The Economic Contribution of Copyright-Based Industries in

Creative Industries Series No. 7 For more information contact WIPO at www.wipo.int World Intellectual Property Organization 34, chemin des Colombettes P.O. Box 18 CH-1211 Geneva 20

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Front cover photos courtesy of photos-public-domain.com (sheet music, bookshop and mandolin), http://www.copyright-free-images.com (radio tower and receiver) August 2013 and http://www.freedigitalphotos.net (beading) The Economic Contribution of Copyright-Based Industries in Malawi Copyright-Based Industries in Malawi The Economic Contribution of

March 2013 The Economic Contribution of Copyright-Based Industries in Malawi Jameson Ndawala Rosario Kamanga Prepared by: Lizzie Chikoti The Economic Contribution of 1 Copyright-Based Industries in Malawi 9 9 5 6 7 9 9 24 22 22 22 23 20 23 20 20 20 20 19 18 14 16 13 14 16 13 14 12 12 12 11 11 10 10 a Sources t ts The Annual Economic Survey Estimation Output Added Value Provision Enforcement Collective Management of Copyright Economic Contribution of Copyright-Based Industries Compared with Economic Contribution of Copyright-Based Industries Compared Other Sectors in the Malawi Economy in 2009 and Estimation Procedure Data Sources Economy Contribution of Copyright-Based Industries to Malawi’s Contribution of Malawi’s Small and Medium-Sized Copyright-Based Enterprises Contribution of Malawi’s to GDP Sources of Data and Production Cycle Data and Production of Sources GDP and Production Calculation of Indicators of Economic Contribution Calculation of Indicators of Economic The Copyright Factor Results of Other Country Studies International Standard Industrial Classification (ISIC) in Malawi International Industrial Classification Standard Survey of Copyright-Based Industries not in the National Accounting of Malawi Survey of Copyright-Based Industries Introduction Period Covered Economic Indicators Used in the Analysis Methodology Objectives Introduction to the Malawi Study Introduction Review of the Copyright Act Copyright Law in Malawi The Main Intellectual Property Laws of Malawi Property The Main Intellectual Introduction ysis and Resul 3.7.1 3.7.2 3.4.1 3.4.2 1.3.1 1.3.2 4.2 3.7 4.1 Anal 3.6 3.5 3.4 3.3 3.2 2.2 3.1 1.10 2.1 d Industries ase e Copyright-B Economic Contribution of th to the Economy 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 nd Introduction Background a 4. 3. nd Da mEthodology a 2. Acknowledgements Executive Summary 1. List of Acronyms Table of Contents 2 The Economic Contribution of Copyright-Based Industries in Malawi dEvelopmentofSomCoryright-Based IndustriesinMala 5. Annexes References conclusionsandRecomme 6. 4.3 4.4 4.5 4.6 4.7 4.8 5.1 4.9 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.3.1 Annex 5: Annex 4: Annex 3: Annex 2: Annex 1: Copyright-Based Industries Economic IndicatorsinAnalysingContributionof Labour Productivity 2009 Economic ContributionofDecomposedCore Copyright-BasedIndustriesinMalawi Malawi in 2009 Economic ContributionofDecomposedInterdependent Copyright-BasedIndustriesin in 2009 Economic ContributionofDecomposedPartialCopyright-BasedIndustriesinMalawi in 2009 Economic ContributionofDecomposedNon-DedicatedSupportIndustriesinMalawi Introduction Foreign Trade inCopyright-BasedGoodsandServicesMalawi2009 Policy andRegulatoryFramework Funding fortheCulturalSectorfrom Government Press andLiterature Book Publishing Music Photography and Visual Arts Photography andVisual Motion Pictures andTheatre Copyright CollectingSociety Software andDatabaseDevelopment Radio andTelevision Arts andCraftEducationinMalawi support industries Reduced v industries andnon-dedicatedsupport Survey 2009afterapplyingcopyrightfactorstopartialopyright-based Economic contributionofopyright-basedindustriesonAnnual Copyright FactorfortheNon-DedicatedSupportIndustries Copyright Factorsthatwere AppliedonAnnex2DataandDerivationofthe Survey 2009before ApplyingCopyrightFactors Economic ContributionofCopyright-BasedindustriesBasedonAnnual Sample Questionnaires 46 alues ofpartialcopyright-basedindustriesandnon-dedicated tions wi 25 27 28 30 31 37 32 37 33 37 38 37 38 39 40 40 41 41 56 55 54 53 46 44 45 42 43 The Economic Contribution of 3 Copyright-Based Industries in Malawi 16 19 20 21 21 22 23 24 28 29 30 32 33 34 38 industries, based on ISIC Rev. 3.1 code ISIC Rev. industries, based on in 2009 economy in 2009 in 2009 in 2009 Malawi’s industry coding compared to WIPO classification of copyright-based to WIPO industry coding compared Malawi’s Copyright factors used in Malawi in 2009 Copyright factors used Calculation of value added contributed by SMEs in the 2009 SUT added contributed by SMEs in the Calculation of value Calculation of output contributed by SMEs in the 2009 SUT contributed by SMEs in the 2009 Calculation of output contributed by SMEs in the 2009 SUT Calculation of remuneration Calculation of employment contributed by SMEs in the 2009 SUT contributed by SMEs in the Calculation of employment Economic contribution of copyright-based industries in Malawi in 2009 Economic contribution of copyright-based Percentage share of GDP by sector in Malawi in 2009 share Percentage Labour productivity of copyright-based industries in Malawi in 2009 of copyright-based industries Labour productivity Decomposed Core copyright-based industries’ contribution to Malawi’s economy contribution to Malawi’s copyright-based industries’ Decomposed Core Decomposed interdependent copyright-based industries’ contribution to Malawi’s industries’ contribution to Malawi’s copyright-based Decomposed interdependent Decomposed partial copyright-based industries’ contribution to Malawi’s economy industries’ contribution to Malawi’s Decomposed partial copyright-based Decomposed non-dedicated support industries’ contribution to Malawi’s economy industries’ contribution to Malawi’s Decomposed non-dedicated support Foreign trade of copyright-based industries in Malawi in 2009 trade of copyright-based industries in Foreign in K (2007/08 to 2011/12) National budget for culture able 3.1: able 3.2: able 3.3: able 3.4: able 3.5: able 3.6: able 4.1: able 4.2: able 4.3: able 4.4: able 4.5: able 4.6: able 4.7: able 4.8: able 5.1: T Ta b l e s T T T T T T T T T T T T T T 4 The Economic Contribution of Copyright-Based Industries in Malawi Figure 4.14: Figure 4.13: Figure 4.12: Figure 4.11: Figure 4.10: Figure 4.9: Figure 4.8: Figure 4.7: Figure 4.6: Figure 4.5: Figure 4.4: Figure 4.3: Figure 4.2: Figure 4.1: s e r u g i F Imports ofcopyright-basedindustriesinMalawi2009 Exports ofcopyright-basedindustriesinMalawi2009 Foreign tradeofcopyright-basedindustriesinMalawi2009 Decomposed non-dedicatedsupportindustries’contributiontoMalawi’s Decomposed partialcopyright-basedindustries’contributiontoMalawi’s Decomposed interdependent copyright-basedindustries’contributiontoMalawi’s Decomposed Core copyright-based industries’contributiontoMalawi’s Labour productivity ofcopyright-based industriesinMalawi2009 Share ofemployeesincopyright-based industriesinMalawi2009 Employees’ incomeshare of copyright-basedindustriesinMalawi2009 Economic contributionofcopyright-basedindustriestoGDPin2009 Economic contributionofcopyright-basedindustriestogross outputin2009 Percentage share ofGDPbysectorinMalawi2009 Economic contributionofcopyright-basedindustriesinMalawi2009 economy in2009 economy in2009 economy in2009 economy in2009 36 35 35 33 32 31 29 28 27 27 26 26 25 24 The Economic Contribution of 5 Copyright-Based Industries in Malawi Annual Economic Surveys Annual Economic Organization Property Intellectual African Regional of Malawi Book Publishers Association of Malawi Copyright Society Malawi Film Association of Domestic Product Gross International Monetary Fund Intellectual Property Activities Industrial Classification of All Economic International Standard Journalists Union of Malawi Kwacha Regulatory Authority Malawi Communications of Malawi Musicians Association Union Malawi Writers Malawi Revenue Authority National Accounts Non-Dedicated Support Industries Institution Serving Households Non-Profit National Statistical Office Association of Malawi National Theatre and Development Organisation for Economic Co-operation Photographers Association of Malawi Small and Medium-sized Enterprise System of National Accounts Supply and Use Tables Added Value Visual Artists Association of Malawi Added Tax Value WIPO Copyright Treaty Organization Intellectual Property World Treaty WIPO Performances and Phonograms ARIPO BPAM COSOMA FAMA GDP IMF IP ISIC JUMA K MACRA MAM MAWU MRA NA NDSI NPISH NSO NTAM OECD PHOTAMA SME SNA SUT UN VA VAAM VAT WCT WIPO WPPT AES List of Acronyms 6 The Economic Contribution of Copyright-Based Industries in Malawi Lizzie Chikoti of theauthorsandnotnecessarilythoseWIPOSecretariat ortheMemberStatesof WIPO. opportunity provided us to undertake the study. However, the views expressed in this study are those important but challenging the at gratitude our thereforeexpressWe him. to lot a owes publication this of quality The noticed. been otherwise have not would errorsthat out pointing and comments, the study. He went through our drafts with a keen eye for detail, offering worthy criticism and University guiding who supervised the study and provided critical comments and observations at all stages of We further recognise Professor Dickson Nyariki of the University of Nairobi Kenya and South Eastern he encouragedustosoldieronevenwhentheexercise appeared impossible. in mention: addition special to his deserves expert contributions, particularly we are Kalanje deeply obliged Christopher to study.him for this his patience with and understanding; associated team the the appreciate greatly We ways. of information provided number through publications, a reports in and discussions, and study the comments this received from facilitated Geneva in office WIPO The The study was conducted with funding from the UN World Intellectual Property Organization (WIPO). the CopyrightSocietyofMalawi,whoprovided supporttothestudyteam. of Director Executive Acting Salamba, Dora to study. go the thanks of Special course the in officials We acknowledge with thanks the assistance given by many organisations, individuals and government strategies and policies adjusting for aimed atpromoting growth anddevelopmentinthecountry’sbasis copyright-basedsectors. a as serve can Malawi’swhich activities, to creative of services contribution and goods copyright of importance economy. increasing Itisexpectedthattheresults ofthestudywillprovide robust dataontheactualeconomic the of light in (COSOMA), Malawi of Society Copyright the through Malawi of Government s the by requested t was study This n e m e g d e l w o n k c A The Economic Contribution of 7 Copyright-Based Industries in Malawi Guide on Surveying the Economic Contribution of the Copyright-Based K30,478,125,760 of value added or 3.46% of GDP output or 3.65% of total output K65,181,173,630 of the gross K9,053,969,130 of the wages or 3.98% of the total employees’ income sector) private and (government force work national total the of 3.35% or persons 26,704 Employed

− − − − − − − − For gross output, it is noted that the the core copyright-based interdependent industries contributed K10,302,313,330.00, industries contributed K47,381,051,380.00, the partial industries contributed The estimated contribution of the core copyright-based industries of 0.5% in Malawi is relatively low, because low, relatively is Malawi in 0.5% of industries copyright-based core the of contribution estimated The the AES does not capture a number of core copyright-based industries, including activities of professional activities, and libraries and archives. other recreation organisations, motion pictures, The total copyright-based industries as defined by WIPO are estimated to have contributed to the Malawi economy in 2009 as follows: The economic contribution of copyright-based industries in Malawi surpassing ranking sectors contributor like to transportation, GDP, of construction, and mining and 3.46% quarrying. of the GDP is the In comparison eighth to other countries that have conducted a similar copyright-based analysis, industries Kenya’s contributed 5.3% of GDP in 2007, contributed Mexico’s 4.77% in 2003 and contributed Jamaica’s 4.8% in 2005. The economic contribution of the copyright-based industries in Malawi is estimated using the following key summary indicators: gross output, (GDP), remuneration employment (employee share in the The incomes) economy. selection of and these indicators has primarily been determined by the availability and type of data that are used in the compilation of the NSO. National Accounts figures for Malawi by The economic indicators in this analysis have been obtained from the 2009 Annual Economic Survey (AES) and the National Accounts of Malawi for 2009. The AES formed which provides total AES, The value-added, sectors. profitabilitymedium-scale andsome fixed and large-scale the of sectors 15 the in formation capital 2009) (until classification activities economic its for 3.1 Rev ISIC the used study, this in data of source main the and the Malawi National Accounts was based on been has the that same 3.1 Rev source. ISIC Since used study the the (NSO), main Office Statistical data National the used from in statistics official this the study were industries. of the Malawian slightly as per the nature aggregated The Guide provides a methodology for measuring the contribution of copyright-based industries, in economic in industries, copyright-based of contribution the measuring for methodology a provides Guide The The studies. country 35 over in tool methodological a as used been has it development; country’s a to terms, Governmentthe by requested been having Guide, this on based proceeded has Malawi in undertaken study of Malawi through the Copyright Society of Malawi (COSOMA) economy. copyright goods and services to Malawi’s in light of the increasing importance of (2003) (hereinafter referred to as ‘the WIPO Guide’), studies have referred Industries been (2003) conducted (hereinafter to quantify the this In countries. African and Asian American, European, several in industries copyright-based of contribution Canada, America, of States United the Singapore, in conducted were that reviewed been have studies report, and Kenya on the basis of the recommendations contained in the WIPO Guide. The results contribution of copyright-based activities to economic growth. convincing evidence of the substantive provide There There is a growing interest in the copyright-based industries due today, to the recognition that creativity is the very basis for the social, economic and cultural development of nations. Based on the Intellectual World Property Organization (WIPO) Executive SummaryThe importance of copyright-based industries has been recognised by a growing number of times. studies Copyright conducted is ofin defined ‘therecent as rights the in protection literary and artistic international in production of form every encompasses it for (IP), property intellectual of aspect important an is and works’ mode or form of expression. of the regardless scientific and artistic work the literary, 8 The Economic Contribution of Copyright-Based Industries in Malawi creative industries. NSO, working with other stakeholders, The should be encouraged to take extra effort to include the government. data collection of the by acknowledged be to is contribution their if measures necessary the take to stakeholders all for need a is there and the important are industries Nonetheless, copyright-based the Malawi. that shown of has study economy the to industries copyright-based of contribution economic the of The use of aggregated data and estimations for the small enterprises may have resulted in the underestimation thecultureto learn ofkeepingrecords foreaseofmonitoringandevaluationtheirperformance. need industries ensurecopyright-based will strongThe this recognitiona as and trust from government. the financial records. Therefore, there is a need for registration of these enterprises withundetailed government authorities, with cases many in and registered not usually enterprises, small-scale are countries, developing most in as Malawi, in industries creative the of Most Accounts. National the in data relevant of availability the was study the of challenge major The Malawi. in done been has study of type this time first the is This of theminingandquarrying,humanhealth,education,constructiontransportstoragesectors. that than higher was GDP on based economy national the to industries copyright-based the of contribution gross the output to and 3.35% to the total 3.65% employment, shows that the sector about is important to the Malawi economy.added, value The total the of 3.46% of contribution economy.The national the to significantly contributed 2009 in Malawi in industries copyright-based that indicate study this of results The footwear and textiles apparel, contributed 19%. while 29%, contributed surveying and engineering Architecture, 49%. of industries contributed K1,904,200,000 to gross output, with furniture contributing the highest gross output 8,800, employed manufacturing copyright-based this partial The paper persons. 98 employed instruments musical and 174 employed sales retail paper in persons, 10,294 activities employed the equipment Among and persons. computers category, 19,366 employed industries copyright-based interdependent The the lasttwocontributinglessthan1%each. instruments, musical and sales retail paper (37%), manufacturing paper by followed (62%) output highest K23,219,300,000 to GDP. If we consider the sub-industries, computer and equipment activity contributed the contributed industries The 1%. at instruments musical and 2% at sales retail paper 41%, at manufacturing paper by followed 55%, at output highest the contributed activity equipment and computer decomposed, is this When output. gross to K47,381,100,000 contributed industries copyright-based interdependent The society employed20persons. employed literature and press the decomposed, 1,339 persons, music, theatrical is productions and opera this employed 2,645 persons and When the copyright collecting persons. 5,153 employed copyright- industries core The based 1%. at society collecting copyright the and 35% at opera and productions theatrical this is decomposed, the press and literature sector contributed 44% within this category, followed by music, industries to gross output was K10,302,300,000 and their contribution to GDP was K4,417,200,000. When interdependent copyright-based industries the and the core by copyright-based industries. The followed contribution of core industries, copyright-based support non-dedicated the in highest was productivity Labour copyright-based partial the from 3% industries and8%from industries, the non-dedicatedsupportindustries. copyright-based interdependent from 73% industries, copyright corefrom came 16% output, gross to industries copyright-based of contribution total the of that implies This K5,593,609,390.00. contributed industries support non-dedicated the and K1,904,199,530.00 The Economic Contribution of 9 Copyright-Based Industries in Malawi The concept of copyright protection is The concept of copyright protection 3 The concepts of copyright and other related rights are 1 Copyright is defined as the protection of ‘the rights in literary and artistic works’ and is 2 Background and Introduction Copyright Law in Malawi ain Intellectual Property Laws of Malawi The Main Intellectual Property Introduction Reproduction: Reproduction: Under this right, no one except the copyright owner may make reproductions or copies of the work. Examples of unauthorised acts that are prohibited under this right include photocopying a and book, incorporating copying a computer using portion software, a of cartoon character on a T-shirt song into a new song. somebody’s Distribution rights: These allow a non-copyright holder to distribute works or productions to the public at a cost.

