors.

The partial copyright sector contributes 9.4 percent in creative value addition. In this category leather and footwear, wood and wood products and art silk are the major contributors. Finally, the non-dedicated sector alone has a creative value of 41 percent; all the three sub-categories like wholesale and retail trade, transport and communication are important sectors with significant backward and forward linkages. It can be concluded that for the base year 1999-00, copyright-based industries contributed Rs 136 billion to Pakistan's GDP.

Tax Revenue Contribution of Copyright Based Industries

In this section the break-up of indirect tax contributions accruing from core and non-core sectors will be explained. Federal Board of Revenue was requested to provide details on contribution towards direct taxes. However, in the interest of data security protocol no such information was made available. (12) Information concerning indirect tax revenues for the year 2007-08 is presented in Table 4. This information has been validated through supply use tables and trade statistics on these categories, as provided by the State Bank of Pakistan.

Customs duty collected, in total, on the import of copyright-based industries, amounted to Rs 9557 million, while the amount of sales tax stood at Rs 8530 million. The receipts from excise duty were negligible. Thus the total tax revenue of over Rs 18 billion (in 2007-08) from copyright based industries shows a sizeable contribution and potential towards future indirect tax revenues.

In consolidated terms interdependent copyright industries have the highest share in tax receipts followed by partial copyright industries. The key reasons for low contribution of core sectors is that many activities under this category operate in the informal economy which on most occasions is undocumented and does not get captured in the formal tax records. The loss of revenue from this sector should act as an evidence for the government to strengthen its IP regime, so that creativity is optimally priced and those operating in the informal sector have an incentive to formalise their ventures.

Contribution of Copyright-Based Industries to Exports and Imports

Exports depend crucially upon global economic growth and the national capacity to produce goods and services. At the time of this study SBP provided us with data on classifications, requested for the period 2003-2008. The copyright sector of Pakistan is lacking in competitiveness and one of the reasons is the poor IP regulation in the country. Still, exports of core copyright sectors between 2003 and 2008 increased by 8 percent, the interdependent copyright sectors have seen growth of 76 percent, the partial copyright sectors achieved a growth of 48 percent and the non-dedicated support industries grew by almost 100 percent.

Using copyright factors for each of the partial industries we reach a more precise contribution towards trade. In 2007-08 the growth of core copyright sectors have mainly been contributed by computer and information services, advertisements and market research. Similarly, the interdependent copyright sector's exports were mainly through contribution of cinematography, sound recorders and other accessories and paper and paperboard. From the disaggregated data it seems that our exports are heavily dependent on imported raw materials and machinery, notably photographic, cinematographic goods, electrical machinery and parts, optical and precision apparatus and computer and information services. The export trends at disaggregated commodity level are given in Table 5.

The consolidated figures for exports of copyright sectors are presented in Table 6. We observe that a substantial amount has been exported by interdependent copyright industries, which maintained their average share at 47 percent. The important feature is the growing share of core copyright sector exports which secured a share of 20 percent in 2007-08. One of the main reasons is the creation of IPO Pakistan in 2005 and their rigorous export promotion efforts (in collaboration with the Trade Development Authority of Pakistan), are commendable for ensuring the protection of copyright sectors and especially the core copyright sectors. The partial copyright industries on average contributed 36 percent in total core and non-core exports of copyright industries. Finally, the non-dedicated sector contributed 5 percent on average.

In Table 7 one observes the imports of disaggregated copyright sectors between 2006-08, which shows a growth of 55 percent in import of core copyright sectors, 14 percent in interdependent sectors, 150 percent in partial and 40 percent in non-dedicated sectors. These figures present a relatively high share of imports in overall external transactions; Pakistan has a trade deficit in overall as well as in core sectors.

Table 8 shows that in total core copyright industries contributed 68 percent in 2007-08 imports. This was followed by interdependent sectors which contributed 25 percent. It may be noted here that Pakistan's weak position in ensuring IP titles, hinders quality standards in production which are the key factors towards achieving product sophistication. Therefore Pakistan's exports use significant imported content which has foreign certification and established IP titles. In this manner Pakistani exporters in fact try to get acceptance for their finished products abroad.

The trade balance for the year 2007-08 is negative for the core copyright sector amounting to $1,248,054 thousands, interdependent copyright sector is $ 134,728 thousands and non-dedicated sector is $107,625 thousands. Only the partial copyright sector is positive in trade balance of $309,002 thousands. The reason for a favourable trade balance in partial copyright sector is Pakistan's high and recognised comparative advantage in textile, particularly readymade garments.

