The Economic Contribution of Copyright-Based Industries in Argentina
Creative Industries Series No. 8 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
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WIPO Publication No. 1044E ISBN 978-92-805-2547-2 October 2014 The Economic Contribution of Copyright-Based Industries in Argentina Copyright-Based Industries in Argentina The Economic Contribution of
September 2013 The Economic Contribution of Copyright-Based Industries in Argentina Karina PrietoandMarisa Weiry, Researchers Prof. JuanMiguelMassot, Director September 2013 Final Report The Economic Contribution of 1 Copyright-Based Industries in Argentina 8 47 44 44 45 45 47 43 42 39 40 38 40 34 34 37 33 30 29 30 25 25 26 30 20 22 22 22 23 10 15 19 19 20 22 18 Core industries Core copyright industries Interdependent Partial copyright industries Non-dedicated support industries calculations of some activities by statistical correction. Adjustment to GVA in some activities by the ‘copyright factor’ Adjustments to the calculation of GVA Results regarding Argentina Results regarding Registration and deposit of Act No. 11,723 Registration and deposit Collective management of copyright growth CBIs´ real CBIs´ structure CBIs´ structure CBIs in the national context CBIs’ value added generation Estimation of the 2003-2008 series economic structure Argentina’s Adjustments to GVA due to the inclusion of the non-observed economy (NOE) Adjustments to GVA Adjustments to the calculation of gross value added (GVA) of some activities by the value added (GVA) Adjustments to the calculation of gross coefficient. copyright factor and the statistical correction Methodological difficulties for the identification and measurement of CBIs of Methodological difficulties for the identification and measurement Sources of information Sources Considerations of the methodological differences between the previous background background between the previous differences Considerations of the methodological research and the present Identification of CBIs for Argentina Cultural Satellite Account in Argentina Copyright in the courts of law Copyright by Industries and Activities Protected Study on the Economic Importance of Countries and Chile (WIPO – UN Campinhas) and Related Rights in the Mercosur of copyright protection Institutional aspects 4.4.1 4.4.2 4.4.3 4.4.4 3.4.1 3.4.2 2.2.1 Methodology 2.2.2 Measurements 2.1.1 Introduction 2.1.2 Methodology 2.1.3 1.1.1 1.1.2 4.5 4.4 4.3 4.2 3.6 4.1 RESULTS OF THE STUDY FOR ARGENTINA RESULTS 3.5 3.4 3.3 3.2 2.3 3.1 METHODOLOGICAL ASPECTS RELATED TO ESTIMATION OF VALUE ADDED, FOREIGN OF VALUE TO ESTIMATION METHODOLOGICAL ASPECTS RELATED TRADE AND EMPLOYMENT 2.2 1.2 2.1 BACKGROUND ON STUDIES ABOUT ACTIVITIES PROTECTED BY COPYRIGHT IN BACKGROUND ON STUDIES ABOUT ARGENTINA 1.1 BACKGROUND OF THE LEGAL AND INSTITUTIONAL FRAMEWORK OF COPYRIGHT IN FRAMEWORK OF COPYRIGHT IN THE LEGAL AND INSTITUTIONAL BACKGROUND OF ARGENTINA 4. 3. 2. Executive Summary INTRODUCTION 1. List of Acronyms Table of Contents Table 2 The Economic Contribution of Copyright-Based Industries in Argentina 5. 6. CBIs INTHEARGENTINIANFOREIGNSECTOR 8. 7. REFERENCES 9. 5.1 EMPLOYMENT INTHECOPYRIGHT-BASED INDUSTRIES 5.2 5.3 5.4 6.1 6.2 6.3 8.1 COPYRIGHT 74 ANALYSIS OFECONOMICSECTORSRELATED TOACTIVITIESPROTECTEDBY 6.6 6.5 Imports 6.4 Exports INTERNATIONAL COMPARISONS OFCBICONTRIBUTIONTOGDPANDEMPLOYMENT 6.7 8.2 Phonograms 8.4 Software 8.3 Films 8.5 8.6 9.2 Recommendations 9.1 Conclusions CONCLUSIONS ANDRECOMMENDATIONS 8.1.1 8.1.3 8.1.2 Competitors 8.2.1 8.2.2 8.2.3 8.2.4 8.2.5 8.4.1 8.5.2 Radio 8.5.1 Television 8.6.6 8.6.5 8.6.4 8.6.3 8.6.2 8.6.1 Sources ofinformation Some characteristicsoftheArgentinianlabormarketanditsevolution Employment inCBIs CBIs´ contributiontovalueaddedandemployment Sources ofinformationonForeign Trade Argentinian foreign trade CBIs’ Foreign Trade Book industry Trade balanceoftheCBIs Exports andimportsofservices Television andRadio Copyright CollectingSocieties How doesthepublishingmarketwork? Book marketinganddistribution How doestheArgentinianphonographicindustrywork? Distribution stage Digital marketing Live music Anti-piracy actions Promotion ofthesoftware industry Collective managementoftheaudio-visualsector Reprographic rights SAVA Artists) (ArgentineAssociationofVisual Phonogram andvideogramproducers) AADI (ArgentinePerformersAssociation)andCAPIF Chamberof Argentores (GeneralSocietyofAuthorsArgentina) SADAIC (ArgentineSocietyofMusicAuthorsandComposers) 105 113 111 109 109 108 108 107 107 107 106 105 49 49 49 52 60 55 60 60 66 62 61 74 71 69 80 75 85 82 86 88 88 89 94 91 90 98 69 99 99 The Economic Contribution of 3 Copyright-Based Industries in Argentina 116 116 117 119 124 126 INTERVIEWED LIST OF PEOPLE COPYRIGHT FRAMEWORK FOR LEGAL NATIONAL FOR ARGENTINA BY ISIC CNE´04 INDUSTRIES LIST OF COPYRIGHT-BASED BY CATEGORY ARGENTINE EXPORTS PLAN (SOFTWARE) INDUSTRIAL STRATEGIC ARGENTINA 2020 ANNEX 1 ANNEX 1 ANNEX 2: ANNEX 3: ANNEX 4: ANNEX 5: ANNEXES 4 The Economic Contribution of Copyright-Based Industries in Argentina Table 31: Table 30: Table 29: Table 28: Table 27: Table 26: Table 25: Table 24: Table 23: Table 22: Table 21: Table 20: Table 19: Table 18: Table 17: Table 16: Table 15: Table 14: Table 13: Table 12: Table 11: Table 10: Table 9: Table 8: Table 7: Table 6: Table 5: Table 4: Table 3: Table 2: Table 1: Tables List ofISICactivitiesincluded inCBIs’foreign trade Exports composition Exports andImportsofGoods Economic contributionofpartialCBIbysubgroup Economic Contributionofinterdependent CBIbysubgroup Economic contributionofcore CBIsbysubgroup CBI jobs(in%oftotaljobs) Jobs bytypeofCBI(inthousands) Sector structure ofjobs Jobs byactivity Wage-earners’ contributiontojobs Contribution ofjobs,bycategory Number ofjobs,bycategory CBIs’ andGDPgrowth rates Composition ofnon-dedicatedsupportindustries Composition ofpartialcopyrightindustries Composition ofinterdependent copyrightindustries Composition ofcore industries CBIs composition CBIs’ VA levelsandcontributiontoGDP Value addedatconstant1993 prices Gross DomesticProduct Copyright factorsforthenon-dedicatedSupportCBIs Copyright factorsforthePartialCBIs Statistical correction coefficientsusedinInterdependent CBIs Statistical correction coefficientsusedincore CBI Exports andimportsofgoodsservices(CulturalSatelliteAccount) Jobs intheculturalsector(CulturalSatelliteAccount) Estimated GVA intheCulturalSatelliteAccount Jobs bytypeofCBI(inthousandsand%) CBI levelsandcontributiontoGDPatbasicprices 61 61 60 59 58 57 54 52 51 51 50 50 50 47 47 46 45 44 42 42 41 40 38 37 36 35 28 27 26 12 12 The Economic Contribution of 5 Copyright-Based Industries in Argentina 63 63 66 66 69 70 77 78 79 81 81 83 87 93 104 103 102 101 Exports Exports composition by type of industry by type Exports composition Imports Composition of imports by type of industry Composition of imports CBI Trade Balance CBI Trade Exports and imports of CBI services Exports and imports Published books, 2011 Printed copies, 2011 Publishing houses sorted by number of published titles Publishing houses sorted by number Publishing houses and published books distribution by turnoverPublishing houses and published books and size Major publishing houses sorted by theme Number of published titles in supports other than paper, Argentina other than paper, Number of published titles in supports Aires) Buenos average in AMBA (Greater by their origin. Annual TV productions 104 channels Paid television beneficiaries by subscription Sales distribution (turnover) by physical support Retransmission hours by region Audience figures, releases, copies and ticket sales by film origin Audience figures, (USA, Argentina and others) channels Private broadcast Television channel offer by theme channel offer Television Table 32: Table Table 33: Table Table 34: Table Table 35: Table Table 36: Table Table 37: Table Table 38: Table Table 39: Table Table 40: Table Table 41: Table Table 42: Table Table 50: Table Table 43: Table 49: Table Table 44: Table 48: Table Table 45: Table 47: Table Table 46: Table 6 The Economic Contribution of Copyright-Based Industries in Argentina Figure 31: Figure 30: Figure 29: Figure 28: Figure 27: Figure 26: Figure 25: Figure 24: Figure 23: Figure 22: Figure 21: Figure 20: Figure 19: Figure 18: Figure 17: Figure 16: Figure 15: Figure 14: Figure 13: Figure 12: Figure 11: Figure 10: Figure 9: Figure 8: Productivity Figure 7: Figure 6: Figure 5: Figure 4: Figure 3: Figure 2: Figure 1: Figures Ticket sales byfilmorigin Ticket Audience figures andticketsales Cinematographic productions bytype Share ofincomebymusicsalesin% Digital downloadsbytheirtype-Year 2012 Turnover byrepertoire Evolution ofPhonogramSales Music production Market share bynumberoftitles Share ofthetop20majorpublishinghousesintotalnumbertitlesandcopies Published booktitlesandcopies1996-2011 Book production chain CBI LaborProductivity Contribution ofCBIstoGDPandemploymentinLatinCentralAmerica CBIs’ contributiontoGDPandemployment ISIC participationofpartialCBIsintotalimports ISIC participationofinterdependent CBIintotalimports ISIC participationofcore CBIsintotalimports Composition ofimports Exports byISICinthepartiallydependentindustries Exports byISICintheinterdependent industries Exports byISICinthecore industries Composition ofexports CBIs’ contributiontoGDPandemployment Jobs growth Employment contributionofCBI Real growth ofGDPandCBIs Contribution toGDPin% CBIs composition Working Process 92 92 91 90 89 88 87 85 80 79 76 74 73 72 71 68 68 67 67 65 65 64 64 56 55 54 53 48 43 43 39 The Economic Contribution of 7 Copyright-Based Industries in Argentina 95 95 96 97 97 103 Software turnover Software Annual IT sales by sector Annual IT Main software and IT services activities and IT Main software in the total sales services clients by their share and IT Main software Main software and IT services activities by their share in exports services activities by their share and IT Main software TV productions by their origin TV productions Figure 32: Figure Figure 33: Figure Figure 34: Figure Figure 35: Figure Figure 36: Figure Figure 37: Figure 8 The Economic Contribution of Copyright-Based Industries in Argentina List ofAcronyms Reproducción) de OrganizacionesDerechos de IFRRO (FederaciónInternacional de BuenosAires) GCBA (GobiernodelaCiudadAutónoma Autor) DNDA (DirecciónNacionaldeDerecho Creativas) DGIC (DirecciónGeneraldeIndustrias Cinematográfica Argentina) Investigación delSindicatodelaIndustria DEISICA (DepartamentodeEstudioe Cinematográficos) DAC (SociedadDirectoresArgentinos Bibliotecas Populares) CONABIP (ComisiónNacionalde Competencia) CNDC (ComisiónNacionaldeDefensala Sociedades deAutoresyCompositores) CISAC (ConfederaciónInternacionalde Comunicaciones delaRepúblicaArgentina) CICOMRA (CámaradeInformáticay Informáticos) Servicios CESSI (CámaradeEmpresasSoftwarey del LibroenAméricaLatinayelCaribe) CERLALC (CentroRegionalparaelFomento CEP (CentrodeEstudioslaProducción) Desarrollo EconómicoMetropolitano) CEDEM (CentrodeEstudiosparael Independientes deTelevisión) CAPIT (CámaraArgentinadeProductoras de FonogramasyVideogramas) CAPIF (CámaraArgentinadeProductores CAP (CámaraArgentinadePublicaciones) CAL (CámaraArgentinadelLibro) Derechos Reprográficos) CADRA (CentrodeAdministración de laArgentina) Argentores (SociedadGeneraldeAutores Aires) AMBA (RegiónMetropolitanadeBuenos Comunicación Audiovisual) de AFSCA (AutoridadFederaldeServicios AADI (AsociaciónArgentinadeIntérpretes) Organizations FederationofReproductionInternational Rights oftheCityBuenosAiresGovernment National CopyrightOffice General DepartmentofCreative Industries Industry inArgentina Department fortheStudyandResearch oftheFilm Argentine FilmDirectors Association Libraries National CommissionfortheProtection ofCommunity National CommitteefortheDefenceofCompetition Composers Societies ConfederationofAuthorsand International Republic Chamber ofITandCommunicationsintheArgentine Argentina Chamber ofSoftware andITServicesCompaniesin America andCaribbean Regional CenterforthePromotion ofBooksinLatin Center ofProduction Studies Buenos Aires Center forEconomicDevelopmentStudies,Cityof Producers Argentine ChamberofIndependentTelevision Producers Argentine ChamberofPhonogramandVideogram Argentine ChamberofPublishers Publishers AssociationofArgentina Administration CenterofReprographic Rights General SocietyofAuthorsArgentina Greater BuenosAires andtheCityofBuenosAires Services Federal AuthorityforAudio-visualCommunication Argentine PerformersAssociation The Economic Contribution of 9 Copyright-Based Industries in Argentina National Institute for Film and Audio-visual Arts for Film and National Institute and Census in Argentina for Statistics National Institute Number Book International Standard Income tax Gross Industries Observatory of Creative sized companies Small and medium of Music Authors and Composers Argentine Society Society of Actors and Argentine Management Performers Argentine Association of Visual Artists Collective Management Organizations Cultural Information System of Argentina (Sociedad de Artistas Visuales (Sociedad de Artistas Visuales Argentinos) (Instituto Nacional de Cine y Artes Nacional de Cine y INCAA (Instituto Audiovisuales) y Nacional de Estadísticas INDEC (Instituto Censos de la Argentina) Internacional de ISBN (Número Estándar Libros) ISIB (Ingresos Brutos) OIC (Observatorio Culturales) de Industrias empresas) PYME (Pequeña y mediana de Autores y SADAIC (Sociedad Argentina Compositores de Música) de Gestión de SAGAI (Sociedad Argentina Actores Intérpretes) SAVA SGC (Sociedades de Gestión Colectiva) SInca (Sistema de Información Cultural de la Argentina) 10 The Economic Contribution of Copyright-Based Industries in Argentina potential ofthesectorfornationaldevelopment. The study would also increase public and political awareness about the relevance of the topic and the great for thepromotion ofindustriesrelated tocopyrightbycarryingoutastudyontheireconomiccharacteristics. Argentine Republic.Thisrequest wasmadeinorder tocontributetheimplementationofpublicpolicies conducted undertheauspicesof,andwithfundingfrom, WIPO,attherequest ofthe oftheGovernment the ‘WIPOGuideonSurveyingEconomicContributionofCopyright-basedIndustries’(2003)andwas In particular, the present study focuses on this last point. This study follows the methodological guidelines of policies mostappropriate toeachcase. and shouldalsogenerateinformationindicatorsallowingthedesignimplementationofpublic private cooperationwouldfacilitatetheeconomicandsocialadvancementofanentire production network are activitiesrequire riskyinvestment.Theconstructionofefficientandsustainablemechanisms for public- be in linewith the stage of development and challenges of each, taking into account that many of these institutional frameworkmustbemaintainedandthespecificmechanismsofeconomicdevelopment To andstrong enhancethe competitiveness andsustainabilityofsuchactivitiesinthelongterm,amodern foreign ofthecountryinrecent exchangeearnings years. proven tobecapableofgeneratingasignificantcontributionintermsthevalueadded,employmentand of countrieslikeArgentina.Inthisregard, andaccording tothefindingsofthisstudy, theseindustrieshave of humancapital-intensiveactivities,whichmakesthemespeciallyimportantforthelong-termdevelopment Industries relating tocopyrightare generallyabletobothreceive andapplythelatesttechnologyin thecontext Overview Executive Summary 1. applied aspecificclassification ofcopyright-basedindustries(CBI)whichidentifies fourtypesofindustries: To achievethestatedobjectives,andfullyin linewiththemethodologyproposed bytheWIPOGuide,we Methodology monitoring andcollection. efficient meansof reducing thecostsarising from managing copyrightsandotherrights,includingprotection, Collective management of copyright is widespread in Argentina, as it has always been considered to be an sector number ofprosecutions maynotbeagoodindicatorofthelevel ofillegalactivity and infringementinthis sectors andgoods.Regarding piracyevents, few caseshavebeenbrought tojustice,whichsuggeststhatthe of products protected by copyright, the infringement level is generally high, while varying greatly between Although there isinsufficient reliable informationtoallowanaccurateassessmentofthedegree ofpiracy between parties. exercise oftheserightsintheArgentineRepublichasbeennegotiationout-of-courtsettlements The degree ofconflictidentifiedislow, andcases brought tocourt are scarce. Theusualpracticeforthe adhered tothemasaresult ofitstakingpartintherelevant forums. the Argentineregulatory system recognizes agreements international inthisarea, andthecountryhas media, andtherecognition ofrightsforotheractorstheindustry, amongotherinnovations.Additionally, to integratethechangesbrought aboutbytechnologicaladvances,theemergenceofnewformatsand Argentina hasanindividuallegalframeworkthat,althoughdatedinsomerespects, hasbeenregularly updated Legal andInstitutionalFramework b) music,theatrical productions andoperas,c) motionpictures andvideos,d)radio television, of worksorotherprotected subject matter. Theyare classifiedinninegroups: a)press andliterature, manufacturing, performance, broadcast, communication and exhibition, or distribution and sales Core copyright industries:Theseindustriesare whollyengagedinthecreation, production and The Economic Contribution of
Copyright-Based Industries in Argentina11 photography, f) software and databases, g) visual and graphic arts, h) advertising services, i) copyright copyright i) services, advertising arts, h) graphic visual and g) databases, and f) software e) photography, societies. collective management sale of and engaged in the production are copyright industries: These industries Interdependent or use of works production to facilitate the creation, function is, wholly or primarily, equipment whose CD and sale of televisions, radios, production Examples of these are: matter. subject and other protected musical instruments, etc. and DVD players, computers, and to works is related activity the a portion of industries, industries: In these Partial copyright performance, and manufacturing, production subject matter and may involve creation, other protected textiles, and sales. For instance: apparel, and exhibition or distribution communication broadcast, furniture and toys. jewelry, footwear, to facilitating is related In these industries, a portion of the activity Non-dedicated support industries: and matter subject protected other and works of sales or distribution communication, broadcast, the wholesale and general include: These industries copyright industries. the core in not included activities telephony and internet. general transportation and retailing, Among the core industries, one can see that those which make the greater contribution, in terms of value industries, one can see that those which make the greater Among the core (21%), services 25%), computing (approximately whole a as industries printing and publishing the are added, on average). services (17% and television broadcasting The period considered in this study was a period of significant GDP growth (8% annually). In this context, a period of significant GDP growth in this study was The period considered of the series, CBIs present In every year than that of the whole economy. CBIs’ dynamism was even greater This behaviour can be explained by the importance that those of GDP. than greater rates which are growth activities have acquired. interdependent CBIs make a greater contribution to GDP than sectors such as fishing, hotels and restaurants and personal hotels and contribution to GDP than sectors such as fishing, CBIs make a greater intermediation services. equivalent to financial services: they are Contribution their and they have increased Results for Argentina indicate that CBIs contributed 3.5% of GDP for 2003 to GDP the main industries are The core study. last year of the present 4.7% in 2008, the contribution to reach GDP in 2008). 70% of the total (3.3% of Argentina’s component of CBIs: they represent Key Findings As a result of the above, this study is more conservative than studies from other countries which have also other countries from studies than conservative of the above, this study is more As a result achieved. as can be seen in the results been carried out following the WIPO methodology, In order to reduce the risks of over-estimation, following the methodology set out in the Guide (WIPO, the risks of over-estimation, to reduce In order the to the value added and generated employment, which represents 2003), a copyright factor is assigned by copyright in the partially dependent and the non-dedicated support specific weight of activities protected industries do not require or interdependent to the WIPO Guide (2003), the CBIs of core industries. According added and employment has been estimated, given that they completely value any adjustment once the gross of to it. On the other hand, the activities included in the groups depend on copyright and fully contribute activity. economic the total on an impact industries have non-dedicated support dependent and partially data of micro was no access to the there because reasons, statistical and for strictly study, in this However, it was also to use data published at a higher level of aggregation, the economic census and it was necessary activities, because the grouping and interdependent coefficients in some core necessary to apply correction by copyright. not protected which were published by the census included activities 2. 3. 4. trade, the information to estimate value added, employment and foreign of statistical the source As regards with its concepts and definitions, but this study has also drawn from key was the National Accounts System, (business Census; Continuing Survey of Households, etc.), private sources (National other official sources of companies and collecting societies, etc.), own estimates and expert balance sheets chambers reports, opinion whenever necessary. 12 The Economic Contribution of Copyright-Based Industries in Argentina Table 1: followed bytransportation. Finally, amongthenon-dedicatedsupportindustries,industrywithhighestcontributionistrade during theperiod,increasing itscontribution. most importantindustrywithinthepartiallydependentindustries.Thishasshowndynamicbehavior Architecture services,asinarchitectonic designprojects andnottheguidanceofconstruction work,are the hardware are nextinorder ofimportance. and recorded musicstandsout.Mostoftheseproducts similarcharacteristics,salesof are imported.With Among theinterdependent copyrightindustries,thecontributionofwholesaleappliances,musicalinstruments Table 2: 66% ofCBIs’jobs. CBIs increased theircontributionfrom 2.7%oftotaljobsto3%in2008.Jobsthecore industriesrepresent 44% intheperiodcovered inthestudy, thecore industriesbeingthemostconspicuouswithanincrease of48%. similar behaviorisfoundforproduction. Whilejobsinthewholeeconomyincreased by27%,CBIs’jobsgrew by employment to CBIs present dynamisminthecreation ofemployment,whichishigherthantheaverageeconomy. A Contribution TOTAL Support Partial Interdependent Core CBI TOTAL Support Partial Interdependent Core TOTAL Support Partial Interdependent CBI (%ofGVA) TOTAL Core Support Partial Interdependent Core (Thousands Pesos) CBI CBI levelsandcontributiontoGDPatbasicprices Jobs bytypeofCBI(inthousandsand%) CBI 11,255,479 1,330,236 1,974,502 7,142,397 808,344 3.5% 0.3% 0.4% 0.6% 2.2% 2003 2003 13,932,791 1,813,422 2,427,930 8,758,744 932,695 3.7% 0.2% 0.5% 0.6% 2.3% 2004 2004 2.7% 0.2% 0.4% 0.3% 1.8% 2003 2003 369 243 23 57 46 17,915,832 11,536,142 1,086,392 2,369,351 2,923,947 4.0% 0.2% 0.5% 0.7% 2.6% 2005 2005 2.8% 0.2% 0.4% 0.3% 1.9% 2004 2004 414 278 25 62 49 23,196,275 15,408,924 1,274,488 3,068,877 3,443,986 2.8% 0.2% 0.4% 0.3% 1.9% 2005 2005 444 302 25 66 51 4.3% 0.2% 0.6% 0.6% 2.8% 2006 2006 2.8% 0.2% 0.4% 0.3% 1.9% 2006 2006 466 313 27 72 54 29,998,548 20,465,021 1,559,065 3,922,670 4,051,792 4.5% 0.2% 0.6% 0.6% 3.1% 2007 2007 2.9% 0.2% 0.4% 0.3% 2.0% 2007 2007 494 335 28 75 56 39,796,342 27,672,225 1,914,790 5,150,352 5,058,976 4.7% 0.2% 0.6% 0.6% 3.3% 2008 2008 3.0% 0.2% 0.5% 0.3% 2.0% 2008 2008 532 361 30 81 60 The Economic Contribution of
Copyright-Based Industries in Argentina13 General conclusions of the study of the survey is to economy and the result The CBIs have performed better than the average of Argentina’s contribution to the generation of highlight their ability to generate value added and employment and their exchange. foreign The dynamics of these markets have been affected by the macroeconomic dynamic described above, levered dynamic described above, levered by the macroeconomic The dynamics of these markets have been affected In the such as films and software. stimulate the activity of some of them, by sectoral policies that strongly of a framework since the approval have been changes in the regulatory cases of radio and television, there on them. new law; although it is not yet fully evident, it is expected to have an impact Adittionally, these sectors face technological innovations that have an impact on their production and that have an impact on their production these sectors face technological innovations Adittionally, new business opportunities competition into the markets and creating bringing more distribution process, distribution, demand for services associated with information books, phonogram digital (electronic jobs, new promote and activity economic sectors’ the forward drive innovations These etc.). technologies, or visual arts). or non-traditional ones (for example, software qualified skills which in general require The study shows that, in general, those industries operate under competitive conditions because they concernThe study shows that, in general, those industries operate under competitive and without significant barriers to entry, unpredictable, process, based on ongoing creative activities that are markets. even dealing with mature Sectoral and market aspects based on available information, the to copyright and For a summary description of some industries related radio and television. phonograms, films, software, the book industry, selected are areas In the case of imports, CBI are around 6% to 8% of total imports, the most relevant being those of the to 8% of total imports, the most relevant 6% around In the case of imports, CBI are of imports of up made basically imports, CBI total to 90% of contribution a with industries interdependent computers and computing equipment. CBI exports represent a small proportion of total exports, only 0.6%.The interdependent industries are the industries are of total exports, only 0.6%.The interdependent a small proportion CBI exports represent participating on average with 55% to 59%. The most important most important ones in terms of exports, industry in this type is paper manufacturing. Contribution the services balance is in surplus. WithinIn contrast to the goods trade balance, of services, the growth to foreign and audio-visual services stands out, considerably above their computer and information services, advertising trade by beginning to end) by 417% while imports grew during the period (from imports. Export services grew to the copyright-based related we can conclude that Argentina is a net exporter of services 153%. Therefore industries. As for partial CBIs, the contribution and behavior of subgroup 8 (architecture, engineering, surveying) stands 8 (architecture, behavior of subgroup As for partial CBIs, the contribution and also to 39% in 2008. Employment 2003 and increased added in of value 28% out. This sector contributed to 33% in the period. 29% going from this growth, reflects Within the interdependent CBIs the contribution of subgroup 1 (TV sets, radios, etc.) can be highlighted, as 1 (TV sets, radios, Within of subgroup CBIs the contribution the interdependent employment, the regards As and 2008 respectively. in 2003 VA 38.9% and 42.2% of the it contributed with was subgroup of importance same years. Next in order with 35.7% and 38% for the contributed subgroup place was the second of employment where but not in terms of VA, 2 (computers and equipment) in terms 7 (paper). taken by subgroup Among core CBI, the most notable contribution to value added and employment was from subgroup 1 (press 1 (press subgroup was from to value added and employment the most notable contribution CBI, Among core and literature and 4 (radio and television). the press and databases) by 6 (software followed and literature), For the same 2003 and 2008 respectively. for the years 32.2% and 28% of the VA contributed subgroup and 19.4%. 23.3% radio and television subgroup 25.6% and 30.7% and the contributed periods, software 2008 respectively; 28.5% and 26.9% in 2003 and totaled and literature employment, press As regards 13.1% and 13.8% respectively. 21% and 23%, and radio and television and databases software CBIs’ contribution to value added and employment 14 The Economic Contribution of Copyright-Based Industries in Argentina social developmentofthecountry. consequently facilitatethedesignandimplementationofappropriate publicpoliciesfortheeconomicand investigations relating totheseindustriesandtheongoingmonitoringoftheirdynamicsovertime, supply detailed,reliable andupdatedstatistics.Theavailabilityofsuchstatisticswouldenablequantitative country shouldoperatebyitself,orasaresultagreements, ofinternational alltheprocedures necessary to The observedimportanceandpotentialoftheCBIsectorinArgentinaleadstorecommendation thatthe added, employmentandforeign exchange. the publicandprivatesectorsinorder torealize itspotentialandmaintainincreasing contributiontovalue sector hasthebasicconditionsforgrowth, itrequires anadequateandsustainablecomplementarity between sector characterizedbyanincreasing degreeTherefore, ofinternationalization. althoughthecopyright-based regulatory frameworks;andmechanismsactivitiespromoting aproper climateforriskinvestment ina such as:factorendowments,primarilyhumancapital;entrepreneurship capabilitiesofbusinessmen; The competitiveness and growth ofCBIs’contribution to thenational economy dependonseveralfactors, term growth, integrationforArgentina. socialinclusionandinternational capital, makesthemcompetitiveandimportantsectorswithrespectoflong- tothegenerationofapattern The highreceptivity oftheseindustriestotechnologicalchange,coupledwiththeirengagementhuman The Economic Contribution of