The full title of which is the Berne of Literary and Artistic Works Convention for the Protection WIPO Guide pg. 13 WIPO publication No. 893, Guide on Surveying, ‘the WIPO Guide’. the Economic Contribution of the Copyright-Based Industries defined in each country’s legislation and these mostly are consistent withdefined the in within provided provisions each the country’s Berne Convention. only afforded to the expression of the idea and not the idea itself. to the expression only afforded 3 1 2 1. 2. 1.3 rather is 1891 in protectorate British a becoming country the to prior Malawi in law copyright of history The unclear; however, upon assuming the said status the British then , and Copyright upon becoming independent in 1964 the country Law inherited the same Act. The present of 1911 became law in the Copyright Act, which was enacted in 1989, contains a number on of the provisions which old are Act, an improvement including the establishment of (1989) encompasses most COSOMA of the legal principles which are enshrined as in international treaties like the Berne a statutory corporation. The Copyright Act Convention, to which Malawi has been a party since October 1991. The Act grants to the author exclusive rights in the following areas: There are five main IP laws in Malawi, namely the Trademarks Act (Cap.49:01), the Patents Act (Cap.49:02), five main IP laws in Malawi, namely the are There the Copyright Act (Cap.49:03), the Trade Description (Cap.49:05). The Act Environment (Cap.49:04) Management and Act (Cap.48:04) the and Registered the (Cap.60:02) also but contain Designs to elements a of lesser Competition IP, degree. OfficeThe isRegistrar responsible General’s Act and Fair Trading Act for the administration of the three industrial property and Industrial pieces Designs Acts), of which were enacted legislation in 1958 (i.e. and have largely the remained unchanged Trademarks, with Patents the exception of a 1985 amendment to the Patents and Registered Designs Acts for purposes of incorporating the African Regional Intellectual Property Office (ARIPO) Harare Protocol on Patents and Industrial Designs. for copyright issues in Malawi. is responsible The Copyright Society of Malawi (COSOMA) 1.2 Copyright and related rights are part of the and protecting creators IP by granting system, those rights created for a for limited period. the The other purpose part is of which industrial includes property, promoting trademarks, patents, creativity industrial designs, integrated circuits, utility models and geographical indications. 1.1 Copyright laws are important in enabling right holders to derive an economic benefit fromof their theworks. utilisation Copyright protection aims to optimise resource allocation thereby enhancingefficiency, the welfare and growth of a nation. The interaction between law and to economics scholars has and often the been importance of of interest copyright-based industries has been recognised of by international studies a conducted in growing recent number times. 1 . an important aspect of intellectual property (IP), for it encompasses every form of production in the literary, of expression. of mode or form regardless scientific and artistic work 10 The Economic Contribution of Copyright-Based Industries in Malawi 4. 3. r nt mnbe o niiul xliain y h rgt wes I rcgiin f hs at te current the fact, this of recognition In owners. right the by exploitation individual to amenable broadcasting, not and are reproduction performance, public including rights, certain However, holder. copyright Copyright is a private property right and, where practical, its exercise and exploitation is left to the individual 1.3.2 customs officialstodetaincopyright recordings theysuspecttobeinfringing. Remedies available under civil action include compensatory damage and injunctions. The law also empowers equipment involvedintheinfringingprocess beforfeitedtothecopyrightowner. that order also may court year.The one to up of imprisonment for provides also Act The 50. factor the by multiplied be to are Act Copyright the under fines all old: relatively are which laws under provided fines of K750,000 is if Act the court the applies the under Conversion of get Fines Act, can which was one enacted to fine mitigate maximum against the The erosion imprisonment. ultimate or fine the a and with conviction prosecutiona securing of for aim provides Act the sanctions, criminal Under sanctions. means, civil administrative and including ways criminal of number a in copyright his enforce can holder copyright the Act, The acquisition of rights is of little economic value unless they can be effectively enforced. Under the Copyright 1.3.1 exploitation ofthework. normal the with conflict not should it that and prejudiced be not must author the of interest legitimate certain uses by libraries and archives. However, in purposes; all of educational these instances certain the overriding for principle is use that the reporting; news of purposes for use use; private including: cases permission from the author and obligation to pay. Reliance on such a provision is acceptable The law in also provides for exceptional limitations to the exclusive rights to allow for exploitation of the works without copies. Broadcasting the of thedistribution organisations are alsoaccorded similarrightsintheirbroadcasts. and or phonograms broadcast in the fixed performances authorise of to reproduction right the performances, unfixed the of fixation the performances, include unfixed their of which public the to recordingscommunication their in sound rights the economic in exclusive accorded and also performances are recordings sound of producers and Performers a considered generally is program software a derivative workbasedupontheearlierversion. of version second a industry, computer the In picture. A derivative work usuallyinvolvesatypeoftransformation,suchasthemaking ofanovelintomotion dramatisation, arrangement, musical any otherforminwhichaworkmayberecast, transformed,oradapted. translation, a as such works, fictionalisation, motion picture version, sound recording, art pre-existingreproduction, abridgment, condensation, or more or one upon based work a of making the control to owner copyright the allows right This Adaptation/arrangement: locations, suchasthrough televisionandradio. acquaintances are gathered.’ A performance is also considered to be public if it is transmitted to multiple social its and family a of circle normal a of outside persons of number substantial a where place a at or ‘publicly’. A performance is considered ‘public’ when the work is performed in a ‘place open to the public Under the public performance right, a copyright holder is allowed to control when the work is performed • • • • • • • copyrighted works.Thescopeoftheperformancerightislimitedtofollowingtypesworks: certain of performance public the control to holder copyright the allows right The performance: Public Collective Management of Copyright of Management Collective Provision Enforcement audio visualworks. motion pictures; and pantomimes; choreographic works; dramatic works; musical works; literary works; The Economic Contribution of

Copyright-Based Industries in Malawi11 This study undertaken 5 Guide on Surveying the Economic Contribution Economic the Surveying on Guide (hereinafter referred to as ‘the WIPO Guide’), to provide a methodology 4 This licenses users to perform publicly any copyright work under its control in This involves the licensing of users, including academic institutions, to make This involves the licensing of broadcasting stations to enable the broadcasting of This involves the licensing of users, in particular record companies, to enable them make them enable to companies, record particular in users, of licensing the involves This Introduction to the Malawi Study Introduction Review of the Copyright Act WIPO publication No. 893 than 35 countries. During the writing of this study (2013) the Guide has been used in more

This study was requested by the Government of Malawi through the COSOMA, of the study It is expected that the results in economy. light importance of copyright goods and services to Malawi’s of the increasing basis a as serve can which activities, creative of contribution economic actual the on data robust provide will copyright- country’s the in development and growth promoting at aimed strategies and policies adjusting for based sectors. in Malawi has proceeded based on this Guide. in Malawi has proceeded for measuring the contribution of copyright-based industries, in economic terms, to a country’s development. country’s a to terms, economic in industries, copyright-based of contribution the measuring for The WIPO Guide has been used as a methodological tool in over 35 country studies. 5 4 Industries based on copyright and related rights have a considerable impact on the national economy. National National economy. national the on impact considerable a have rights related and copyright on based Industries studies in a number of countries have revealed that these industries are major contributors in terms of their to contribution their in as well as (GDP) Product Domestic Gross country’s a to added value aggregate relative the published WIPO 2003, In trade. foreign and employment of the Copyright-Based Industries 1.5 1.4 Since the Copyright Act was enacted in 1989, new types dissemination have of evolved. The works, review of new the law markets has therefore been and, necessitated new in part methods by the of need to respond to the challenges which have been brought about by the advent of digital the material dissemination over of digital protected networks such has as internet.the review In this regard, technology, including (WCT) Treaty Copyright WIPO the with compliant is law the that ensure to as way a such in out carried been (WPPT) both of which Malawi is yet to be party to. The and the WIPO Performances and Phonograms Treaty right national own Malawi’s of protection international include would treaties two the to acceding of benefits of investment. and encouragement commerce of electronic holders, promotion echanical right: Mechanical Reprographic right: exchange for some remuneration. sale retail for distributed and manufactured be can which music, like works copyright-protected of recordings to the public. literary and artistic works. including the photocopying of copyright-protected reproductions Broadcasting Broadcasting right: Public performance right: COSOMA’s main COSOMA’s function is promoting and protecting the publishers, interests performers, producers of of sound authors, recordings composers, and broadcasters translators, and, in particular, distribute to royalties or other collect remuneration accruing to them and from their rights. It draws its membership from individual authors and rights holder associations. following: rights in the performance and broadcasting administers the public COSOMA, as a collective management organisation, content. subject matter in their broadcast related copyright works and copyright law provides for the establishment of the COSOMA, a multipurpose collecting society to administer administer to society collecting multipurpose a COSOMA, the of establishment the for provides law copyright of its members. collectively the rights 12 The Economic Contribution of Copyright-Based Industries in Malawi • • • • The keyobjectivesofthestudyare to: 1.6 cl etrrss n l scos f h Mlwa eooy wt rset o hi pouto, employment production, their to respect with economy, Malawian the of sectors all in enterprises scale large- mainly of activities the of description quantitative a give to is AES the of rationale The 2009. Malawi of Accounts National and AES 2009 the from obtained been have analysis this in indicators economic The 1.8 matter, andwhoseactivitieshavenotbeenincludedinthecore copyrightindustries. subject protected other and works of sales or distribution communication, broadcast, facilitating to related Non-dedicated support industries (NDSI): manufacturing, and production creation, involve may performance, broadcast, communicationandexhibitionordistributionsales. and related matter is subject activities protected the other of and portion works a to which in industries are These industries: copyright-based Partial or useofworksandotherprotected subjectmatter. manufacture and sale of equipment whose function is wholly or industries: primarily to facilitate the creation, copyright-based production Interdependent of sales and works andotherprotected subjectmatter. distribution or exhibition, and communication broadcast, performance, manufacturing, and production creation, in engaged wholly are which industries are These industries: copyright-based Core provided intheWIPOGuide.TheGuidegivesfourcategoriesofcopyright-basedindustries: GDP,to studied industries based approachselected a using foreigntrade, and employment output, national The organisations. and individuals some with conducted been have interviews gaps, some filling areas or addressingspecific In Tables havebeencompiledusingavailablestatisticaldatabyindustryclasses,basedonISICRev3.1. industries. copyright-based the for data of source main the as used been have These (AES). conducts Survey also Economic Annual and Malawi for Accounts National the compiles NSO The assessed. was data of Availability Dummy tableswere draftedaccording tothecategoriesinGuide. as reference Annex1oftheWIPOGuide. The 1.7 copyright-based industriesinthecountry. of development and growth the encouraging for interventions policy,Proposeinstitutional and strategy industry other to regard with sectors andwithregard tomajortradepartners;and industries copyright-based the of advantages comparative the Identify others; among environment, digital the of implications mechanisms, financing organisations, copyright-related support from public and civil sector including the role of collective management organisations and other their national market structure, value chain, demand and supply patterns, Analyse labour and elaborate on market, selected copyright policy and related framework, rights-based industries of importance to Malawi, trade; estimating their contribution to GDP, share of national employment and revenuecountry, by generated from the foreign in industries rights-based related and copyright of contribution economic the Quantify first step included the identification of the copyright and related rights-based industries in Malawi, using step was measurement and calculation of the contribution of the copyright and related rights- related and copyright the of contribution the of calculation and measurement was step second Objectives Economic IndicatorsUsedintheAnalysis Methodology These industries are those in which a portion of the activities is hs ae nutis ht r eggd n production, in engaged are that industries are These The Economic Contribution of

