The Real Cost Of Music Piracy? $12.5 Billion Says Report
August 21, 2007 at 8:57 AM (PT)
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
-- 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."