Copyright-Based Industries in Argentina15 To analyze a set of key copyright-related industries, their institutional framework, their structure their structure framework, industries, their institutional analyze a set of key copyright-related To collecting societies, and other of other sectors, including the role from and the support received their operation and immediate perspective. significant issues for understanding achieved by comparable studies conducted in results conduct a comparative analysis of the main To other countries. and the growth and sectoral public policies that can promote recommendations propose To development of this economic sector To quantify the economic contribution of copyright-related industries by estimating their value added industries by estimating copyright-related quantify the economic contribution of To trade and foreign of employment share in terms of GDP, The third chapter explains the methodological aspects related to the estimate of added value, employment chapter explains the methodological aspects related The third besides the copyright factors applied new features, offers This study trade applied in the study. and foreign coefficients statistical correction to partially dependent and non-dedicated support industries, incorporating given the high economy, for thenon-observed industries. It also makes a correction for some interdependent to the tax authority of some of informality of some activities in the country and the under-reporting degree firms. In terms of its structure, the study includes a first chapter which examines the legal and institutional the study includes In terms of its structure, studies on of previous main results framework for copyright in Argentina. The following chapter shows the between the methodologies applied in those cases and the present these industries, as well as the differences study. The study was conducted between May 2012 and June 2013 under the supervision of the InternationalThe study was conducted between May 2012 and June 2013 under the Industries Sector, and Creative Industries, Cultural the Section of Creative of WIPO, and in particular, Bureau and the Copyright Office of Argentina under the Ministry of Justice. As regards sources of statistical information for estimates of value added, employment and foreign trade, employment and foreign of value added, estimates information for of statistical sources As regards definitions, although other official was the National Accounts System, with its concepts and the key source (business as private sources etc.) have been used, as well (National Census, Household Survey, sources etc.) and own estimates and expert balance sheets of companies and collecting societies, chambers reports, opinion whenever necessary. (c) (d) of classification specific a applied we Guide, the with accordance full in and objectives, these achieve To dependent copyright (core industries which identifies four types of industry: i) primarily copyright-related and iv) non-dedicated industries, iii) partially dependent copyright industries, industries) ii) interdependent supporting industries. (b) (a) The objectives of the study are: This study follows the methodological guidelines of that Guide and was conducted under the auspices of and Guide and was conducted under the methodological guidelines of that This study follows the was the governmentArgentine Republic. The request from of the WIPO following a request with funding from of copyright-based promotion to contribute to the implementation of public policies for the made in order and awareness economic evidence and, thus, increase industries with a study that would providefundamental development. potential of the sector for national of the topic and of the great public policy relevance ‘WIPO Guide on Surveying (WIPO) published the ‘WIPO Guide on Organization Intellectual Property In 2003, the World for methodology an appropriate to provide of the Copyright-based Industries, the Economic Contribution worldwide. and allowing comparative analysis of these industries to an economy estimating the contribution INTRODUCTION this For economy. have considerable impact on a country’s rights to copyright and related Industries related industries to the to estimate the contribution of these have initiated studies seeking many countries reason, trade. (GDP), employment and foreign Product Domestic Gross 16 The Economic Contribution of Copyright-Based Industries in Argentina for thecore andinterdependent activities) than theonesusedinothercountrystudies,anattempt to document hasbeencarried out withmore precision (for instance,theuseofstatisticalcorrection coefficients Even thoughtheWIPOmethodology hasbeenusedinthisstudy, thestatisticaltreatment applied inthis productivity inthe CBIs;thisisreasonable giventherelative indicatorsofvalueaddedandemployment. countries where similar studieshavebeencarriedout.Argentinaisinthe group ofcountrieswithhighlabor Chapter 7compares thecontributionofCBIstoGDPandemployment inArgentinawiththatofother Their contributionisequivalenttothatoffinancialintermediation services. have greater contributiontoGDPthansectors suchasfishing,hotelsand restaurants andpersonalservices. These chaptersalsopresent acomparativeanalysisofthenational economybyISICTabulation Category. CBIs Likewise, overthewholeperiod,Argentinawasanetexporter ofservicesrelated toCBIs. imports. Servicesexportsgrew from beginningtoend oftheperiodby417%,whileimportsgrew by153%. advertising andaudiovisualservices,standsout.These sectors’exportsare considerablyhigherthantheir the growth ofservicesexports.Thegrowth ofexportscomputingandinformationservices,aswell In relation toforeign trade,thoughthegoodstrade balanceofCBIspresents adeficit,onemusthighlight this growth, expandingfrom 29%to33%intheperiod. This sectorcontributed28%ofvalueaddedin2003,increasing to39%in2008.Employmentalso reflected As forpartialCBIs,theoutstandingcontributionwasthatofsubgroup 8(architecture, engineering,surveying). subgroup 7(paper). and equipment)intermsofVA, butnotintermsofemploymentwhere thesecondplacewastakenby contributed 35.7%and38%forthesameyears.Nextinorder ofimportancewassubgroup 2(computers provided 38.9% and 42.2% of the VA 2003 and 2008 respectively. As regards employment, the subgroup the interdependent CBIs, the highlight was the contribution of subgroupWithin 1 (TV sets, radios, etc.) which respectively; software and databases 21% and 23%, and radio and television 13.1% and 13.8% respectively. and 19.4%.Asregards employment,press andliterature totaled28.5%and26.9%in20032008 the sameperiods,software contributed25.6%and30.7%theradiotelevisionsubgroup 23.3% literature subgroup contributed32.2%and28%ofthevaforyears20032008respectively. For (press andliterature), followedby6(software anddatabases)4(radiotelevision).Thepress and Among core CBIs,themostnotablecontributiontovalueaddedandemploymentwasthatofsubgroup 1 and theemploymentofeachsubsectorintypeindustry. For amore comprehensive andsyntheticvision,thestudywillemphasizecontributiontovalueadded the oneswithgreater participation,representing 66%oftotalemploymentinCBIs. CBIs contributed2.7%ofemploymentin2003,while2008thecontributionwas3%.Core industries were ones whichstoodoutwithanincrease of48%. increased by27%intheperiodunderstudy, CBIs’employmentgrew by44%,thecore industriesbeingthe In relation toemploymentgeneratedbyCBIs,growth isalsosignificant.Whilejobsinthewholeeconomy interdependent activitieshaveacquired. growth ratesthatare greater thanthoseofGDP. Thisbehaviourcanbeexplainedbytheimportancethat CBIs’ dynamismwasevengreater thanthatofthewholeeconomy. Ineveryyearoftheseries,CBIspresent crisis suffered bythecountrysince1930.Inthiscontext,GDPgrew atanannualaccumulated rateof8%. with theBraziliandevaluationandRussiancrisis,whichendedupasworsteconomicsocial of theArgentinianeconomyattime.Itfolloweddeepeconomiccrisiswhichbeganinmid-1998 The periodconsidered inthisstudyisoneofsignificantGDPgrowth becausethere wasanimportant recovery component ofCBIs:theyrepresent 70%ofthetotal(3.3%Argentina’s GDPin2008). participation toreach 4.7%in2008,thelastyearofpresent study. Thecore industriesare themain Results forArgentinaindicatethatCBIscontributed3.5%ofGDP2003andtheyincreased their are presented. In subsequentchapters(4to6),theresults ofestimationCBIs’valueadded,employmentandforeign trade The Economic Contribution of
Copyright-Based Industries in Argentina17 The authors acknowledge the contributions and support received for this study from the Argentine authorities, the Argentine authorities, for this study from and support received The authors acknowledge the contributions Nation) and Emma Espagne (National Copyright of Argentina, Ministry of Justice of the Graciela Peiretti grateful to Dimiter are INDEC). We Institute National Statistics Bureau, (International Accounts Director, comments and Zofío (Universidad Autónoma de Madrid) for their guidance, and José Luis Gantchev (WIPO) Federico VillalbaDiaz, Herrero, Gustavo, Monica and to Schötz the research that have enriched suggestions Falcone, Eduardo Bloj, Sebastian Diez, Pis Ethel Reboiras, Claudia Cabanellas, Maria Ana Iraizoz, Magdalena their willingness to and Javier Delupi for Fernando Zambra, Laura Teseiro Diana Segovia, Filippelli Gerardo, their knowledge and information sector. with team members grant access and share The study also includes supplementary information in several Annexes: a list of the people interviewed the people of a list Annexes: several in information supplementary includes study also The by copyright (Annex 2); the list of industries protected (Annex 1); the detail of the Argentine legal framework in millions of by category, to ISIC used in the CNE (Annex 3); Argentine exports for Argentina according industry (Annex 5). 4); and the Strategic Plan 2020 of the software US dollars, between 2003 and 2008 (Annex The observed importance and potential of the CBIs in Argentina leads to the recommendation that the that the of the CBIs in Argentina leads to the recommendation The observed importance and potential and updated statistics. The reliable detailed, necessary to provide country should implement the procedures to these industries and the enable quantitative investigations relating availability of such statistics would over time and consequently facilitate the design and implementation ongoing monitoring of their dynamics the economic and social development of the country. public policies for of appropriate The aforementioned competitiveness and growth of CBIs’ contribution to the national economy depend contribution to the national economy of CBIs’ competitiveness and growth The aforementioned capabilities human capital; entrepreneurship such as: factor endowments, primarily on several factors, for risk climate a proper mechanisms and activities promoting frameworks; of businessmen; regulatory although the of internationalization.Therefore, degree by an increasing investments in a sector characterized and sustainable complementarity an adequate it requires for growth, CBI sector is basically in a good position contribution its potential and maintain its increasing to realize in order between the public and private sectors exchange. to value added, employment and foreign The final chapter offers conclusions and recommendations. The high receptivity of these industries to receptivity The high recommendations. conclusions and offers The final chapter competitive and of human capital, makes them coupled with their engagement technological change, social inclusion and of a pattern to the generation of long-term growth, with respect important sectors international for Argentina. integration Chapter 8 is a brief summary of the main features of selected industries or sectors related to copyright: books, to copyright: industries or sectors related of selected summary of the main features Chapter 8 is a brief radio, television and collecting societies. music, films, software, measure specifically the weight of those activities directly protected by copyright. This results in a conservative results This by copyright. protected directly of those activities the weight specifically measure of CBI in GDP and employment. estimation of the participation 18 The Economic Contribution of Copyright-Based Industries in Argentina integrate changesproduced bytechnological advances,theemergenceofnewformatsand mediaandthe In short,Argentinahasan individual legalframeworkthat,althoughold,hasbeen regularly updatedto dimension ofintellectualexpression totheprotection ofauthors’rights. discs’ to‘phonograms’,andActNo.25,036of1998, knownasthe‘Software Act’,whichaddedthis amendments toAct No. 11,723isAct No. 23,741of1989,whichmodified theconceptof ‘phonographic agreementsIn additiontotheaboveoninternational aspartofnationallegislation,onethelast force atthedateofeachaccession. meant thereform ofexistinglegislation,includingActNo.11,723 anditsamendmentsregulations in treatiesaccession tointernational andconventionsby nationallegislationoftheArgentineRepublicalso World IntellectualProperty Treaties, Organization(WIPO),known astheinternet byActNo.25,140. The Trade RelatedAspectsofIntellectualProperty Rights(TRIPS),byActNo. 24,425;andthe1996Treaties ofthe Phonograms andBroadcasting Organizations,orRomeConvention, byActNo.23,921;theAgreement on Works (ParisAct,1971),byActNo.25,140;theConventionforProtection ofPerformers, Producers of in Congress treaties: ConventionfortheProtection severalinternational theBerne ofLiteraryandArtistic Congress enjoyconstitutionalstatus,thustakingprecedence overnationallaws.Argentina hasapproved The constitutionalreformtreaties of1994alsostatesthatinternational signedandratifiedby an actof it alonglife. under Act11,723,whichwasalsoamendedandupdatedbysuccessivelawsotherregulations that gave the recognition oftheintangiblegoodsandassetsaperson.Decree 41,333(1934)established regulations the current basic legal framework of Argentina, and is fully consistent with section 2312 of the Civil Code on Copyright ActNo.11,723of1933(whichreplaced ActNo.7092of1910,thefirstlegaltextprotection), is are ofunlimitedduration. encompasses bothmoral and economicrightsof authors. Whilethelatterhave a limited duration, theformer beneficiaries withaninternational reach. Finally, asalready mentioned,unlikecopyrightinothercountries,it 1998, section1);thisprotection lastsforthelifeofauthor, andfor70yearsaftertheauthor’s deathfor of theserightsinthecountryisthattheyprotect theworkbutnotidea(confirmedbyAct 25,036 of software (computerprograms) iscovered byauthors’rightsandnotpatentrights.Otherkeyelements ‘distinctiveness’ applytopatentrightsandtrademarks,respectively. Also,unlikethelawsinothercountries, Copyright inArgentinaisbasedontheconceptof‘originality’,whileconcepts‘novelty’and and letters;software anddatabases;phonograms;videograms;multimediaworkswebsites. compositions; drawings,paintingsandsculptures; printedmaterials,plansandmaps;portraitphotographs trademarks andtradenames,industrialdesigns.Copyrightincludesallwritings;dramaticworks;musical It alsodistinguishesbetweencopyrightandrightsrelated toindustrialproperty, whichincludepatents, rights alsocovered inthissection. in thesecondpartofsection17,bywhichtheserightshaveaconstitutionalstatus,similartootherproperty The ConstitutionoftheArgentineNationprotects therightsofintellectualproperty, includingthecopyright covered bythenationallegislationtopresent day. highlights copyrightasahumanright,requiring protection asanessentialdimensionofpersons,aspect In thesamewayasUniversalDeclarationofHumanRightsdidin1948,ArgentineConstitution artistic productions definedbylawwhichare the result oftheircreative andphysicalactivity. themoralandpatrimonialrightsofauthorsotherownersoverscientific,literary governing Copyright comprisestheintellectualproperty rightsthatprotect authorsandcanbedefinedasasetofrules 1. 1 I derecho-de-autor.aspx>; accessed1May2013). in Annex2,andthe websiteoftheDirectorate General ofCopyrighttheNationalMinistry ofJustice( Copyright-Based Industries in Argentina19 2 Institutional aspects of copyright protection Institutional aspects Registration and deposit of Act No. 11,723 Certainty: the registered work acquires, by the administrative act that accepts it, the certainty of its work acquires, Certainty: the registered contract, certainty In the case of a and content. translator title, author, on a certain date, of its existence of date, content and contracting parties. of authorship granted by the State, with a certified date of a presumption of authorship: provides Proof registration. In this case, plagiarism and piracy. is a basis for comparison in alleged Basis for comparison: the register the deposited copy is submitted to the judiciary for assessment. to be the one who appears as such of bona fide user: the author of the work is presumed Protection who The editors or producers to the contrary. absence of proof registration, in the in the certificate of from would be exempt General by this Directorate to the documents held works according published and claimed their rights. authors appeared criminal liability in the event that the real Although we point out that DNDA records are extremely useful, as not all owners use the Register and behaviour differs among useful, as not all owners use the Register and behaviour differs extremely are Although we point out that DNDA records sectors or of other variables that are for studying the evolution of activity in copyright-protected not a good proxy sectors, they are examined in this report. 2 – – – – According to the DNDA, the benefits of its registration systems are the following: registration systems are its to the DNDA, the benefits of According According to current regulations, the DNDA registers the following unpublished or published works: films, the following unpublished DNDA registers the regulations, to current According etc.), sculptures, drawings, writings (books, brochures, choreography, musical compositions, compilations, works, dramatic works, pantomimes, paintings, phonograms, photographs, maps, multimedia, architectural registers the Directorate Also, videograms. software, periodicals, programs, television programs, radio plans, the contracts dealing with these works. Act No. 11,723 ss. 57-64 and Decree No. 41,233/34 regulate the aforementioned registration and deposit registration the aforementioned No. 41,233/34 regulate Act No. 11,723 ss. 57-64 and Decree National the by maintained and Property Intellectual of Register the National at made are which works, of Autor), an agency under the National de Nacional del Derecho Dirección of Copyright (DNDA, Directorate by day present to the updated have been regulations deposit and registration The Justice. of Ministry the national government between and the Chamber of of an agreement successive amendments. As a result of (CESSI), the latter became a DNDA cooperator agency for the purpose and Services Companies Software by the National Directorate. of such products forms, with the registration delivery of the relevant It should be made clear that these registry issues relate only to the economic rights of nationally published only to the economic rights of nationally published issues relate It should be made clear that these registry not act and are creative author’s the on those works, which arise from works, not including the moral right subject to any administrative legal requirement. It is clear that the regulation appears to discriminate in favor of foreign published work, which does not appears to discriminate in favor of foreign It is clear that the regulation despite the it is somewhat anachronistic, need this step, and, in the light of international recommendations, in a court dispute. and deposit may provide convenience that such registration 1.1.1 Republic acceded to the BerneAlthough the Argentine stipulating noformalities or administrative Convention, (as in other procedure No. 11,723, ss. 57-64 sets out the of works, Act the protection for proceedings works. For to establish rights on nationalpublished and deposit of works in order countries) for registration of the laws of the country of origin that the author has fulfilled the formalities works, it is required foreign and deposited as such, An unpublished work can be registered of the publication (principle of reciprocity). and deposit of of registration of authorship in case of dispute. The obligation which confers presumption No. 16,697/59. by Decree on the publisher; this was regulated national published works rests 1.1 recognition of rights for other actors of the industry, among other innovations. Additionally, the Argentine the Argentine Additionally, among other innovations. industry, other actors of the of rights for recognition many to adhered has country the and area, this in international agreements recognizes system regulatory such agreements. 20 The Economic Contribution of Copyright-Based Industries in Argentina of out-of-courtsettlements betweenparties.Aswithotherintellectualproperty rights,theexistenceof The usualpracticefortheexercise of theserightsintheArgentineRepublichasbeenbasically thenegotiation jurisdiction overthissubject matter. territory oftheArgentineRepublic. and distribution of copyright of nationalandforeign directors offilmsandaudio-visual worksthroughout the not until1999when,byDecree No.124/09,itwasrecognized astheonlyrepresentative bodyforcollection Argentine FilmDirectors (DAC,Directores ArgentinosCinematográficos)isaCSsetupin1958,butitwas is themanagementofintellectualproperty rightsofartistsinthisindustry(actors,dancers,voiceactors). Actors (SAGAI,SociedadArgentinadeGestiónActores Intérpretes), establishedby Decree 1914/2006, Finally, intheaudio-visualindustry, thepurposeofArgentineSocietyforManagementPerforming in thematter. This CS does not have exclusivity in the management of these rights, but in fact is the only institution acting reprography and collects fees for that activity, representing authors and publishers of books and periodicals. Reprográficos) isanon-profit associationfocusedonthedefenceofcopyrightagainst thephenomenonof For itspart,theCenterforReproduction RightsManagement(CADRA,Centro deAdministraciónDerechos cartoonists, etc.). for thecollectivemanagementofauthors’rightsonvisualworks(photographers,painters,sculptors, Artists(SAVA,The SocietyofArgentineVisual Argentinos)istheCSresponsible SociedaddeArtistasVisuales collecting bodywasestablishedforbothofthem:theAADI-CAPIF(Decrees No.1670and1671/74). carriesoutasimilarfunctionregardingFonogramas yVideogramas) phonogramproducers, In1975,asingle videogram producersPhonogram andvideogramproducers (CAPIF, CámaraArgentinadeProductores de manages therepresentation ofmusicalperformers,whiletheArgentineChamberPhonogramand By Decree No.1771/74,theArgentineAssociationofPerformers(AADI,AsociaciónArgentinadeIntérpretes) General deAutores delaArgentina)created byActNo.20,115in1973. the collectionofrightsismanagedbyGeneralSocietyAuthorsArgentina(Argentores, Sociedad In thecaseofliteraryanddramaticauthors(writers,screenwriters, scriptwritersforradioandtelevision,etc.), and foreign. private, culturalnon-profit association,withexclusivemanagementrightsofcreators ofmusic,bothnational its repertoire. ThisCSwasgrantedlegalrecognition byActNo.17,648(RegulatoryDecree No.5146/69)asa de Música).Itspurposewastocollectcopyrightfrom thepublicreproduction ofmusicalworksincludedin Argentine SocietyofMusicAuthorsandComposers(SADAIC,SociedadArgentinadeAutores yCompositores Although the 1933 Act made no provision for it, in 1936 the first collecting society (CS)was organized, the management oftherightsauthorsandotherowners. Collective management of copyright is widespread in Argentina because it allows cost reductions in the 1.1.2 – 4 3 resolution betweenparties. The Argentine Republic does not havespecific subjectmatter courts,noran administrative courtforconflict is relatively low, andveryfewcasesare brought tocourt. deemed tobeaviolationoftheireconomicandmoralrights, thefactisthatidentifieddegree ofconflict While copyright owners can bring legal actions before an ordinary (province) or federal court for actions 1.2 As already mentioned, existinglegislationdoesnotassign thiskindoffunctionstothe Directorate General ofCopyright. For furtheraspects onCSs,seeChapter8. those lookingtoensure viabilityandlegitimacyinprocurement. public. Theinformationbenefitsallthoseinterested insupportingtheirrightsagainstthird partiesand Publicity oftheregistered worksandcontracts:themainfunctionofaregister istomakeitscontents Collective management of copyright of management Collective Copyright inthecourtsoflaw 4 Ordinary civilandcommercial courtsandordinary correctional courtshave 3 The Economic Contribution of Copyright-Based Industries in Argentina21 With regard to piracy, on the one hand, the fact that few cases have been brought to justice indicates that to justice cases have been brought on the one hand, the fact that few to piracy, With regard this in infringement and activity illegal of level the studying for basis good a not is prosecutions of number relatively to enable a reliable, they sufficiently nor are no official statistics, are there On the other hand, sector. partial and sources indirect the interviews, the although piracy, copyright of degree the of analysis accurate between sectors. high, while it varies greatly the infringement level is generally studies suggest that disputes in the courts has generated case law in cases where legislation was not sufficiently clear to solve not sufficiently clear legislation was in cases where case law the courts has generated disputes in out- the which in cases few the in and party, third independent an without parties the between disputes economically convenient. the involved agents were failed and the transaction costs for of-court settlements 22 The Economic Contribution of Copyright-Based Industries in Argentina The followingisasummaryoftheresults oftheseworksandtheirmethodologicalconsiderations. 