Copyright-Based Industries in Malawi13 This refers to gross income generated from domestic production in an industry or sector (or in (or sector or industry an in production domestic from generated income gross to refers This Period Covered National Accounting of Malawi Survey of Copyright-Based Industries not in the alue-added: In an effort to complement the data from the AES, the Survey Team tried to collect data on Value Added Tax Tax Added Value on data collect to tried Team Survey the AES, the from data the complement to effort an In team The government. the for duties customs and taxes of collection for responsible body the MRA, the from Malawi. in Accounts National of compilation the improving with line in especially requirements, its presented It was emphasised that tax records are an important source yet not of are records data information tax the that learnt required was it discussions, for the During measuring country. the the of performance economic computerised and such secondly, information is classified bycompany name and taxpayer number but not MRA Senior The name. company by information release to them forbids Act MRA’s the Furthermore, ISIC. by his for General Commissioner the from information the request officially to Team Survey the advised officials that release to possible be not would it that was General Commissioner the from response The consideration. in is MRA learntthe also that was it visit, the During names. company the without even information, of type importance the emphasised Team Survey the and system record-keeping tax its computerising of process the of performance economic the monitoring in use its facilitate to order in ISIC by information the classifying of the country. COSOMA was also visited to get statistics on mechanical right royalties (sampled questionnaires appended in Annex 1). This information was difficult to use, because it does not show the value of production of the and public appearances. various players, rather it only gives the number of public broadcasts After studying the available data from the NSO, the survey team decided to hold meetings with leaders of various associations: the Music Association of Malawi (MAM); the Book Publishers Association the Writers (BPAM); Association of of Malawi; the Malawi Photographers Association of Malawi the (PHOTAMA); Film Makers Association of Malawi; and BUMAS Art ICT; representing Galleries, in order to solicit their views on the performance of the copyright-based industries in Malawi. 1.10 1.9 The period under study is 2009, as the latest economic data available are for the year 2009 and these data cleaning. have undergone thorough oreign Foreign trade (i.e share of imports and exports): The trade statistics are obtained from the NSO which MRA customs records. the from and publishes trade data compiles, processes Productivity is commonly defined as a ratio of volume measure of output to a measure measure a to output of measure volume of ratio a as defined commonly is Productivity productivity: Labour of input use. Among other productivity measures, such as multi-factor productivity or capital productivity, labour productivity is particularly important in the economic and productivity statistical is analysis a of revealing a indicator country. Labour of economic indicators economy. within an competitiveness and living standards growth, as it offers a dynamic measure of economic This is an amount of money paid to someone for the work that that person has done. Remuneration: This is an amount of money paid to V Employment: Since the main source of data for this study is the AES, the employment numbers used are the AES. also from Total value of sales by enterprises producing (their turnover) output: in Gross Total an accounting period, before production. of intermediate goods used up in subtracting the value this In consumption. intermediate less output as defined and derived is and sectors), or industries all for total industries. copyright-based the of size relative the measure to used been has approach production the study, The economic indicators are: The economic indicators The AES provides total value-added, profitability and fixed capital formation in the 15 sectors of the large- sectors. scale and some medium-scale characteristics, profitability, acquisition and characteristics, issueprofitability, of bothreal and financial claims in sectors different of the economy. 14 The Economic Contribution of Copyright-Based Industries in Malawi 4.4% of employment to the Latvian economy in the year 2000. Print media, advertising, and software and software and advertising, media, Print 2000. year the in economy and Latvian the to GDP employment of 4.4% of 4% contributed industries copyright-based interdependent and core that revealed study The Culture andtheDutchCopyrightFederation. Latvia and Education of of Ministry Finnish the WIPO, Republic from support with Latvia, the of Bureau Statistical Central of the and Culture of Ministry the with cooperation in undertaken was study the Latvia, In knowledge-intensive of creation the that demonstrated continually intellectual property-based goodsandservicesiscriticaltothecontinuedeconomic growth oftheUS. have studies these years, the Over with apracticaltoolforindependentlyevaluatingthecontributionoftheircopyrightsector. economic to approach harmonised a produce surveys in this field, itto goes further in providing governments, researchwas institutions and civil society in general Guide be WIPO can the industries of intention copyright-based the the While how measured. on guidelines step-by-step offers and economies national to true industries copyright-based the of the contribution economic effortsinitial the assess summarises Guide to made WIPO The countries analysed. insufficiently many and underestimated in often are that sector creative case the of the potential still and value is it However, trade. promoting and jobs creating wealth, generating time same the at are industries these values, social of enhancement the contributing and diversity cultural to While protection. copyright in rooted deeply are to which industries, substantially creative the contributes of worldwide that component vital a is and economic, social established and cultural development. Research has provided solid evidence well of the growing importance is today sector creative The 2.1 . 2 in 1977. Economists in commissioned the US economy. has The US was (IIPA)one of the first countries Alliance in the world to undertake Property such an economic analysis Intellectual Incorporated to conduct studies measuring the economic impact and trade role of these copyright industries International the 1990, Since assets. In the US, copyright-based industries continue to be one of the country’s largest and fastest-growing economic based industries,givinganaverageof8.9%perannuminreal valueaddedfrom 1986to2001. study The economy’sstrongerthe copyright- growtha than the trade. that in found noted was 7.6% of rate annual foreignaverage and employment added, value output, of terms in Singapore in industries based (IPOS) Singapore of Office copyright- of Propertycontribution economic WIPO’sthe applying estimating study for pilot framework Intellectual a conducted the and (IPA) Singapore of Academy IP the Singapore, In of contribution substantive copyright-based activitiestoeconomicgrowth.the of evidence convincing provide results The Guide. WIPO the recommendations in the contained of basis the on out carried were that Kenya and Latvia Canada, America, of States American Asian and African countries. In this section, we review studies conducted in Singapore, the United studies have been conducted to quantify the contribution of copyright-based industries in several European, (2003), Guide WIPO the on Based nations. of development cultural and economic social, is for basis creativity very the that recognition the to due today, industry copyright-based the in interest growing a is There 2.2

− − − − − − Introduction Results ofOtherCountryStudies The ‘core’ copyrightindustriesemployed4%ofUSworkersin2002(5.48million workers). In 2002, the US ‘total’ copyright industries accounted for an estimated 11% of the US gross domestic ‘core’US the 2002, In grossUS the of 6% estimated an for accounted industries copyright domestic e h t o t s e i r t s u d n I d e s a B - t h g i r y p o C e h t f o n o i t u b i r y t m n o o n C o c c E i m o n o c E product ($1.25trillion). product ($626.6billion). The Economic Contribution of

Copyright-Based Industries in Malawi15 – National Studies on Assessing the Economic Contribution of the Copyright-Based Industries Copyright-Based the of Contribution Economic the Assessing on Studies National In Jamaica, the estimates reveal that in 2005 the copyright sector contributed about 4.8% of GDP. In , Croatia, In GDP. of 4.8% about contributed sector copyright the 2005 in that reveal estimates the Jamaica, In Bureau Central the and (SIPO) Office Property Intellectual State the with cooperation in done was research the for evaluated were indicators chosen the study, this In WIPO. of support technical the with (CBS), Statistics of the of 4.3% generated Croatia in industries copyright-based the 2004, In 2004. and 2002 namely years, two GDP of the economy of Croatia. , the study carried out in Mexico found that, in 2003, value added for the total the for added value 2003, in that, found Mexico in out carried study the No.2, series Industries Creative of the Mexican copyright-based industries was 4.77% of which GDP, was slightly above the sector (4%). construction The study also showed a change in the inner structure of the copyright-based industries, with an increase in the contribution of core copyright-based industries and copyright-based industries. interdependent a reduction in the contribution of According to the to According The core copyright-based industries outperformed all the other three categories of copyright-based industries copyright-based of categories three other the all outperformed industries copyright-based employee core The and employment output, gross GDP, study: this in considered contributions economic main the all in incomes. The interdependent copyright-based industries did better than non-dedicated support industries in their output. The contribution to partial copyright-based GDP and gross the partial copyright-based and industries exceeded the interdependent copyright-based incomes. contribution to employment and employee and non-dedicated support industries in their In the Kenyan study, the findings were intended to inform policy formulation processes towards an improved improved an towards processes formulation policy inform to intended were findings the study, Kenyan the In Guide, WIPO the with accordance In country. the in sector creative the of operation the for framework policy and partial, interdependent, core, into industries rights-based related and copyright the categorised study the non-dedicated support industries. The results show that the total value added of copyright-based industries GDP. of Kenya’s 5.32% represented to about KSHs 85.21 billion, which in 2007 amounted databases made the most important economic contributions. Another finding of the study is that copyright- that is study the of finding Another contributions. economic important most the made databases Ireland, Greece, Belgium, Austria, in those than GDP to contribution larger a make Latvia in industries based industries copyright-based interdependent and core the of contribution The . and , , other industries in the Latvian economy. exceeds those of many 16 The Economic Contribution of Copyright-Based Industries in Malawi ISIC Rev. 3.1code Table 3.1: the Malawianindustries. Statistical Office,thestudyusedISICRev3.1,whichmaybeaggregated slightlydependingonthenature of on the same (NSO, 2011). Since the main data used in this study were the official statistics from the National based were Accounts National Malawi the and 2009) (until classification activities economic its for 3.1 Rev ISIC UN the study,used this in data of source main the formed which (AES), Survey Economic Annual The 3.1 . 3 I. Corecopyrightindustries Magazines/periodicals Book publishing magazines, newspapers,advertisingmaterials Pre-press, printing,andpost-pressofbooks, (book stores,newsstands,etc) Wholesale andretailofpressliterature choreographers… Composers, lyricists,arrangers, and rental) Wholesale andretailofrecordedmusic(sale companies National radioandtelevisionbroadcasting Other radioandtelevisionbroadcasters services) Advertising services(agencies,buying Art galleriesandotherwholesaleretail Other recreationalservices Activities ofprofessionalorganisations Motion pictureandvideoprod. distribution Library andarchivesactivities industries though theyarepartofcorecopyright-based The activitiesbelowarenotincludedintheAES

International StandardInternational IndustrialClassification(ISI)inMalawi s e c r u o S a t a D d n a y g o l o d o h t e M Malawi’s industrycodingcomparedtoWIPOclassificationofcopyright-basedindustries,basedon Malawi’s Coding Code 2212 2211 2221 5139 9214 5233 9213 9213 7430 9414 I. Corecopyrightindustries Publishing ofNewspapers,journalsandperiodicals Publishing ofbooks,brochuresandotherpublications News agencyactivities Library andarchivesactivities Services activitiesrelatedtoprinting Printing Other Publishing and software Wholesale of computers, computer peripheral equipment Data processing Database activitiesandonlinedistribution Other softwareconsultancyandsupply Software publishing Other retailsaleinspecialisedstores Wholesale ofotherhouseholdgoods Writers, directors,actors Wholesale andretailofrecordedmusic(salerental) National radioandtelevisionbroadcastingcompanies Other radioandtelevisionbroadcasters Publishing ofmusic Other recreationalservices Other entertainmentactivities Dramatic artsandmusicother artsactivities Other businessactivities Radio andTVactivities Activities ofprofessionalorganisations Advertising WIPO classificationbasedonISICRev. 3.1code Code 2212 2211 9220 9231 2222 2221 2219 5151 7230 7240 7229 7221 5239 5139 9214 5233 9213 9213 2213 9249 9219 9214 7499 9213 9112 7430 The Economic Contribution of

Copyright-Based Industries in Malawi17 2899 3691 5139 5239 173 2610 3610 7130 5131 1920 1810 1721 5149 5239 3230 3000 5151 7123 5159 3320 5239 7129 5233 2101 5233 5151 7123 2230 5233 7130 5139 9211 9212 7494 7499 WIPO classification based on ISIC Rev. 3.1 code based on ISIC Rev. WIPO classification Manufacture of other fabricated metal products n.e.c. Manufacture of jewellery and related articles Wholesale of other household goods Other retail sale in specialised stores Manufacture of knitted and crocheted fabrics and articles Manufacture of glass and glass products Manufacture of furniture Renting of personal and household goods n.e.c. Wholesale of textile, clothing and footwear Manufacturing of footwear Manufacture of wearing apparel Manufacture of made-up textile articles Wholesale of other intermediate products, waste and Wholesale of other intermediate products, waste scrap Other retail sale in specialised stores or video Manufacture of TV and radio receivers, sound recording or reproducing apparatus, and associated goods Manufacture of office, accounting and computing machinery equipment peripheral computer computers, of Wholesale and software Renting of office machinery and equipment (including computers) and supplies equipment Wholesale of other machinery, Manufacture of photographic and optical equipment Other retail sale in specialised stores Renting of other machinery Retail sale of household appliances, articles and equipment III. Partial copyright Manufacture of pulp, paper and paperboard Retail sale of household appliances, articles and Retail sale of household appliances, articles equipment Wholesale of computers, computer peripheral equipment peripheral computer computers, of Wholesale and software Renting of office machinery and equipment (including Renting of office machinery and equipment computers) Reproduction of recorded media Reproduction of recorded appliances, articles and Retail sale on household equipment household goods Renting of personal and goods (incl. wholesale of Wholesale of other household recorded video tapes) prod. and distribution Motion picture and video Motion picture projection Photographic activities Other business activities n.e.c. II. Interdependent copyright 2899 1730 2610 3610 5131 1920 1810 1721 5239 2101 5233 4651 5151 4741 Malawi’s Coding Malawi’s Malawi’s industry coding compared to WIPO classification of copyright-based industries, based on industries, based on of copyright-based classification compared to WIPO industry coding Malawi’s Household goods, and glass Household goods, china and glass Household goods, china and glass Furniture Apparel, textiles and footwear Apparel, textiles and footwear Apparel, textiles and footwear Apparel, textiles and footwear III. Partial copyright Paper retail sales Paper manufacturing Musical instruments Computers and equipment Computers and equipment II. Interdependent copyright Computers and equipment ISIC Rev. 3.1 code (continued) ISIC Rev. Table 3.1: Table 18 The Economic Contribution of Copyright-Based Industries in Malawi partial copyright industry, obtained from the NSO Integrated Household Survey (IHS II) for apparel, textiles apparel, for II) (IHS Survey Household Integrated NSO the from industry,obtained copyright partial the for factors copyright used has Malawi of study this countries, other by used methodologies at Looking to related not is services copyright atall. and goods their of share large a industries, copyright-based non-dedicated and have a copyright factor of 1, while those having nothing to do with copyright have a factor of zero. In partial the on industry.depending 1 Thus, and industries that 0 only producebetween copyright value products and a works and take other protectedmay subject factor matter copyright the Guide, WIPO the to According industry. Itisanexpression ofthe extent ofdependencetheproduct ofthegivenindustryoncopyright. based industries. A copyright factor is a percentage indicating the proportion of copyright activities in a given The WIPO Guide recommends the use of a copyright factor to identify the contributions of non-core copyright- 3.2 ISIC Rev. 3.1code(continued) Table 3.1: Architecture, engineeringsurvey General wholesaleandretailing IV. Non-dedicatedcopyright General tradeexceptofmotorvehicles Other retail Other roadtransport General transportation Road transport Air transport Cargo handling National postactivities activities Courier activitiesotherthannationalpost Telephony andInternet The CopyrightFactor Malawi’s industrycodingcomparedtoWIPOclassificationofcopyright-basedindustries,basedon Malawi’s Coding 7421 5190 5219 5231 6022 6023 6210 6301 6411 6412 6420 and buildings Museum activitiesandpreservationofhistoricalsites Library andarchivesservices goods Retail saleoftextiles,clothing,footwearandleather Wholesale oftextiles,clothingandfootwear Manufacture offootwear Manufacture ofmadeuptextilesarticles Manufacture ofwearingapparel Wholesale ofmachinery, equipmentandsupplies IV. Non-dedicatedcopyright technical consultancy Architectural andengineeringactivitiesrelated Other wholesale repair ofpersonalandhouseholdgoods Retail trade,exceptofmotorvehiclesandmotorcycles; Transport viarailways Land transport;transportviapipelines Other retailtradeofnewgoodsinspecialisedstores Other landtransport Water transport Supporting andauxiliarytransportactivities Air transport Post andcourieractivities Activities ofothertransportagencies assistance activitiesn.e.c. Activities oftravelagenciesandtouroperators;tourist Other supportingtransportactivities Storage andwarehousing Cargo handling National postactivities Courier activitiesotherthannationalpost content Database activitiesandon-linedistributionofelectronic WIPO classificationbasedonISICRev. 3.1code 9232 9231 5232 5131 1920 1721 1810 515 7421 519 52 601 60 602 61 630 62 641 6309 6304 6303 6302 6301 6411 6412 7240 6420 The Economic Contribution of