Employment in Copyright-Based Industries

Stable employment in copyright-based industries is predominantly established in cable TV, followed by Pakistan Television (PTV), private television channels and Pakistan Broadcasting Corporation (PBC).

Figure 1 reports the employment in the electronic media, which has been extrapolated for the year 2007, using growth rates from labour force survey, census of manufacturing industries and base values for 2006 employment survey provided by PEMRA.

The surge in employment in the electronic media is due to the deregulation of print and electronic media during 2000s. The most eminent sector having operational licensing is the Cable TV with largest share of 92 percent, followed by FM Radio with the growth of 6 percent. The recent additions to electronic media, including multi-channel multi-point distribution system (MMDS) and direct-to-home technology (DTH) has minor contribution with percentage growth of 5 percent and 2 percent respectively for the year 2006.

Table 9 indicates that while there is growth in employment across all core copyright sectors. However there are two categories, namely data processing and TV broadcasts and graphics designing, where employment has grown many folds. Primarily the growth in these sectors is driven by the IT boom and availability of new technologies that allow handling of large amounts of data in a relatively short time.

It was difficult to determine the accurate employment levels of cultural and recreational places like hotels, cinemas, clubs, music, shrines, marriage halls, dance-theatre and other functional places. Efforts were made to gather information regarding value and contribution of these sectors. Data regarding the 4 or 5 star hotels is available in national statistics but it is difficult to account for local guest-houses and 2 and 3 star hotels. In 2007-08 the total number of hotels, cinemas, clubs and music places was around 998.

Desh (1995), using the employment per entity formula, multiplies the number of all these places by category with their respective employment levels, to estimate the total employment. Then using the copyright factors the employment contribution of all categories is obtained; we adopt the same approach. Total employment comes to around 1.73 million and the creative employment comes to around 0.259 million. Thus, the share of creative employment in the overall employment of hotels and restaurants stands around 15 percent. This is represented by the persons working in hotel industry linked with music, either live or by playing pre-recorded CDs/DVDs etc., theatre or showing TV dramas and other shows in the hotels or restaurants.

4. CONCLUSION AND POLICY RECOMMENDATIONS

The core and non-core copyright industries show a lot of potential to contribute to country's value addition, tax revenues, trade and employment. Understanding the importance of protecting these industries is important, if Pakistan is to promote innovative entrepreneurs who can in turn help in product sophistication and promotion of copyright based exports.

The key policy recommendations from this study are:

(1) A realistic level of understanding regarding the significance of copyright industries in the economic development is important. These industries are being underestimated and their contribution is not regarded tangible in production process.

(2) The System of the National Industrial Classification of the copyright categories should go from six or eight digit levels of classifications. The input-output table which helps in identifying the contributions of various industries has not been updated for a decade. PBS should embark on updating this table as well as improve its compliance with the UN System of National Accounts 1993.

ANNEX-I

Idris (2003), briefly defines the following as, Patent is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something, or offers a new technical solution to a problem. Trademark is a distinctive sign, which identifies certain goods or services as those produced or provided by a specific person or enterprise. Geographical indication is a sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin. Most commonly, a geographical indication consists of the name of the place of origin of the goods. Industrial design is the ornamental or aesthetic aspect of an article. The design may consist of three-dimensional features, such as the shape or surface of an article, or of two-dimensional features, such as patterns, lines or color. Copyright is the body of laws which grants authors, artists and other creators protection for their literary and artistic creation, which are generally referred to as " works" a closely associated field of right related to copyright is "related rights", which provides rights similar or identical to those of copyright, although sometimes more limited and of shorter duration.