2. 1. Previous worksidentifiedthataddressed thisissueinArgentinawere: issues, theyare givenasvalidbackground fortheongoingresearch. previous studiesdiffer from themethodappliedinthisresearch. However, regardless ofthemethodological of activitiesprotected by copyright in Argentina.It is worthmentioningthat the methodologiesusedin the This sectionspecifiestheobjectives,methodologyand results ofprevious studiesontheeconomicimportance 2. 5 In order toclassifycopyright-related economicactivities,thisstudydistinguishes fourgroups, namely: databases forcountriesintheregion. such aseconomiccensuses,annualsectorperformance studies(industry, trade, services)andforeign trade minimum levelofconsistencyinthedata,whileitallowed more flexibilityas regards availablesources ofdata, based onthedataavailableforeachcountryand way inwhichtheywere collected. This guaranteeda Specifically, thesectorswere identifiedatthemostdisaggregated level(four digits),enablingforassessment (2000) forthepurposesofthisstudy. This studyisbasedonthemethodologyusedbySiwekand Mosteller(1999),whichwasadaptedbyCarvalho 2.1.2 the countries. administering copyrightregulations were identifiedandexamined,togetherwiththe relevant legislationin also examined.Also,andattheinstitutionallevel,majorinstitutionsresponsible forprotecting and market structure applyingtothoseindustriesdeemedbekeyintheMercosur andChilewere the numberofpersonsinvolved(jobscreated) andtheseindustries’foreignthe trade.Aspectsconcerning calculated, taking as a basis the estimated value added of the economic activities of certain selected industries, To thatpurpose,theshare ofsuchactivitiesintheGross DomesticProduct (GDP)ofthesecountries was and Chile. related economicsectorsandactivitiesintheMercosur countries(Argentina,Brazil,Paraguay, andUruguay) The mainobjectiveofthisstudyistooutlineandassessfrom aneconomicperspectivethemajorcopyright- 2.1.1 2.1 perspective ofvalue addedthrough theproduction of goodsandservices. to beconverted, using conversiontables.Itshouldbe noted,however, thatthissystemapproaches economicactivityfrom the level’(IBGE,1997:8). Theadvantageofthissystemisthatitallowsthepreviousstatistics attheinternational classificationsystem third revision (Rev.3), putforward bytheUnitedNationsasaharmonisation toolinthecompilationanddisseminationofeconomic adopted alltheUnitedNationsrecommendations Standard andtheclassification ofthe‘International Industrial Classification(ISIC), the NationalClassificationofEconomic Activities(CNAE)oftheBrazilianInstituteforGeographyand Statistics (IBGE,1997),which In Carvalho’s Technical Methodology Note(2000),alinkwasestablishedbetweentheproposal ofSiwek&Mosteller(1999)and and NationalStatisticsCensusInstitute[INDEC],2012). Satellite AccountinArgentina.Methodologicalaspectsforitselaboration](NationalSecretariat ofCulture Cuenta SatélitedeCulturaenlaArgentina.Aspectosmetodológicosparasuconstrucción[Cultural in theMercosur CountriesandChile(WIPO–UNCampinhas,2001) Study ontheEconomicImportanceofIndustriesandActivitiesProtected byCopyrightandRelatedRights Methodology Introduction Rights intheMercosur CountriesandChile(WIPO–UNCampinhas) Study ontheEconomicImportanceofIndustriesandActivitiesProtected byCopyrightandRelated COPYRIGHT INARGENTINA BACKGROUND ONSTUDIESABOUTACTIVITIESPROTECTEDBY 5 The Economic Contribution of Copyright-Based Industries in Argentina23 If telephone communications services, etc., and the activities of business, professional and professional If telephone communications services, etc., and the activities of business, 6 Share of GDP Share Employment trade Foreign Results regarding ArgentinaContribution to Gross Domestic Product i. ii. iii. ) is the essence of copyright industries. These are activities that create products or products create activities that are industries. These of copyright (core) is the essence group The first magazines, and newspapers are: products and branches major The copyright. by protected primarily works tapes, plays, television, cable television, discs and industries, radio and and related publishing of books For each of the activities, the relationship and data processing. (software) programs advertising, computer of new protected and dissemination production to the creation, closely related more may vary: some are of protected others concern the creation whereas and publishing industries), material (e.g. phonographic use). or commercial and industrial of software (e.g. production material and its application range of encompasses a broad by copyright. It partly covered comprises industries The second group inter alia. and design, business practices, architecture activities such as manufacturing, and stores concerns record bookshops, goods, of transport the covers This distribution. group third The by copyright. protected distribution of products other forms of wholesale or retail and technical industries. It comprises production can be called copyright-based support The fourth group This category includes, for material. solely with copyright-protected assistance involving equipment used equipment. equipment, and other listening or recording example, computers, radio and television economic importance were: used to measure The economic variables or indicators For certain branches of activity such as ‘telephone, telegraph and telex communications services’ and ‘activities of business, For certain branches of activity such as ‘telephone, telegraph and telex communications services’ of the political and other organizations’, for example, it was not possible to distinguish the share union, religious, trade professional, other types of activity. material from to the distribution of copyright-protected headings corresponding It is interesting to analyze the contribution to GVA for the categories in each subsector. The most important for the categories in each subsector. to GVA to analyze the contribution It is interesting the publication of newspapers, magazines and periodicals (24.8%), industries were: activities in the core and the so-called data processing followed by radio and television activities (18.3%), advertising (13.5%) and cultural activities made a much smaller traditional activities sector (12.3%). At the same time, more related other organizations are excluded from the distribution sector, industries protected by copyright and related by copyright and related industries protected the distribution sector, excluded from other organizations are some 40% of this GVA, industries represented and the core ARS 7 billion of around rights generated a GVA industries industries generated some 15% and related Partly-related equal to the distribution subsector. 5%. around 6 The share of the distribution subsector was over-estimated because the activities covered in the census were in the census were because the activities covered was over-estimated of the distribution subsector The share down. not broken In Argentina, the total value added generated by industries protected by copyright and related rights by copyright and related In Argentina, the total value added generated by industries protected (62%). The for the largest share amounted to ARS 11,257 million in 1993. Distribution activities accounted 9% of the value added and, industries provided of 25%. Partly-related industries followed, with a share core 3% of total value added industries represented related lastly, 2.1.3.1 2.1.3 The share of GDP was calculated on the basis of estimates of value added for each category of activity of GDP was calculated on the basis of estimates of value added The share by Carvalho (2000). For the number of people employed, the sources identified under the headings proposed some studies used different to the availability of data in each country: of information might vary according when performance studies. Nevertheless, the use of identical sources such as censuses or sectoral sources employed becomes an essential factor in avoiding inconsistencies estimating value added and numbers of each assessed in terms of the share trade was data collection methods. Foreign caused by using different on GDP and numbers employed. as selected and classified for the data category, – – – – 24 The Economic Contribution of Copyright-Based Industries in Argentina Lastly, inthepartly-related industries,printingaccounted forover50%ofthevalueadded. and themanufacture ofopticalinstrumentsandphotographicequipmentaccountedforaround 9%. manufacture ofoffice,accountinganddataprocessing equipmentprovided 20%oftheGVA inthissubsector and television sets, sound and video recording and reproduction equipment, and related products. The In copyright-basedindustries,around 70%ofthevalueaddedwasprovided bythemanufacture ofradio economy’s GDPoflessthan0.3%. goods andreal services,withthelatter’s tradedeficitdoublingbetween1995and1999. Firstly, industriesprotected bycopyrightandrelated rightshadanegativeimpactonthetradebalance inboth period 1995-1999coversgoodsproduced bythecore industriesandrelated industries. The analysisofthetrend inforeign tradeforindustriesprotected bycopyrightandrelated rightsduringthe 2.1.3.3 binding activities,technicalandarchitectural services. and 1994,inthepartly-related industries,around 90%ofthejobsinthissubsectorwere inprintingand equipment andrelated products accountedforover61%ofthejobsinthissubsector1994.Lastly, in1985 In related industries,themanufacture ofradioandtelevisionsets,soundvideorecording andreproduction noticeable decrease, from 50to27%. economy are excluded, the relative share of retail sale of books, reviews, newspapers, etc. still showed a appliances (17.4%). Even if the categories that led to an over-estimation of these industries’ share of the and telexcommunicationsservices(11.1%),retail saleofequipment,articles,furnitureandhousehold business, professional, trade union, religious, political and other organizations (42%), telephone, telegraph In the distribution subsector, in 1994 over 70% of the jobs were generated by three categories: activities of between 1985and1994. industries was35%.Thedistributionsubsectorshowedrelatively highergrowth than the core industries 45% ofthejobsgeneratedbyindustriesprotected bycopyrightandrelated rights,and thefigure forcore etc., and the activities of business and political organizations are excluded, the distribution sector’s share was industries for10%.Relatedbarely reached thefigure of2%.Iftelephone communicationsservices, distribution subsector;thecore industries,ontheotherhand,accountedfor23%ofjobsandpartly-related In 1994,ofthe508,000jobsinindustriesprotected bycopyrightandrelated rights,over 65%were inthe generation ofjobsduringtheperiodunderreview. can therefore bestatedthattheseindustriescontributedmore thantheaverageeconomicsectorto in totaleconomicemploymentbetween1985and1994issignificantlymodified, from 2.4%to3.5%.It are excluded,thesizeofincrease intheshare ofindustriesprotected bycopyright andrelated rights If thetwodistributionsubsectorsresponsible fortheover-valuation oftheshare ofcopyrightindustries 9 8 7 from 2.4%in1985to5.3%1994. The share ofindustries protected bycopyrightandrelated rightsinemploymenthadincreased substantially, 2.1.3.2 contribution totheGVA ofthissubsector, accountingforatotalfigure oflessthan20% as didtheothersubsectors. increased its share of employment fivefold, whereas the core industries remained virtually at the same level, union, religious, political andotherorganizations’. telecommunications services.Secondly, there isnobreakdown ofthefigures inthe category ‘activitiesofbusiness,professional, trade There are tworeasons fortheincrease inthedistribution subsector’s share. Firstly, the 1985 censusdidnotinclude thetotalnumberofpersonsemployed. For employment,informationisalso availablefor1985,althoughitconcerns and publicationofrecordings (1.5%). the GVA ofthecore industries),production anddistributionoffilmsvideotapes(3.3%),musical and theatricalactivities(2.1%) This subgroup includes,forexample,activitiessuchasthepublishing of books,pamphlets,scores andotherpublications(3.7%of Contribution to Employment to Contribution Contribution to Foreign Trade Foreign to Contribution 9 8 Thisincrease wasmainlyduetothedistributionsubsector, which 7 withashare inthe The Economic Contribution of Copyright-Based Industries in Argentina25 were based on the estimation of GVA and based on the estimation of GVA were 10 Cultural Satellite Account in Argentina Methodology In 2006, the National Secretariat of Culture began a process of compilation of statistical information about culture, which derived information about culture, of compilation of statistical began a process of Culture In 2006, the National Secretariat from a clear need of an information system able to measure the economic impact of culture. This led to the development of a impact of culture. the economic of an information system able to measure a clear need from classifications and accounting rules of the System of concepts, definitions, around Cultural Satellite Account (CSA), structured The their economies. used by most countries to measure as they are National Accounts (SNA), which gives acceptance and reliability obtained in late 2008. were results first provisional In a second stage, measurements followed the guidelines proposed by the Andrés Bello Convention, according by the Andrés Bello Convention, according the guidelines proposed followed In a second stage, measurements the methodology used and This was achieved after reconciling determined by products. to which activities are Nacional de Accounts (DNCN, Dirección of National the National Directorate the information available from defined, which then led to obtaininginformation services were goods and cultural Cuentas Nacionales). Firstly, relevant industries. in the and intermediate and final demands trade, domestic supply, about cultural foreign employment generated by some industries considered, a priori, as cultural. This selection was not made as employment generated by some industries considered, the main the assumption that they were but on of the determination of typically cultural products, a result contrary to the the activities to the products, goes from of those activities. The information gathered product is explained in detail This process by the adopted methodology handbook, WIPO (2003). path recommended in the next section. 10 The first economic measurements of culture in Argentina culture of The first economic measurements 2.2.1 the the link between the central framework of the National Accounts and Satellite Accounts (SA) represent of list a up drawing allows used methodology The review. under sector specific each of system information considering those goods and services whose essence is to ‘create, and activities, strictly cultural products phases or symbolic content’ (NAS, 1999). In turn, and transmit although different preserve interpret, express, and and interpretation, of symbolic content, their expression to the creation according considered stages are considered goods and services or activities them, the of goods or services that communicate the production processing’. in each of them must have as their end and essence ‘to generate symbolic 2.2 The core industries accounted for around 66% of the total exports of industries protected by copyright and protected 66% of the total exports of industries around industries accounted for The core a deficit. Related industries, 14% of imports, but in any case they recorded rights, and approximately related over USD 1,800 million against USD 175 million for the core showed a much larger deficit – however, of imports on total exports was 1%, but their share in Argentina’s of these industries industries. The share period under review. average amounted to 9% during the Concerning foreign trade in goods, industries protected by copyright and related rights generated a trade rights generated a by copyright and related industries protected Concerning trade in goods, foreign Although to an average of almost USD 2 billion per year. amounting review, deficit during the period under USD 390 million an average of around a deficit, it was much smaller, the Argentine economy also showed These industries. cultural the by annually generated deficit average the of one-fifth prices), (FOB year per trade deficit than other sectors. of the country’s share for a greater responsible therefore industries were Secondly, Argentina had a marked deficit in all categories of the royalties account. The majority of the royalties the royalties account. The majority of deficit in all categories of the Argentina had a marked Secondly, for abroad royalties the 1990s, the payment of assistance licenses. Throughout debit was due to technical remained payments for other licenses whereas sharply, for audio-visual works rose music rights and licenses music, for foreign of the deficit was caused by payment In the case of copyright, the majority stable. relatively royalties way, same the In musicians. local by received royalties of amount the exceeded considerably which and publications, which of transactions than those for books for a larger number responsible for music were was minimal compared licenses for video and film stable balance. Also, the amount received showed a more royalties under this heading. of outflow to the increasing In the services sector, a large part of the deficit was due to personal, cultural and leisure services. The negative services. and leisure to personal, cultural the deficit was due a large part of sector, In the services USD from which rose due to payments going abroad, doubled during this period, mainly balance in royalties to USD 52 million in 1999. 25 million in 1995 26 The Economic Contribution of Copyright-Based Industries in Argentina Source: INDEC Source: INDEC Table 3: aforementioned variables. on selectedindustries,andthevalueaddedwasdeterminedbyculturalactivityasdifference betweenthe (GDP) atmarketvalue (mv). Production values (GPV)andintermediateconsumption(IC) data were compiled To estimate the GVA, data available from the INDEC was used for the calculation of Gross Domestic Product 2.2.2 Cultural gross value added (GVA) added value gross Cultural economy GVA pptotal Cultural GVA pp/ economy (GVA pp) total at producerprices Gross valueadded prices (GVA pp) added atproducer Cultural grossvalue (lCpp) purchaser price consumption at Cultural intermediate (GPV pp) prices forproducers value atconstant Gross production (GPV pp) prices forproducers value atconstant Gross production (lCpp) purchaser price consumption at Cultural intermediate prices (GVA pp) added atproducer Cultural grossvalue economy (GVA pp) total at producerprices Gross valueadded economy GVA pptotal Cultural GVA pp/ Measurements Year Year Estimated GVA intheCulturalSatelliteAccount Cultural grossvalueaddedatcurrentpricesforproducers,inthousandsofpesos.Years 2004-2011 Cultural grossvalueaddedatcurrentpricesforproducers,inthousandsofpesos.Years 2004-2011 412,306,441 12,265,4147 260,171,777 10,380,181 19,143,043 8,762,862 5,829,058 6,436,360 2.13% 2.47% 2004 2004 Annual values(thousandsofdepesos,atcurrentprices) Annual values(thousandsofdepesos,atcurrentprices) 489,786,128 282,773,966 12,007,651 13,363,210 25,370,861 14,319,178 6,632,379 7,686,800 2.45% 2.72% 2005 2005 600,255,965 16,331,1236 305,906,177 17,327,280 33,658,406 16,699,753 8,202,779 8,496,974 2.72% 2.78% 2006 2006 740,316,182 331,362,606 21,620,707 21,221,806 42,842,513 18,813,925 10,484,760 8,329,166 2.92% 3.16% 2007 2007 939,505,629 352,139,412 29,637,086 27,703,478 57,340,564 21,994,597 12,388,111 9,606,486 3.15% 3.52% 2008 2008 1,046,915,428 355,709,190 35,879,141 30,886,067 66,765,207 23,271,450 10,239,505 13,031,945 3.43% 3.66% 2009 2009 1,311,074,946 386,637,204 44,116,031 36,765,904 80,881,935 25,045,621 10,602,422 14,443,200 3.36% 3.74% 2010 2010 1,670,095,979 418,877,107 56,678,645 42,470,706 99,419,351 11,207,140 16,027,812 27,234,53 3.39% 3.83% 2011 2011 The Economic Contribution of Copyright-Based Industries in Argentina27 2010 3.9% 2.73% 493,080 18,076,860 2009 0.7% 2.66% 474,753 17,861,438 2008 8.3% 2.66% 471,521 17,732,769 2007 11.6% 2.55% 435,563 17,058,717 2006 10.0% 2.37% 390,304 16,453,135 Years 2004-2010 Years 2005 13.9% 2.27% 354,685 15,599,894 – – 2004 311,438 14,925,123 Year Jobs in the cultural sector (Cultural Satellite Account) Average Productivity (AP) was obtained only at industry level, and was not broken down at the level of only at industry level, and was not broken (AP) was obtained Productivity Average consequently aggregated. component activities, so cultural and non-cultural activities were that belong cultural activities and applying it to various the AP of an industry FTE as aggregate, Taking whether cultural or to it, implies the assumption that such activities have the same average productivity, as to the number of FTE, is each activity in the same industry, between non-cultural. The only difference added. values or their values in their production number of jobs; and number of full-time equivalents (FTE); value (GPV) at constant prices for production (AP) as a ratio between the gross average productivity and the number of jobs. producers) also at constant prices for (or the GVA, producers Partial coverage of the cultural activities considered. From all the economic activities defined as cultural all the economic activities defined From the cultural activities considered. Partial coverage of to the availability of information, according considered only some were methodology, by the reference to their level of disaggregation. particularly with reference the from The cultural value added obtained considered. the cultural products of An over-representation services, but the characteristic cultural goods and the activities arises, not only from estimates made from that may not even be cultural. products also from at constant prices should be taken the estimates from information resulting The year. Distance to the base year may generate some bias, which the reference is that the distance from with caution. The reason between intermediate consumption changes in the relationship the impossibility of perceiving arises from changes. value or structural and the production Jobs in the cultural sector Year-top-year variation of cultural variation of cultural Year-top-year jobs Cultural employment/ total employment Jobs – total economy • • The following were some of the limitations encountered when developing the average productivity (AP): when developing the average productivity encountered some of the limitations The following were Source: INDEC Source: Table 4: Table • • to a perspective of supply and as part of total employment, according Cultural employment was estimated, statistics statistics based on household surveys and from both from demand, because the CGI was developed (SIJP, and Pension Integrated System data of the Retirement recorded based on surveys of companies and Sistema Integrado de Jubilaciones y Pensiones). • A cultural employment calculation was made for the same economic activities considered in the estimates made for the same economic activities considered A cultural employment calculation was used for this calculation was the of information also used. The main source which were for the cultural GVA, by of data of the DNCN, the source Cuenta de Generación del Ingreso) Generation of Income Account (CGI, economic subsector for: Cultural Employment • • • The authors of the document acknowledge that these first measurements derived from a statistical system a statistical from derived these first measurements acknowledge that of the document The authors was possible, for estimate of cultural value added the CSA, hence only an approximate not fully adapted for the following reasons: 28 The Economic Contribution of Copyright-Based Industries in Argentina Source: INDEC Table 5: for theperiod2004-2011. The followingtablespresent theseriesofexportsandimportsgoodsservices,inmillionsUSdollars, enrich theanalysis. couldbedisaggregatedof goodsandservices,whichinturn intocharacteristicandrelated goodsinorder to oftheINDEC.Onthisbasis,aserieswasdevelopedforforeignNacional deCuentasInternacionales) trade of theBalancePaymentsdonebyNationalDirectorate Accounts(DNCI,Dirección ofInternational As aninitialapproach tothesector, ananalysiswascarriedoutoftheinformationavailableinEstimation Trade Foreign Source: INDEC Exports –totaleconomy Exports –culturalgoods/ total economy Variation inexports– Exports –totaleconomy cultural goods Variation inexports– Auxiliary Interdependent Imports –totaleconomy Imports –culturalgoods/ Actual relatedgoods total economy Variation inimports– Imports –totaleconomy Characteristic Characteristic Import ofculturalgoods Actual relatedgoods Auxiliary Interdependent cultural goods Variation inimports– Exports ofculturalgoods Year Year Exports andimportsofgoodsservices(CulturalSatelliteAccount) 34,576 21,311 0.93% 5.03% 1,073 2004 2004 196 323 152 820 40 84 99 – – 3 – – 2 FOB exportsofculturalgoods,inmillionsUSdollars FOB importsofculturalgoods,inmillionsUSdollars 43,387 0.90% 16.8% 12.1% 27,300 5.73% 28.1% 45.9% 1,565 1,191 2005 2005 221 106 362 142 229 32 3 3 46,546 0.93% 15.2% 20.2% 32,588 5.54% 19.4% 15.4% 1,806 1,330 2006 2006 253 120 435 160 311 59 Years 2004–2011 Years 2004–2011 3 5 55,980 0.82% 20.3% 55.5% 42,524 4.33% 30.5% 1,842 1,259 2007 2.0% 2007 263 118 569 179 396 74 4 8 70,019 0.69% 25.1% 54,596 3.81% 28.4% 13.0% 5.0% 2,081 1,390 2008 2008 280 128 482 241 440 69 10 5 -20.5% -18.3% -32.0% -26.9% 55,672 0.71% 37,141 4.10% 1,521 1,094 2009 2009 253 102 394 163 256 35 4 8 68,134 0.67% 22.4% 15.7% 53,811 44.9% 4.52% 60.0% 2,434 1,772 2010 2010 0.05 312 107 456 196 424 37 42 20.54% 82,131 0.52% 70,728 -7.2% 31.4% 3.92% 13.8% 2,771 2,053 2011 2011 0.04 284 103 423 215 440 36 63 The Economic Contribution of Copyright-Based Industries in Argentina29 11 Considerations of the methodological differences between the previous background and the present the present and background the previous between differences of the methodological Considerations research Definition set forth in the document ‘Las Industrias Culturales: creadoras de valor simbólico,generadoras de desarrollo económico y de desarrollo de valor simbólico,generadoras Definition set forth in the document ‘Las Industrias Culturales: creadoras Generators of Economic Development and Jobs’], prepared of Symbolic Value, de puestos de trabajo’ [‘Cultural Industries: Creators of Culture by SINCA and the National Secretariat 11 In that sense, it is clear that the concept of ‘cultural activities’ is much broader than that of copyright, than that of copyright, of ‘cultural activities’ is much broader In that sense, it is clear that the concept To consider this be identified with some full or partial legal protection. because not all cultural activities can estimates of target variables that would be inadequate because classification would then involve making methodology does not include unobservable WIPO’s Additionally, assumptions. based on different they are the However, this research. made in calculation for the considered have been which activities, economic sector. the creative satellite account could be further adjusted and become a useful tool for monitoring For its part, the study on the calculation of the Cultural Satellite Account, although it refers to the System of of the Cultural Satellite Account, although it refers For its part, the study on the calculation focused on the that it is in the fact difference a significant information, has of a source Accounts as National to a sector of the economy that is ‘cultural activities’, referring the expression conceptual aspect derived from services with ‘symbolic’ content, such as ideas, values, beliefs, etc. characterized by generating goods and For this reason, it is clear that the work carried out jointly by WIPO and the University of Campinas is one is Campinas of University the and WIPO by jointly out carried work the that clear is it reason, this For that made in the Guide. It can be seen recommendations the methodological of the works that preceded by protected and products of activities contribution economic the of quantifying the objective pursuit of the of National Accounts and its concepts and definitions as a key source, Copyright, using the National System the in and criteria the grouping in differ activities of economic classifications works. The to both common is factors called ‘copyright and in addition the Guide uses correction definitions for each of the four groups, this study required to work as accurately as possible, and in order factors’ to adjust their scope. Additionally, consolidated which aggregation coefficients in some activities in the application of statistical correction to copyright. activities unrelated This study follows – as closely as possible – the ‘Guide on Surveying the Economic Contribution of the on Surveying the Economic Contribution – as closely as possible – the ‘Guide This study follows tool to facilitate as a practical and published in 2003, intended by WIPO prepared Copyright-Based Industries’, statistical and economic legal, main the of thrust the out lays certainly Guide The surveys. regional and national it contains some indispensable technical While general in its basic approach, to the survey. concepts relevant results obtained. with the in accordance detail, which will be further refined In this case, it is possible to note initially some essential differences between these studies regarding the studies regarding between these differences to note initially some essential In this case, it is possible issues. research for the analysis of the current methodology used It is vitally important to pay attention to methodological issues in order to understand the scope of the results scope of the results to understand the issues in order to pay attention to methodological It is vitally important as well as when that might be taken into account, studies analyzed and any other studies in the presented periods of analysis. or different comparing countries 2.3 30 The Economic Contribution of Copyright-Based Industries in Argentina 4. 