New Study Documents High Cost Of Piracy On Los Angeles Economy
February 19, 2007 at 10:51 AM (PT)
A new report released FRIDAY says that global piracy and counterfeiting cost LOS ANGELES-area companies $5.2 billion and the city at least $483 million in tax revenues in 2005. Representatives from the music and movie industries said the report would be a rallying cry for additional anti-piracy efforts by the city and praised local officials for their commitment to devote more attention and resources to the problem.
The study, conducted by the LOS ANGELES ECONOMIC DEVELOPMENT CORPORATION (LAEDC) and commissioned by LOS ANGELES Mayor ANTONIO VILLARAIGOSA, Councilmembers WENDY GREUEL and JAN PERRY and County Supervisor ZEV YAROSLAVKSY, identifies measurable losses in local revenues, jobs, wages and taxes due to piracy. While the report describes the economic devastation of piracy across nine different sectors of the LOS ANGELES economy, it finds the entertainment industries -- motion pictures, music, and related industries -- to be hit hardest.
Local officials also announced the formation of an Inter-Governmental Task Force on Piracy and Counterfeit Goods, a group made up of a diverse cross section of the community representing industry, law enforcement, business leaders, government, prosecutors and judges. The goals of the task force will be to come up with specific policy recommendations and to identify resources to deal with the problem of counterfeited goods.
"This report pointedly illustrates piracy's true costs, both to the music community and to LOS ANGELES, and we believe it will be a real catalyst for additional anti-piracy measures by the city," said RIAA Chairman/CEO MITCH BAINWOL. "Just this week, the GRAMMYS celebrated some of the music industry’s most well-known stars. This study reminds us of the individuals who work every day, in a much less public way, to make that music possible. The trafficking of stolen music stunts growth and advancement for the creative industries, working families and the community as a whole. We are very thankful to the leaders who commissioned this report and to those who have joined them in stepping forward to tackle this problem head on."
For a complete copy of the report, please click here.