Copyright-Based Industries in Malawi19

plus general

Integrated Household Survey 2 – NSO 2005 Integrated Household Survey 2 – NSO 2005 Hungary of apparel and furniture Average

5 10 4.3 3.8 4.1

100 100 3.15

plus value added of distribution industries in the core, Malawi Copyright factors (%)

plus telephony and internet) Copyright Industries

Copyright factors used in Malawi in 2009 Calculation of Indicators of Economic Contribution Apparel, textiles and footwear Furniture Household goods, china and glass Architecture, engineering, survey SME- Manufacturing

Core copyright industries Interdependent copyright industries Partial copyright industries Non-Dedicated support industries 1. 2. 3. 4. The National Accounts (NA) statistics are designed to provide consistent and comprehensive statistics of the overall national economy. The NA give both a summarised description of the economy detailed as description a of transactions whole between different and parts of a the Malawi and economy, between Malawi of the world. and the rest GDP can be measured using three approaches: the output or production approach, the expenditure approach, approach, expenditure the approach, production or output the approaches: three using measured be can GDP and the income approach. The production approach views GDP as the sum of of VA all industries, i.e., the difference between output and intermediate consumption. In the as expenditure the sum approach, of all GDP expenditure categories, is including government viewed and household consumption, fixed capital formation, changes in inventories, and exports minus imports. The income approach considers GDP to bonuses salaries, and wages is, that employees, of (compensation be households to due income the of sum the imports on and production on taxes and surpluses) operating gross or (profits corporations and benefits) and taxes) (indirect The indicators used in this analysis for the economic contribution of Malawian copyright-based to industries the national economy are: turnover social (including costs labour when (gross obtained is added value The trade. foreign and output), remuneration employees’ value added (VA), number of persons employed, security contributions and taxes) are added to the operating margin and the income from the sale of fixed assets is deducted from this sum. The GDP share of Gross Value Added economy. economic contribution of the copyright-based industries to the domestic (GVA) is calculated to reveal the 3.3 The copyright factors have been applied on the economic data extracted from the AES of 2009 and other given in Annex 3. of copyright factors are as given in Annex 2. The calculations sources, Where Where non-distribution in the equation = GDP minus (value added of general transportation wholesale and retail and footwear and furniture, while for the household goods and architectural sectors the factors have been have We used the industries, Hungary study because it is evident obtained the that Hungary from several study. non-dedicated similar the For study. Kenyan the including study, the from multipliers their obtained studies has been applied, which is: that has been used in the Kenyan study the same formula Table 3.2: Table interdependent and partial subsectors. interdependent 20 The Economic Contribution of Copyright-Based Industries in Malawi and intermediateconsumption. capital fixed of consumption production, on taxes net employees, of compensation of sum the as i.e. costs, production the up adding by estimated is output production, non-market other and government general In (VAT)productstax on added subsidies value areis, not that but prices, included, products.on taxes other or in general government and in non-profit institutions serving households (NPISHs). Output is published in basic of production activities, i.e. from market production, production for own final use, and non-market production sales as same the domestic from services and not goods of value is the covers It stocks). and in changes of period (because services and goods accounting the in produced services and goods to refers Output 3.4.1 3.4 the of analysis and compilation the for National AccountsforMalawisince1964. responsible been has NSO The 1993. in Communities European the of Commission the and Bank, World the (IMF), Fund Monetary International the (OECD), Development and Co-operation Economic for Organisation the UN, the by published 1993), (SNA Accounts National of System the of guidelines international by defined are Accounts National the of concepts and coverage The Table 3.3: estimate thecontributionofthisSMEsector. isolate those that are to in the creative industries (NSO, 2012). Some assumptions thereforedifficult had to be made to it makes this and aggregated are activities these cases, most In product. by not activity,but by enterprises to GDP. The Supply and Use Tablesmedium-scale and (SUT) make small estimations on of the small/medium scale contributions enterprises the for estimation some make Malawi for Accounts National The 3.6 supply independent using supplementary informationandqualityassessmentsofthevariousstatisticalsources. by with balanced is these starts of each for use compilation and Finally,supply services. of and goods all of process estimates use and The etc. surveys, marketing agriculture census; livestock and government; survey estimation for crop agriculture statistics Survey; Household Integrated accounting the statistics; enterprises; trade external large-scale for AES is sources: Accounts statistical National the many of on compilation based The products. 340 and industries 100 about comprise and level The NSO compiles the National Accounts on an annual basis. The annual accounts are compiled at a detailed 3.5 the of sum the as compiled is consumption offixedcapital. added value activities, non-market compensation of employees, net taxes on production (taxes on production other less subsidies on production) and and government general In are not. products on VATtaxes whereas other included, areand products on subsidies i.e. prices, basic in published is added Value consumption. intermediate less output as defined and derived is and industries/sectors), all Value added is the gross income generated from domestic production in an industry or sector (or in total for 3.4.2 GDP forMalawi Transport Information andcommunication Wholesale andretail Manufacturing Output Value Added Value GDP andProduction Contribution ofMalawi’s SmallandMedium-SizedCopyright-BasedEnterprisesto GDP Sources ofDataandProduction Cycle Calculation ofvalueaddedcontributedbySMEsinthe2009 SUT Sector %contribution to GDP 1.5 0.5 6.0 3.9 Value added 881,562,200 from SMEs 13,223,433 52,893,732 34,380,926 4,407,811 Interdependent 13,223,433 8,595,231 8,595,231 Partial dedicated 13,223,433 26,446,866 4,407,811 Non- - The Economic Contribution of

Copyright-Based Industries in Malawi21 Non- Non- 682,495 5,358,785 5,573,709 43,763,414 19,648,880 dedicated dedicated 2,502,482 Partial Partial 2,502482 19,648,880 2,502,482 2,786,855 19,648,880 21,881,707 Interdependent Interdependent SMEs 5,358,785 682,495 78,595,519 87,526,828 19,648,880 2,502,482 10,009,927 11,147,418 1,786,261,800 227,498,336 Output from SMEs Remuneration from 4.4 4.9 0.3 1.1 4.4 4.9 0.3 1.1 output remuneration % contribution to % contribution to Sector Sector Calculation of remuneration contributed by SMEs in the 2009 SUT Calculation of output contributed by SMEs in the 2009 SUT Calculation of output contributed by SMEs partial industries and the share was 25% each. The other 50% was from non-copyright industries. was from was 25% each. The other 50% the share partial industries and by the non-dedicated support industries. industries, while 50% was contributed non-dedicated the in those for % 50 and sector interdependent the in be to assumed activities those support industries. attributable to the SME copyright industries. 0% of the value added in the SME manufacturing sector was contributed by the interdependent and interdependent the by contributed was sector manufacturing SME the in added value the of 0% 25% of the wholesale and SME retail value added was contributed by the copyright interdependent From the the SUT, proportion of the contribution of the wholesale and retail sector was 25 % for For the information and communication sector and the transport sector, the whole 100 % was − − − − − − − − Manufacturing Wholesale and retail Information and communication Transport Total output from Malawi Total Manufacturing Wholesale and retail Information and communication Transport economy Total Table 3.5: Table The assumptions made for output are similar to those made for value added. The 2009 SUT does not provide provide not does SUT 2009 The added. value for made those to similar are output for made assumptions The has been and employment; their contribution variables, remuneration for contribution of the two remaining value for those as same the are made assumptions the and contributions output the to similar be to assumed added. Table 3.4: Table The assumption of 100% contribution by SMEs is from the classification guide, which classifies almost all the all almost classifies which guide, classification the from is SMEs by contribution 100% of assumption The assumes study this industries: copyright the of sector non-dedicated the in be to industries these in activities reduced by the copyright factors. have been final figures the same. The numbers included in the The manufacturing sector contributed 3.9% to GDP, wholesale and retail contributed 6.0%, information and information 6.0%, contributed retail and wholesale GDP, to 3.9% contributed sector manufacturing The communication contributed 0.5%, and transport contributed 1.5%. The SUT shows that about 50% of the Guide, WIPO the to According industries. copyright-based the in was activities manufacturing of contribution the of 50% that is assumption the so partial; or interdependent as classified are activities manufacturing the value added from the SMEs in Malawi in 2009 was not copyright and the other half was copyright and has industries. and partial copyright-based interdependent been split between of the copyright SMEs: made to arrive at the contribution were The following assumptions 22 The Economic Contribution of Copyright-Based Industries in Malawi 2. 1. The overallmethodologicalapproach consistedofthree principalcomponents: 3.7.2 to coverthecostofproduction. sectors engaged in the production and sale of goods and services on the market at prices normally designed substantive growth of the entire economy. The AES covers private, statutory bodies and public (government) progressivelyto begun has Survey the enterprises scale orderin companies these incorporate the monitor to Although the AES mainly covers large-scale enterprises, due to the current importance of medium- and small- in somesectors,allenterpriseshavebeenincludedifthesectorhastoofewenterprises. medium-scale sectors. The main some criterion used and to include large-scale an enterprise the is employment level of within the sectors sector; 15 the in assets fixed of formation and profitability added, value total with up come to is survey economy. the the of of aim different sectors The in claims financial and real both economy,profitability,characteristics, production,employment their respectto with of issue and acquisition capital and employees give a quantitative description of the activities of mainly of large-scale enterprises in all sectors of the Malawian compensation to is Survey consumption, the of rationale The reports. AES 2009 the from intermediate extracted were data capital fixed of formation output, product and activity AES 3.7.1 3.7 Table 3.6: 4. Total economy Transport Information andcommunication Wholesale andretail Manufacturing employment andforeign trade.Theimpactswere measured asfollows: comprised the direct, indirect and induced impacts. These impact impacts total the were industries: rights-based for related and output, copyright of value-added, impact incomes, economic total the Measuring Malawi NSO. from the mainly industries, rights-based and related copyright various the for data specific of Derivation trade statisticscompiledbytheNSOfrom customclearingreturnsobtainedfrom theMRA. Employment data were compiled for estimation of the AES 2009 while trade data were from the foreign Estimation Survey Economic Annual The Data Sources andEstimationProcedure Calculation ofemploymentcontributedbySMEsinthe2009SUT (iii) (ii) (i) Sector The inducedimpact,limitedtothegroup ofnon-dedicatedsupportindustries. goods andservicestocopyrightrelated rights-basedsectors;and providing sectors other from generated revenue additional from arises impact indirect The based activities; rights- related and copyright of revenue operating the representedby as impact direct The % contributionto employment 1.1 0.3 4.9 4.4 Employment from 797,680 39,086 35,098 SMEs 8,774 2,393 Interdependent 9,772 8,774 Partial 8,774 dedicated 19,543 Non- 8,774 2,393 The Economic Contribution of

Copyright-Based Industries in Malawi23 % 2.43 0.65 0.11 3.35 0.17 100.00 No. of Employees 851 No. 5,153 1,333 19,366 26,704 797,680 % 2.59 1.05 0.09 3.98 0.25 100.00 K’000 200,000.83 566,911.70 Employees Income 227,498,336 5,897,922.81 2,389,133.78 9,053,969.13 % 2.63 0.07 0.50 0.25 3.46 100.00 Product K’000 Gross Domestic 611,014.64 881,562,200 4,417,170.24 2,230,634.77 23,219,306.11 30,478,125.76 % 0.11 2.65 0.58 0.31 3.65 100.00 Gross Output K’000 1,904,199.53 5,593,609.39 47,381,051.38 10,302,313.33 1,786,261,800 65,181,173.63 Economic contribution of copyright-based industries in Malawi in 2009 K30,478,125,760 of value-added or 3.46% of GDP K30,478,125,760 of value-added or of total output output or 3.65% K65,181,173,630 of the gross of the total employees income K9,053,969,130 of the wage bill or 3.98% (government the total national workforce and private sector). Employed 26,704 persons or 3.35 of Analysis and Results alawi’s Economy to Malawi’s Contribution of Copyright-Based Industries Copyright- based industries Partial copyright-based industries Interdependent copyright-based industries Core copyright-based industries Non-Dedicated support industries • • • •