3. 2. 1. According tothisclassification,fourcategoriesofindustriesare identified: based industries. This documentisbasedonthemethodologysuggestedbyWIPO(2003)toidentifyandclassifycopyright- 3. been discarded andithasbeendecided tousethevalueaddedestimationsforcertainindustries. Due tothefactthatlast input-outputtablecompiledforArgentinadatesfrom 1997,this instrumenthas tables andestimationsofvalue addedbyindustry. data whichare usedtomeasure thevalueaddedofcertainindustriescome from twosources: input-output The mostappropriate indicatortomeasure theeconomic contributionofanindustryisthevalueadded.The 3.2 In Annex3thefourcategoriesofcopyrightindustriesare presented withtheiradaptation forArgentina. Economic Census,presents broader aggregation groups. considered, andthelevelofdisaggregation needed to identifythechosenproduct, dueinmanycasestothe the NationalEconomicCensus(mainsource ofinformation) classification(hereinafter ISICcensus)was and the interviews carried out. On the other hand, the correspondence between the ISIC classification and of thementionedISICcategorieshasbeenanalyzed,takingintoconsiderationArgentinianlegislation corresponding Standard 4digitISIC(International IndustryClassification),theappropriateness oftheinclusion As afirststage,departingfrom theWIPOsuggestionsofindustriesincludedineachcategory withits (2003). industries inArgentinahavebeenidentifiedtheirfourcategoriesasabove,followingtheWIPOGuide in thesubjectorpublicagenciessuchasNationalDirectorate ofCopyright(seeAnnex1),copyright out withmainactorslinkedtothesector, suchascopyrightcollectingsocieties,sectoralchambers,experts For thepurposesofconsideringin-force nationallegislationonthesubjectandforinterviews carried 3.1 wholesale andretailing, generaltransportationandtelephonyinternet. activities havenotbeenincludedinthecore copyrightindustries.Theseindustriesinclude:general broadcast, communication, distribution or sales of works and otherprotected subject matter and whose Non-dedicated supportindustries:Intheseindustriesaportionoftheactivitiesisrelated tofacilitate protected subjectmatter;forinstance:apparel, textiles,footwear, jewelry, furnitureandtoys. Partial copyrightindustries:Intheseindustriesaportionoftheactivitiesisrelated toworksandother and DVDplayers,computers,musicalinstruments,etc. and otherprotected subjectmatter. Examplesoftheseare: production andsaleoftelevisions,radios,CD equipment whosefunctionis,whollyorprimarily, tofacilitatethecreation, production oruseofworks Interdependent copyrightindustries:Theseindustriesare engagedintheproduction andsaleof collecting societies. e) photography, f) software and databases, g) visual and graphic arts, h) advertising services, i) copyright b) music,theatricalproductions andoperas,c)motionpictures andvideos,d)radiotelevision, of worksorotherprotected subjectmatter. Theyare classifiedinninegroups: a)press andliterature, manufacturing, performance, broadcast, communication and exhibition, or distribution and sales Core copyrightindustries:Theseindustriesare whollyengagedinthecreation, production and Sources ofinformation Identification ofCBIsforArgentina ADDED, FOREIGNTRADEANDEMPLOYMENT METHODOLOGICAL ASPECTSRELATED TOESTIMATION OFVALUE The Economic Contribution of Copyright-Based Industries in Argentina31 13 Additionally, it provides information about it provides Additionally, 12 14 General Directorate of Customs (DGA) General Directorate Households Survey National Economic Census 2004 National Economic System of National Accounts If there would have been access to a greater level of disaggregation than the published one, the estimation made for 2003 could level of disaggregation would have been access to a greater If there indicators for each activity. precise have been extrapolated with more There was no access to the census microdata which could have given the possibility of disaggregating some groupings presented presented some groupings which could have given the possibility of disaggregating to the census microdata was no access There accuracy the copyright factors in the in the census to extract exclusively the copyright industries and estimate with greater industries and in the partially dependent industries. interdependent System of National Accounts 1993. Statistical Office of the European Communities (Eurostat), International Monetary Fund, (IMF), Communities (Eurostat), System of National Accounts 1993. Statistical Office of the European Bank. the World Organization for Economic Co-operation and Development (OECD), United Nations (UN) and The information is published on the website of INDEC with the mentioned classification. In many cases, The information is published on the digits. three and four the with others in and 3, revision ISIC digit five the with coincides classification this groupings. found in broader some copyright industries are Therefore registered employment in these industries which is compatible with their value added. employment in these industries which is compatible with their registered 13 14 12 Likewise, INDEC processes this information for Balance of Payments as well as for National Accounts by ISIC this information for Balance of Payments as Likewise, INDEC processes 3. revision The foreign trade registry is produced by the General Directorate of Customs (DGA), which is an agency by the General Directorate is produced trade registry The foreign exports used to register nomenclature to the Federal Administration of Public Revenues (AFIP). The reporting based on the ‘harmonized system’. common nomenclature and imports is the Mercosur (d) There is access to microdata users’ databases, from which has been constructed an annual series of databases, from users’ is access to microdata There 2003 to 2008. classification, from with the above-mentioned employment by category, Jobs can be classified in their different categories, registered wage-earners, non-registered wage-earners, and wage-earners,registered non-registered categories, Jobs can be classified in their different the non-registered through non-wage-earners. allows estimations of the non-observed economy This source employment. (c) allows estimations of jobs at two digit level of the Classification of The continuous household survey (ECH) CAES is designed based (CAES- Mercosur). Surveys of Mercosur Economic Activities for Socio-demographic and the two digits, with the exception of the trade tabulation categories 3. It observes ISIC’s on ISIC revision trade. wholesale and retail it groups where sector, The advantage of this source lies in the fact that it has estimations of value added, following the method in the fact that it has estimations of value added, following the method lies The advantage of this source Accounts, SNA 1993. described in the System of National With data referring to 2003, the census includes estimations of value of production, value added, employment, With estimations of value of production, to 2003, the census includes data referring of the census is economic sectors. The classification others, for a wide number of compensations, among 4. to ISIC revision approaching groups it creates 3, despite the fact that in some cases based on ISIC revision (a) Next, the main sources of information from which the value added, employment and foreign trade estimations trade employment and foreign which the value added, of information from Next, the main sources described: have been obtained are for copyright industries Another indicator used to measure the economic contribution of the copyright industries is employment is employment the copyright industries contribution of the economic measure indicator used to Another the complements which trade, foreign is indicator third the Finally, total. the to relative industries those in two indicators. previous National accounts are produced in the Directorate of National Accounts (DNCN) that reports to INDEC, and to of National Accounts (DNCN) that reports in the Directorate produced National accounts are account with a the production Accounts 1993.The DNCN produces based on the System of National are of National Accounts with this 3. Series revision at letter level of ISIC which is published quarterly frequency up to 2008. 2003 available from are disaggregation (b) 32 The Economic Contribution of Copyright-Based Industries in Argentina Visual Arts(SAVA).Visual of Phonogramandvideogram producersPhonogram andvideogramproducers (CAPIF)andtheSocietyof collecting societies, such as the Argentinian Association of Performers (AADI) and the Argentinian Chamber Other copyright societies: There were interviews to evaluate information available in other copyright publishes thebalancesheetsfrom 2009untilpresent date. and managescopyrightsofactors,dancersdubbing-voice actors.Itstartsin2006.Inthewebpageit Argentinian SocietyofManagementInterpreting Actors(SAGAI):SAGAIistheassociationwhichadministers (writers, scriptwritersforcinema,radioandtelevision,etc. andmanagestherevenues ofitsrights. by ActN°20.115of1973,isthecopyright collecting societywhichrepresents literary and dramaticauthors General SocietyofAuthorsArgentina(Argentores): TheGeneralSocietyofAuthorsArgentina,created present date. manages collective copyrights. Its website publishesthe records of thebalancesheetsfrom 2001/2002until Center ofAdministrationReprographic Rights(CADRA):CADRAisanassociationwhichprotects and published. where informationonrevenuessphere anddistributionofrightsinthenationalinternational are the balancesheetsfrom 2003untilthelatestavailableperiod,whichcorresponds toJuly 2011/June2012, nature, grantingittheexclusivemanagementrightsofnationalandforeign musiccreators. SADAICprovided recognized by the Act N° 17.648 (Regulated by Decree N° 5.146/69) as a cultural civil association of private Argentinian SocietyofAuthorsandComposersMusic(SADAIC):Thiscopyrightcollectingsocietywas • various seriescanbeobtained,amongwhich: Situation ofBuenosAires City’,CEDEMincorporatesachapterdedicatedtotheculturalindustriesfrom which of BuenosAires andinsomecasesreferring tothecountryasawhole.Inquarterlypublication‘Economic and CensusofBuenosAires City. Itproduces anumberofstatisticsrelated totheculturalindustriesofCity The Metropolitan CenterofStudiesforEconomicDevelopment(CEDEM)isaparttheDirection ofStatistics (f) • • • Some ofthestatisticsthatcouldbeobtainedfrom thissource are: culture. National Secretary ofCulture. Oneoftheprojects ofSInCAisthecontinuousproduction ofstatisticson The SystemofCulturalInformationArgentinaisacomprehensive informationdatasetdevelopedbythe (e) 15 (g) obtain theamountofsoldandmanufactured books. Likewise, CEDEMstartedin2011asurveyofbookstores inBuenosAires cityfrom whichitispossibleto • • • Standard BookNumberprinted init.TheArgentinianBookChamber (CAL)isinchargeofitsadministration. StandardInternational BookNumber. Bylawnumber 22.399of1981,everybook editedinArgentinamusthavethe International Production ofbooksfrom theregistration oftheISBN: Foreign tradeofculturalandrelated goods. Phonograms sold. Circulation ofnewspapersandmagazines. Number offilmswhichhavebeencommercially premiered Number ofpeopleintheaudienceatcinemas. Sales ofthemusicindustry(inunits). Copyright CollectingSocieties: Metropolitan CenterofStudiesforEconomicDevelopment–CEDEM SInCA 15 The Economic Contribution of Copyright-Based Industries in Argentina33 The level of informality in Argentina is high; consequently, the Census underestimates its true the Census underestimates The level of informality in Argentina is high; consequently, dimension alternativeonly The sectors. some in dimension economic approximate an obtaining for as mentioned However, surveys. the socio-demographic use of through is the CBIs in informality of which makes difficult to make precise above, these surveys have a two-digit level of disaggregation, estimations. One of the characteristic sectors that present this problem is printing. In this sector coexist large firms, this problem present One of the characteristic sectors that many In firms. medium and small and industry, publishing the to services provide which of many by copyright. engaged in printing articles not protected are which informal firms, cases, the latter are Lack of information or mismatching of the non-official sources. In many cases, one has access to In Lack of information or mismatching of the non-official sources. economic obtain to order value in to complex is which quantities, physical products’ of information was information with partial coverage. estimations of the sectors. In other cases there information. They do not Copyright Collecting Societies, with some exceptions, do not have statistical way. normally have statistical departments to generate this information in a systematic an adaptation of the harmonized with trade of goods is classified for Mercosur Information on foreign account these changes in system, which has changed during the years. It was necessary to take into 3. trade for each year to ISIC revision foreign to convert information coming from order Likewise, National Accounts have not yet estimated the new base for 2004 in which one could obtain Likewise, National Accounts have not yet estimated the new base for 2004 this study Therefore, sector. the coefficients of the non-observed economy (NOE) implied in each the methodology used replicate which to the estimations for the City of Buenos Aires, has resorted to obtain the on the subject, in order by National Accounts and the international recommendations Regional the for 2004 year base the estimating when arose which sectors by coefficients adjustment (Wierny Aires of the City of Buenos Product et al., 2011). Gross National Accounts include in their estimations both observed and non-observed economic activities, National Accounts include in their estimations Using only census information of about the former. provides the Economic Census whereas added in copyright industries could imply underestimations information for the estimation of value of its contribution to GDP. CBI have a two- of employment growth used to measure Socio-demographic surveys which are it was level of disaggregation, to obtain estimations with a greater So in order digit disaggregation. of the Economic Census for 2003. structure necessary to maintain the most disaggregated The latest economic census contains information for the year 2003. In order to update these data information for the year 2003. In order The latest economic census contains at letter level. disaggregated of National Accounts which are to 2008, one should use estimations under- be 2008 could of levels sectors some in obtained, be can information specific no as Therefore, or overestimated. Insufficient disaggregation of the base information. The main source of information is the Economic of information is the The main source of the base information. Insufficient disaggregation industries at 5 digit are There levels of aggregation. by ISIC at different results Census, which presents which products to protected in many cases CBIs refer Actually, level, others at 4 and others at 3 digits. in some it was necessary, For this reason, not totally protected. can be found in industries which are the copyright way from coefficients which, in a different correction industries, to apply statistical core the represents the portion which due to the lack of statistical disaggregation, factors, try to reflect, census grouping. industry inside the available protected Consultations with experts Consultations Methodological difficulties for the identification and measurement of CBIs measurement for the identification and Methodological difficulties (g) (h) (f) (e) (d) (c) (b) (a) The Argentinian statistical system presents some limitations which make the identification and measurement and measurement which make the identification some limitations system presents The Argentinian statistical of CBIs difficult: 3.3 (h) not available, it was to make accurate estimates was statistical information the required In some cases, where to achieve the with WIPO experts in order opinions and estimations in consultation essential to have expert objectives for the research. 34 The Economic Contribution of Copyright-Based Industries in Argentina published bythecensuscontainedactivitieswhichwere notprotected bycopyright. the statisticalcorrection coefficientalsoinsomecore andinterdependent activities,becausethegrouping census necessitatedtheuseofdataavailableatahigherlevelaggregation; itwasnecessary toapply However, inthisstudy, andforstrictlystatisticalreasons -the lackofaccesstothemicrodata oftheeconomic non-dedicated supportindustrieshaveaweightinthetotalofeconomicactivity. based activities is 100%. On the contrary, the activities included in the groups of partially dependent and adjustment oncetheGVA andemployment have beenestimated,giventhattheircontributiontocopyright- In thissense,andaccording toWIPO2003,theCBIsofcore orinterdependent industriesdonotrequire any activities protected bycopyrightsinthepartiallydependentandnon-dedicatedsupportindustries. is appliedtothevalueaddedandgeneratedemployment,whichrepresents thespecificweightofthose In order toreduce therisksofoverestimation, followingthemethodologyofWIPO(2003),acopyright factor necessary toestimatethecontributionoftheseindustriestotaleconomy. in aprecise waytheproportion corresponding tocopyrightinvalueaddedandgeneratedemployment, itis the non-dedicatedsupportindustries,andgivenexistingdifficultiesofstatisticaldisaggregation toquantify Given thecross-section orgeneralcharacteroftheindustrieswhich are partiallydependent oncopyrightand 3.4 (i) 1. 3.4.1 industries are presented: In thefollowingtable, statistical correction coefficientsappliedtothecensusgroups forthecore of theactivity. coefficient hasbeenestimated from informationprovided by these organizationswith respect tothetotal Copyright collectingsocieties:Inthecensus,thisactivityisgrouped with professional associations.A translators workfreelance, itisprobable thatthecensushasunder-captured them translators´ participationinthetotalactivity. Giventheinformalaspectofactivityandthat many administrative activitiesandcallceners,amongothers. Acoefficienthasbeenestimatedbasedon Translators: Inthecensus,translatorsare grouped withother servicestothefirms,whichinclude only. Forthisreason, acoefficientwasappliedtoexcludethem. Photography: Thecensusincludestheoutletsengagedindeveloping photographsforthefinalconsumer the salesofrecorded musicandtherest isleftintheinterdependent industries. industries category. Forthisreason, onlypartofthisactivity(0.39%)isassignedtothecore industriesfor retail salesofmusicalinstrumentsandsoundequipment,bothwhichbelongtotheinterdependent Retail salesofrecorded music:According tothegrouping ofthecensusthisactivityalsoincludes reflects thecontributionofproducts protected bycopyrightinthetotalofactivities’products. (brochures andotherprintedmaterial)notprotected bycopyright.Acoefficienthasbeenappliedwhich with smallandmediumones.Inmanycasesthelatterare informalandengagedinprintingarticles Printing: In this sector large firms – many of which provide services to the publishing industry – coexist other commercial printedmaterials;theywere excluded. Publishing: Inthisactivitythecensusalsoincludedpublishingofbrochures andpersonalcards and For core CBIs,statisticalcorrection coefficientshavebeenestimatedinthefollowingactivities: Adjustment to GVA calculations of some activities by statistical correction. statistical by activities some of calculations GVA to Adjustment and thestatisticalcorrection coefficient. Adjustments tothecalculationofgross valueadded(GVA) ofsomeactivitiesbythecopyrightfactor request toINDEC,thedisaggregation ofcopyrightshasbeenobtainedforthe2003-2008period. concept ofroyalties, whichincludespatents,royalties, licensesandcopyrights.Through aspecial copyrightsisgroupedInformation publishedforthebalanceofpaymentsconcerning under The Economic Contribution of Copyright-Based Industries in Argentina35 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0.860 0.586 0.390 0.700 0.005 0.150 Statistical coefficient Concept Publishing of books, brochures, musical books and other publications Publishing of books, brochures, Publishing of newspapers, journals and periodicals Publishing of newspapers, Other publishing Printing Service activities related to printing Service activities related Wholesale of books, magazines and newspapers Wholesale of books, magazines Retail sales of musical instruments, music scores and tapes Retail sales of musical Retail sales of books, magazines, newspapers, paper, cardboard, paper, Retail sales of books, magazines, newspapers, packaging materials and library articles Television transmission services Television Renting of videos and video games; video stores Software consultancy and supply Data processing Database activities Advertising Photographic activities Translators Motion picture and video production and distribution Copyright collecting societies Motion picture projection Radio and television activities Dramatic arts, music and other arts activities Other entertainment activities n.e.c. News agency activities Library and archives activities Other recreational activities 2211 2212 2219 2221 2222 5238 6422 7220 7230 7240 7430 7494 7499 9211 9112 9212 9213 9214 9219 9220 9231 51321 52356 71301 92499 Statistical correction coefficients used in core CBI used in core correction coefficients Statistical ISIC Census 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 For the interdependent CBIs, statistical correction coefficients have been estimated for the following coefficients have CBIs, statistical correction For the interdependent activities: bags, etc.) is not Part of the activity (toilet paper, Manufacturing of cellulose paste, paper and cardboard: by the information provided from associated with activities which generate copyright. For this reason, printing of production of proportion the Manufacturers, Cardboard and Paper of Association Argentinian census has been applied to the coefficient correction has been estimated and this paper in the total values (38%). given that in the (core) Therefore, products. Likewise, not all the paper for printing is used for protected to printing corresponding proportion the represented printing activity a coefficient was obtained which this products, non-protected other and brochures general excluding copyright, by protected products of obtained for the printing paper. coefficient has been also applied to the figures Manufacturing of photography and cinematography instruments: In the census, this activity is grouped to this latter activity because majority of the majority of firms correspond with optical instruments, where a coefficient has been estimated imported. Therefore photographic and cinematographic instruments are of these products. only the national production which reflects sports articles, games and with jewelry, Manufacturing of musical instruments: This activity is grouped partially dependent. Thus, the share in Category 3, industries which are are toys. Some of these products Typology Source: Own elaboration. Source: 2. Table 6: Table 36 The Economic Contribution of Copyright-Based Industries in Argentina Table 7: Source: Ownelaboration. Typology interdependent industriesare presented: In thefollowingtablestatisticalcorrection coefficientappliedtothecensusgroupings forthe therefore thecorrection coefficientisapplied. games consoles and other similar equipment: In the census, this activity includes all personal belongings, Renting of televisions, radios, video recorders, CD players, DVD players, cassette players, electronic product but,giventhemagnitudeoflatter, itwaseliminatedfrom thecategory. is grouped withtherenting ofagriculturalandconstructionmachinery. There isnodisaggregation by Renting ofphotographicandcinematographicinstruments:Inthecensus,renting oftheseproducts Retail saleofpaper:Thesamecoefficientasforproduction andwholesaleisused. wholesale salesisused. Retail sale of photographic and cinematographic instruments: The same correction coefficient as for correction coefficientisapplied. includes theretail saleofrecorded music,whichisincludedinthecore industries.Therefore, thestatistical DVD players,cassetteelectronic gamesconsolesandothersimilar equipment: Thisactivity Retail saleofnon-recorded material,musicalinstruments,televisions,radios,videorecorders, CDplayers, This activityalsoincludescontrol andsecuritygroups. Acoefficienthasbeenestimatedtoexcludethem. those ofequipment.Therefore, giventhatthelatterare themajorpart,theywere both leftinCategory 2. Wholesale ofsoftware, computersandequipment:Inthecensus,salesofsoftware are grouped with Wholesale ofpaper:Thesamecoefficientasthatformanufacturingisapplied. case ofsalestheorigingoods,nationalorimported,doesnotmatterbothgeneratemargins. of theseproducts. Thiscoefficientdoesnotcoincidewiththatestimatedformanufacturing,becauseinthe grouped withthesaleofopticalinstruments.Therefore, acoefficienthasbeenestimatedto reflect thesales Wholesale ofphotographicandcinematographicinstruments:Onceagain,inthecensusthisactivityis majority oftheseproducts are imported. of manufacturingmusicalinstrumentshasbeenestimated;itisreally smallduetothefactthat 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Statistical correctioncoefficientsusedinInterdependentCBIs Census 71309 52383 52371 52356 51514 51592 51492 51341 5139 3699 3320 3230 3000 2101 ISIC Renting ofpersonalandhousehold goods Retail saleofpaper Retail saleofphotographic audio andvideodiscs Retail saleofmusicalinstruments, soundequipment,audioandvideocassettes, and relatedactivities Wholesale ofmachinery, equipmentandimplementsused inprinting,graphicarts wholesale ofmachinesandcommunicationsequipment,control security Wholesale ofcomputersandelectronicmachinesforwriting calculating; Wholesale ofotherintermediateproducts,wasteandscrap Wholesale ofphotographicequipment Wholesale ofotherhouseholdgoods Other manufacturingn.e.c.