Types of copyright industries and their main groupings are given below:

Core Copyright Industries

Type of Copyright     Main Grouping of
Industry                 Industries                Subgroups

                                           Authors, writers,
                                           translators
Core Copyright      Press and Literature   Newspapers
Industry                                   News and feature agencies
                                           Cards and maps,
                                           directories and other
                                           published material
                                           Pre-press, printing
                                           and post-press of books,
                                           magazines, newspapers
                                           and advertising materials
                                           Wholesale and retail of
                                           press and literature
                                           Libraries

                    Music, theatrical      Composers, lyricists,
                    productions and        arrangers,
                    opera                  choreographers,
                                           directors, performers
                                           and other personnel
                                           Printing and publishing
                                           of music
                                           Production/manufacturing
                                           of recorded music
                                           Wholesale and retail
                                           of recorded music
                                           Artistic and literary
                                           creation and
                                           interpretation
                                           Performances and
                                           allied agencies

                    Motion picture and     Writers, directors,
                    Video                  actors etc.
                                           and distribution
                                           Motion picture and video
                                           production and
                                           distribution.
                                           Motion picture exhibition
                                           Video rentals and sales,
                                           video on demand
                                           Allied services
                                           National radio and
                                           television broadcasting
                                           companies

                    Radio and Television   Other radio and
                                           television broadcasters
                                           Independent producers
                                           Cable television
                                           (systems and channels)
                                           Satellite television
                                           Allied services

                    Photography            Studios and
                                           commercial photography
                                           Photo agencies and
                                           libraries
                                           Programming, development
                                           and design, manufacturing

                    Software and           Wholesale and retail of
                    databases              pre-packaged software
                                           Database processing
                                           and publishing

                    Visual and graphic-    Art galleries, other
                    arts                   wholesale and retail
                                           Picture framing and
                                           other allied services

                    Advertising Services   Agencies, buyins services

Interdependent Copyright Industries

Type of Copyright     Main Grouping of             Subgroups
    Industry             Industries

Interdependent      TV sets. Radios,       Manufacture
Copyright           VCRs, CD players,
Industries          DVD players,
                    Cassette players,      Wholesale and retail
                    Electronic game
                    equipment, and other
                    similar equipment
                    Computers and          Manufacture
                    Equipments             Wholesale and retail
                    Musical Instruments    Manufacture
                                           Wholesale and retail

Partial Copyright Industries

Type of Copyright     Main Grouping of             Subgroups
    Industry             Industries

Partial             Photographic and       Manufacture
interdependent      cinematographic        Wholesale and retail
                    instruments
copyright           Photocopiers           Manufacture
industries                                 Wholesale and retail
                    Blank recording        Manufacture
                    material               Wholesale and retail
                    Paper                  Manufacture
                                           Wholesale and

ANNEX-II
Data Requirement under ISIC

Division   Group   Classes   Explanation                   Type

22          221
                    2211     Publishing of books,          Core
                             brochures and other
                             publications

                    2212     Publishing of newspapers,     Core
                             journals and periodicals

                    2213     Publishing of music           Core

                    2219     Other publishing              Core

            222              Printing and service          Core
                             activities related
                             to printing

                    2221     Printing                      Core

                    2222     Service activities            Core
                             related to printing

            223              Reproduction of recorded      Core
                             media

            322              Manufacture of television   Non-Core
                             and radio transmitters
                             and apparatus for line
                             telephony

            642     6420     Telecommunications

            722     7221     Software publishing

            723     7230     Data processing

            724     7240     Database activities and
                             online distribution of
                             electronic content

73                           Research and development    Non-Core

74                           Other business activities   Non-Core

            742              Architectural,              Non-Core
                             engineering and other
                             technical activities

                    7421

                    7422     Technical testing and       Non-Core
                             analysis

            743     7430     Advertising                 Non-Core

            749     7494     Photographic activities     Non-Core

92                           Recreational, cultural
                             and sporting activities

            921     9211     Motion picture and            Core
                             video production
                             and distribution

                    9212                                   Core

                    9213     Radio and television          Core
                             activities

                    9214                                   Core

                    9219                                   Core

            922     9220     News agency activities        Core

            923     9231     Library, archives,            Core
                             museums and other
                             cultural activities

Source: International Standard Industrial Classification, UN 2002.

Ghulam Samad <[email protected]> is Research Economist, Pakistan Institute of Development Economics (PIDE), Islamabad. Vaqar Ahmed <[email protected]> is Joint Executive Director, Sustainable Development Policy Institute (SDPI), Islamabad. Rauf Khalid, ex-President and Chairman, National Institute of Cultural Studies. Islamabad.

Authors' Note: We would like to dedicate this paper to the memory of our co-author Rauf Khalid (National Institute of Cultural Studies) who passed away during the course of this study. We acknowledge the financial support by World Intellectual Property Organisation in conducting this study. The team got benefited from technical contributions and data support by Mohammed Abid. This version has benefitted from comments on an older version published in WIPO's series on National Studies on Assessing the Economic Contribution of the Copyright-based Industries.