3. 2. 1. 4. TOTAL FOR THE ECONOMY TOTAL Total copyright-based industries Total Table 4.1: Table In addition, it should be noted that the AES does not capture a number of core copyright-based industries, including other relevant business activities, activities of professional organisations, motion activities, recreation and pictures, libraries and archives. For this other reason, the estimated contribution of the copyright- based industries is relatively low because of the industries, which is 0.5% low recorded contribution of the core copyright-based The economic contribution of copyright-based contributed industries industries copyright-based in Kenya’s analysis, similar Malawi a conducted have was that countries other 3.46% among of For GDP. comparison, 5.3% of GDP in 2007; in Mexico, the contribution was about 4.77% of GDP in 2003; in Jamaica in 2005, the contribution of copyright-based industries was about 4.8% of In GDP. contribution all of copyright-based these industries cases, to the the national economic economy as measured by GDP was higher than that for Malawi. This may partly be attributed to the problems copyright-based in industries in Malawi are small-scale and the there were challenges in obtaining information for availability of data, as most of the this study. The total copyright-based industries as defined by WIPO are estimated to have contributed to theMalawi economy in 2009 as follows: 4.1 The economic contribution of the copyright-based industries in Malawi is estimated using the following key summary indicators: gross output, gross domestic product (GDP), remuneration employment (employee share in the The incomes) economy. selection of and these indicators has primarily been determined by the availability and types of data that are used in the compilation of national the NSO. accounts figures for Malawi by 4 . 24 The Economic Contribution of Copyright-Based Industries in Malawi Figure 4.1: Table 4.2: as such sectors transportation, constructionandminingquarrying. surpassing GDP to contributor ranking highest eighth the was the industries 2009 in copyright-based 3.46% of contribution a With 10.8%. contributing manufacturing by followed of 2009 33% in about GDP contributing sector fishing and forestry agriculture, the with of agro-based, economy largely The is 4.2. Malawi Figure and Table4.2 in shown is Malawi in sectors main of number selected a with compared and GDP on economy,based national the to industries copyright-based the of contribution The 4.2 Accommodation andfoodserviceactivities Human healthandsocialworkactivities Education Personal services COPYRIGHT-BASED INDUSTRIES Financial andinsuranceactivities Information andcommunication Wholesale andretailtrade Real estateactivities Public administrationanddefence Manufacturing Agriculture, forestryandfishing Economy in2009 Economic Contributionofopyright-BasedIndustriesompared withOtherSectorsintheMalawi Percentage shareofGDPbysectorinMalawi2009 Economic contributionofcopyright-basedindustriesinMalawi2009 Sector 32.90 2009 2.24 2.85 2.86 2.93 3.46 4.44 4.46 7.63 8.01 8.19 10.8 The Economic Contribution of

Copyright-Based Industries in Malawi25 2.08 2.02 0.91 0.76 1.31 5.66 100.00 Percentage share of GDP by sector in Malawi in 2009 Percentage share of Percentage share of GDP by sector in Malawi in 2009 (continued) in Malawi in share of GDP by sector Percentage Economic Indicators in Analysing Economic Contribution of Copyright-Based Industries Transportation and storage and storage Transportation Construction water supply gas and Electricity, Mining and quarrying Other services on products less Subsidies Taxes prices GDP in constant 2009 Table 4.2: Table For gross output, it is noted that the the core interdependent copyright-based industries copyright-based contributed industries K10,302,313,330.00, contributed K1,904,199,530.00 and contributed the non-dedicated support industries contributed K5,593,609,390.00. K47,381,051,380.00, the partial This implies industries that of the total contribution of copyright-based industries to gross output, core copyright 16% industries, came 73% came from from interdependent copyright industries, 3% came from the partial and 4.3). 4.1 the non-dedicated support industries (Figures copyright industries and 8% came from 4.3 contribution economic the show to study this in analysed are that indicators economic the discussed 1 Chapter domestic output, gross and performance gross of copyright-based industries in Malawi. These indicators are productivity. labour and employees of number remuneration, employees’ added, value by measured product Figure 4.2: 26 The Economic Contribution of Copyright-Based Industries in Malawi Figure 4.3: and 6%camefrom thenon-dedicatedsupportindustries(Figure 4.5). paid industries copyright partial the from came 2% industries, copyright-based interdependent from industries came 65% industries, copyright-based partial core from came 26% industries, copyright-based of the bill wage total that the implies among This K5,897,922,810.00, K566,911,700.00. out paid paid industries support non-dedicated the industries and K200,000,830.00 copyright-based interdependent the corethe K2,389,133,780.00, that out observed paid is industries it copyright-based income, employees’ For Figure 4.4: the partialcopyrightindustriesand7%camefrom thenon-dedicatedsupportindustries(Figure 4.4). contributed copyright- from came 2% industries, copyright industries interdependentfrom came 76% industries, copyright-based corefrom support partial non-dedicated the the and K2,230,634,770.00. This implies that among K23,219,306,110.00, the total K611,014,640.00 contribution of copyright-based industries, the 15% came contributed K4,417,170,240.00, contributed industries contributed based industries industries copyright-based core copyright-based the that interdependent observed is it GDP, For Economic contributionofcopyright-basedindustriestogrossoutputin2009 Economic contributionofcopyright-basedindustriestoGDPin2009 The Economic Contribution of

Copyright-Based Industries in Malawi27 persons, Share of employees in copyright-based industries in Malawi in 2009 Share of employees in copyright-based Employees’ income share of copyright-based industries in Malawi in 2009 in Malawi in industries income share of copyright-based Employees’ Labour Productivity 4.4 As discussed in Chapter 1, labour productivity of copyright-based industries, worker, was definedcalculated asfor totaleach of outputthe per four categories. The results show the a higher non-dedicated labour support productivity for industries, followed by the interdependent copyright core copyright industries. The labour industries productivity of core copyright-based industries was at and K1,999,000 per then the worker per year compared with the labour productivity of non-dedicated support industries, which was at K4,155,000 per worker in 2009. 5,153 employed industries copyright-based core the that observed is it employees, of number the For Figure 4.6: the interdependent copyright-based industries industries employed employed 851 persons and 19,366 the non-dedicated support industries persons, employed 1,333 persons. This the implies that among the partial total persons employed in copyright-based industries, 19% copyright-based were employed in core copyright industries, 73% were employed in interdependent copyright industries, 4.6) in the non-dedicated support industries (Figure employed 3% partial copyright industries and 5% were were employed in Figure 4.5: 28 The Economic Contribution of Copyright-Based Industries in Malawi The core copyright-based industries contributed K4,417,170,000 to GDP. When this is decomposed, it is it decomposed, observed that the is press and literature this contributed the GDP.highest When value added, to amounting to K1,935,624,000 K4,417,170,000 or contributed industries copyright-based core The while thelowestcontribution camefrom thecopyright collectingsocietyatK67,148,000orlessthan1%. 25%, or K2,568,953,000 contributed category.opera this and within productions53% theatrical Music, or K5,472,370,000 to amounting output, highest the contributed literature and press the that observed is it The core copyright-based industries contributed K10,302,313,330 to gross output. When this is decomposed, Malawi havebeenclassified,asprovided forintheWIPOGuide,into: in industries copyright-based core below,the 4.8 Figure in shown Tableand in 4.4 given As 4). Annex (see activities various into decomposed industries corecopyright-based of contribution the discusses section This 4.5 Table 4.3: Figure 4.7: TOTAL FORTHEECONOMY Total copyright-basedindustries 4. 3. 2. 1. • • • • • • • • • Non-Dedicated supportindustries Partial copyright-basedindustries Interdependent copyright-basedindustries Core copyright-basedindustries Economic ContributionofDecomposedore Copyright-BasedIndustriesinMalawi2009 copyright collectingsociety advertising services visual andgraphicarts software anddatabases photography radio andtelevision motion picture andvideo music, theatricalproductions andopera press andliterature Labour productivityofcopyright-basedindustriesinMalawi2009 Labour productivityofcopyright-basedindustriesinMalawi2009 Copyright Industries Output/Employee (K’000) 2,239 2,441 4,195 2,237 2,447 1,999 The Economic Contribution of

Copyright-Based Industries in Malawi29 % 0.97 0.08 0.97 0.14 0.39 25.98 51.33 20.14 100.00 No. of 4 7 Employees 50 50 20 No. 5,153 1,339 2,645 1,038 % 2.24 0.13 0.15 1.29 0.34 40.72 22.43 32.71 100.00 Income Employees 3,016 3,518 8,037 K’000 53,450 30,776 972,874 536,002 781,460 ,389,134 % 1.39 7.50 0.42 7.45 3.06 1.14 43.82 35.22 100.00 Product K’000 61,610 18,447 50,303 Gross Domestic 331,087 329,042 135,189 4,417,170 1,935,624 1,555,869 % 1.65 0.22 4.15 2.63 0.65 53.12 24.94 12.65 100.00 Gross Output K’000 22,409 67,148 170,231 427,802 270,639 5,472,370 2,568,953 1,302,760 10,302,313

Decomposed Core copyright-based industries’ contribution to Malawi’s economy in 2009 contribution to Malawi’s Decomposed Core copyright-based industries’ Decomposed Core copyright-based industries’ contribution to Malawi’s economy in 2009 to Malawi’s industries’ contribution Decomposed Core copyright-based Press and literature Music, theatrical productions, operas Radio and television Photography Software and databases Core copyright industries graphic arts and Visual Advertising services Copyright collecting societies Figure 4.8: Table 4.4: Table The core copyright-based industries employed 5,153 persons. When this is decomposed, it is observed that the press and literature employed 1,339 persons, music, theatrical productions and opera employed 2,645 20 persons. collecting society employed persons and the copyright 44% within this category. 44% Music, within theatrical this productions and category. opera contributed K 1,555,869,000 or 35% in society collecting copyright the from came contribution lowest the while industries, copyright-based core the about 1%. at K50,303,000 or 30 The Economic Contribution of Copyright-Based Industries in Malawi Table 4.5: 8,800, paperretail salesemployed174andmusicalinstruments98persons. is shown that the it computer and equipment activity decomposed, employed 10,294 persons, paper is manufacturing employed this When persons. 19,366 employed industries copyright-based interdependent The K137,180,000, eachmakingacontributionoflessthan1%. contributed instruments musical and K175,045,000 contributed sales is retail category.Paper this output, in 37% or highest this the contributed When sector GDP. equipment and to amounting computers to the K14,306,849,000 K23,219,306,000 or that 62%, observed followed contributed is by paper it manufacturing industries decomposed, which contributed K8,600,231,000 copyright-based interdependent The about 1%. Paper retail sales contributed K890,477,000 or 2%, while musical instruments contributed K600,876,000 or to K26,235,280,000 or 55%, followed by paper manufacturing that contributed K19,654,419,000 or 41%. decomposed, it is observed that computer and equipment activity contributed the highest output, amounting is this When output. gross to K47,381,051,000 contributed industries copyright-based interdependent The in industries copyright-based interdependent the below, 4.9 Malawi havebeenclassifiedinto: Figure in shown and 4.5 Table in given As 4.6 Paper manufacturing Paper retailsale Musical instruments Computers andequipment industries Interdependent copyright • • • • in 2009 Economic ContributionofDecomposedInterdependent Copyright-BasedIndustriesinMalawi paper manufacturing paper retail sales musical instruments computers andequipment Decomposed interdependentcopyright-basedindustries’contributiontoMalawi’s economyin2009

19,654,419, 26,235,280, 47,381,051, 890,477, 600,876, K’000 Gross Output 100.00 41.48 55.37 1.88 1.27 % 14,306,849, 23,219,306, 8,600,231, 175,045, 137,180, Gross Domestic K’000 Product 100.00 37.04 61.62 0.75 0.59 % Employees Income 2,510,369, 3,258,814, 5,897,923, 82,899, 45,841, K’000 100.00 42.56 55.25 1.41 0.78 % No. ofEmployees 10,294, 19,366, 8,800, 174, 98,

100.00 45.44 53.15 0.90 0.51 % The Economic Contribution of

Copyright-Based Industries in Malawi31 Decomposed interdependent copyright-based industries’ contribution to Malawi’s economy in 2009 to Malawi’s contribution copyright-based industries’ interdependent Decomposed apparel, textiles and footwear apparel, furniture household goods, china and glass engineering and survey architecture, Copyright-Based Industries in Malawi in 2009 Economic Contribution of Decomposed Partial • • • • The partial copyright-based industries employed 851 each persons. component Taking separately; furniture engineering architecture, while persons, 272 employed footwear and textiles apparel, persons, 464 employed and survey employed 68 persons. The partial copyright-based industries contributed K611,014,640 to When GDP. this is observed decomposed, that furniture it contributed the highest is output, amounting to K395,902,070 or 65%, followed by architecture, engineering and survey which contributed K111,163,250 or 18%, while apparel, textiles and footwear contributed K95,643,300 or about 16%. The reduced numbers using the copyright factors are given in Annex 5. The partial copyright-based industries copyright-based partial The 5. Annex in given are factors copyright the using numbers reduced The contributed K1,904,199,530 to gross output. When contributed this the highest gross output, is amounting to K931,968,190 or disaggregated, 49%. Architecture, engineering and it is observed survey that contributed K546,020,050 or 29%, furniture while apparel, textiles and footwear contributed K363,588,920 or about 19%. 4.7 classified into: industries in Malawi are 4.10, the partial copyright-based 4.5 and Figure As shown in Table Figure 4.9: 32 The Economic Contribution of Copyright-Based Industries in Malawi Table 4.6: or about22% andgeneraltransportcontributed K1,231,998,000or 22%. output, amounting to K3,105,140,000 or 56%. Telephony and Internet activity contributed K1,256,471,000 grosshighest the retailingcontributed and wholesale General grossoutput. to K5,593,609,000 contributed The reduced numbers using the copyright factor are given in Annex 4. The non-dedicated support industries by: given is factor NDSI the formula, copyright the Using K896,062,434,000. is K28,247,491,000, GDP non-distribution the while is industries copyright-based partial and interdependent core, for GDP the of sum The been classifiedinto: Tablein given As have Figurebelow,Malawi in 4.10 in shown industries and support 4.6 non-dedicated the 4.8 Figure 4.10: Partial copyrightindustries Apparel, textilesandfootwear Furniture Household goods,chinaandglass survey Architecture, engineeringand • • • Economic ContributionofDecomposedNon-edicatedSupportIndustriesinMalawi2009 telephony and Internet telephony andInternet general transportation general wholesaleandretailing Decomposed partialcopyright-basedindustries’contributiontoMalawi’s economyin2009 Decomposed partialcopyright-basedindustries’contributiontoMalawi’s economyin2009

1,904,199.53, 363,588.92, 931,968.19, 62,622.37, 546,020.05, K’000 Gross Output 100.00 19.09 48.94 3.29 28.67 % 611,014.64, 95,643.30, 395,902.07, 8,306.02, 111,163.25, Gross Domestic K’000 Product 100.00 15.65 64.79 1.36 18.19 % 200,000.83, 26,357.87, 118,741.83, 10,428.41, 44,472.72, Employees Income K’000 100.00 13.18 59.37 5.21 22.24 % 851 272 464 47 68 Employees