(musicalinstruments) Manufacture ofopticalinstrumentsandphotographicequipment reproducing apparatus,andassociatedgoods Manufacture oftelevisionandradioreceivers,soundorvideorecording Manufacture ofoffice,accountingandcomputingmachinery Manufacture ofpulp,paperandpaperboard Concept coefficient Statistical 0.004 0.004 0.224 0.80 0.38 0.50 0.61 0.50 0.38 0.50 1 1 1 1 The Economic Contribution of Copyright-Based Industries in Argentina37 0.5 0.4 0.4 0.4 0.1 0.05 0.05 0.05 0.05 0.05 0.02 0.02 0.02 0.05 0.05 0.14 0.05 0.25 0.25 0.05 0.05 0.05 0.05 0.05 0.39 0.005 factor Copyright have been applied (based, in turn, have been applied in the 16 Description Retail sale of textiles and clothing Wholesale of textiles, clothing and footwear Manufacture of footwear Manufacture of wearing apparel, except fur apparel Manufacture of made-up textile articles, except apparel Manufacture of other articles of paper and paperboard Retail of household confections Museums activities and preservation of historical sites and buildings Museums activities and preservation of historical Retail sale of jewelry and fantasy Manufacture of other textiles n.e.c. Wholesale of household articles Retail sale of games and toys trade and services industry, Wholesale of furniture and equipment for the Renting of furniture Manufacture of furniture Manufacture of jewelry, games and toys Manufacture of jewelry, Manufacture of jewelry, games and toys Manufacture of jewelry, Wholesale of jewelry and watches Retail sale of watches and jewelry Wholesale of household articles and / or personnel Retail goods and furniture bazaar Manufacture of other fabricated metal products n.e.c. Manufacture of other fabricated metal products Manufacture of glass and glass products Other business activities (interior design) of articles of cork, Manufacture of other products of wood; manufacture straw and plaiting materials Architectural and engineering activities and related technical consultancy Architectural and engineering ISIC 5233 5131 1920 1810 1721 2109 9232 1729 5139 5154 3610 3699 3699 5139 2899 2610 7499 2029 7421 52322 52373 52393 71309 51342 52372 52354 Census Copyright factors for the Partial CBIs Copyright factors for Adjustments to the calculation of GVA in some activities by the ‘copyright factor’ Economic Activity WIPO (2008), The Economic Contribution of Copyright-Based Industries in Colombia Apparel, textiles and footwear Museums Other crafts coverings and Wall carpets Furniture Toys and games Toys Jewelry and coins Interior design Household goods, china and glass Architecture, engineering, surveying Table 8: Table study for Hungary by Penygey and Munkácsi, 2005). The factors for the study in Panama have also been The factors for the study in Panama by Penygey and Munkácsi, 2005). study for Hungary in the following table. presented are and borrowed 16 Therefore, a first stage consisted of separating, in the published figures, those corresponding to architectural to those corresponding separating, in the published figures, a first stage consisted of Therefore, similar: to licenses and value added (which are according services, considering the participation of architects and engineers. of architects in the aggregate 64% and 65% respectively) Source: Own estimates. Source: a factor that would only take into account design activity and the services, For the case of architectural the However, together. grouped and engineers are the census, architects was applied. In project architectonic by the number of active licenses was reported services, where census did a special survey for the professional estimated by profession. and the value added were and the value of production profession For partial CBIs, adjustment factors from the Colombian study the Colombian factors from For partial CBIs, adjustment 3.4.2 38 The Economic Contribution of Copyright-Based Industries in Argentina Table 9: The above-mentionedfactorsare presented inthefollowingtable: of transportation,postandtelecommunications. industries classifiedascore andinterdependent inthetotalproduction oftradeandinthetotal production This methodestimatestheproportion oftrade,transportation,postandtelecommunicationsusedbythe matrices’ coefficients.InthecaseofArgentinalatestinput-outputmatrixwasbuiltfor1997. factor wasestimatedusingtheprocedure describedinthestudyofColombia,basedoninput-output For the to buildingmanagement. the preliminary sketches,drafts,executiondocumentsandbuildingplans),theother40%corresponds From the total of architectonic services activity, it is estimated that 60% corresponds to the project (including amount onaverageto10%12%ofabuildingproject budget. of theproject anddesigncomponentinthetotalcostofabuilding.Itisestimatedthatfeesforarchitects Afterwards, inquiries were made from architecture studios, which provided information about the participation 17 the estimationforbase year2004aswasforeseen, estimationsmade bysomeprovinces are used,and In order toincorporatetheadjustment oftheNOEinCBIs,giventhatNationalAccounts hasnotyetdone their participation. it is relevant to incorporate it in the estimations of CBIs, because otherwise one would be underestimating in thevalueaddedoftotaleconomyorGDP, andgiventhatGDPincludesthenon-registered economy, Given that in order to evaluate the importance of CBI in a country, one of the indicators used is their weight IMF& ILO,2002). ‘Italian method’,andisrecommended intheManualformeasurement ofthenon-observedeconomy(OECD, This estimationmethodologyofthenon-observedeconomy iscalled‘methodthrough employment’orthe missing valuesofproduction, intermediateconsumptionandvalue added. missing jobs are determined and finally imputations are done, by employment category and by strata, of the from the economic sources to those coming from the socio-demographic sources. From this comparison, the The methodforincorporatingthenon-registered economy consists,briefly, incomparing jobsthatcome System ofNationalAccounts(SNA93). observed economy, tryingtoachievetheexhaustivenessinGDPmeasurement whichisrecommended bythe For thisreason, evensincethebaseyear1986,NationalAccountsofArgentinaincorporate the non- from aneconomiccensuswhosemainprocedure fordatacollectionisgeographicalsampling. In many cases, given the intrinsic characteristics of certain activities, there are difficulties in capturing them in thecensusaswelltounder-capturing ofoutlets. the existenceofnon-registered economy, canbeattributedtotheunder-declaration ofoutletsparticipating significantly higherlevelsthanthosecomingfrom economicsources. Thesedifferences, whichdemonstrate Traditionally, inArgentina,theemploymentestimationcoming from socio-demographicsources gives 3.5 Source: Authors’calculation Post andtelecommunications Transport Wholesale andretailtrade See Ministeriode EconomíayObrasServiciosPúblicos (1999). Non-dedicated supportCBIs Adjustments toGVA duetotheinclusionofnon-observedeconomy(NOE) non-dedicated support industries (trade, transport, post and telecommunications) the correction Copyright factorsforthenon-dedicatedSupportCBIs 17 Copyright factor 0.0097 0.0138 0.0100 The Economic Contribution of Copyright-Based Industries in Argentina39 19 18 Compiling statistical data 1. Correction of statistical data by NOE Correction 4. Calculation of value added and comparison with GDP 5. Correction of statistical data in core and interdependent CBIs by statistical coefficient and interdependent of statistical data in core Correction Correction of statistical data in partially dependent and support CBIs by copyright factor of statistical data in partially Correction Working Process Working 2. 3. Estimation of the 2003-2008 series At the closure of this report, there was no information available on the value indices by sector with a greater disaggregation (4 digits disaggregation was no information available on the value indices by sector with a greater there of this report, At the closure the estimations for 2003 to 2008. precision to update with greater ISIC) in order In order to have a benchmark, the adjustment of GDP in 1993 in the sectors that were estimated from the economic census was estimated from in the sectors that were to have a benchmark, the adjustment of GDP in 1993 In order 30% of the value added. 18 19 This estimation is an approximation, because the constant prices of national accounts have 1993 as their as 1993 have accounts national of prices constant the because approximation, an is estimation This base year. On the other hand, estimation at constant prices has been made applying the variations that arise from the the variations that arise from On the other hand, estimation at constant prices has been made applying two digits of national accounts to the levels obtained for this study for 2003. Likewise, in some sectors where there has been information provided by CEDEM or other agencies, the by has been information provided there in some sectors where Likewise, available. sources the different variations have been checked from Value indices have been calculated, with which the valued of 2003 have been updated. indices have been calculated, with which Value 3.6 been used, the main one being the series indicators have to estimate the 2003-2008 series, different In order of National Accounts at a two-digit level of ISIC. Figure 1: As a summary, the following figure synthesizes the steps followed to obtain estimates regarding the value the regarding to obtain estimates synthesizes the steps followed figure the following As a summary, the CBI and its contribution to GDP. added generated by This adjustment increased the value added generated by CBIs by 17% approximately, the adjustment for core for core adjustment the 17% approximately, by CBIs by the value added generated increased This adjustment industries and 17 % in the partially dependent industries, 10% in the interdependent industries being 20%, support industries. 5% in the non-dedicated From these studies, the adjustment coefficients have been obtained for the value of production, value added, value of production, value for the obtained been have coefficients the adjustment studies, these From wage-earners and non-wage-earners for each activity. mainly those made by Buenos Aires City for the base year 2004 and the estimations of the NOE for that year year that for NOE of the estimations and the 2004 year the base for City Buenos Aires by made those mainly National Accounts to incorporate the the methodology used by replicate These estimations by activity sector. of the base year (WiernyNOE in the estimations et al., 2011) 40 The Economic Contribution of Copyright-Based Industries in Argentina 4.1 importance tobemeasured. the sameperiod,whichprovides thecontextforcontributionandgrowth ofCBIsandthusenablestheir The next section shows a brief description of the structure and growth of the Argentinian economy during to valueadded,employmentandforeign tradeduringthe2003-2008period. This chapterpresents theresults oftheestimationcontributioncopyrightbasedindustries(CBIs) 4. Table 10: The followingtableshowsthesectorcompositionofvalueaddedanditsgrowth duringtheperiod. (Coremberg etal.,2007). growth hasbeenestimatedwhichamountsto2.5%usingtheinterpolationmethodofcyclicalmaxima GDP (1998), andthe2008GDPwas32%higherthanin1998.According toCEPAL figures, atrend oflong-term accumulated rateof8%.In2005,theGDPlevelovertookmaximumreached priorto the crisis The aggregate growth from thebeginningtoendofperiodwasabout47%,whichimpliesanannual which prevailed before the1998-2002crisis. initially of theinvestment one, allowing production torecover to,andevenmoderately surpass, thelevels between 2002and2008through aggregate demandgrowth, especiallyoftheconsumptioncomponentand of thedomesticcurrency, allowed theArgentineeconomytoexperienceasignificantaccelerationingrowth The greater revenues from exports,derivedfrom theboomintradable goodssectorandthedevaluation increase inagriculturallandvalueandreal estateassets. sectors, producing asubstantialimprovement inthetermsoftradeandsignificantwealtheffects through the 21st century benefittedArgentina(andLatinAmericaingeneral),especiallynatural-resources-intensive At thesametime,boomincommoditiesexportpriceswhichtookplaceatbeginningof equipment inheritedfrom thecrisis. prices and wages, originating in the high unemployment level of the labor force and the underutilization of industries andsmallmediumfirms,becauseofthesidebenefitsapartialtransferdevaluationto Devaluation ofthedomesticcurrency allowedthereestablishment ofthecompetitivenessmanufacturing experienced bythecountrysince1930s. intotheworstsocialandeconomiccrisis Brazilian devaluationandtheRussianeconomiccrisis,turned recovery ofthecountry’s economyfollowingadeepeconomicrecession whichstartedbymid-1998withthe The estimationsfortheArgentineCBIsbelongtoperiod2003-2008,acharacterizedbysignificant Tabulation Category D B A C E F Argentina’s economicstructure RESULTS OFTHESTUDYFORARGENTINA Gross DomesticProduct Construction Electricity, gasand watersupply Manufacturing Mining andquarrying Fishing Agriculture, huntingandforestry Gross valueadded Description Millions ofpesos.atcurrentpricesandpercentageshare 351,599 24.0% 10.6% 3.3% 1.7% 5.8% 0.4% 2003 411,970 24.2% 10.2% 4.2% 1.7% 5.7% 0.3% 2004 489,786 23.3% 4.9% 1.7% 5.9% 0.3% 9.1% 2005 600,230 22.4% 5.9% 1.6% 6.0% 0.3% 8.2% 2006 740,316 21.5% 6.3% 1.5% 4.8% 0.2% 9.2% 2007 944,777 21.7% 6.0% 1.3% 3.8% 0.3% 9.6% 2008 The Economic Contribution of Copyright-Based Industries in Argentina41 4.1 1.1 4.5 6.3 3.4 3.7 7.9 7.7 6.3 3.9 4.5 6.2 -2.7 12.1 17.4 12.7 2008 2.7% 8.5% 5.1% 6.2% 8.6% 4.1% 0.8% 12.0% 11.1% 0.6 7.6 8.3 5.8 9.2 8.3 4.7 3.7 4.9 6.2 -5.3 10.3 11.3 13.6 18.7 19.0 2007 1.5 1.9 8.9 8.2 5.0 7.9 7.2 4.2 4.5 4.2 2.7% 8.7% 4.9% 5.9% 8.3% 4.1% 0.8% 7.8 61.8 18.6 13.5 22.0 22.6 11.7% 11.1% 2006 Annual growth rates Annual growth 7.6 8.7 9.9 8.0 4.5 3.3 4.2 5.0 -0.2 11.6 20.4 14.9 17.5 18.2 2005 10.0 -14.3 2.7% 8.9% 4.7% 5.6% 7.8% 4.1% 0.8% 11.5% 11.0% 8.4 6.6 6.9 4.3 1.8 2.9 9.0 -1.0 -0.4 -5.5 11.9 13.5 13.4 2004 29.4 -19.0 -26.3 2.6% 9.1% 4.4% 5.4% 7.0% 4.1% 0.6% 11.8% 10.9% 2.4% 9.1% 4.2% 5.2% 6.6% 3.9% 0.5% 11.7% 11.2% 2.3% 8.5% 3.9% 5.4% 6.9% 3.8% 0.5% 11.7% 12.0% Description Manufacturing Agriculture, hunting and forestry Fishing Mining and quarrying Gross value added Electricity, gas and water supply Electricity, Construction Wholesale and retail trade; repair of motor vehicles. motorcycles and personal and household goods Hotels and restaurants Transport, storage and communications Transport, Financial intermediation Real estate, renting and business activities Public administration and defense; compulsory social security and extra- territorial organizations Education, health and social work Other community, social and personal service activities, private households social and personal service Other community, with employed persons FISIM Wholesale and retail trade; repair of motor Wholesale and retail trade; and personal and vehicles, motorcycles household goods Hotels and restaurants Transport, storage and communications storage Transport, Financial intermediation Real estate, renting and business activities Real estate, renting and Public administration and defense; Public administration and extra- compulsory social security territorial organizations Education, health and social work Other community, social and personal Other community, service activities, private households with employed persons FISIM Gross Domestic Product (continued) Gross Domestic Value added at constant 1993 prices Value I F I E J C K D A B G H J K G H L & Q O & P L & Q Least: O & P Least: M & N M & N Category Tabulation Tabulation Table 10: Table Source: National Accounts National Source: Table 11: Table Services represent approximately 60% of GDP at current prices, the rest corresponds to goods production. The to goods production. corresponds the rest prices, 60% of GDP at current approximately Services represent followed by industry, the manufacturing terms of value added, are in measured main sectors of the economy, activities and the agricultural and farming sector. trade, business and renting as the by sector, by the Argentinian economy was heterogeneous demonstrated The economic recovery following table demonstrates: Source: National Accounts Source: 42 The Economic Contribution of Copyright-Based Industries in Argentina Source: Own estimates Table 13: 2.2% ofGDPin2003and3.3%2008.Thenexttable showsthestructure ofCBI ineachperiod. The industrieswhichhavemostincreased theircontributiontoGDP are thecore industries,whichrepresented a levelofAR$11,255millionpesosin2003and39,796 millionpesosin2008. during theperiodunderanalysisfrom 3.5%ofGDPin2003to4.7%2008.Thesepercentages represent According totheestimation,andasitcanbeseenintable,CBIshaveincreased theircontributiontoGDP industries represent 30%ofthetotal(1.4%GDP). GDP), whiletheinterdependent activitiesandthepartiallydependent,aswellnon-dedicated support industries are themostimportantcomponentofCBI:theyrepresent 70%ofthetotal(3.3%Argentinian The CBIs´participation estimated in thepresent report amounts to4.7%ofthecountry’s GDP. Thecore Source: Ownestimates Table 12: shows thelevelsofCBIs´valueaddedandtheircontribution,bycategory, totheArgentinianGDP. This sectionpresents theeconomiccontributionofcopyright-basedindustriestoGDP. Thefollowingtable 4.2 recovery afterthehyperinflationcrisisoflate’80s. change inrelative prices,presented asignificantdynamismbutthiswassimilartothatexperiencedduringthe output andthepoliticaleconomyforsectorsince2005.Manufacturingindustry, despitethefavorable agricultural andfarmingsectordemonstratedagreat volatility, mainlyduetoclimateeffects onagricultural communications sectors, althoughfinancialintermediationwasthemostdynamiconeafter2005.The The more dynamicsectorsinthe2003-2008periodwere theconstructionsectorandtransport TOTAL Support Partial Interdependent Core Core Interdependent Partial Support TOTAL Core Interdependent Partial Support TOTAL CBI (%ofGDP) CBIs’ valueaddedgeneration CBI CBIs composition CBIs’ VA levelsandcontributiontoGDP CBI 11,255,479 7,142,397 1,974,502 1,330,236 808,344 2.2% 0.6% 0.4% 0.3% 3.5% 2003 2003 13,932,791 8,758,744 2,427,930 1,813,422 932,695 2.3% 0.6% 0.5% 0.2% 3.7% 2004 2004 100.0% 11.8% 17.5% 63.5% 7.2% 2003 11,536,142 17,915,832 2,923,947 2,369,351 1,086,392 100.0% 13.0% 17.4% 62.9% 6.7% 2004 2.6% 0.7% 0.5% 0.2% 4.0% 2005 2005 100.0% 13.2% 16.3% 64.4% 6.1% 2005 15,408,924 23,196,275 3,443,986 3,068,877 1,274,488 2.8% 0.6% 0.6% 0.2% 4.3% 2006 2006 100.0% 13.2% 14.8% 66.4% 5.5% 2006 20,465,021 29,998,548 4,051,792 3,922,670 1,559,065 3.1% 0.6% 0.6% 0.2% 4.5% 2007 2007 100.0% 13.1% 13.5% 68.2% 5.2% 2007 (In thousandsofpesos) 27,672,225 39,796,342 5,058,976 5,150,352 1,914,790 3.3% 0.6% 0.6% 0.2% 4.7% 2008 2008 100.0% 12.9% 12.7% 69.5% 4.8% 2008 The Economic Contribution of Copyright-Based Industries in Argentina43 Contribution to GDP in % CBIs composition CBIs in the national context Source: Own estimates and National Accounts Own estimates Source: Figure 3: Average contribution of CBI to GDP is 4.1%. This fi gure is higher than that shown by other sectors such as gure contribution of CBI to GDP is 4.1%. This fi Average fi nancial intermediation. restaurants and is almost as important as shing, hotels and fi 4.3 chart shows the the following importance of CBIs in the country, of the picture to have a clearer In order to the average contribution of other economic period relative average contribution of CBI in the 2003-2008 sectors which make up GDP. Source: Own estimates Source: Figure 2: The following chart shows the composition of CBIs in each period. shows the composition of CBIs in each The following chart From the total of CBIs, core industries have increased their contribution between 2003 and 2008 from 63.5% 2008 from 2003 and contribution between their increased industries have the total of CBIs, core From support and non-dedicated in the interdependent is the counterpart of a decrease to 69.5%. This increase contribution. their slightly increased partially dependent industries have industries, while the 44 The Economic Contribution of Copyright-Based Industries in Argentina Table 14: The followingtable(Table 14)showsthecompositionofcore industriesduringtheperiod. contribution duringtheperiod,televisionbroadcast services’contributionhasdecreased. 21% andtelevisionbroadcasting serviceswith17%onaverage.Whilethefirsttwohaveincreased their of valueaddedare thepublishingandprintingindustriesasawhole(circa 25%),computingservicesat Among the core industries, it is possible to see that those which make the greater contribution in terms 4.4.1 industries, highlightingtheirstructure andgrowth duringthe2003-2008period. The nextsectionpresents ananalysisoftheeconomiccontributiondifferent groups ofcopyrightbased 4.4 Source: Ownelaboration. Census 51321 52356 71301 92499 2211 2212 2219 2221 2222 5238 6422 7220 7230 7240 7430 7494 7499 9211 9112 9212 9213 9214 9219 9220 9231 ISIC Core industries industries Core CBIs´ structure publications Publishing ofbooks,brochures,musicalbooksandother Publishing ofnewspapers,journalsandperiodicals Other publishing Printing Service activitiesrelatedtoprinting Wholesale ofbooks,magazinesandnewspapers tapes Retail salesofmusicalinstruments,musicscoresand cardboard, packagingmaterialsandlibraryarticles Retail salesofbooks,magazines,newspapers,paper, Television transmissionservices Renting ofvideosandvideogames;stores Software consultancyandsupply Data processing Data baseactivities Advertising Photographic activities Translators Motion pictureandvideoproductiondistribution Copyright collectingsocieties Motion pictureprojection Radio andtelevisionactivities Dramatic arts,musicandotherartsactivities Other entertainmentactivitiesn.e.c. News agencyactivities Library andarchivesactivities Other recreationalactivities Core CBItotal Composition ofcoreindustries Description 100% 11.8% 18.7% 21.2% 3.4% 1.5% 8.2% 1.4% 2.4% 0.6% 3.5% 0.9% 4.0% 0.4% 6.7% 2.8% 0.1% 2.1% 1.0% 1.4% 4.0% 1.0% 1.2% 1.2% 0.3% 0.2% 2003 100% 11.1% 18.0% 20.9% 4.1% 1.8% 7.8% 1.6% 2.3% 0.6% 3.5% 0.9% 4.0% 0.4% 6.2% 2.8% 0.1% 2.3% 1.0% 1.5% 4.2% 1.1% 1.4% 1.6% 0.3% 0.2% 2004 100% 12.8% 16.7% 21.4% 4.0% 1.1% 7.9% 0.9% 2.1% 0.5% 3.2% 1.0% 4.1% 0.4% 5.6% 2.8% 0.1% 2.5% 1.0% 1.6% 4.5% 1.3% 1.6% 2.3% 0.3% 0.3% 2005 100% 12.0% 16.4% 21.5% 5.0% 1.5% 7.5% 0.9% 1.8% 0.5% 2.9% 1.0% 4.1% 0.4% 5.9% 2.9% 0.1% 2.5% 1.0% 1.7% 4.5% 1.3% 1.7% 2.4% 0.3% 0.3% 2006 100% 11.1% 15.2% 21.7% 5.9% 1.0% 8.1% 0.8% 1.8% 0.5% 2.7% 1.0% 4.1% 0.5% 7.5% 3.0% 0.1% 2.4% 1.0% 1.6% 4.3% 1.3% 1.6% 2.3% 0.3% 0.3% 2007 100% 10.5% 14.7% 25.4% 5.8% 0.9% 5.3% 0.5% 1.8% 0.4% 2.6% 1.1% 4.8% 0.5% 8.9% 3.1% 0.1% 2.2% 1.0% 1.5% 4.0% 1.1% 1.4% 2.1% 0.3% 0.2% 2008 The Economic Contribution of Copyright-Based Industries in Argentina45 2008 2.5% 7.7% 5.5% 3.8% 2.3% 0.4% 3.2% 0.2% 0.0% 7.0% 6.4% 100% 17.6% 31.8% 11.6% 2007 2.2% 7.3% 5.2% 3.6% 2.1% 0.4% 3.0% 0.2% 0.0% 6.8% 8.0% 100% 16.4% 29.6% 14.9% 2006 1.9% 7.0% 5.0% 3.5% 2.0% 0.4% 2.8% 0.2% 0.0% 6.0% 7.7% 100% 15.1% 27.2% 21.2% 2005 1.6% 6.8% 4.9% 3.4% 2.0% 0.4% 2.8% 0.3% 0.0% 8.4% 8.5% 100% 15.3% 27.6% 18.0% 2004 1.5% 6.9% 4.9% 3.4% 2.0% 0.4% 2.8% 0.2% 0.0% 7.8% 100% 15.4% 27.9% 16.4% 10.5% 2003 1.4% 6.9% 4.9% 3.4% 2.1% 0.4% 3.0% 0.2% 0.0% 9.9% 100% 16.1% 29.1% 11.8% 10.8% Description – that is, the architectonic and design project but not the direction of construction but not the direction and design project – that is, the architectonic 20 Composition of interdependent copyright industries Composition of interdependent Interdependent CBI total Renting of personal and household goods Retail sale of paper Retail sale of photographic Retail sale of musical instruments, sound equipment, audio and video cassettes, audio and video discs Wholesale of machinery, equipment and implements Wholesale of machinery, used in printing, graphic arts and related activities Wholesale of computers and electronic machines Wholesale of computers and electronic machines and to write and calculate; Wholesale of machines communications equipment, control and security Wholesale of other intermediate products, waste and Wholesale of other intermediate products, waste scrap Wholesale of photographic equipment Wholesale of other household goods Other manufacturing n.e.c. (musical instruments) Manufacture of optical instruments and photographic Manufacture of optical instruments and photographic equipment Manufacture of television and radio receivers, sound Manufacture of television and radio receivers, and or video recording or reproducing apparatus, associated goods Manufacture of office, accounting and computing Manufacture of office, accounting and computing machinery Manufacture of pulp, paper and paperboard Partial copyright industries Interdependent copyright industries ISIC 5139 3699 3320 3230 3000 2101 71309 52383 52371 52356 51514 51592 51492 51341 The portion corresponding to the project is the part protected by copyright. This is not the case for the direction of construction by copyright. This is not the case for the direction is the part protected to the project The portion corresponding works. Census work – are the most important industry within the partially dependent industries. This industry has shown the most important industry work – are 16) shows the its contribution. The following table (Table dynamic behavior during the period, increasing composition of the partial copyright industries. 