REFERENCES

ACG (2001) The Economic Contribution of Copyright-Based Industries in Australia. Allen Consulting Group.

Ahmed, Vaqar, Guntur Sugiyarto, and Shikha Jha (2010) Remittances and Household Welfare: A Case Study of Pakistan. Journal of Social and Policy Sciences 1:1, 125190.

Arnold (1934) New Series of the Books. Economica 1:2, 167-195.

Bagchi, K. J. (2007) Intellectual Property: Global and Indian Dimensions. New Delhi: Manas, p. 13.

Boey, C. K. and Mun K Leo (2005) The Economic Contribution of Singapore Copyright Activities", Intellectual Property (IP) Academy, Singapore Business Software Alliance BSA (2008). Global Software Piracy Study.

Canadian Heritage (2006) The Economic Contribution of Copyright Industries in Canada. National Studies on Assessing the Economic Contribution of the Copyright Industries. Geneva: World Intellectual Property Organisation.

Desh, Bandhu (1995) Jammu, Kashmir, and Ladakh: Tourist Guide. Akashdeep Publishing House.

Idris, Kamil (2003) Intellectual Property: A Power Tool for Economic Growth. (World Intellectual Property Organisation (WIPO) Publications No. 888.1).

Kemal, A. R. (1993) Industrial Sector Review in Pakistan. Manila: Asian Development Bank.

Kemal, A. R., Musleh-ud Din and Usman Qadir (2003) Global Research Project: Pakistan Country Report. Pakistan Institute of Development Economics. Islamabad.

Kwan, Chi Hung (2002) The Strength of 'Made in China' Viewed from American Market. International Economic Review 7-8.

Pickard, R. G. and T. E. Toivonen (2000) The Economic Contribution of Copyright-Based Industries in Latvia. World Intellectual Property Organisation, Geneva. (Creative Industries Series No. 1).

State University of Campinas and WIPO (2002) Estudio Sobre la Importancia Economica de las Industria y Actividades Protegidas por el Derecho de Autor y los Derechos Conexos en los Paises de Mercosur y Chile.

Theeuwes, Jules (2004) Economic Contribution of Copyright-Based Sectors in Netherland. Review of Economic Research in Copyright Issues 1:1, 65-69.

WIPO Guidebook (2003) Guide on Surveying the Economic Contribution of the Copyright-Based Industries.

Watt, Richard (2004) A Comment: The Copyright Factors. Review of Economic Research on Copyright Issues 1:1, 71-78.

(1) Defined in Annex-1. The various types of copyright-based industries are also given in Annex-I.

(2) New series of the books "Economica" 1(2): 167-195

(3) IVA is the net contribution of an industry to GDP after deducting the cost of raw materials, fuel, power and other purchases.

(4) http://www.wipo.int/edocs/pubdocs/en/copyright/889/wipo_pub_889_1.pdf

(5) Particularly for textbooks.

(6) IPO Pakistan Annual Report, 2008-09.

(7) Input-out tables (2008) from Pakistan Bureau of Statistics.

(8) Multiple reports (2007-08) on exports and imports.

(9) See Annex II.

(10) WIPO Guide on Surveying the Economic Contribution of Copyright-Based Industries, Geneva 2003.

(11) International Standard Industrial Classification (ISIC) code.

(12) While one can estimate the tax contribution based on statutory rates however given various studies on tax evasion we know that effective rate is much lower.

Table 1
Macroeconomic Performance of Pakistan 1960-2000s

Indicators                            1960s   1970s   1980s

Economic Growth                        6.8     4.8     6.5
  GDP                                  5.1     2.4     5.4
  Agriculture                          9.9     5.5     8.2
  Manufacturing                        6.7     6.3     6.7
  Services                            13.1    16.8    17.3
Government Revenue to GDP Ratio       11.6    21.5    24.9
Government Expenditure to GDP Ratio    1.5    -4.7    -7.6
Fiscal Balance to GDP Ratio            3.2    12.5     7.2
Consumer Price Index (% Growth)        --     13.5     8.5
Exports (% Growth                      --     16.6     4.5
Imports (% Growth)                     --      --      3.9
Current Account Deficit (% of GDP)

Indicators                            1990s   2000s

Economic Growth                        4.6     4.8
  GDP                                  4.4     3.2
  Agriculture                          4.8     7.0
  Manufacturing                        4.6     5.3
  Services                            17.1    14.2
Government Revenue to GDP Ratio       24.1    18.7
Government Expenditure to GDP Ratio    -7     -4.5
Fiscal Balance to GDP Ratio            9.7     7.7
Consumer Price Index (% Growth)        5.6     9.9
Exports (% Growth                      3.2    13.7
Imports (% Growth)                     4.5     1.5
Current Account Deficit (% of GDP)

Source: Pakistan Economic Survey 2010-11.