No. of 100.00 31.92 54.55 5.55 7.98 % The Economic Contribution of

Copyright-Based Industries in Malawi33 % 57.26 32.74 10.01 100.00 No. of

Employees 763 437 133 1,333 % 45.84 31.53 22.64 100.00 Income Employees K’000 566,912 259,854 178,736 128,322 % 45.22 26.40 28.38 100.00 Product K’000 Gross Domestic 588,778 633,155 2,230,635 1,008,702 % 55.51 22.03 22.46 100.00 Gross Output K’000 5,593,609 3,105,140 1,231,998 1,256,471

rade in Copyright-Based Goods and Services in Malawi in 2009 Decomposed non-dedicated support industries’ contribution to Malawi’s economy in 2009 contribution to Malawi’s Decomposed non-dedicated support industries’ Decomposed non-dedicated support industries’ contribution to Malawi’s economy in 2009 to Malawi’s support industries’ contribution Decomposed non-dedicated oreign T Foreign Non-Dedicated support industries General wholesale and retailing General transportation Telephony and Internet Telephony The results of this analysis are industries, presented copyright-based The in 2009. in 4.7. Table Malawi in The balance trade the table and services presents and goods data copyright-based on services, imports and and goods copyright exports support of non-dedicated and copyright partial interdependent, core, the including it than products industries creative more imported Malawi that evident is It balance. trade negative a recorded K36,550,675,814 at valued were 2009 in imported products total the that show data The 2009. in exported compared with its exports valued at K1,249,885,389, giving a negative trade balance of K35,300,790,425. The creative industries imports were 12.3% of the total imports, while the creative industries exports were 0.75% of the total exports. 4.9 from data trade Initially, 2009. in Malawi in industries creative of imports and exports the at looked study The products of classification the using commodities of exports and imports for extracted were 2009 for NSO the partial and non-dedicated support copyright industries. interdependent, by WIPO into the core, as provided Figure 4.11: Table 4.7: Table The non-dedicated support industries employed 1,333 persons. Out of this, general wholesale and retailing employed 763 persons, general transport employed 437 persons 133 persons. and telephony and Internet employed The non-dedicated support industries contributed K2,230,635,000 to When GDP. this is disaggregated, it is observed that general wholesale and retailing contributed the highest gross domestic output, amounting to K1,008,702,000 or and 45%. Internet Telephony contributed K633,155,000 or about 28% and general K588,778,000 or 26%. transport contributed 34 The Economic Contribution of Copyright-Based Industries in Malawi Table 4.8: ht untr eprs ee bu 6% f h ttl oyih-ae idsre eprs wie rs and press while exports, industries copyright-based total literature contributed15%. the of 61% about were exports furniture that of the exports and interdependent copyright-based industries contributed 14.4% in 2009. It is worth noting exported were that wereproducts from partial industries copyright industries, 66.3%, copyright-based while core copyright-based of industries contributed only majority 16.7% the exports, of case the In industries. based industries, 15.2% were from partial copyright industries and copyright- 12.7% wereinterdependent fromfrom non-dedicated weresupport 27.5% industries, copyright-based core from were imports total the of 44.7% about that noted is it classification, WIPO the using examined are exports and imports the When Press andliterature Core copyrightindustries Music, theatricalproductions,operas Radio andtelevision Photography Total core Computers andequipment Interdependent copyrightindustries Paper Total interdependent Partial copyrightindustries Apparel, textilesandfootwear Furniture Household goods,chinaandglass Total partial Telephony andInternet Non-dedicated supportindustries Total non-dedicated Total copyright-based Total Malawi Foreign tradeofcopyright-basedindustriesinMalawi2009

298,169,609,916 14,652,359,674 36,550,675,814 16,322,732,247 10,035,088,723 3,708,713,534 5,552,124,267 1,253,958,454 2,662,296,654 7,372,792,068 1,709,138,159 4,640,730,577 4,640,730,577 395,201,774 134,272,575 21,212,345 K

Imports 100.00 40.09 44.66 20.17 27.46 10.15 15.19 12.70 12.70 1.08 3.43 0.06 7.28 4.68 0.37 %

167,687,743,591 760,380,823.98 30,445,800.30 38,176,917.61 829,003,542 1,249,885,389 191,959,198 207,032,380 179,723,354 87,732,819 15,073,182 91,990,536 34,126,112 34,126,112 K

Exports 100.00 16.56 66.33 15.36 14.38 60.84 1.21 2.73 7.02 7.36 2.44 3.05 2.73 % – –

130,481,866,325 -14,460,400,476 -16,115,699,866 Trade Balance -35,300,790,425 -1,253,958,454 -2,574,563,836 -7,280,801,533 -9,855,365,368 -3,678,267,733 -4,723,120,725 -4,606,604,465 -4,606,604,465 -395,201,774 -948,757,335 -96,095,657 -6,139,163

The Economic Contribution of

Copyright-Based Industries in Malawi35 Exports of copyright-based industries in Malawi in 2009 Exports of copyright-based industries in Foreign trade of copyright-based industries in Malawi in 2009 industries in Malawi of copyright-based Foreign trade Figure 4.13: Figure 4.12: 36 The Economic Contribution of Copyright-Based Industries in Malawi Figure 4.14: Imports ofcopyright-basedindustriesinMalawi2009 The Economic Contribution of

Copyright-Based Industries in Malawi37 ad hoc basis include Development of Some Core Copyright-Based Industries in Malawi ultural Sector from GovernmentFunding for the Cultural Sector from Policy and Regulatory Framework Introduction

With the exception of , there are few donors interested in funding the cultural sector with substantial with sector cultural the funding in interested donors few are there Norway, of exception the With amounts and in a predictable Countries way. that have provided limited funds on an 5.3 governmentThe development of copyright-based the industries core is closely linked to the amount of by investment in the recognition increased Despite financing. private through or resources public from either sector, there reduction, poverty and growth economic for sector promising a as industries creative and cultural the of had not been a marked increase in funding in the year studied. In fact, funding to the ministry responsible of funding to was a substantial increase There had at best stagnated and at worst for been culture reduced. the Culture Ministry in 2009/10, almost two-fold which from the is previous year, attributed to lobbying by the said Ministry. Spain, France, Japan and . Other ancillary policies that would absent, include affect a book the development policy and development a national language A of policy. book policy is the necessary the for development of copyright-based authorship, as it would industries, encourage Malawian authors to but write books, both fiction and are textbooks. It is therefore not surprising that, in the textbooks absence of for such the a framework, education the curricula list of in prescribed secondary and tertiary levels. There Malawi is a draft on book policy that has been is in existence since 2003 which is heavily dominated by by Cabinet. foreign awaiting approval authors, especially at 5.2 The main policy framework for supporting the development having of Bill, Copyright reviewed copyright the and industries content of regulation has for Bill Classification remained the Both 2005. in since form draft Act Craft and Arts the in provision The enacted. be to yet are respectively, 2009 and in1998 completed been (Cap.49:07), establishing the Arts and Craft Advisory Council, is yet to be operationalized by the ten-member constituting council. Its absence has meant that associations in the arts and craft sector are denied the under operate who sector sports the in counterparts their for possible is that governmentsubsidies to access the National Sports Council. The absence of a cultural policy has meant that the copyright-based industries are not mainstreamed in the economic activities of thus the being country, denied their legitimate share of the national budget. funding from 5.1 This chapter gives a brief picture of the development of some core copyright-based As can industries be in appreciated, the said Malawi. industries the are interpret impacted to by which economic, within context regulatory and the historical provide to factors: the order in situation prevailing the reviews therefore chapter holder right key some with conducted were that interviews from originates presented information The results. associations the drama, representing press, film,literature, music, software andphotography, databases, as in the country. the only collecting society operating well as with COSOMA, 5 . 38 The Economic Contribution of Copyright-Based Industries in Malawi them are inactive. 7 6 te piaey we nwppr srn u i 19 t tk avnae f h fedm f expression of freedom the of advantage take to associated with multiparty democracy. The 1993 notable ones numbered in up sprung newspapers owned privately Other independence since in 1964. circulation in been has paper The distribution. charge of free for meant Lathu, Boma called Chichewa in publication monthly a runs also Information of Ministry the through Government, The paper (Fuko)invernacular, whichisdistributedforfree andhasacirculation of30,000. the and 35,000 at the stands circulation department, distribution its to According the 1993. publishes 29, company July on scene the on came Publications Nation stands at14,000,andtheSundayTimes, whichat13,000copieshasthelowestcirculation. Source: DepartmentofCulture Table 5.1: same company include (the newspaper daily a publishing company only the was it 1993, Until Association. TeaPlanters the by owned Publications Ltd. The former has roots dating back to 1895, when it used to Nation publish and the Limited Newspapers Blantyre publishers: two by dominated is Malawi in publishing Newspaper 5.4 arts tobusiness,includingcourseslikeMusicandBusinessAdvancedBusiness. creativethe link introducedwhich Arts courses Performing and Fine of Department the year academic 2012 creative arts find themselves in jobs not related to their specialisation. In order to address the problem, in the that such subjects are almost never taught in secondary schools. Those who actually end up specialising in the fact the to owing arts fine and drama music, in specialise to encouraged werenot degreecourse Education of Bachelor a pursuing students 2012 However,until level. undergraduate at arts creative and performing the in courses degree offers which Malawi of University the of College Chancellor only is it level tertiary At creative artsare hardly everoffered inmostofthesecondaryschools. level, the two subjects are offered as optional subjects although, due to resource constraints, performing and level, but performing arts, made up of music, drama and dance are missing at this stage. At secondary school Creative arts, comprising painting, weaving, drawing and designing, are offered as a subject at primary school 5.3.1 3,000 copies per edition. In total, the country has in excess of 60 registeredpublications 60 of excess in has country the total, In edition. per copies 3,000 exceeding not usually circulation, limited with publications magazine arethere newspapers, the from Apart mainly forpoliticalpurposes. and elections presidential and parliamentary government, around especially appear, papers other time, to

Censorship BoardofMalawi National ArchivesofMalawi Antiquities Services Museum ofMalawi Arts andcraft Cultural services(HQ) Registrar ofCompanies RegisterintheRegistrarGeneral’s Department. , and The Champion The Monitor,Enquirer , TheDemocratMalawiDemocratus , TheFinancialObserver Daily Times) whose circulation as of March 2013 stood at 15,000 copies. Other editions published by the Arts and Craft Education in Malawi in Education Craft and Arts Press andLiterature National budgetforcultureinK(2007/08to2011/12) Cultural services Malawi News with a circulation of 18,000 copies, wt a iclto o 1,0 cpe, the copies, 16,000 of circulation a with Nation, Daily at 13,000. Apart from this, it also publishes a weekly a publishes also it this, from Apart 13,000. at Nation Sunday 8,741,092 3,018,727 6,269,402 3,173,079 1,298,035 3,018,727 2007/08 10,455,296 3,610,726 7,942,220 9,679,999 1,614,580 3,610,726 2008/09 6 six and have since folded up. From time 14,740,243 13,648,373 22,370,779 12,738,481 9,098,915 9,098,915 2009/10 Weekend Times, whose circulation 13,899,927 12,870,303 28,352,576 12,012,282 8,580,202 8,580,202 whose Nation, Saturday 2010/11 Central African Times 7 although most of most although 14,100,000 13,651,754 19,069,748 9,502,504 9,502,504 3,389,557 2011/12 The Economic Contribution of

Copyright-Based Industries in Malawi39 professional professional 8 Book Publishing Book Publishing primary schools with a total enrolment of 4,034,220 students. In contrast, at secondary level there Education Statistics 2011, Department of Education Planning, Ministry of Education, Science and Technology, Education and Technology, Education Statistics 2011, Department of Education Planning, Ministry of Education, Science Management Information System 8  Finally, Finally, the cumulative tax regime implemented by the state on locally making produced them books more expensive has than imported the ones. effect This of further stifles the growth of an already struggling industry. The Publishers Association, in an programme’ which attempt involves identification to of schools improve with existing the libraries and stocking situation, books the from librariesthe has Association with members on introduced the understanding that a the schools ‘reading will let access the circles to community their libraries. have According to the President of the Association, the programme has been piloted in out. four schools and it is yet to be rolled The sector is also battling the penetration problem of television of and other a technologies including poor the Internet. reading The reading culture culture is even which worse in the rural areas has as a result of minimal been access to electricity and exacerbated the rate is only 7% by according to the 2008 the published by NSO. Malawi Population and Housing Census reports hologram to books published with authorisation from publishers. COSOMA already affixes adhesive holograms adhesive In affixes response already to COSOMA the publishers. from problem authorisation of with book published books piracy, BPAM to requested hologram COSOMA to extend the application of the agents enforcement law and public the both helps This law. by required is as carriers, sound legitimate all to to identify counterfeits. Nationally there has been an attempt to deal with the problem of counterfeits, not only as it relates to book and music piracy but including other intellectual property products, by coming up with an This anti-counterfeit is policy. an initiative of the Ministry and of Private Trade Sector Development, in 2007 is yet to be adopted by the government. but the draft which was ready The other challenge relates to the presence of book piracy and photocopying due to a shortage of books. The problem of photocopying is already being addressed by COSOMA through agreements its with reprographic both licensing public and private educational institutions. The reproductions similar process and photocopying undertake involves who works the copyright-protected of users with negotiation agreements of in the course of either their work or education and the collection of remuneration for eventual distribution to the right holders. The major challenge that the members of the from state publishing, especially at Association primary level, which is carried out by face, a state publishing house called the related to market share, is competition Malawi Institute of Education, with the printing and distribution done are printers by foreign jobs, printing For subjects. core the for titles for common are units 600,000 of Ministry excess in runs of Education. Print preferred over local ones, because they are perceived to be This cheaper. may in part explain the negative trade balance of K14,460,400,456 (34.7%) under press and literature. These books are distributed free of charge in the first eight years of primary education; private publishers are left therefore to scramble for the secondary and tertiary levels. Negotiations with government at are an advanced level to convince it to leave to the private sector. publishing of textbooks at primary level lecturers and scientists. lecturers It is therefore not surprising total the of that % 93 constitute who the publishers textbook by dominated encouragement is Book publishers, of the interest the Publishers objective representing main Association its as of has Malawi association the (BPAM), 1996, the in umbrella Formed 15. body at stands which membership, in literacy enhancing at aims also It products. members’ its of marketing the promote to designed activities of Malawi by a promoting This culture. reading is done holding through book fairs. It also undertakes ancillary and editors activities including training of authors were were only 1,041 schools with an enrolment of 2,033,528 students and with 53,031 teachers. There were eight teacher training colleges, with a student enrolment there of Finally, 10,951 lecturers. 214 and and 2,288 of enrolment student 278 a with colleges 15 694 had lecturers. sector training and vocational The students technical 11,692 and with private, and public both country, the in universities 11 total in were The book publishing industry in Malawi 5,395 is largely driven by the education sector, which in 2010 had 5.5 40 The Economic Contribution of Copyright-Based Industries in Malawi the exceptionoftwogroups, largelybeenreplaced bydiscooutfits,whichin2010numbered 260. this area are relatively small and record-keeping is not a priority. Live performances by music bands have, in with trade their plying enterprises the by,of come most to because hardare performances to attendance and venues of industry.terms the in on effectStatistics modernising a had has which COSOMA of presence the and promoters. The sector has witnessed stable growth in the past 20 years. singers choreographers,Growth composers, is including stakeholders closely of associated multiplicity with a of up made is sector music The 5.6 11 10 9 training andalsofunctions as asaleoutletforlocallyproduced artworks,there are noartstrainingcentres. instance, there is no national art gallery in the country; with the exception of Ku Ngoni Arts which offers skills The visual arts sector, like the other arts sectors, lacks the basic support structure within which to flourish. For COSOMA undertheCulturalSupportScheme(CSS). establishment of photography clubs in schools, especially at secondary school level, courtesy of funding from has, promote the value association of photography as an The art and an Mzuzu. occupation. PHOTAMA and hopes to achieve this through the Blantyre, to also and of national truly it make to exerciserecruitment cities membership nationwide however,a on embarked major three the to limited been far so has of for 450,11 footprint its since field this in at trade body their plying individuals of number stands the of umbrellareflection true a not are membership which association’s an The PHOTAMA, sector. the by organise made and being formalise is to photographers, Effort establishments. three of exception the with Both the photography and visual arts sectors are not well structured and most operators are largely informal, 5.7 Challenges tothemusicsectoringeneralincludefollowing: skills training. throughvarious skills artistic with members its equipping and musicians; welfareof the improvementof the for stakeholders various lobbying COSOMA; to complementary role a this plays regard in it – piracy fighting field with a registered membership of 1,600 in October 2010, a rise from 900 in 2002. Its objectives include: Championing the creation of a unique Malawian ‘sound’ is MAM, which is a grouping of players in the musical the creation of tunes unique to Malawi and identified with it in the same way as reggae is with the Caribbean. and makethemavailabletothepublicisintendedaddress theproblem oforiginalityandalsotofacilitate traditional songs dating back to the 1950s held by the public of broadcasterrecordings (Malawi musical Broadcasting the Corporation) digitise to project A music. Malawian of originality of lack is recordings sound in negotiate publishing deals with foreign counterparts. The other reason advanced for absence of foreign trade This local success has not been replicated abroad, largely due to absence of professional record companies to Successful recording artists have been known to sell in excess of 230,000 of excess in sell to known been have artists recording Successful is equallybig,butthere is an absenceoflicensedsubpublisherstosupplyitwithlegitimateproducts. currentthe of price at 200,000,000 K4, of value street a with units million representing14 million, 14 totalling holograms sold Company, which manufactures and distributes about 90% of the music. Between 2001 player,Afri-Music and one the 2011, COSOMA by dominated been time long a for has industry the music, recorded of terms In