20 4.4.3 services Architecture Source: Own elaboration. Source: Table 15: Table The following table (Table 15) shows the contribution of each interdependent industry during the period industry during the shows the contribution of each interdependent 15) (Table The following table 2003-2008. Among the interdependent copyright industries, the contribution of appliances wholesale, musical instruments contribution of appliances wholesale, copyright industries, the Among the interdependent imported. With are characteristics, sales of similar stands out. Most of these products music and recorded of importance. order follow in hardware 4.4.2 46 The Economic Contribution of Copyright-Based Industries in Argentina Table 16: Source: Ownelaboration Census 51342 52354 52372 52373 52322 52393 71309 1920 1721 5131 3699 3610 2899 2610 2109 2029 1810 1729 5233 5154 5139 5139 7499 9232 7421 ISIC Composition ofpartialcopyrightindustries Wholesale oftextiles,clothingandfootwear Manufacture ofjewelry, gamesandtoys Manufacture offurniture n.e.c. Manufacture ofotherfabricatedmetalproducts Manufacture ofglassandproducts paperboard Manufacture ofotherarticlespaperand materials manufacture ofarticlescork,strawandplaiting Manufacture ofotherproductswood; Manufacture offootwear apparel Manufacture ofwearingapparel,exceptfur Manufacture ofothertextilesn.e.c. apparel Manufacture ofmade-uptextilearticles,except Wholesale ofjewelryandwatches Retail saleoftextilesandclothing Wholesale ofgamesandtoys personnel Wholesale ofhouseholdarticlesand/or industry, tradeandservices Wholesale offurnitureandequipmentforthe Retail goodsandfurniturebazaar Retail saleofwatchesandjewelry Retail saleofjewelryandfantasy Retail ofhouseholdconfections Retail saleofgamesandtoys sites andbuildings Museums activitiesandpreservationofhistorical Other businessactivities(interiordesign) related technicalconsultancy Architectural andengineeringactivities Renting offurniture Partial CBITotal Description 17.3% 27.8% 100% 2.2% 0.4% 4.1% 4.5% 1.3% 1.5% 3.0% 2.6% 7.4% 1.0% 1.1% 0.6% 6.4% 2.2% 0.1% 0.5% 2.1% 1.3% 0.1% 3.4% 0.5% 8.3% 0.1% 2003 10.2% 14.9% 29.3% 100% 1.9% 0.3% 3.3% 5.5% 1.2% 1.2% 3.4% 3.0% 1.0% 1.4% 0.5% 5.7% 1.9% 0.1% 0.5% 1.9% 1.2% 0.1% 3.1% 0.4% 7.7% 0.1% 2004 12.9% 13.6% 31.6% 100% 1.8% 0.2% 2.3% 5.5% 1.0% 0.9% 2.8% 3.5% 0.9% 1.1% 0.5% 5.2% 1.7% 0.1% 0.4% 1.8% 1.1% 0.1% 2.8% 0.4% 7.6% 0.1% 2005 11.9% 12.2% 35.2% 100% 1.6% 0.2% 1.9% 5.1% 0.9% 0.9% 2.7% 3.9% 0.8% 1.0% 0.4% 4.9% 1.5% 0.1% 0.4% 1.6% 1.0% 0.0% 2.6% 0.5% 8.2% 0.1% 2006 10.7% 12.2% 37.7% 100% 1.6% 0.2% 1.8% 4.4% 0.7% 0.7% 2.5% 4.2% 0.6% 0.7% 0.4% 4.7% 1.5% 0.1% 0.4% 1.6% 1.0% 0.0% 2.5% 0.5% 8.9% 0.1% 2007 10.3% 12.5% 39.1% 100% 1.6% 0.2% 2.2% 4.2% 0.6% 0.6% 2.4% 3.4% 0.4% 0.5% 0.5% 4.7% 1.6% 0.1% 0.4% 1.6% 1.0% 0.0% 2.5% 0.4% 9.2% 0.2% 2008 The Economic Contribution of Copyright-Based Industries in Argentina47 2008 100% 13.5% 22.1% 64.4% 2008 6.3% 4.2% 5.0% 7.8% 9.3% 12.2% 2007 100% 12.7% 26.5% 60.8% 2007 8.3% 10.6% 10.2% 10.0% 11.5% 10.5% 2006 100% 12.5% 28.2% 59.3% 2005 100% 11.3% 30.6% 58.2% 2006 8.2% 9.6% 13.7% 19.5% 10.9% 14.4% 2004 100% 10.8% 32.7% 56.5% 2005 8.7% 11.5% 21.5% 13.8% 10.9% 13.7% 2003 100% 10.5% 34.8% 54.8% 2004 8.5% 13.6% 36.3% 16.9% 13.0% 18.0% ISIC Census description CBIs’ and GDP growth rates Composition of non-dedicated support industries Composition of non-dedicated CBIs´ real growth CBIs´ real Non-dedicated support industries Non-dedicated support CBI total Post and telecommunications Transport Wholesale and retail trade Core Interdependent Partial Support CBI TOTAL GDP Source: Own estimates Source: Table 18: Table As can be observed, for the above mentioned period, CBIs in general are more dynamic than the whole more mentioned period, CBIs in general are As can be observed, for the above mainly can behavior This rates. growth greater present CBIs series, the in considered years the all In economy. though in general (with the activities have attained; interdependent be explained by the importance that higher rate than GDP. at a grew exception of 2008) all the industries The dynamics of CBIs during the period can be seen in the following table (table 18), where the inter-annual the inter-annual can be seen in the following table (table 18), where The dynamics of CBIs during the period presented. 1993 prices) are rates for CBIs and GDP (at growth Source: Authors’ estimation Source: 4.5 Table 17: Table Among the non-dedicated support industries, the industry with the highest contribution is trade, followed by with the highest contribution is trade, support industries, the industry Among the non-dedicated 17). can be seen in the following table (Table transportation, as 4.4.4 48 The Economic Contribution of Copyright-Based Industries in Argentina Figure 4: increasing importancethattheseindustriesacquire whentheeconomygrows. As Figure 4belowshows,thedynamism of CBIs’activities was greater thanthatofGDP, demonstratingthe Source: ownestimatesandNationalAccounts Real growthofGDPandCBIs The Economic Contribution of Copyright-Based Industries in Argentina49 EMPLOYMENT IN THE COPYRIGHT-BASED INDUSTRIES COPYRIGHT-BASED IN THE EMPLOYMENT Income Generation Account Continuous Household Survey National Economic Census 2003/2004 Some characteristics of the Argentinian labor market and its evolution Sources of information Sources The following table (Table 19) shows how total jobs grow from 13.9 million in 2003 to 17 million in 2007, from 19) shows how total jobs grow The following table (Table wage-earners. This dynamic occurs in a context of economic recovery, in registered mainly due to the increase local the of depreciation a and output of elasticity employment increased growth, GDP of rates high with 2012). (Coremberg, currency 5.2 of the labor market during this period in jobs. The growth The 2003-2007 period was one of constant growth the 2001-2002 crisis. As a consequence of and following the 1998-2001 recession of the recovery is a result in the in labor costs caused by the 2002 devaluation and the increase reduction of the initial strong the effect the labor market experienced a huge positive reaction. level of activity which started in that year, Until 2007, the National Accounts published an income generation account. WithUntil 2007, the National Accounts published an income generation account. this information, the Given that this publication was discontinued, for extrapolation of the 2003 estimation was done by activity. which System (SIPA) Provisional 2008 the estimation of jobs for CBIs was based on the Argentine Integrated of wage-earners. constitutes a registry (c) This allows one to obtain jobs by occupational category, for registered as well as for non-registered jobs, non-registered for well as as registered for category, occupational jobs by obtain one to allows This which the adjustment for the non-observed economy is made. information from (b) (a) jobs by activity on registered information been mentioned, the economic census provides As has previously added. reason, it is compatible with their value firms. For this the information supplied by from 5.1 the following: employment in CBIs are of information for measuring Sources In the socio demographic sources, jobs by activity and by category are estimated, adding to the people jobs by activity and by category are In the socio demographic sources, and the other occupations by activity and by category. working, their secondary occupation Given that the economic census measures jobs, this variable will be taken into consideration in order to into consideration in order jobs, this variable will be taken Given that the economic census measures CBI employment. measure Labor input, the number of people employed, can be estimated in National Accounts in terms of jobs, estimated in National Accounts in of people employed, can be Labor input, the number implicit) between the contracts (explicit or are to SNA 93, jobs hours worked. According equivalent jobs or (or mixed out an activity in exchange for remuneration to carry unit in order a person and an institutional period of time. The number of jobs does not coincide with the number income) during a definite or indefinite she than one job; herself to be working can have more who declares of working people because a person and other activities. can also perform secondary activities The employment measurement for CBIs was carried out for the same economic activities as the ones considered considered the same economic activities as the ones for CBIs was carried out for The employment measurement as well as for those in the interdependent industries for those in the core for value added estimations, each case the in support industries, respecting copyright industries and non-dedicated industries, partial used in each of these industries. factors correction 5. 50 The Economic Contribution of Copyright-Based Industries in Argentina Table 19: Source: NationalAccounts Table 20: reduced theircontribution. Wage-earners increased theircontributionfrom 72%oftotaljobsto76%,whilethenon-wage-earners Source: NationalAccounts Table 21: exhaustiveness inGDP. and whichjustifies theadjustmentfor thenon-observed economy(NOE) carriedoutinthisstudy toattain indicates ahighdegree ofinformalityinthecountry, aphenomenonsimilartotheaverageinLatinAmerica professionals intheprivatesectorlarge,mediumandsmallfirms,aswellpublicsector), which These partlyrepresent thehiddensalaryrelationships (continuoussubcontractingofprofessionals and non- However, thehighproportion of non-registered employeesandfreelance workersmustbehighlighted. theregisteredAmong thewage-earners, onesconsistentlyincreased theircontribution. Source: NationalAccounts Non-wage-earners Non-registered wage-earners Registered wage-earners Wage-earners Total jobs Non-wage-earners Non-registered wage-earners Registered wage-earners Wage-earners Total Jobs Wage-earners Registered wage-earners Non-registered wage-earners Number ofjobs,bycategory Contribution ofjobs,bycategory Wage-earners’ contributiontojobs Contribution ofjobsbycategory% Jobs bycategory(inthousands) 13,907 Wage-earners’ contribution% 3,910 4,080 5,916 9,997 2003 100% 2003 59% 41% 100% 2003 28% 29% 43% 72% 14,911 10,896 4,015 4,487 6,408 2004 100% 2004 59% 41% 100% 2004 27% 30% 43% 73% 15,587 11,537 4,050 4,545 6,991 2005 100% 2005 61% 39% 100% 2005 26% 29% 45% 74% 16,453 12,298 4,155 4,692 7,607 2006 100% 2006 62% 38% 100% 2006 25% 29% 46% 75% 17,047 12,885 4,162 4,701 8,184 2007 100% 2007 64% 36% 100% 2007 24% 28% 48% 76% The Economic Contribution of Copyright-Based Industries in Argentina51 86 74 24 970 253 579 2007 2007 7.5% 0.1% 0.4% 0.5% 8.5% 3.4% 6.7% 1.5% 8.2% 2,059 2,439 1,394 1,140 3,103 1,447 2,204 1,275 12.9% 18.2% 17,047 84 66 25 953 228 539 2006 2006 2,020 2,389 1,304 1,026 3,053 1,364 2,126 1,277 7.8% 0.1% 0.4% 0.5% 8.3% 3.3% 6.2% 1.4% 7.9% 16,453 12.9% 18.6% 82 57 22 913 210 477 2005 2005 7.9% 0.1% 0.4% 0.5% 7.9% 3.1% 6.5% 1.3% 7.4% 1,960 2,285 1,160 1,011 2,891 1,230 2,060 1,229 13.2% 18.5% 15,587 82 52 22 883 199 955 461 2004 1,832 2,192 1,034 2,858 1,097 1,976 1,270 2004 8.5% 0.1% 0.4% 0.5% 7.4% 3.1% 6.4% 1.3% 6.9% 14,911 13.2% 19.2% 77 45 22 867 938 191 928 405 897 2003 1,615 2,121 2,700 1,857 1,243 13,907 2003 8.9% 0.2% 0.3% 0.6% 6.5% 2.9% 6.7% 1.4% 6.7% 13.4% 19.4% Sector structure of jobs (in %) Jobs by activity (in thousands) Sector structure of jobs Jobs by activity TOTAL Other community, social and personal service activities Other community, Education, health and social work Public administration and defense Real estate, renting and business activities Financial intermediation Transport, storage and communications Transport, Hotels and restaurants Wholesale and retail trade; repair of motor vehicles, motorcycles and Wholesale and retail trade; repair of motor personal and household goods Construction Electricity, gas and water supply Electricity, Manufacturing Mining and quarrying Fishing Agriculture, hunting and forestry Agriculture, hunting and Agriculture, hunting and forestry Fishing Mining and quarrying Manufacturing Electricity, gas and water supply Electricity, Construction Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods Hotels and restaurants Transport, storage and communications Transport, Financial intermediation Real estate, renting and business activities Table 23: Table Trade, agriculture and farming and manufacturing are sectors which decreased their contribution in the their contribution in the sectors which decreased are and farming and manufacturing agriculture Trade, and real construction, hotels and restaurants their contribution are period. Those sectors which increased activities. estate, business and renting jobs by sector. 23) one can observe the dynamics of the contribution of In the following table (Table Source: National Accounts Source: Table 22: Table Analyzing the sectoral composition of employment, the sector with the highest contribution is trade, followed trade, is contribution highest the with sector the employment, of composition sectoral the Analyzing 22). (Table and health services and manufacturing by education, social 52 The Economic Contribution of Copyright-Based Industries in Argentina Source: NationalAccounts Table 24: employment inCBIswas532,000jobs,361,000ofwhichoriginatedthecore industries(Table 24). In 2003CBIsgenerated369,000jobs,243,000ofwhichwere originatedinthecore industries.By2008 economy andtheincomegenerationaccountpublishedbyNationalAccounts. 2008 period,according totheestimatesbasedineconomiccensus,adjustmentfornon-observed Next, theresults ofmeasuringthejobsgeneratedbycopyright-basedindustriesare presented for the2003- 5.3 and non-dedicated support industries. Partially dependent industries maintain their contribution (see Figure 5). In 2008 there was an increase in the contribution of core industries against the contribution of interdependent 15.3% ofjobs,whilenon-dedicatedsupportindustriesrepresented 6.4%oftotalCBIjobsin2003. Interdependent industriesparticipatedwith12.4%ofCBIjobs,partiallydependentcontributed Jobs inthecore industriescontributed66%ofCBIsjobs. Source: Ownestimates Table 23: TOTAL Support Partial TOTAL Interdependent Other community, socialandpersonalserviceactivities Core Education, healthandsocialwork Public administrationanddefense Employment inCBIs Jobs bytypeofCBI(inthousands) Sector structureofjobs(continued) CBI 2003 369 243 23 57 46 2004 414 278 25 62 49 2005 444 302 25 66 51 11.6% 15.3% 100% 6.2% 2006 466 313 12.3% 14.7% 100% 27 72 54 5.9% 12.6% 14.7% 100% 5.9% 2007 494 335 28 75 56 12.3% 14.5% 100% 5.8% 2008 532 361 12.1% 14.3% 100% 30 81 60 5.7% The Economic Contribution of Copyright-Based Industries in Argentina53 Employment contribution of CBI contribution of CBI Employment The following graph (Figure 6) shows that while jobs in the whole economy increased by 27%, CBIs’ jobs whole economy increased jobs in the 6) shows that while (Figure The following graph of 48%. industries being the most notable with an increase the core by 44% in the period under study, grew Source: Own estimates Source: of employment a dynamism in the creation employment, CBIs present Analyzing the evolution of the generated behavior is found for production. A similar which is higher than the average of the economy. Figure 5: 54 The Economic Contribution of Copyright-Based Industries in Argentina Figure 6: 21 Table 25: core industriesincreased theircontributionfrom 1.8%to2%inthetotaljobsofeconomy. In thisway, CBIsincreased theircontributionfrom 2.7%oftotaljobsto3%in2008,periodduringwhichthe Source: ownestimates sectoral policiestopromote culturalactivitiesand,ingeneral,applyingto related tocopyright. some explanatoryfactorshavetobeaddedthose already mentionedforthewholeeconomy, suchas Regarding theemploymentgrowth intheCBIs–evenhigherthanspectaculargrowth oftotalemployment – Source: Ownestimates TOTAL Support Partial Interdependent Core of themainindustries. See insection8some references regarding publicpoliciesimplementedand otherrelevant variables thathaveaffected thedynamics Jobs growth CBI jobs(in%oftotaljobs) CBI 2.7% 0.2% 0.4% 0.3% 1.8% 2003 2.8% 0.2% 0.4% 0.3% 1.9% 2004 2.8% 0.2% 0.4% 0.3% 1.9% 2005 2.8% 0.2% 0.4% 0.3% 1.9% 2006 2.9% 0.2% 0.4% 0.3% 2.0% 2007 3.0% 0.2% 0.5% 0.3% 2.0% 2008 21 The Economic Contribution of Copyright-Based Industries in Argentina55 CBIs’ contribution to GDP and employment CBIs’ contribution to CBIs´ contribution to value added and employment to value added CBIs´ contribution Likewise, CBIs’ level of average productivity is higher than the economy’s average productivity. In 2003 the average productivity. is higher than the economy’s Likewise, CBIs’ level of average productivity at Measured of the Argentine economy. was 33% higher than the average productivity CBIs’ productivity in 2008 with a peak of 49% in 2006. was 47% constant prices, this relationship Taking productivity at constant prices in order to isolate the price effect of the period, the increase in CBIs’ of the period, the increase effect to isolate the price order at constant prices in productivity Taking was 15%. Once again, CBIs’ economy amounted to 29%, while the average of the whole productivity was higher than the average of the economy. dynamism, now in terms of labor productivity, With this information it is possible to conclude that CBI average productivity (value added per job) grew grew job) added per With(value productivity average CBI that conclude to possible is it information this during the period under study. Source: Own estimates Source: Figure 7: As can be seen, CBIs´ contribution was higher in terms of value added than in terms of employment. In employment. of terms than in added value of terms in higher was contribution CBIs´ be seen, can As stable, remained the period while that of employment during in value added grew addition, the contribution 3%. circa The following chart (Figure 7) shows the CBIs´ contribution to GDP and employment in the 2003-2008 period. to GDP and employment in the 7) shows the CBIs´ contribution (Figure The following chart 5.4 56 The Economic Contribution of Copyright-Based Industries in Argentina Employment alsoreflected thisgrowth, goingfrom 29%to33%duringthe period. engineering, surveying).Thissectorcontributed28% of valueaddedin2003,increasing to39%in2008. As forpartialCBIs(Table 28),theoutstandingcontributionandbehavior camefrom subgroup 8(architecture, subgroup 7(paper). subgroup 2(computersandequipment);though intermsofemployment,thesecondplacewastakenby subgroup contributed35.7%and38%forthesameyears.ThenextpositionintermsofVA washeldby as itcontributed38.9%and42.2%totheVA of2003and2008respectively. Asregards employment,the theinterdependent CBIs(TableWithin 27),theparticipationofsubgroup 1standsout(TVsets,radios,etc.) 13.8% respectively. in 2003and2008respectively; software anddatabases21%23%,radiotelevision13.1% subgroup 23.3%and19.4%.Asregards employment,press andliterature contributed28.5% and26.9% respectively. Forthesameperiods, software contributed25.6%and30.7%theradiotelevision press andliterature subgroup participatedwith32.2%and28%intheVA fortheyears2003and2008 subgroup 1(press andliterature), followedby6(software anddatabases)4(radiotelevision).The Among core CBIs(Table 26),themostnotablecontributiontovalueaddedandemploymentwasmadeby added andtheemploymentcontributionofeachsubsectortotypeindustry. For amore comprehensive andsummarizedapproach, thefollowingtables(Tables 26-28)illustrate thevalue Source: Ownestimates 22 Figure 8: In order toillustratethispoint,thefollowingchartispresented (Figure 8): branches belonging tomore thanonesubsector. The figures atthelevelofsub-sectors are approximate, becausemanyindustries do nothavetheinformationfordisaggregated ISIC Productivity 22 The Economic Contribution of Copyright-Based Industries in Argentina57 Source: own estimates own Source: Core CBI total CBI Core 100% 100% 100% 100% 2.04% 1.75% 3.30% 2.23% 361,008 243,440 27,672,225 7,142,397 Copyright collecting societies collecting Copyright 9 4.3% 4.9% 1.0% 1.0% 0.09% 0.09% 0.03% 0.02% 15,388 11,902 267,005 69,787 Advertising services Advertising 8 8.5% 7.8% 8.9% 6.7% 0.17% 0.14% 0.29% 0.15% 30,787 19,006 2,453,039 477,721 Visual and graphic arts graphic and Visual 7 1.9% 1.9% 0.9% 0.8% 0.04% 0.03% 0.03% 0.02% 6,943 4,573 247,935 57,170 Software and database and Software 6 23.0% 21.0% 30.7% 25.6% 0.47% 0.37% 1.01% 0.57% 82,882 51,167 8,505,701 1,831,254 Photography 5 6.5% 6.1% 2.7% 2.6% 0.13% 0.11% 0.09% 0.06% 23,291 14,835 737,527 187,817 Radio and television and Radio 4 13.8% 13.1% 19.4% 23.3% 0.28% 0.23% 0.64% 0.52% 49,661 31,990 5,358,234 1,663,639 Motion picture and video and picture Motion 3 6.9% 7.2% 4.8% 4.7% 0.14% 0.13% 0.16% 0.11% 25,081 17,627 1,318,285 337,934 Music, theatrical productions and operas and productions theatrical Music, 2 8.3% 9.4% 2.8% 3.1% 0.17% 0.16% 0.09% 0.07% 29,993 22,834 782,867 219,530 Press and literature and Press 1 8,001,632 8,001,632 2,297,545 26.9% 28.6% 28.9% 32.2% 0.55% 0.50% 0.95% 0.72% 96,982 69,506 2003 2008 2003 2008 2003 2008 2003 2008 2003 2008 2003 2008 Core CBI by subgroup by CBI Core pesos) (number of jobs) of (number GDP) (% total jobs) total (% core CBI) core (% (% core CBI jobs) CBI core (% Value added (thousand (thousand added Value Employment Employment Value added added Value Employment Employment Value added added Value Employment 26: Table Economic contribution of core CBIs by subgroup by CBIs core of contribution Economic 58 The Economic Contribution of Copyright-Based Industries in Argentina Table 27: Economic Contribution of interdependent CBI by subgroup Value added Employment Value added Employment Value added Employment (% interdependent (% interdependent CBI (thousands of pesos) (number of jobs) (% GDP) (% total jobs) CBI) jobs) Interdependent CBI by subgroup 2003 2008 2003 2008 2003 2008 2003 2008 2003 2008 2003 2008 1 TV sets, radios, VCRs, DVD players, electronic 767,895 2,134,479 16,396 22,239 0.24% 0.25% 0.12% 0.13% 38.9% 42.2% 35.8% 37.0% game equipment 2 Computer and equipment 512,646 1,240,925 4,601 6,444 0.16% 0.15% 0.03% 0.04% 26.0% 24.5% 10.0% 10.7% 3 Musical instruments 132,556 371,589 2,733 3,459 0.04% 0.04% 0.02% 0.02% 6.7% 7.3% 6.0% 5.8% 4 Photographic and cinematographic 156,557 443,140 7,394 9,280 0.05% 0.05% 0.05% 0.05% 7.9% 8.8% 16.1% 15.4% instruments 5 Photocopiers 20,835 58,195 349 438 0.01% 0.01% 0.00% 0.00% 1.1% 1.2% 0.8% 0.7% 6 Blank recording material 27,609 77,525 739 927 0.01% 0.01% 0.01% 0.01% 1.4% 1.5% 1.6% 1.5% 7 Paper 356,404 733,123 13,613 17,336 0.11% 0.09% 0.10% 0.10% 18.1% 14.5% 29.7% 28.8% Interdependent CBI total 1,974,502 5,058,976 45,824 60,124 0.62% 0.60% 0.33% 0.34% 100% 100% 100% 100% Source: own estimates The Economic Contribution of Copyright-Based Industries in Argentina59 Source: own estimates own Source: Partial CBItotal Partial 100% 100% 100% 100% 0.46% 0.41% 0.61% 0.41% 81,266 56,618 5,150,352 1,330,236 Museums 10 1.1% 1.2% 0.4% 0.5% 0.01% 0.00% 0.00% 0.00% 891 689 21,668 6,003 Interior design Interior 9 10.5% 9.3% 9.2% 8.3% 0.05% 0.04% 0.06% 0.03% 8,509 5,253 475,138 110,890 Architecture, engineering and surveying and engineering Architecture, 8 33.0% 29.2% 39.1% 27.8% 0.15% 0.12% 0.24% 0.12% 26,805 16,548 2,015,306 369,838 Toys and games and Toys 7 11.9% 13.6% 15.1% 20.9% 0.05% 0.06% 0.09% 0.09% 9,692 7,708 777,168 278,119 Wall coverings and carpet and coverings Wall 6 0.8% 0.8% 1.0% 2.5% 0.00% 0.00% 0.01% 0.01% 639 451 52,900 33,786 Household goods, china and glass and china goods, Household 5 8.4% 9.2% 9.1% 11.5% 0.04% 0.04% 0.06% 0.05% 6,800 5,181 470,692 152,979 Furniture, fittings and furnishing and fittings Furniture, 4 9.0% 9.0% 2.4% 4.4% 0.04% 0.04% 0.01% 0.02% 7,346 5,075 124,841 58,294 Other crafts Other 3 2.1% 2.4% 1.0% 1.3% 0.01% 0.01% 0.01% 0.01% 1,678 1,337 50,905 17,840 Jewelry and coins and Jewelry 2 3.7% 4.2% 2.1% 3.0% 0.02% 0.02% 0.01% 0.01% 2,991 2,368 109,620 39,487 Apparel, textiles and footwear and textiles Apparel, 1 263,002 263,002 1,052,115 1,052,115 12,007 12,007 15,914 15,914 0.13% 0.08% 0.09% 20.4% 19.8% 0.09% 21.2% 19.6% 2003 2008 2003 2008 2008 2003 2003 2008 2003 2008 2003 2008 Partial CBI by subgroup by CBI Partial (thousands of pesos) of (thousands (number of jobs) of (number GDP) (% total jobs) total (% partial CBI) partial (% (% partial CBI jobs) CBI partial (% Value added added Value Employment Employment Value added added Value Employment Employment Value added added Value Employment 28: Table Economic contribution of partial CBI by subgroup by CBI partial of contribution Economic 60 The Economic Contribution of Copyright-Based Industries in Argentina account, whichallowsidentifyingcopyrightsforeign trade,hasbeenrequested. was usedforsomeanalysisrelated totheforeign tradeofservices.Likewise,adisaggregation oftheroyalty merchandise (orgoods),thepublicationdoesnotshowdisaggregation neededfor this research, butit The Directorate publishesquarterlyresults forthecurrent account(merchandise andservices).Inthecaseof Argentina. Forthistask,theDirectorate followstheguidelinesofIMF’s BalanceofPaymentsHandbook. The NationalDirectorateAccountsisinchargeofstatisticsontheBalancePaymentsfor ofInternational (b) as wellfortheNationalAccountsbyISICrevision 3. data (validationsandconsistencies).Likewise,INDECprocesses theinformationforBalanceofPayments In everycase,theDirectorate ofStatistics of Foreign Trade (INDEC)is responsible forthequality control ofthe Common Mercosur Classificationbasedontheharmonizedsystem. Federal AdministrationofPublicIncome(AFIP).Theclassificationusedto register exportsandimportsisthe The foreign tradestatisticsare registered bytheGeneralDirectorate ofCustoms(DGA),anagency ofthe foreign tradeasawhole. This sectionpresents theexports and imports of merchandise andservicesofCBIscontextualized in Argentine have, aspartofintellectualproperty, tradenegotiations. ininternational (such asbooks,music,movies,etc.)supplytheworldmarketsandreveal thespecific role thatcopyrights At thesametime,itisimportanttocompilethesestatisticsbecausemanyproducts protected bycopyright the importsandexportsofacountry, isarelevant indicator forpublicpolicy. According totheWIPOGuide(2003),positionofanationalindustrylinkedcopyrights,inrelation to 6. Table 29: the 2003-2008period. The followingtable(Table 29)summarizes Argentineexportsandimportsbytypeofproduct andgrowth for 6.2 (a) The followingare themainsources ofinformationusedtoquantifyCBIs’foreign trade. 6.1 Exports FOB Primary products Manufactures ofagriculturalorigin Manufactures ofindustrialorigin Fuel andenergy Imports CIF Capital goods Intermediate goods Fuels Argentinian foreign trade Sources ofinformationonForeign Trade National Directorate Accounts ofInternational General Directorate ofCustoms(DGA)andINDEC CBIs INTHEARGENTINIANFOREIGNSECTOR Exports andImportsofGoods 29,939 10,004 13,851 6,471 8,047 5,417 2,495 6,267 2003 550 34,576 11,927 22,445 6,852 9,616 6,181 5,331 8,632 1,003 2004 In millionsofUSdollars 40,387 13,142 11,985 28,687 10,376 8,110 7,150 7,011 1,545 2005 46,546 15,265 14,843 34,154 11,918 8,625 7,813 8,201 1,732 2006 55,980 12,485 19,214 17,333 44,708 10,397 15,371 6,949 2,845 2007 70,019 16,202 23,906 22,063 57,463 12,668 20,226 7,848 4,333 2008 The Economic Contribution of Copyright-Based Industries in Argentina61 23 111 3,874 6,292 9,959 ISIC 2211 2212 2219 2221 2222 7221 7494 9211 9214 2101 3000 12,556 23% 34% 32% 11% 2008 Rev.3.1. 1 1 1 1 1 1 1 1 1 2 2 N° Act 114 2,709 5,208 8,065 11,273 22% 34% 31% 12% 2007 119 2,038 3,970 6,175 12,393 19% 33% 32% 17% 2006 132 1,603 3,162 4,858 11,700 158 1,197 2,501 3,622 12,130 20% 33% 30% 18% 2005 13 509 1,756 2,262 16,088 20% 34% 28% 18% 2004 22% 33% 27% 18% 2003 Economic Activity Exports Exports and Imports of Goods (continued) Imports of Goods Exports and List of ISIC activities included in CBIs’ foreign trade Exports composition CBIs’ Foreign Trade CBIs’ Foreign For more detail, see Annex 4. For more Balance Other Vehicles and passenger automobiles and passenger Vehicles Consumption goods Parts for capital goods Parts for capital goods Publishing of books Publishing of newspapers Other publishing Printing Service activities related to printing Software consultancy and supply Photographic activities Motion picture and video production and distribution Dramatic arts, music and other arts activities Manufacture of pulp, paper and paperboard Manufacture of office, accounting and computing machinery Primary products Manufactures of agricultural origin Manufactures of industrial origin Fuel and energy Table 29: Table 23 Table 31: Table The following table (Table 31) shows the activities considered for exports and imports of goods. 