Table 2
Copyright Factors

Sector                                                  Copyright
ID (11)    Activities                                   Factor (%)

           Core Copyright Industries
70         Newspaper and printing                          100
149        Data processing and IT                          100
151        Social and cultural services                    100
154        Recreation services                             100
155        Radio and TV broadcasts                         100
           Interdependent Copyright Industries
69         Manufacturing of Paper and paper products       100
112        Manufactruring of Musical instrument            100
           Partial Copyright Industries
59         Art silk                                         5
61         Made up textiles                                 5
62         Knitwear                                         3
63         Carpets                                         3.5
64         Garments                                         3
65         Leather and footwear                             25
67         Wood and wood products                           10
68         Wooden furniture                                 20
109        Handicrafts                                      70
110        Sports goods                                     10
111        Jewelery                                         25
           Non Dedicated Copyright Industries
131        Wholesale and retail trade                      3.80
133-37     Transport                                       4.10
138        Communication services                          4.10

Table 3
Creative Value Addition in Core, Interdependent and Non-Dedicated
Industries (on Real Base Year Prices of 1999-00)

Sector                                     Value Added    Copyright
ID       Activities                        (Rs Million)   Factor (%)

         Core Copyright Industries

70       Newspaper and printing                3408          100
149      Data processing and IT               20225          100
151      Social and cultural services         17381          100
154      Recreation services                   3366          100
155      Radio and TV broadcasts               4255          100
         Total                                48635          100

         Interdependent Copyright
         Industries

69       Paper and paper products             14560          100
112      Musical instrument                    3507          100
         Total                                18067          100

         Partial Copyright Industries

59       Art silk                             17891           5
61       Made up textiles                      7032           5
62       Knitwear                             12080           3
63       Carpets                               2706          3.5
64       Garments                             27084           3
65       Leather and footwear                 19885           25
67       Wood and wood products                9858           10
68       Wooden furniture                      1874           20
109      Handicrafts                           285            70
110      Sports goods                         33184           10
111      Jewellery                             1885           25
         Total                                133764         180

         Non Dedicated Copyright
         Industries

131      Wholesale and retail trade           638235         3.80
133-37   Transport                            721946         4.10
138      Communication services               61657          4.10
         Total                               1421838          12
         Sum of Core + Non-Core Sectors      1622304

                                             Creative
                                              Value
Sector                                       Addition
ID       Activities                        (Rs Million)

         Core Copyright Industries

70       Newspaper and printing                3408
149      Data processing and IT               20225
151      Social and cultural services         17381
154      Recreation services                   3366
155      Radio and TV broadcasts               4255
         Total                                48635

         Interdependent Copyright
         Industries

69       Paper and paper products             14560
112      Musical instrument                    3507
         Total                                18067

         Partial Copyright Industries

59       Art silk                             894.55
61       Made up textiles                     351.60
62       Knitwear                             362.40
63       Carpets                              94.71
64       Garments                             812.5
65       Leather and footwear                4971.25
67       Wood and wood products                986
68       Wooden furniture                      375
109      Handicrafts                           200
110      Sports goods                          3318
111      Jewellery                            471.25
         Total                                12837

         Non Dedicated Copyright
         Industries

131      Wholesale and retail trade           24253
133-37   Transport                           29599.79
138      Communication services              2527.93
         Total                               56380.65
         Sum of Core + Non-Core Sectors       135919

Source: Federal Bureau of Statistics, Authors 'own estimations.

* Value added of advertising stands already taken in
the heading of Newspaper and printing and Radio and
TV broadcast.