Photama 2011membership register COSOMA hologram trackersoftware which tracksunitsalesanduse. COSOMA 2010annualauditedaccounts − − − − − − Music Photography andV Insufficient infrastructure, including performance venues, recording studios and training centres, to centres, training and studios recording venues, performance including infrastructure, Insufficient Piracy, especially of foreign recorded works due to absence of foreign record companies or partnerships of business complicated the comprehend to investors by failure to due investment of lack General support thedevelopmentofmusic. with localcompanies; music, leavingcreators todoubleupasbusinesspeoplewell; K300 per unit; 95% of 95% unit; per K300 isual Arts these werethese recordedlocally foreign for market music The works. 10 units locally of a single album. single a of locally units 9

The Economic Contribution of

Copyright-Based Industries in Malawi41 Seasons of Favour which won a number of awards. Since then, individuals Copyright Collecting Society otion Pictures and Theatre Motion Pictures COSOMA is piracy more combat to measures of number than a instituted has it regard a this in and Law Copyright the collecting of enforcement society, as it also functions as a Copyright Office responsible for In the absence of a national cultural manages fund, a CSS which COSOMA, gives out grants at to right holder associations the for the various request arts to carry of out various K400,000,000 the of excess in associations the to available made has it 2004 in inception its Since Royal programmes. Norwegian Embassy, for the development of the arts. 5.9 In Malawi, unlike in other countries such as Kenya, and Zambia, there is only one statutory and multipurpose collecting society 1992, operating in in the Created field ofassociations. musicholder and literaryright works.10 COSOMA hasand more than 2007) in 2,500 from increase (an members individual 4,000 administrative 30% the on survived has then since and 2007 until up government the from funding received it fees it deducts from the collection of material. Its collections have risen to K 100,000,000 annually. photocopying of copyright-protected royalties for broadcasting, public performance, reproduction and Overall, however, Overall, both however, the film and theatre sectorsremain under-developed, unable to claim their rightful place as economic contributors due to insufficient infrastructure, absence of funding from government and itself is sector, the for body umbrella an Malawi, of Association Theatre National The facilities. training of lack in infancy but aims to effectively lobby the relevant stakeholders, including government, for membership stands at 2,000. subsidies. Its At tertiary level, the Department of Fine and Performing Arts as part of their studies from time to time present present time to time from studies their of part as Arts Performing and Fine of Department the level, tertiary At productions, both in English and Group Drama Kwathu patronage; low Chichewa, to due infancy in die to tendency which a have groups theatrical Professional are performed whereas beyond fees ticket from the former the storm, confinesthe survived having as ofout stand Arts thePerforming Nanzikambe and campus. 2008 in charity a as registered It 2004. since donor of beneficiary a been has Arts Performing Nanzikambe and received a grant of K200 million from the Norwegian Embassy to implement an arts consolidation and for the period 2008-2011. communication programme The theatre sector is not very different from the other arts sectors in terms of levels of development. Theatre Theatre development. of levels of terms in sectors arts other the from different very not is sector theatre The which (ATEM) Malawi in English Teaching of Association the with associated been largely have performances English in secondary schools. of spoken as a vehicle for the promotion has used theatre The first wholly Malawian productionfilm company, 2010 calledwith a production entitled First Dawn Arts, only came on the scene in Since 2010 there have been five filmproductions, with one benefitting fromgrant a under the CSS which is a grant facility to the arts established by the Royal Norwegian Embassy and managed by COSOMA. In the remains stunted. of the local film industry the growth of local movies, absence of a fund for production 5.8 Malawi has had no local film production company until Productionsrecently. of films, most of which were documentaries, was the preserve of the Film Unit under the Ministry of Information and Broadcasting. The Ministries of Agriculture and Health also had film production units for the dissemination of ministry-specific to a specific sector. related campaigns messages and for conducting awareness the called association an form to together come have industry film local the of development the in interested Film Association of Malawi. The visual arts sector has an association called membership of the 150 Visual individuals. A Artists review Association of of the membership Malawi registry (VAAM) established practitioners. budding visual artists and is yet to attract largely made up of of with VAAM reveals a that the group is Major outlets for visual art works number three and all of them are foreign-owned. The contribution to the Central and Galleria La Carvena, La to attributed largely is earnings export in 1.2% of sector this of economy Africana. 42 The Economic Contribution of Copyright-Based Industries in Malawi pr fo cletv mngmn, OOA lo diitr te S. h Shm ws salse in established was Scheme The CSS. 2004 the administers also COSOMA management, collective from Apart Botswana andZambia,havecomeforstudyvisitstofindoutaboutit. of those including agencies, collecting countries’ other and successful relatively been has hologram the of including the introduction of an adhesive hologram label affixed to all legitimate works. The implementation 12 Challenges tothesectorincludefollowing: including sectors various to relate they education, health,commerce andtheenvironment. as issues Internet with dealing for framework a is which country, the in E-legislation first the of enactment the championing also is Department The Cabinet. the and of President Office the it under that falls effectwhich E-government, the of to Department the activities, through its week ICT all an in runs annually IT mainstreaming for need the to up woken has government The at theotherextreme are smallfamily-runenterpriseswithamodestcapitalinvestment. number of companies involved in software development. Major players in this sector are foreign-owned and It sectors. other with compared organised well employs between 400 and 500 individuals. The way the not sector is structured makes it difficult to estimategenerally the and small very still is industry software The 5.10 aimed atincreasing awareness andpreventing transmissionofHIV/AIDSinthecreative community has which (K44,000,000), (NAC) Commission AIDS National the and associations, arts member of building to Norwegian funding, COSOMA receives funds from HIVOS (Euro 60,000 2007-2010) for intensive capacity addition In Zimbabwe. to is Fund Cultural the what Malawi to is CSS the that said be can It amphitheatre. an of construction the supported and movie local a of shooting the funded festivals, arts supported has it regardthis in and sector arts the in operating players other supports further It associations. holder right ten to seven from beneficiaries of list the widened has 2015), 2012-May (June phase third its in now CSS, The each association. responsible for accounting and financial reporting to COSOMA. This has eased the administrative burden for members). and secretariat COSOMA Culture, regardlessProjectassociation Theis each membership.Office to of areevenly size Funds fairlyof distributed of Department the from representatives (with Committee the relevant association, for the development of proposals which are then screened and approved by a with liaison Grants in responsible, is Office Project The them. between associations seven the of administration the management, project decentralised from shift the where each was association handled its own important funds, to setting most up a Project The Office with associations. two project officers the to share to funding strategy its in steps major some took COSOMA M), NOK5.2 2011 2008-July (August phase second the In in project managementand reorganising andstrengthening thestructures oftheassociations. During the first phaseprojects. ofvarious thefor project,associations themember main focusthe wasto togrants trainof thedistribution leadershipthrough indone the rightbeen holderhas associations better.This and strengthen the capacity of the member associations so that they can serve the interests of their members

Africa Heritage– Research andConsultancy, Zombareport: ReviewoftheNorwegianSupport toCulture inMalawi5.7.11 − − 12 − − with funding from the RNE (Phase I: 2004-2007 NOK 1.950 million). The aim of the CSS is to promote Software andDatabaseevelopment The government has not done enough to promote local players and therefore most of the business the of thereforemost and players local promote to enough done not has government The framework regulatory The general. in sectors other with compared well-organised not is sector The goes to international actors. goes tointernational is afree-for-all and thisbringsindistortionsofpricingloweringstandards. market therefore the and finances in interested only is MACRA performance. the regulate not does The Economic Contribution of

Copyright-Based Industries in Malawi43 elevision T Radio and For locally produced content, the broadcasting stations rely on in-house productions as opposed to independent using production houses. This explains the trade deficit of K1,253,958,454, since there are virtually this sector. no exports from In terms of pay television, there is only one service provider operating in the country with a subscriber base of under 10,000. The increased number of stations has had a positive effect on creativity, especially as it relates to music, drama music, to relates it as especially creativity, on effect positive a had has stations of number increased The In broadcasted. movie one’s indeed or played song one’s having from delivered satisfaction is There films. and to attributed is 2010 in 30,000 to 1997 in 3,000 from COSOMA by registered songs the in increase the part, radio community for K1,000,000 from range budgets annual Their sector. television and radio the in growth the public broadcaster. to K500,000,000 for The country had one public broadcaster from independence in 1964 until 1994, when multi-party democracy multi-party when 1994, until 1964 in independence from broadcaster public one had country The for TV. stands at fifty including eight broadcasters date the number of licensed To was introduced. 5.11 44 The Economic Contribution of Copyright-Based Industries in Malawi regarding copyright-based industries,ratherthanassumingthatthistypeofinformation isreadily available. collection data of feasibility the emphasise must countries developing in studies such of planning The data. WIPO need to consider the situations prevailing in developing countries as regards the availability of economic against theMRA’s individual is law.which tocomputerise taxpayer the effort of identity every the revealing easily,without provided make be can data that MRAshould so ISIC by the records to ISIC; according classified not were that enterprises small and large for records tax with challenge Teamanother study,Survey faced the the During stakeholders, should be encouraged to make extra efforts to include of the data collection culture of other creative with industries. the working NSO, The performance. learn their of evaluation and to monitoring of ease need for records keeping industries copyright-based The government. the from recognition and trust strong a ensure will this as authorities, government with registration for need great a is There fromworks. their benefit to are country’sartisans the if measures punitive and strong for need a is There works. their piracy. was industries creative the workshasrenderedPiracy ofbothlocalandinternational mostownersofrightsunabletobenefitfullyfrom in associations various the by mentioned was that problem major One enforced. arenot which people’spresentlaws, other disregardthe using total of those froma of or part rights the on awareness of lack from resulted have may This courts. the even and COSOMA of intervention the despite and producers by swindled distributors being of their work. about There are owners assertions that those right who use fromwork have not complaints paid royalties presentlyfor some time are There work. their of the realise fully not do owners right where situation a to led has development This finalised. been yet not has sector this of practices and operations the regulate currently,and Malawi guide In to policy cultural the government. by acknowledged be to is contribution their if measures necessary the take to stakeholders all for need a is there that and important are industries copyright-based that shown has study the Nonetheless, Malawi. of economy the to industries copyright-based of contribution economic the of underestimation the in resulted performance was scanty. The use of such aggregated data and estimations for the small enterprises may have financial their on information associations, the of some with conducted interviews During enough. detailed scale enterprises that are mostly not registered.small- For arethe few that countries, are registered,developing their most financial recordsin are not as Malawi, in industries creative the of most that noteworthy is It related tolarge-andmedium-scalecompaniesonly. Accounts and the AES were already classified by the UN ISIC; however, the major problem was that the data National the from available data The data. 2009 the on based analysis the Teamredo Survey to agreedthe been produced and commented upon, more recent economic data for 2008 and 2009 became available and had report draft a and complete was study.analysis However,the after of commencement the at available in finalising it. The study initially was based on 2007 economic data for Malawi as those were the latest data data that apparent became it that availability was going to be a started major challenge. This almost derailed the had whole study and caused major delays study contribution the when economic only the was on it industries; available copyright-based readily of were data the secondary for reference that of assumption terms The the Malawi. on in were out study carried been has study of type this time first the was This transport andstoragesectors. and construction education, health, human quarrying, and mining the of that than higher was GDP of basis the on economy national the to economy.industries Malawi copyright-based the the to of contribution The important is sector the that shows employment, total the to 3.35% and output gross the to 3.65% about national economy in 2009. The contribution by copyright-based industries of 3.46% of the total value added, The results of the study indicate that the copyright-based industries in Malawi contributed significantly to the . 6

s n o i t a d n e m m o c e R d n a s n o i s u l c n o C The Economic Contribution of