31) shows the activities considered The following table (Table In principle, activities related to wholesale and retail trade are not linked to foreign trade because they are trade because they are not linked to foreign trade are and retail to wholesale In principle, activities related to limited, mainly, in the estimation are considered the activities that are non-tradable activities. Therefore of goods. to production activities related 6.3 to exported and imported goods is shorter than trade, the list of activities corresponding In the case of foreign to the value added. the list of CBIs according Source: INDEC Source: Table 30: Table In the following table (Table 30) one can observe the composition of exports for the period. As can be of exports for the period. 30) one can observe the composition (Table In the following table exports of commodities The and farming products. agricultural exports are the main Argentine appreciated, the total export of the country. of agricultural and farming origin totaled half of plus exports of manufactures Source: INDEC Source: 62 The Economic Contribution of Copyright-Based Industries in Argentina The following table shows CBI exports by type and by participation in total exports in the period under study. This activityconstitutesanimportantpartofthecontent ofthisbranch’s production. Photographic studios and commercial photography: Photo processing for the final consumer isnot exported. refer totheproducts listedhere; commercial books,bills,ticketsand brochures ingeneral are notexported. Pre-printing, printing, post-printing of books, magazines,newspapers and advertising material: All exports Publishing: Inthiscase,alltheexportsare protected bycopyright. Industries withspecificcorrection factorforexportsare thefollowing: the rest, thecorrection factorappliedforthevalueadded estimatewasused. In thosecases,specificcorrection factorsfor exports were estimated,subjecttotheavailableinformation.For necessarily thesameinexportsandvalueadded. identified where theparticipation ofproducts protected bycopyright ineach ISICclassification wasnot year, boththestatistical correction coefficients andthecopyrightfactorswere analyzed.Severalcaseswere In thecaseofexports,afterprocessing theforeign tradedatabasewithISICusingthe converters foreach 6.4 account inorder tocorrectly maketheconversiontoISIC. In theperiod2003-2008,somechangeswere madetotheClassifier, whichmustbespeciallytakeninto ISIC revision 3. Classifier, basedontheharmonizedsystem, anduseitfortheexportimportsitemstoconvertthem In order toquantifyforeign trade,itwasnecessarytouseaconversiontablefortheCommon Mercosur Notes: 1:Core; 2:Interdependent; 3:Partial Source: Thisstudy Table 31: Architectural andengineeringactivitiesrelatedtechnicalconsultancy Manufacture ofgamesandtoys Manufacture ofjewelryandcoins Manufacture offurniture Manufacture ofotherfabricatedmetalproductsn.e.c. Manufacture ofglassandproducts Manufacture ofotherarticlespaperandpaperboard Manufacture ofotherproductswood;manufacturearticlescork,strawandplaitingmaterials Manufacture offootwear Manufacture ofwearingapparel,exceptfurapparel Manufacture ofothertextilesn.e.c. Manufacture ofmade-uptextilearticles,exceptapparel Other manufacturingn.e.c.(musicalinstruments) Manufacture ofopticalinstrumentsandphotographicequipment associated goods Manufacture oftelevisionandradioreceivers,soundorvideorecordingreproducingapparatus, Exports List ofISICactivitiesincludedinCBIs’foreigntrade(continued) 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 7421 3694 3691 3610 2899 2610 2109 2029 1920 1810 1722 1721 3692 3320 3230 The Economic Contribution of Copyright-Based Industries in Argentina63 12% 54% 34% 2008 100% 2008 0.5% 39,115 113,074 176,229 328,418 70,018,839 10% 59% 31% 2007 100% In thousands of US Dollars 2007 0.6% 97,739 32,300 184,012 314,051 55,980,309 10% 53% 37% 2006 100% 2006 0.6% 30,434 111,237 159,120 300,790 46,546,203 11% 50% 39% 2005 100% 2005 0.6% 92,475 26,329 120,136 238,940 40,386,767 12% 56% 33% 2004 100% 2004 0.7% 75,102 26,326 126,878 228,306 34,575,734 13% 55% 33% 2003 100% 2003 0.6% 61,075 24,057 102,070 187,202 29,938,753 Industry Exports composition by type of industry Exports Industry Total CBI Exports Total Partial Interdependent Core Core Interdependent Partial Total CBI exports Total exports Total CBI exports in total Core industries exported between 33% and 34% of total CBI exports, with a peak of 35% in 2005. The industries exported between 33% and 34% of total CBI exports, Core book publishing. industry with the largest contribution to exports of this type of industry was It can be observed that during the period studied there were no significant changes in the composition of no significant changes in the composition were studied there It can be observed that during the period the average contribution of each CBI industry. 9) shows exports. The following chart (Figure Source: Author’s calculation Author’s Source: Table 33: Table CBIs’ exports represent a small proportion of total exports, accounting for only 0.6%. This result is the for only 0.6%. This result of total exports, accounting a small proportion CBIs’ exports represent less the services sectors, which are to mainly related activities are expected one, due to the fact that these intensive in natural resources substitutive industry or activities which are tradable than other activities such as such as mining and farming sectors. Source: Own estimates Source: Table 32: Table 64 The Economic Contribution of Copyright-Based Industries in Argentina Figure 9: with 55%, apeakof59%in2007 and aminimumof50%in 2005. Themostimportant industries in The interdependent industrieswere themostimportantonesintermsofexports, participatingonaverage Source: Ownestimates Figure 10: period. The followingchart(Figure 10)showsthecompositionofexportsbyISICcore industriesduringthe Source: Ownestimates Exports byISICinthecoreindustries Composition ofexports The Economic Contribution of Copyright-Based Industries in Argentina65 Exports by ISIC in the partially dependent industries Exports by ISIC in the partially dependent Exports by ISIC in the interdependent industries Exports by ISIC in the Source: Own estimates Source: Figure 12: The partially dependent industries contribute approximately 11% of exports. As can be seen in the next chart be seen in the next As can 11% of exports. approximately contribute dependent industries The partially and porcelain appliances, of manufacturing the are category this of industries important most the 12), (Figure and furniture. glass products Source: Own estimates Source: Figure 11: this category were paper manufacturing and TV, CD and DVD players manufacturing, etc. The following chart following etc. The manufacturing, players and DVD CD and TV, manufacturing paper were category this industries during the period. exports composition by ISIC of interdependent 11) shows the (Figure 66 The Economic Contribution of Copyright-Based Industries in Argentina Table 34: during theperiodunderstudy. In thefollowingtables(Tables 34&35),CBIimportsare shownbytypeandtheircontributiontototalimports Industries whichhaveaspecificcorrection factorforimportsare: industries, thesamecorrection factorasappliedtothevalueaddedwasused. If theinformationwasavailable,specificcorrection factorsforimportswere estimated.Inthe rest ofthe that are notproduced locally. classification was not necessarily the same in exports and in value added. Precisely, the country imports goods analyzed. Caseswere identifiedinwhichtheparticipationofproducts protected bycopyright in eachISIC foreign tradedatabasetoISIC,boththestatisticalcorrection coefficientsandthecopyrightfactorswere In thecaseofimports,samemethodologicalprocess wasfollowedasforexports.Afterconvertingthe 6.5 Table 35: Source: Author’s estimation Source: Ownestimates Core CBI importsinTOTAL Total imports CBI imports Partial Interdependent Core Interdependent Partial CBI Imports customs classification. the majorityoftheseproducts are imported–thecorrection factorwasre-estimated takingimportsby of gamesandtoys.Whenthecoefficienttoestimatevalueaddedwasverylow–duefactthat Musical Instruments:Thisactivityisgrouped withjewelry, bijouterie,sportsarticles,andmanufacturing For thisreason, inthisinstance,thecoefficientusedisgreater thanthatappliedforvalue added. explanation ofvalueadded,thegreatest partofphotographicandcinematographicequipmentisimported. Photographic andcinematographicinstruments:ThisISICalsoincludesopticelements.Asmentionedinthe MERCOSUR classificationwasusedwithouttheconversiontoISIC. other usestothetotalofimportedpaper. Inorder tomakethisestimation,theimportsdatabaseby Paper: A coefficient was estimated to show the contribution of paper for press and printing paper for consumers. Thisactivityrepresents animportantpartofthevalueproduction ofthisbranch. Photographic studios and commercial photography: there are no imports of photo processing for final imports are protected bycopyright,thusthefactorisone. Pre-printing, printing and post-printing of books, magazines, newspapers and advertising material: All Publishing: Inthiscasealltheimportedmaterialisprotected bycopyright. Imports Imports Composition ofimportsbytypeindustry Industries 13,850,774 1,025,857 918,879 73,903 33,075 7.4% 2003 100% 2003 90% 7% 3% 22,445,281 1,680,334 1,516,702 112,467 51,165 100% 7.5% 2004 2004 90% 7% 3% 28,686,893 2,324,673 2,098,335 161,022 65,317 100% 2005 8.1% 90% 2005 7% 3% 34,153,683 2,719,892 2,456,960 180,282 82,650 100% 8.0% 2006 2006 90% 7% 3% In thousandsofUSDollarsCIF 44,707,463 2,937,833 2,688,538 106,755 142,540 6.6% 100% 2007 2007 92% 5% 4% 57,462,452 3,328,108 2,991,307 142,116 194,685 100% 5.8% 2008 2008 90% 6% 4% The Economic Contribution of Copyright-Based Industries in Argentina67 ISIC participation of core CBIs in total imports ISIC participation of core CBIs in total Composition of imports Source: Own estimates Source: Figure 14: Within core industries, the greatest part is related to books, as can be seen in the next chart (Figure 14). to books, as can be seen in the next chart (Figure part is related Within industries, the greatest core In relation to the composition of imports of CBIs, the greatest part, 90%, refers to interdependent industries. to interdependent part, 90%, refers of CBIs, the greatest to the composition of imports In relation and partially dependent industries with 3%. industries participate with 7% Core Source: Own estimates Source: Figure 13: In the following chart (Figure 13), the average contribution of each CBI industry in the total of CBI imports total of CBI imports CBI industry in the of each 13), the average contribution chart (Figure In the following can be observed. 68 The Economic Contribution of Copyright-Based Industries in Argentina Source: Ownestimates Figure 16: glass products andgamestoys. In thepartiallydependentindustries(Figure 16),themainimportsare domesticappliances,porcelain and Source: Ownestimates Figure 15: newspapers andforprintingingeneral(Figure 15). of computers and equipment, followed by imports of TV, DVD and CD players, etc. as well as paper for theimportsofinterdependent industries,theonesthatbasicallystandoutareWithin theimports ISIC participationofpartialCBIsintotalimports ISIC participationofinterdependentCBIintotalimports The Economic Contribution of Copyright-Based Industries in Argentina69 2008 -81,611 -103,001 -2,815,078 -2,999,690 2007 (in thousands of US Dollars) -74,455 -44,801 -2,504,526 -2,623,782 2006 -69,045 -52,217 -2,297,840 -2,419,102 2005 -68,547 -38,987 -1,978,198 -2,085,732 2004 -37,365 -24,839 -1,389,824 -1,452,028 2003 -9,018 -12,828 -816,809 -838,655 CBI Trade Balance CBI Trade Industries Exports and imports of services Trade balance of the CBIs balance of Trade Core Interdependent Partial CBIs balance In contrast to the goods trade balance, the services balance showed a surplus and, therefore, it can be surplus and, therefore, In contrast to the goods trade balance, the services balance showed a to the copyright- related a net exporter of services studied Argentina was during the period concluded that based industries. All services had a positive balance during the entire period, which increased during the period, with the period, which increased All services had a positive balance during the entire a small negative balance. that presented exception of royalties Export services grew during the period (from beginning to end) by 417% while imports grew by 153%. beginning to end) by 417% while imports grew (from during the period Export services grew Within advertising and audio-visual services stands of computer and information services, services, the growth by a billion USD during the out notably above their imports. Thanks to these services, the balance increased period under observation. Computer and information services, advertising services, audio-visual services and royalties were identified identified were advertising services, audio-visual services and royalties Computer and information services, identified, due to the fact that the first and included in the estimation. Within copyrights were royalties, be included. trademarks which should not and registered category also includes licenses, patents In order to quantify the exports and imports of services, it was necessary to resort to the Balance of Payments to the Balance of Payments imports of services, it was necessary to resort to quantify the exports and In order of International Accounts of INDEC. estimates made by the Directorate 6.7 that to CBIs, all transactions of non-factor services related to CBIs are Exports and imports of services related derived from services provision but from factors of production those transactions do not derive from is to say, or financial goods. the possession of real These estimates show that the country is a net importer of products coming from industries related to industries related coming from is a net importer of products These estimates show that the country industries. by the high amount of imports of interdependent copyright. This deficit is determined Source: Own estimates Source: Table 36: Table As shown in the next table (Table 36), the goods trade balance of the CBIs exhibited a deficit during all the of the CBIs exhibited a deficit during 36), the goods trade balance table (Table As shown in the next dependent industries. and partially interdependent for core, of CBIs, that is to say, period for all types 6.6 70 The Economic Contribution of Copyright-Based Industries in Argentina Table 37: Source: OwnestimatesbasedonINDECinformation. Advertising TOTAL Audio-visual Computer andinformation EXPORTS Copyright royalties Advertising Audio-visual Computer andinformation IMPORTS TOTAL Copyright royalties Advertising Audio-visual TOTAL Copyright royalties Computer andinformation BALANCE Exports andimportsofCBIservices SERVICES 2003 166 118 139 342 108 287 27 54 10 13 45 22 18 26 -9 2004 193 144 160 450 143 360 -18 90 74 15 97 33 24 33 1 2005 200 153 238 174 192 195 619 165 418 -23 27 14 37 21 43 2006 400 203 378 240 241 226 894 171 472 152 -24 69 24 48 37 (in millionsofUSdollars) 2007 1299 693 273 100 655 313 305 310 205 606 344 -23 27 50 41 1029 2008 1790 338 225 894 403 470 378 245 761 516 -50 24 74 65 The Economic Contribution of Copyright-Based Industries in Argentina71 CBIs’ contribution to GDP and employment CBIs’ contribution to INTERNATIONAL COMPARISONS OF CBI CONTRIBUTION TO GDP GDP TO CBI CONTRIBUTION OF COMPARISONS INTERNATIONAL AND EMPLOYMENT In relation to the CBIs’ contribution to employment, Mexico’s contribution stands out with 11%, followed by to the CBIs’ contribution to employment, Mexico’s In relation 3%, with a lower contribution, circa Colombia and Peru. Argentina is part of the group and Tobago, Trinidad with Jamaica and Panama. Argentina, with 4.8%, shows a similar contribution of the rest of the countries of Latin America, with the of the Argentina, with 4.8%, shows a similar contribution of the rest below the Colombia which are exception of Panama which has a higher contribution (6.4%) and Peru and average. regional Within Central America countries, the highest contribution to GDP is in Panama, Latin America and other while the highest contribution to employment is made by CBIs in Mexico. The highest contribution to GDP is in the USA, followed by Korea. In terms of employment, the highest The highest contribution to GDP is in the USA, followed by Korea. and the Philippines. the CBIs of Mexico contribution is from Source: WIPO and own estimates for Argentina WIPO and Source: Figure 17: The next chart (Figure 17) shows the CBI contribution to GDP and to employment in each of these countries. to GDP and to employment in each 17) shows the CBI contribution The next chart (Figure Recently, several countries have made studies similar to this one, based on the WIPO Guide (2003) that allows one, based on the WIPO Guide to this made studies similar several countries have Recently, GDP to CBIs of contribution the compares section This methodology. common a on based comparisons for studies have been carried out. similar Argentina and other countries where and employment in 7. 72 The Economic Contribution of Copyright-Based Industries in Argentina Figure 18: when analyzingCBIeconomicindicators,whichare shownhere inacomparativewayatworldlevel. to GDPandemployment.Thisadjustmentthemethodologyisoneoffactorsbetakenintoaccount Therefore, this methodology option resulted in a more conservative estimate of the contribution of CBIs both interdependent activities.Thiscorrection methodologywasnotappliedintherest ofthecasestudies. of those activities protected by copyright, statistical correction coeffi cients were applied for the core and study ismore precise thaninothercases.Forinstance, with theaimofmeasuringexclusively the weight Even thoughtheWIPOGuidewasusedinstudyofArgentina,statisticaltreatment applied inthis added andemploymentshownabove,Argentinaisincludedinthegroup withhighlaborproductivity inCBIs. Countries havebeenclassifi edintohigh,mediumandlowproductivity. Duetothe relative indicatorsofvalue estimates forArgentina. The nextchart(Figure 19),elaboratedbyWIPO,showslaborproductivity inCBIsandincludes this study’s Source: WIPOandownestimatesforArgentina Contribution ofCBIstoGDPandemploymentinLatinCentralAmerica The Economic Contribution of Copyright-Based Industries in Argentina73 CBI Labor Productivity CBI Labor Source: WIPO and own estimates for Argentina Source: Figure 19: 74 The Economic Contribution of Copyright-Based Industries in Argentina • • The relation betweenthesetwopartiescanbe: shaped byboththeauthorandpublisher. are carriedouteitherbyapublisherorthird parties.Theproduct contentandcharacteristicsare then book design,illustrationsandqualitycontrol, todefinetheproduct thatwill reach readers. Theselattertasks product developmentactivitiesincludingvarious stagessuchasstylecorrection, translation,preface writing, Intellectual production startswithanauthorcreating apieceofwork, and itisthenfollowedbyaseriesof 24 Figure 20: 2005), ascanbeseeninthefollowingchart(Figure 20): consists ofactivitiesinvolvingintellectualproduction, materialproduction, distributionandmarketing(CEP, independently carry outactivitiesand tasks tocreate aproduct which thenreaches readers. This process From theperspectiveofaproduction chain,booksare theresult oftheinteraction variouspartieswho 8.1 their relation toactivitiesinvolvingcopyright. This sectionshowsthecharacteristicsofanumberArgentinemarkets,whichwere selectedbecauseof 8. charge offinding apublishertopublishtheirclients’ piecesofwork,aswellnegotiating contracts.’CEP(2005) ‘Despite thefact that thisisnotwidelydoneinArgentina, theseagentsare theoneswho represent copyright,andwhoare in writers, orelsetostrategicprocesses todevelopnew markets forpiecesorwork. Indirect: Bothpartiesgetintocontact through aliteraryagent.Ingeneral,thisappliestowell-known but whoisnotregarded as itsauthorperse. writer forapieceofwork. This canincludea‘ghostwriter’,i.e.writerwhocreates the piece ofwork Direct: a)Anauthorcreates apieceofworkandoffers ittoapublisher;b)Apublishercommissions Book industry PROTECTED BYCOPYRIGHT ANALYSIS OFECONOMICSECTORSRELATED TOACTIVITIES Book productionchain 24 The Economic Contribution of Copyright-Based Industries in Argentina75 In 27 30 31 (International Standard Book Number) and (International Book Number) Standard 28 He is also responsible for duly notifying the author He is also responsible 29 ) 25 and patrimonial. The publisher, in turn, collects copyright royalties, having entered into a contract, in turn, having entered collects copyright royalties, and patrimonial. The publisher, How does the publishing market work? 26 Reprinting data may be underestimated, since it is not compulsory to include this information in the registration process. Source: Source: process. to include this information in the registration since it is not compulsory Reprinting data may be underestimated, CAL Statistics Annex, 2012 Report. The law sets forth that this is to be done, at the latest, 90 days after getting the ISBN number, and shall be performed before the and shall be performed before The law sets forth that this is to be done, at the latest, 90 days after getting the ISBN number, de Autor’: National Copyright Office), under the Ministry of Justice and Human Rights of Nacional de Derecho DNDA (‘Dirección Argentina. writers. by translators and preface services provided to the These refer Under Act 22399/81 all books published in Argentina must bear the printed International Standard Book Number, which is Book Number, Under Act 22399/81 all books published in Argentina must bear the printed International Standard by CAL (Publishers Association of Argentina). administered In general, this is something that is usually done for so-called ‘big books’. the integrity right to preserve of the authorship of the piece of work, and the author’s Moral rights include the right of recognition to demand loyalty to the text and title, and to oppose having his work modified his right of his work, that is to say, fees the end of 2012, publishing houses set different In meetings held with various market agents it was informed that towards was given an average fee of 10%, Law books between 10-15%, and pocket editions or Literature depending on the genre. 6%. literature children’s with time and territory restrictions, to organise the production of the piece of work. The publisher grants of the piece to organise the production with time and territory restrictions, 8-10%. price of the piece of work, which is usually around cover of the front the author a percentage The publisher registers the piece of work by requesting its ISBN of work by requesting the piece The publisher registers general, it is the publisher who takes the risk of the whole activity on his own behalf; cases of publishers who general, it is the publisher who takes exceptional. only print a piece of work are Finally, book distribution and marketing – including that of imported books – is done through wholesale wholesale books – is done through – including that of imported book distribution and marketing Finally, distributors, including bookshop chains, scope) and retail regional distributors (some of them having and the internet.booksellers, news-stands, supermarkets Some publishers even take on distribution of their their readers. then, that books reach these channels, It is through own productions. Since it is the publisher that performs the coordination of both these production stages, it will decide what stages, of both these production that performs the coordination Since it is the publisher The publisher pieces of work will appear in them. developing its catalogues and which will be published when of each piece type and level of display presentation what format will be used, and the will also determine of copies and volumes, number production account, it is possible to estimate the this into of work. Taking and strategic considerations of this business. price as well, considering the trade consequently their of the number of copies printed each time his piece of work is published and/or republished. The publisher The publisher time his piece of work is published and/or republished. of the number of copies printed each and sale, including subsidiary rights. to printing, promotion holds the rights related 30 31 28 29 26 27 25 These figures show some growth in comparison with the previous year, with a year-on-year increase of increase with a year-on-year year, in comparison with the previous show some growth These figures total number of printed copies. 