Table 4
Contribution of Copyright Based Industries in Indirect Taxes (2007-08)

                                      Customs     Sales     Excise
Items                                   Duty       Tax       Duty

                                                Rs Million

A. Core Copyright Industries

Printed Materials                      78.381    131.649
(Books, Newspaper. Magazines etc.)
Arts and antiques                      0.419      1.173
Total A                                 78.8     132.822

B. Interdependent Copyright
Industries

Photographic Goods                    104.307    223.897
Paper and Paperboard                  4390.093   4835.249
Musical Instruments                    1.263      2.089
Optical, Photographic Instruments      893.27    728.219
Misc Manufactured Articles            420.155    210.387
Total B                               5809.087   5999.841

C. Partial Copyright Industries

Silk                                  104.639     0.068
Wool and Fabrics                       15.757     0.119
Carpets                               187.609     5.376
Made up Textile Articles               482.19     11.036
Articles of Stone, Plaster, Cement    252.588    248.522
Ceramic Products                      1432.989   1117.958
Glass and Glassware                   836.492    730.543
Precious Stones/Metals                 32.881      64.5
Toys and Games                        324.175    219.186
Total C                               3669.32    2397.308

D. Non-Dedicated Copyright
Industries

Advertisement TV Cable                                      0.306
Total D                                                     0.306
Total Indirect Tax Contribution         9557      8530.2    0.612
(2007-08) (A+B+C+D)

Source: Federal Board of Revenue and Authors' own estimations.

Table 5
Copyright-Based Industries Exports (2003-2008) Thousand US $

Categories                            2002-03   2003-04   2004-05

Core Copyright Industries

Books, Newspapers and Printing         3,622     6,086     4,616
Industry

Works of Arts                         17,260     6,653    23,233

Computer and Information Services

Advertisement market research and
public opinion
poll

Personal, Cultural and Recreation
Services

Total                                  20882     12739     27849

Interdependent Copyright Industries

Photographic goods                      919       852       779

Paper and Paperboard                  10,019    13,613    26,296

Sound Recorders and Reproducers,
Television accessories                36,522    44,940    101,892

Cinematographer                       172,094   178,287   192,640

Total                                 219554    237692    321507

Partial Copyright Industries

Wood and articles of wood              13,47     11,16     15,73

Apparel and Textile                   211278    226038    250700

Carpets and other textile Floor        8160      8111      9759
coverings

Special Woven Fabrics, Tufted          11171     19326     23338
Textiles Fabrics, Lace

Knitted or Crocheted Fabrics           1408      2453      1820

Articles of Apparel and Clothing
Accessorised

Knit                                   71356     85267     95680

Articles of Apparel/Clothing           50573     33881     36947
Access not Knitted

Other Man-Made Textile Articles,
Sets, Worm

Clothing                               68610     77000     83156

Footwear, Headgear                     4303      4130      6087

Articles of Stone, Plaster, Cement,     825      1339      1156

Total                                 216406    231507    257943

Non-Dedicated Support Industries

Transportation

Communication Services

Total

Copyright-Based Industries Exports    456842    481938    607299
(Core + Non-Core]

Categories                            2005-06   2006-07   2007-08

Core Copyright Industries

Books, Newspapers and Printing         3,909     4,365     3,577
Industry

Works of Arts                         15,432     6,797     2,125

Computer and Information Services     72,000    106,000   154,000

Advertisement market research and
public opinion
poll                                  20,071    24,040    23,987

Personal, Cultural and Recreation      1,315     2,000     3,000
Services

Total                                 112,718   143,202   186689

Interdependent Copyright Industries

Photographic goods                      110       85        44

Paper and Paperboard                  43,976    21,833    37,304

Sound Recorders and Reproducers,
Television accessories                134,605   145,330   74,128

Cinematographer                       222,013   236,621   275,505

Total                                 400704    403869    386981

Partial Copyright Industries

Wood and articles of wood              10,26     10,72     16,90

Apparel and Textile                   273757    297027    314069

Carpets and other textile Floor        9503      9088      8422
coverings

Special Woven Fabrics, Tufted          26313     26554     16593
Textiles Fabrics, Lace

Knitted or Crocheted Fabrics           1398      1977      2693

Articles of Apparel and Clothing
Accessorised

Knit                                   97693    106060    107344

Articles of Apparel/Clothing           46434     54070     59614
Access not Knitted

Other Man-Made Textile Articles,
Sets, Worm

Clothing                               92416     99278    119403

Footwear, Headgear                     6417      5772      5828

Articles of Stone, Plaster, Cement,    1340      1339      1832

Total                                 281514    304138    321729

Non-Dedicated Support Industries

Transportation                         44282     44778     43050

Communication Services                 8118      4961      4797

Total                                  52400     49739     47847

Copyright-Based Industries Exports    847336    900948    943246
(Core + Non-Core]