Copyright-Based Industries in Malawi45 National Studies on Assessing the Economic National Studies on Assessing the Economic National Studies on Assessing the Economic National Studies on Assessing the Economic Guide on Surveying the Economic Contribution of Malawi National Accounts Report, 2002 – 2005. Zomba, Malawi. Office. (2007). Malawi National Accounts National Statistical Malawi. Zomba, (Unpublished). 2009 & 2008 Tables, Use and Supply (2012). Office. Statistical National 2009. Zomba, Malawi. Office. (2011). Annual Economic Survey, National Statistical Zomba, Malawi. 2009. of External Trade, Office. (2011). Annual Statement National Statistical and Sport (DCMS). Media UK Government. (2001). Department of Culture, Canada. Organization – WIPO. (2009). Intellectual Property World International World Organization. (2003). Property the Copyright-Based Industries. WIPO: Geneva. World International Property Organization (2006). Industries Series No. 1, WIPO: Geneva. Industries. Creative Contribution of the Copyright-Based World International Property Organization. (2006). Industries Series No. 2, WIPO: Geneva. Industries. Creative Contribution of the Copyright-Based World International Property Organization (2006). Industries Series No. 3, WIPO: Geneva. Industries. Creative Contribution of the Copyright-Based World International Property Organization (2011). Industries Series No. 4, WIPO: Geneva. Industries. Creative Contribution of the Copyright-Based [2] [3] [4] [5] [6] [7] R e f e r e n c e s [1] [8] [9] [10] [11] 46 The Economic Contribution of Copyright-Based Industries in Malawi Where didyouinvestitwithinthebusiness/company?______If yes;didyoueverreceive anycredit? ______.Where didyoureceive itfrom?_ Did youhaveaccesstoanycredit facilityin2009?_ What typesofBooks/Magazinesdoyoupublish?______Are youamemberofanyassociation/musicsociety?Ifyes,listthem:_ When wasthebusiness/activity/companyestablished?_ Type ofOtherActivity:_ Type ofMainActivity:_ Annex 1: s e x e n n A A. Identification A. Questionnaire for the contribution of copyright–based and related industries in Malawi’s national economy in 2005-2009 in economy national Malawi’s in industries related and copyright–based of contribution the for Questionnaire Name ofEstablishment/Entrepreneur Sample Questionnaires ______BOOKS/NEWSPAPERS/MAGAZINES PUBLISHERS ______Address ______Place andStreet The Economic Contribution of

Copyright-Based Industries in Malawi47 ______Location ______Clients Did you lose any earnings piracy in 2009?_ to can be solved?_ In your opinion, how best do you think these problems ______As a publisher is piracy a serious problem to you? If yes, how?_ to you? As a publisher is piracy a serious problem ______How did you try to solve the problem? ______Who do you think should help solve these problems? yet to be exploited in this industry? If yes, give examples. _ any opportunities you know of that are there Are ______faced in 2009? Rank them._ that your business other problems/challenges What are ______Who are your clients as a publisher? Who are your 48 The Economic Contribution of Copyright-Based Industries in Malawi Do youknowofanypublisherwhoisinvolvedinasimilaractivity?Ifyes,fillthetablebelow Please reporttothenearestthousandMalawikwachawherethereisavaluebeprovided. are you If available. not are this unable togiveprecise accounts for figures, pleasegivethebestestimatesyoucan. required audited not because are form accounts the Audit completing ‘-’. delay or not ‘Nil’ Do put questionnaire. please nil, is question the to answer the ‘N/A’.Where put case, this In business. your to apply not will questions Some below. questions all answer Please How muchdidyoureceiveasRoyalties onpublishedBooks(K’000) piracy onpublishedBooks(K’000) Total amountofmoneythatwouldhavebeen earnediftherewasno Total salesonpublishedBooks-Retailunitprice(K’000) Total salesonpublishedBooks-Wholesaleunitprice(K’000) Total percentageofsalesBookspublishedtheartistsreceived Total numberofBookspublished Total valueofassets/investment/capital(K’000) Total indirecttaxes(K’000) Total moneypaidascharges/feesonBookspublished(K’000) Total othercostsofBookspublished(K’000) Total costofBooksonmarketing(K’000) Total costofBookspublished(K’000) Value ofstocksBeginningYear (K’000) Value ofstocksEndYear (K’000) Total salesofMagazinespublished-exported(K’000) Total salesofMagazinespublished-local(K’000) Total salesofBookspublished-exported(K’000) Total salesofBookspublished-local(K’000) Total remuneration(K’000) Total numberofemployeesengaged Publisher DESCRIPTION 2007 Location 2008 2009 The Economic Contribution of

Copyright-Based Industries in Malawi49 ______Place and Street ______Address TRE ______DRAMA/THEA DRAMA GROUPS /ACTORS ______Name of Establishment/Entrepreneur Questionnaire for the contribution of copyright–based and related industries in Malawi’s national economy in 2005-2009 What type of drama/actor?_ you invest it within the business/company?_ did Where Type of Main Activity:_ Type of Other Activity:_ Type _ When did you start your profession? member of any association/society? If yes, list them: _ you a Are ______facility in 2009?_ Did you have access to any credit _ from? did you receive ______. Where any credit? If yes; did you ever receive ______B. Identification Designation in business: Designation in business: ______/______/ of respondent: Contact Numbers Name of enumerator: _ Date of interview: ______/______/201 of respondent :_ Name of respondent

50 The Economic Contribution of Copyright-Based Industries in Malawi Who areyourmainclientsasadramatist/actor? ______Are there anyopportunities youknowofthatare yettobeexploitedinthisindustry? Ifyes,giveexamples.______Who doyouthinkshouldhelpsolvetheseproblems?______In youropinion,howbestdoyouthinktheseproblems canbesolved?______How didyoutrytosolvetheproblem?______What are otherproblems/challenges thatyourbusinessfacedin2009?Rankthem.______Who doyouthinkshouldhelpsolvetheproblem ofpiracy?______In youropinion,howbestdoyouthinktheproblem ofpiracycanbesolved?______How didyoutrytosolvetheproblem ofpiracy?______As adramatist/actorispiracyseriousproblem toyou?Ifyes, how?_ Clients ______Location ______The Economic Contribution of

Copyright-Based Industries in Malawi51 Location Dramatist/Actor None=1 Primary School=2 Secondary School=3 University and above=4 Under 20 years=1 20 – 50 years=2 51 years and over =3 Male=1 Female=2 Please answer all questions below. Some questions will not apply to your business. In this case, put Where ‘N/A’. the answer to the question is nil, please questionnaire. put Do ‘Nil’ not or delay ‘-’. completing Audit the accounts form are because not audited required please give the best estimates you can. figures, for accounts unable to give precise this are not available. If you are What is your highest education? Tick nder which age group are you? Tick are Under which age group Indicate your Sex: Tick Do you know of any artist who is involved in a similar activity? If yes, fill in the table below. activity? If yes, is involved in a similar of any artist who Do you know 52 The Economic Contribution of Copyright-Based Industries in Malawi Date ofinterview:______/______/201_ Name ofenumerator:_ Contact Numbersofrespondent: ______/______/_ Designation inbusiness:_ Name ofrespondent: _ Please reporttothenearestthousandMalawikwachawherethereisavaluebeprovided. How muchdidyoureceiveasRoyalties(K’000) Total numberofcopiesproduced Total numberofplaysproduced Total valueofassets/investment/capital(K’000) Total indirect taxes(K’000) Total money paidascharges/feesondrama/acting(K’000) Total other costsondrama/theatre(K’000) Total expenditure ondrama/theatremarketing(K’000) Total expenditure ondrama/theatre(K’000) Total other revenueondrama/theatre(K’000) Total revenue ondrama/theatre-exported(K’000) Total revenue ondrama/theatre-local(K’000) Total remuneration (K’000) Total number ofemployeesengaged ______DESCRIPTION 2007 2008 ______2009 ___

The Economic Contribution of

Copyright-Based Industries in Malawi53 7 4 20 98 50 50 679 944 174 4,236 6,318 8,800 1,038 2,645 1,339 5,153 13,859 42,332 24,237 11,525 19,366 10,294 19,467 Employment Remuneration 3,518 3,016 8037.6 45,841 82,899 30,776 53,450 444,727 612,974 208,568 781,460 536,002 972,874 (K’000) 5,674,159 4,073,715 8,249,323 2,927,221 5,897,923 3,258,814 2,510,369 4,193,490 2,389,134 17,997,197 18,447 61,610 166,120 137,180 175,045 135,189 329,042 331,087 (K’000) 1,111,633 2,224,263 9,739,905 8,600,231 1,555,869 1,935,624 4,417,170 50303.324 18,691,362 20,100,145 70,813,802 32,022,295 23,219,306 14,306,849 13,241,920 Value-added 22,409 (K’000) Output 600,876 890,477 270,639 427,802 170,231 67148.96 3,911,042 1,252,447 5,460,200 8,455,556 1,302,760 2,568,953 5,472,370 39 887,974 98,575,885 22,974,251 47,381,051 26,235,280 19,654,419 38,142,455 10,302,313 177,574,901

Telephony and Internet Telephony General wholesale and retailing General transportation Furniture Household goods, china and glass Architecture, engineering, Survey Computers and equipment Musical instruments Paper retail sale Paper manufacturing Apparel, textiles and footwear Advertising services Copyright collecting societies Visual and graphic arts and Visual Photography Software and databases Radio and television Music, theatrical productions, operas Music, theatrical productions, Press and literature opyright-Based industries Based on Annual Economic Survey 2009 Survey 2009 on Annual Economic of industries Based Contribution Copyright-Based Economic Applying Copyright Factors before

4. Non-Dedicated support Industries

2. Interdependent copyright industries 3. Partial copyright industries

1. Core copyright industries Annex 2: 54 The Economic Contribution of Copyright-Based Industries in Malawi Annex 3:

Copyright factorfornon-dedicatedsupportindustries

Non-dedicated supportindustries SME- Manufacturing Architecture, engineering,survey Household goods,chinaandglass Furniture Apparel, textilesandfootwear the Non-DedicatedSupportIndustries Copyright Factorsthatwere AppliedonAnnex2DataanderivationoftheCopyrightFactorfor Partial Interdependent Distribution industriesincore Telephony &internet General wholesaleandretail Value addedofgeneraltrans GDP Value-added partial Value-added interdependent Value-added core 4.1 3.8 4.3 10 5 Value addedforcore,partialandinterdependent/Non-distributionGDP Hungary Hungary Average ofApparelandFurniture Integrated HouseholdSurvey2–NSO2005 Integrated HouseholdSurvey2–NSO2005 Copyright factors Non-distribution GDP 881,562,200 13,398,478 23,219,306 1,935,624 4,417,170 494,309 175,626 172,240 611,015 8,306

842,174

880,720,026 15,342,408 28,247,491 0.0315

The Economic Contribution of

Copyright-Based Industries in Malawi55 7 4, 50 50 20 98 47 68 174 272 763 437 133 464 851, 3.35 8,800 1,333 1,038 2,645 1,339 5,153 19,366 10,294 26,704 797,680 Employment Remuneration 3.98 3,016 3,518 26,358 30,776 45,841 26,357 10,428 44,473 53,450 8037.6 ,82,899 200,001 259,854 259,854 128,322 566,912 781,460 536,002 972,874 (K’000) 2,510,369 5,897,923 3,258,814 9,053,969 2,389,134 ,27,498,336 3.46 8,306 18,447 95,643 61,610 611,015 329,042 135,189 137,180 175,045 395,902 111,163 588,778 633,155 331,087 (K’000) 50303.32 8,600,231 1,008,702 2,230,635 1,555,869 1,935,624 4,417,170 23,219,306 14,306,849 30,478,126 881,562,200 Value-added 3.65 22,409 62,622 Output (K’000) 427,802 363,589 931,968 270,639 600,876 890,477 546,020 170,231 67148.96 1,904,200 3,105,140 1,231,998 1,256,471 5,593,609 1,302,760 2,568,953 5,472,370 19,654,419 65,181,174 47,381,051 26 235,280 10,302,313 1,786,261,800 ased on Annual Economic Survey 2009 Economic Survey based on Annual of based industries contribution copyright- Economic ased industries and non-dedicated factors to partial copyright-b after applying copyright support industries Visual and graphic arts and Visual Paper manufacturing Apparel, textiles and footwear Furniture General transportation and Internet Telephony copyright-based industries Total Software and databases Advertising services Copyright collecting societies Computers and equipment Musical instruments Paper retail sale Household goods, china and glass Architecture, engineering, survey General wholesale and retailing FOR THE ECONOMY TOTAL % contribution of CBI Photography Radio and television Music, theatrical productions, operas Music, theatrical productions, Press and literature

3. Partial copyright industries

2. Interdependent copyright industries 4. Non-dedicated support industries

1. Core copyright industries Annex 4: 56 The Economic Contribution of Copyright-Based Industries in Malawi Annex 5: General wholesaleandretailing Telephony andinternet General transportation Total Telephony andInternet General transportation General wholesaleandretailing Telephony andinternet General transportation General wholesaleandretailing Total Architecture, engineering,Survey Total Furniture Household goods,chinaandglass Total Apparel, textilesandfootwear Architecture, engineering,survey Household goods,chinaandglass Furniture Architecture, engineering,Survey Total Apparel, textilesandfootwear Furniture Apparel, textilesandfootwear Household goods,chinaandglass Total Non-dedicated SupportIndustries Non-dedicated SupportIndustries Non-dedicated SupportIndustries PartialCopyrightIndustries PartialCopyrightIndustries Partial CopyrightIndustries Contribution ofdecomposedpartialcopyright-basedindustriestogrossdomesticproductinMalawi(K’000) Contribution ofdecomposednon-dedicatedsupportindustriestogrossdomesticproductinMalawi(K’000) Contribution ofdecomposedpartialcopyright-basedindustriestoemployeesincomeinMalawi(K’000) Contribution ofdecomposednon-dedicatedsupportindustriesto employeesincomeinMalawi(K’000) Reduced v Contribution ofdecomposedpartialcopyright-basedindustriestoemployeesinMalawi(Number) Contribution ofdecomposednon-dedicatedsupportindustriestoemployeesinMalawi(Number) alues ofpartialcopyright-basedindustriesandnon-dedicatedsupport Value-added beforeapplyingcopyright Value-added beforeapplyingcopyright Value-added beforeapplyingcopyright Value-added beforeapplyingcopyright Value-added beforeapplyingcopyright Value-added beforeapplyingcopyright 145,821,094 291,661,655 17,997,197 20,100,145 18,691,362 32,022,295 70,813,802 13,241,920 8,249,323 5,674,159 4,073,715 2,927,221 1,111,633 9,739,905 2,224,263 444,727 208,568 612,974 166,120 13,859 24,237 42,332 11,525 factor factor factor factor factor factor 4,236 6,318 679 944 Value-added beforeapplying Value-added beforeapplying Value-added beforeapplying Value-added beforeapplying Value-added beforeapplying Value-added beforeapplying copyright factor copyright factor copyright factor copyright factor copyright factor copyright factor 1,008,702 2,230,635 566,912 259,854 178,736 128,322 633,155 588,778 118,742 200,001 111,163 611,015 395,902 44,473 10,428 26,358 95,643 1,333 8,306 133 437 763 464 272 851 68 47

The Economic Contribution of Copyright-Based Industries in Malawi

Creative Industries Series No. 7 For more information contact WIPO at www.wipo.int World Intellectual Property Organization 34, chemin des Colombettes P.O. Box 18 CH-1211 Geneva 20 Switzerland

Telephone: +41 22 338 91 11 Fax: +41 22 733 54 28

Front cover photos courtesy of photos-public-domain.com (sheet music, bookshop and mandolin), http://www.copyright-free-images.com (radio tower and receiver) August 2013 and http://www.freedigitalphotos.net (beading)