Table 6
Consolidated Export Share (%) of Copyright
Based Industries, 2002-03 to 2007-08

Categories                            2002-03   2003-04   2004-05

Core Copyright Industries               5%        3%        5%
Interdependent Copyright Industries     48%       49%       53%
Partial Copyright Industries            47%       48%       42%
Non-Dedicated Support Industries
Copyright-Based Industries Exports      100       100       100
(Core + Non-Core)

Categories                            2005-06   2006-07   2007-08

Core Copyright Industries               13%       16%       20%
Interdependent Copyright Industries     47%       45%       41%
Partial Copyright Industries            33%       16%       34%
Non-Dedicated Support Industries        6%        6%        5%
Copyright-Based Industries Exports      100       100       100
(Core + Non-Core)

Source: Own Calculation.

Table 7
Copyright-Based Industries Imports (2006-2008) Thousand US $

Categories                         2005-06    2006-07     2007-08

Core Copyright Industries

Books, Newspapers and Printing     31,584     33,693      23,404
Industry

Works of Arts                      825,982   1,074,809   1,266,535

Computer and Information           44,034     90,000      129,000
Services

Advertisement market research      14,593     11,396      14,804
and public opinion poll

Personal, Cultural and              6,000      1,070       1000
Recreation Services

Total                              922193     1210968     1434743

Interdependent Copyright
Industries

Paper and Paperboard,              275,944    333,769     410,277
Articles of Paper Pulp

Sound Recorders and                43,976     21,833      37,304
Reproducers, Television
accessories

Cinematographer                    134,605    145,330     74,128
(Inter Copyright)

Total                              454525     500932      521709

Partial Copyright Industries

Wood and articles of wood           61,59      6568        7053

Apparel and Textile                 1855       1867        2186

Carpets and other textile            258        245         284
Floor coverings

Special Woven Fabrics, Tufted        411        377         462
Textiles Fabrics, Lace

Knitted or Crocheted Fabrics         152        166         181

Articles of Apparel and              195        285         217
Clothing Accessorised Knit

Articles of Apparel/Clothing         112        147         280
Access not Knitted

Other Man-Made Textile Articles,     727        647         762
Sets, Worm Clothing

Footwear, Headgear                   509        656         719

Articles of Stone, Plaster,         2582       2591        2769
Cement,

Total                               4946       11682       12727

Non-Dedicated Support Industries

Transportation                     117384     128535      151085

Communication Services              4141       4018        4387

Total                              121525     132553      155472

Copyright-Based Industries         1514081    1861315     2130490
Imports (Core + Non-Core)

Source: SBP Statistics on Import of
Goods and Services (Various Issues).

Table 8
Consolidated Imports Share (%) of Copyright
Based Industries 2005-06 to 2007-08

Categories                            2005-06   2006-07   2007-08

Core Copyright Industries               61%       65%       68%
Interdependent Copyright Industries     30%       27%       25%
Partial Copyright Industries            1%        1%        1%
Non-Dedicated Support Industries        8%        7%        7%
Copyright-Based Industries Imports
(Core + Non-Core)                       100       100       100

Table 9
Employment Contributions by Core Copyright Sectors 1999 and 2007

                                     Number of        Estimated
Sector                              Enterprises       Employment

                                   1999     2007     1999     2007
Newspaper and Printing             1344     1820    26160    38780
Data processing and IT              50      1101     990     24222
Cultural and Recreation services    --       --     175000   205000
Radio and TV broadcasts             20      1422     6500    44700
Graphic Designing                  30000   67000    90000    268000
Photography                        15000   18000    45000    54000
Total                              71414   124343   243650   535002

Source: Information from Pakistan Media Regulating
Authority-PEMRA, Pakistan Film Producers Association-PFPA,
Pakistan Software Houses Association-PASHA, Pakistan
Association of Printing and Graphic Industry-PAPGAI,
Audit Bureau of Circulation-ABC, Photographers Society
of Pakistan-PSP, Associated Press of Pakistan-APP, Face
to face Interviews with professional leaders, internet
search and provisional estimation.

Fig. 1. Employment in Core Copyright-Based Industry
(Electronic Media) 2007

              Numbers

Cable TV      31022

PTV           6204

TV(Private)   4136

PBC           3619

Radio
(Private)     1040

MMDS          1034

DTH           207

Note: Table made from bar graph.