18% for the number of published titles and of 55.8% for the around It is possible to estimate the physical production of the publishing market by analysing the total number of the publishing market production It is possible to estimate the physical public and private institutions, by publishing houses, author-publishers, registered of titles which were the distributed in the domestic market through universities, newspapers and other agents, and which are these data, it was observed that in 2011 of charge. From free delivered various marketing channels or that are them of most copies, million 118 nearly and 31,142, was Argentina in published titles of number total the 85% of the total. being novelties, which accounted for approximately The book market revolves around the author and the publisher, as they are its leading figures. The former is The former its leading figures. as they are the author and the publisher, around The book market revolves would be no book which there the symbolic content of each piece of work, without in charge of creating rights, both his property his piece of work under his name to preserve (Getino, 2008). The writer must register moral 8.1.1 Material production refers to the physical production of the piece of work, which includes editing the original editing the original work, which includes of the piece of to the physical production refers Material production carrying out graphs, printing and bookbinding, drafts and the pages, correcting design and layout of copy, presentation (product and marketing and promotion) activities (institutional communication release press at points of sale. strategies and display then registering the copyright and the publisher rights. the copyright and then registering 76 The Economic Contribution of Copyright-Based Industries in Argentina of copies,thusshowingthat thepublishingindustryishighlyconcentratedinjust two geographicalareas. The nextmajorjurisdictionis theprovince ofBuenosAires, withregard tobothpublishedtitlesandnumber similar totheonerecorded inprevious years(CEDEM,2011). produced bypublishing houseslocatedintheCityofBuenosAires, whoseshare inthetotalproduction was Libro: Publishers Association of Argentina) in 2011,69%of published titles and 80% of printed copies were Aires, forproduction ofbothpublishedtitlesandprinted copies.According toCAL(CámaraArgentinadel As forthegeographiclocationofthisactivity, there ismajorconcentrationinthearea oftheCity ofBuenos following recovery afterthe2001-2002economiccrisis(+60%). per title–andbelowtherelative maximumobservedin2008, whichregistered anaverage4,244copies, still belowtherecords ofthelate1990sfive-yearperiod –whichalways registered more than4,000copies Index.In2011theindexregisteredAverage PrintedCopiesperPublishedTitle anaverage3,787copies, From adifferent perspective, thedynamicsoftwovariablespresented havealsobeenreflected inthe in 2009and2010. activity. There was a decrease in the activity during the years of economic crisis such as in 2001 and 2002, or Therefore, itcanbeobservedthatthedynamics of bothvariablesare related tothecountry’s levelof economic rising quiteabruptly(+55.8%). until 2009, when there was a 2-year slowdown. In 2011, numbers started going up once again but this time Starting from 2002there wasanincrease inthenumberofprintedcopies,thoughthere wassomefluctuation seven years. began rising more steeply year after year, recording in 2011 the highest year-on-year growth point in the last but withsomefluctuationuntil2007, recording aslightdecrease in2008.Subsequently, thenumberoftitles towards 2005,ayearinwhichitlevelledoff (+4.3%).From 2005thenumberoftitlesremained constant It canbeseenthatfrom 2002thenumberofpublishedtitleswassoaring,butincrease wasslower Argentina) Source: Developedusingdatafrom CAL(PublishersAssociationofArgentina),published bySInca(CulturalInformationSystemof Figure 21: Number of Copies 100,000,000 120,000,000 140,000,000 20,000,000 40,000,000 60,000,000 80,000,000 Published booktitlesandcopies1996-2011 0 1996 1997 1998 1999 Evolution of Published Titles and Copies and Copies Titles of Published Evolution 2000 2001 2002 2003 2004 2005 2006 Printed copies Printed 2007 Published titles 2008 2009 2010 2011 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Number of Published Titles Published of Number The Economic Contribution of Copyright-Based Industries in Argentina77 6.62% 60.2% 11.85% 15.40% 18.60% 20.72% 22.54% 24.04% 25.50% 26.95% 28.36% 29.76% 30.80% 31.81% 32.76% 33.66% 34.40% 35.12% 35.83% 36.54% 37.23% 37.92% 38.56% 39.20% 39.83% Accumulated % 6.62% 5.23% 3.55% 3.20% 2.13% 1.82% 1.49% 1.46% 1.45% 1.41% 1.40% 1.04% 1.01% 0.95% 0.90% 0.74% 0.73% 0.71% 0.71% 0.71% 0.68% 0.64% 0.64% 0.63% Number of Published Titles 12,403 18,739 995 662 567 465 455 451 440 435 324 315 295 281 231 226 221 219 217 213 201 199 195 Total 2,061 1,629 1,106 Sub-Total Trade Name Trade Published books, 2011 Vi-Da Global S.A. Vi-Da Edición del Autor Random House Mondadori S. A. Aguilar, Altea, Taurus, Alfaguara S.A. de Edic. Altea, Taurus, Aguilar, Editorial Dunken S.R.L. Grupo Editorial Planeta S.A.L.C. Editorial Guadal S.A. Universidad Nacional del Litoral – Ediciones UNL Universidad Nacional del Litoral – Ediciones Arte Gráfico Editorial Argentino S.A. – Clarín Ediciones Santillana S.A. Francisco Javier Etchelecu Editorial Vértice S.R.L. La Ley Editora e Impresora Asociación Casa Editora Sudamericana Editorial Sigmar S.A.C.L. Sociedad de San Pablo Longseller S.A. Tinta Fresca Ediciones S.A. Tinta Kapelusz Editora S.A. Alque Grupo Editor S.A. Gárgola Ediciones S.R.L. Editorial Estrada S.A. Errepar S.A. Other Publishing Houses Ediciones Lea S.A. Market share measured in terms of the number of copies indicates that the top 24 publishing houses account in terms of the number of copies indicates measured Market share the largest number of printed copies and thus concentrating 43% of them having for 74% of the total, three more distribution is Despite the fact that market 26.7%. one of them accounting for of the total, and the first Source: Data from CAL (Publishers Association of Argentina), published by SInca (Cultural Information System of Argentina) Data from Source: Table 38: Table On the other hand, it is also interesting to look at the structure of this market, which can be analyzed in terms of this market, which can be analyzed to look at the structure it is also interesting On the other hand, printed copies. In of either published titles or each publishing house in the total production of of the share the largest number of that have houses, with the three published by 24 publishing were 2011, 40% of titles of the market share. titles each – concentrating 15.4% than 1,000 titles – more The number of registered publishing houses in 2010 was 2,645 according to data published by CEDEM (2011 published by CEDEM to data according 2010 was 2,645 houses in publishing of registered The number a year- Even though the sector records year. previous to the compared 13.6% increase b), which implies a the activity, general sector’s the by mirrored is also which houses, publishing number of the in rise on-year to sources according homogeneous nor constant. In fact, neither between the agents are dynamics observed works new registered all) have 13% of (approximately houses 350 publishing over just study, for the used houses may vary that the activity of most publishing five consecutive years, which means for ISBN for at least year to year. from 78 The Economic Contribution of Copyright-Based Industries in Argentina Table 39: part oftherankingmainfirms,appearingafterposition24(lessthan0.75%market). one inposition3appears5oftheprintedcopiesranking.Theothertwopublishinghousesare not Likewise, outofthethree majorpublishinghousesintermsofnumberpublishedtitles2011,onlythe houses regarding publishedtitles. position number14,andbyArgentina’s MinistryofEducation,whichisnotamongthemajorpublishing 1.45% ofthetotal).Itisfollowedbyapublishinghousewhich,measured intermsofpublishedtitles,holds television, radio, etc.), which occupies position number 9 in the published titles ranking (accounting for It should also be considered that the printed copies ranking is led by a multimedia conglomerate (print media, is inposition5ofthisranking.) ranking in the first three positions are not the same as the ones in the previous case (the first one to coincide concentrated whenmeasured usingthisvariable,itmustbenoticedthatthepublishinghouseslead period’s peakofnearly37%. 2009, andthenexperienced atwo-yearperiodinwhichfigures started goingupsteadilyuntil reaching the group ofthemajor publishinghousesintermsofpublishedtitlesstoodat anevenshare ofaround 23%until The followinggraph(Figure 22)shows thedynamicsofthesetwoindicatorssince2004. It showsthatthe Source: Datafrom CAL(PublishersAssociationofArgentina),publishedbySInca(CulturalInformationSystemArgentina) Ediciones LeaS.A. Matías MartinoEditor Ediciones LarousseArgentina Editorial PuertodePalosS.A. Kapelusz EditoraS.A. Editorial GuadalS.A. Editorial EstradaS.A. Aique GrupoEditorS.A. Tinta FrescaEdicionesS.A. Ediciones SantillanaS.A. Grupo EditorialPlanetaS.A.I.C. Ediciones Visuales Alberdi S.A.–EVIAEdiciones Atlántida S.A. Aguilar, Altea,Taurus, AlfaguaraS.A.deEdic. Random HouseMondadoriS.A. Editorial VérticeS.R.L. Ministerio deEducaciónlaNación Asociación CasaEditoraSudamericana Arte GráficoEditorialArgentinoS.A.–Clarín Total overall Other PublishingHouses Longseller S.A. Printed copies,2011 Name Sub -Total 10,303,320 31,214,000 31,310,152 1,016,000 1,029,000 1,040,753 1,141,264 1,366,800 1,432,355 1,463,900 1,623,784 1,636,800 1,855,889 1,991,000 2,389,100 3,013,093 6,047,123 7,208,224 8,871,776 991,800 980,734 Total 117,926,867 86,616,715 Number ofprintedcopies 26.47% 0.86% 0.87% 0.88% 0.97% 1.16% 1.21% 1.24% 1.38% 1.39% 1.57% 1.69% 2.03% 2.56% 5.13% 6.11% 7.52% 8.74% 0.84% 0.83% % Accumulated 71.78% 70.92% 70.04% 69.16% 68.19% 67.03% 65.82% 64.58% 63.20% 61.81% 60.24% 58.55% 56.52% 53.97% 48.84% 42.73% 35.21% 26.47% 72.62% 73.45% 26.6% The Economic Contribution of Copyright-Based Industries in Argentina79 5 13 16 >24 >24 >24 >24 >24 >24 >24 2011 1 2 9 4 15 22 >24 >24 >24 >24 2010 73.45% 37.23% 2011 1 2 8 4 11 15 >24 >24 >24 >24 2009 58.09% 1 2 6 9 8 13 14 >24 >24 >24 26.16% 2008 2010 1 2 8 4 5 9 3 68.93% 17 >24 >24 2007 24.51% 2009 2 1 3 5 8 6 13 21 72.07% >24 >24 Order of preference in the yearly ranking. 2004-2011 Period in the yearly ranking. of preference Order 2006 23.86% 2008 2 1 3 4 8 5 19 16 17 18 2005 55.19% 24.46% 2007 1 2 3 4 5 6 7 8 9 10 2004 57.47% 23.33% 2006 54.78% 22.52% 2005 56.47% 23.07% 2004 Published Titles Published Copies Printed 0.00% Name/Imprint 20.00% 40.00% 60.00% 80.00% Publishing houses sorted by number of published titles Publishing houses sorted by number of Share of the top 20 major publishing houses in total number of titles and copies publishing houses in total number Share of the top 20 major Beascoa Dunken La Ley Diana San Pablo Esencia Losada Paidós De Los Cuatro Vientos Colihue According to the participants in this market, the publishing business works on a trial and error basis, with a the publishing business works on a trial and error to the participants in this market, According to be ‘tested’ as other consumer goods no possibility for products is low margin and high risk, since there Source: Developed using data from CAL (Publishers Association of Argentina), published by SInca (Cultural Information System of using data from Developed Source: Argentina) which is consistent with products, between Competition in the book market is based on a high differentiation the quote ‘no two books are the same’. Table 40: Table Another important aspect is to know which publishing companies occupy the top positions in the ranking Another important aspect is to know titles the ten major publishing houses in terms of published Regarding stable. and whether their positions are that they underwent changes in their positions. Nine out of 40), it can be seen during 2004-2011 (Table occupy in the ranking to in 2004 moved downwards part of this group the ten publishing houses that were observed for published Likewise, some of the repositioning later. positions below number 10 just six years the case of Beascoa, Diana and one year to the next (as for example, in titles was marked and took place from market is dynamic and operates in a competitive context. Esencia), which seems to show that the Source: Developed using data from CAL (Publishers Association of Argentina), published by SInca (Cultural Information System of CAL (Publishers Association of Argentina), published by SInca (Cultural Information Developed using data from Source: Argentina) Figure 22: Regarding the number of printed copies during the same period, the market share of the major publishing of the major the market share the same period, printed copies during the number of Regarding marked particularly 55% and fluctuations which were to the total, with a base of around houses was closer 2011. between 2008 and 80 The Economic Contribution of Copyright-Based Industries in Argentina 8.1.2 19%, 17.9%,18.6%and15.7%,respectively, incomparisonwiththetotal. the mostpopularsegmentsare thesameones,togetherwith‘textbooks’,showingshares ofapproximately 24.4%, 20.3%and11.9%respectively in2010.Itisthesamescenariocaseofprintedcopies,which sciences’ and‘children andyoungadult’were thesegmentswithlargestshares, reaching anapproximate offer works.Firstly, thematicsegmentationofpublishedtitlesshowsthat‘literature’, ‘socialandhuman Taking thelatter into account,thematicsegmentationofthemarketallowsustounderstandhowbook are onlyeitherthebook’s authororitscontent(CEP, 2005). thematic segmentsinthepublishingworld,maindeterminingfactorswhenacustomerpurchases abook usually are. Furthermore, there isvirtuallynovalueinthe‘brand’(publishinghouse),since in almostall 33 32 companies, According todataprovided byCEP(2005),towards 2004publishing activitieswere developedbyaround 300 Source: CERLALC,2008 Figure 23: published over50titles(Figure 23). which comprised 24% ofthetotalnumber of publishedtitles. The remaining 8% ofotherpublishinghouses published between3and10titles,followedbypublishinghouseswhich1120 According toareport byCERLALC(2008)usingdatafrom 2007,49%ofArgentinianpublishinghouses represented bytheirnumberofpublishedtitles. of theparticipatingfirms.Thiscanbeestimatedbyassessingtheiractivities,which,inthiscase, One ofthecharacteristicsthatmakesitpossibletorecognize thecompetitorsinagivenmarketis thesize with avastnumberofsmallfirms,especiallylocalones(OIC,2011). multinational publishinghousesstartedenteringthelocalmarket,theystillhavehadtoshare the market Even thoughsincethemid-1990sthere hasbeenaconcentrationprocess duetothefactthatlarge even individualpersonswhopublishtheirownbooks. together withacademicinstitutions,culturalandsocialorganizationsthathavetheirownpublications, The publishing industry universe is heterogeneous, since within it there exist publishing companies • range andthetotalnumberoftitlesinvolved,itispossible toclaimthat: large numberbeing multinationalcompanies(CEP, 2005). booksellers. There is alsoCAP(ArgentineChamberof Publishers),whosemembersare alsopublishers,distributors andimporters,a Data provided byCAL(PublishersAssociationofArgentina),anassociationgrouping publishers,distributors,importersand book offer forpublishedtitlesisdistributedoraboutthesizeofeachcompany. It wasnotpossibletoestimatethe market’s degree of concentration,sincethere isnoupdatedinformation abouthowthetotal are majority-owned bydomesticcapital. ofARS1,000,000in2004.Theyaccountfor25%published titles.Theyareturnover businesseswhich Most companies(65%)withinthepublishingmarket are micro-companies, thatis,businesseswitha Competitors Market sharebynumberoftitles 33 whichcanoperatethrough variouspublishing houses.Bygrouping thecompaniesperturnover 19% 24% 6% 2% 49% 32 Over 100 From 100 51to From 50 21to From 20 11to 10 to 3 From per se The Economic Contribution of Copyright-Based Industries in Argentina81 (Data 2004) Initial capital Spain Argentina Argentina Spain Colombia France Argentina England England England Spain United States 7.0% 7.0% 2.0% 9.0% 8.0% 17.0% 14.0% 26.0% 10.0% their turnover range Published titles sorted by Published titles sorted 7.0% 5.0% 1.5% 0.5% 12.0% 16.0% 23.0% 19.0% 16.0% by their turnover range Publishing houses sorted Publishing houses sorted Ediciones Santillana (owned by Grupo Santillana together with Altea y Taurus) Alfaguara, Aguilar, Angel Estrada Puerto de Palos Ediciones SM (owned by Grupo SM) Kapelusz (owned by Grupo Editorial Norma) Aiqué Grupo Editor (owned by Havas Group, which has merged with Editorial Larousse Argentina) A-Z Pearson Education Mac Millan Oxford University Press Richmond Publishing (Grupo Santillana) Scholastic Turnover range (ARS) Turnover $ 10,000,001 – $ 25,000,000 $ 25,000,001 – $ 45,000,000 $ 1,000.001 – $ 5,000,000 $ 5,000,001 – $ 10,000,000 $ 45,000,000 and over $ 100,001 – $ 250,000 $ 250,001 – $ 500,000 $ 500,001 – $ 1,000,000 $ 1 – $ 100,000 Languages Instructional material (primary and high school) Sub division Major publishing houses sorted by theme Publishing houses and published books distribution by turnover and size published books distribution by turnover Publishing houses and Company size The next group of companies with the largest share in the market is the medium-sized publishing houses, publishing medium-sized the is market the in share largest the with companies of group next The of publishing houses, with a turnoverconsisting of 18.5% million, of between ARS 5 million and ARS 45 for 48% of published titles. and which account of 0.5% of the total number with a turnoverThe largest companies, represent above ARS 45 million, important especially companies are for 10% of published titles. Multinational businesses, and account in this last group. Textbooks SMALL COMPANIES MEDIUM COMPANIES LARGE COMPANIES MICRO COMPANIES Table 42: Table The table below (Table 42) shows the different publishing houses sorted according to their share in each to their share publishing houses sorted according 42) shows the different The table below (Table the coexistence of companies owned by both domestic and It reflects thematic segmentation of the market. companies in the most dynamic segments, of medium and large the presence capitals, and specially foreign which is a sign of contribution to competitive bidding. Source: CEP (2005) Source: • • 41: Table 82 The Economic Contribution of Copyright-Based Industries in Argentina • • • Different intermediariesare partoftheretail distributionandmarketing process: thoughitisnotsofrequent.of goodsatthepointsale,mayalsobeanalternative 35 34 the fixedsalesterm, remaining copiesare returned. bookshops tobesoldandthehavereport thenumberofcopiestheyactuallysell.Atend Books are generallysoldonaconsignmentbasis, i.e.publishinghousesdeliveracertainnumberofbooksto 8.1.3 Source: CEP(2005) Table 42: Religious interest General Professional Technical, Scientific, CEDEM.Booklet N°4.Published online,undated. Cultural industries intheCityofBuenosAires.Recent.’Evolución reciente ypotencialidades’ (‘Recentevolutionandpotentialities’). Large publishinghousesselltitlesin thesalesmarket. installed capacityfornewspapers, startedtopublishbooks(CEDEM). News-stands whosesalesincreased whenthebignewspapercompanies, takingadvantageoftheir Jumbo, Cotoorspecialised chains thatsellmusicorbooks,forexampleMusimundo, Distal. Large retail establishmentswhichoffer asmallvarietyoftitles,suchassupermarketslikeCarrefour, companies, suchasYenny-El Ateneo,Fausto,CúspideandLibrerías SantaFe. Non-specialized bookshopchainswhichmayberelated to publishing housesorbookdistribution Book marketing and distribution and marketing Book Major publishinghousessortedbytheme(continued) Children´s novels, etc. Fiction, essays, Social sciences Marketing Administration, Economy, Business, Medicine Legal Editorial Guadalupe(isownedbyGrupoVerbo Divino) Editorial SanPablo Sigmar Alfaguara (GrupoSantillana) Ediciones Colihue Grupo EditorialNorma Editorial Atlántida Vergara (ownedbyEdicionesB-GrupoZeta) Aguilar-Altea-Taurus_Alfaguara (GrupoSantillana) from Spain,ownedbytheGermangroupBertlesmann) Sudamericana (itsmainshareholderisRandomHouseMondadori Grupo Planeta Paidós Eudeba Siglo XXI Fondo deCulturaEconómica Prentice-Hall Pearson Education Ediciones Granica Macchi GrupoEditor Mc GrawHill Inter-Medica Journal Ediciones Corpus Médica Panamericana Rubinzal-Culzoni La Ley(ownedbyThomsongroup) Grupo LexisNexis(belongstoReedElsevier) 34 Thefirmsalesystem,whichisfulfilledupondelivery 35 Argentina Argentina Argentina Spain Argentina Spain Argentina Spain Spain Germany Spain Argentina Argentina Mexico Mexico United States England Spain Argentina United States Argentina Argentina Argentina Argentina Argentina Canada Anglo-Dutch The Economic Contribution of Copyright-Based Industries in Argentina83 -67.6% -44.4% -50.0% 324.3% 295.0% 381.4% 409.9% 2011/2007 Years 2007 to 2011 Years Variation (%) Variation - 0.0% 0.0% 20.0% 161.7% 159.0% 210.4% 214.1% 2011/2010 3.0 12.0 10.0 2011 15.7% 15.8% 5,007.0 4,982.0 3.0 4.0 10.0 10.0 2010 6.0% 6.1% 1,613.0 1,586.0 1.0 2.0 10.0 15.0 2009 4.2% 4.3% 981.0 1,009.0 4.0 2.0 14.0 2008 4.3% 4.4% 981.0 1,001.0 is restricted, the traditional retail marketing through marketing through the traditional retail is restricted, 37 6.0 2.0 37.0 18.0 2007 3.7% 4.0% 977.0 1,040.0 Numbers Type of support Type Therefore, since the price competition Therefore, Number of published titles in supports other than paper, Argentina other than paper, Number of published titles in supports 36 E-books since 2010, when the number of published titles growth E-book dynamics have shown a significant 2011, the e-book In year. by 62% in a year and almost tripled the following in this format increased the with comparison in doubled This share titles. of published number total the 16% of for accounted year. previous Traditional bookshops which operate independently and are not part of a publishing house or distribution house or not part of a publishing are independently and which operate bookshops Traditional specializsd books for a specific field. They usually sell company. The following are the only recognized discounts to be made: a) up to 10% of RRP, on those sales performed during fairs, days and discounts to be made: a) up to 10% of RRP, the only recognized The following are such event is where within the geographical area by a legitimate authority, of public interest weeks dedicated to books, declared institutions; b) up to 50% when social welfare held, or sales to libraries and/or documentation centers, or to cultural and non-profit (CONABIP: ‘Comisión of Community Libraries Ministry of Education, the National Commission for the Protection by the purchased among educational, books to distribute for free and other public organizations, that purchase Nacional de Bibliotecas Populares’), prohibited. expressly cultural and scientific institutions, or among low income people. The sale of these copies is Except for a) limited edition books for restricted consumers, consecutively numbered and of formal quality; b) Artist’s books, which and of formal quality; b) Artist’s consumers, consecutively numbered Except for a) limited edition books for restricted published, in whole or in part, by means of art-and-craft techniques; c) Antiquarian and collectible books d) to those books refer they f) Imported books at a sale price, provided discretion; catalogue at the publisher’s from Second-hand books; e) books removed in in force with the laws and regulations by the publisher in their country of origin, in accordance remaindered have been previously of a specific book. to fund the publishing sales carried out in order such country; g) previous % E-books per total number of published titles % Support other than paper per total number of published titles Total Total Video (2) Video Non- specified Cassette E-book (1) Braille bookshops is somehow protected. As a result of this, the business of small bookshops (which were at a small bookshops (which were of this, the business of As a result bookshops is somehow protected. also establishments such as supermarkets) is chains or large retail with bookshop disadvantage compared of the restrictive management of short-run publishing is benefited as a less and even the business preserved can be carried out. fixed costs thereof 37 36 Source:OIC Yearbook 2011. Notes (1) ‘E-book’ includes CD, digital downloads (whether online or not) or electronic delivery, laser disc laser disc delivery, 2011. Notes (1) ‘E-book’ includes CD, digital downloads (whether online or not) or electronic Yearbook Source:OIC and e-book (2) ‘Video’ includes educational video and videodisc Challenges and• threats 43: Table • Books in Latin America of Center for the Promotion carried out by the Regional report to a regional According in Argentina of books most popular point of purchase the 2008), bookshops are and Caribbean (CERLALC, sales, which account for 8%. and street news-stands (newspapers and magazines) (81%), followed by in 2008. of 1,985 bookshops in Argentina was a total number showed that there the report Furthermore, of the number of in terms countries of the region, in a privileged position among the This put the country a low indicator). per point of sale being considered per inhabitant (19,827 inhabitants book points of sale that each publisher, since January 2002, states in Argentina prices, Act 25,542, in force In connection with they publish (SRP) or consumer price for the books retail price shall fix a suggested importer or representative or import. 84 The Economic Contribution of Copyright-Based Industries in Argentina at universities.Thestudyalsoshowedthat60%ofthephotocopiedmaterialwasprotected bycopyright. in Rosario(17%),showedthatover2,552millionofbookpageswere illegallyduplicatedonanannual basis Rights (CADRA,2005)among1,100studentsfrom universitiesinBuenosAires (73%ofthetotalnumber)and entitled ‘Studyofbookphotocopyingatuniversities’carriedoutbytheAdministrationCenterReprographic 38 – – – Companies – – – – – – – based onthat.Thefollowingare theparametersapplicabletouseofeachlicense: according tothedifferent parametersappliedtotheusetheywillbegiven.Theannualfeeisalsodetermined CADRA grantslicensesforthereproduction, inwholeorpart,oftheholder’s works.Suchlicensesvary management societiesinEurope. applied toothersupports).Atthesametime,theybecameaware oftheexistencecollective rights work, eitheronpaper, scanned,orinadigitalmanner:thetermbeganwithphotocopying but was then The organization was created about reprography due to the concern (i.e. the act of reproducing a written 40 39 system. Therefore, thispracticehasnaturalisedandbecomeaculturalmatter(Reinoso,2005). Throughout theyears,photocopiedbookshavebeenregularly usedatalllevelsoftheArgentinianeducational • with authors. Only thepublishershavetakenfirststepto retain digitalpublishingrightswhenenteringintoagreements In Argentina there still have not been major changes with regard to adjusting to these industry processes. all supports),whichdonotneedtobecarriedoutagaininorder topublishthecontentsindigitalformat. cost islower, duetoeconomiesofscaleintheproofreading, correction andtranslationtasks(applicableto On theotherhand,whensameworkispublishedbothinpaperanddigitalformat,e-bookproduction marketing anddistributionofdigitalpublishing(Eguaras,2013). editing, as well as the functioning of online libraries and e-commerce, digital rights management, and the creation ofXMLsfiles,formatbuilding-upformetadataintegration,theexpertise required toperformdigital of theprintrunaswell).Besides,there are newtechnologyservicesthatbeartheirowncosts,suchasthe the costofprintingstagedoesnothaveabigimpactonfinalsellingprice(anditdependssize and bookbindingcostsshouldbefullyreflected inthefinalsellingprice,whichshoulddecrease. However, These dynamicsraisesomeissueswithregard tothepriceofelectronic books,sincethereduction ofprinting property rightsitcollectivelyrepresents andprotects. Rights) in2002,whichgroups authorsandpublishersofbooksotherpublications,whoseintellectual of CADRA(Centro deAdministración de Derechos Reprográficos: Administration CenterofReprographic instead tocreate acollectivemanagementorganizationofReprographic Rights.Thisledtothecreation to organizethemselvesinorder tosolvethisissue.Itwasnotintendedpursuesuchillegalpractices but indiscriminately, andwithoutanyauthorization orcompensationwhatsoever, encouragedsomepublishers onlyduplication onpaperbymeansofphotocopyingbutalsodigitalreproduction, including othersupports), The rapidgrowth ofillegalpracticesinvolvingthereproduction ofcopyrightedworks(whichcomprisesnot See section8.6. books. students read more thansixphotocopiedtitles, whereas three studentsoutoftenread anaverageofonetotwophotocopied bigger thenumberofread booksis,thehigherpercentage ofphotocopiesthatreplace thosebooks:fiveoutoftenuniversity of three to sixtextbooks;amongthosewhoread, 37%read photocopiedbooks, while63%saytheyread directly from books;the year; only23%ofstudentsread anaverageofoneortwobooks,22% read more thansixtitles;45%admittedreading anaverage Moreover, itwasshownthat:10%ofuniversity studentsadmittedthattheydidnotread abookfrom coverto during thelast For amore comprehensive approach toreprography inArgentina,seeCabanellasetal.(2005). Cultural entities Non-profit organizationsandotherinstitutions Private educationalinstitution educationalinstitution Government organizations Government Private library Public library Business premises farfrom aneducationalinstitution. Business premises closetoaneducationalinstitution. Reprography 40 38 Astudy 39 The Economic Contribution of Copyright-Based Industries in Argentina85 Consumers Exporters Mass media Mass Points of of Points Sale Record shops, Record recorded music recorded Live performances Live Source: by Source: compiled author(s) Digital support Support Physical Physical Importers (record labels (record distributors Distributors and distributors) , 2001 and acknowledged as the law for the defence of , 2001 and acknowledged as the th MUSIC PRODUCTION CHAIN Book and reading promotion policies Duplicators Performers Producer/ Live public Multiple CD Phonogram performances Production of Record label Record Recording studios / Intellectual productionIntellectual Demand Material production Distribution and Distribution marketing Author Composer Music production Phonograms states that book publishers, importers or representatives shall set a suggested retail price shall set a suggested retail or representatives bookshops states that book publishers, importers discounts made on they publish or import. The said Act restricts (SRP) or consumer price for the books cases. the final selling price to exceptional Act 25542, enacted on November 27 Act 25542, enacted on November Additionally, the Government undertook the responsibility for promoting publishing demand as well as publishing demand as for promoting Government the undertook the responsibility Additionally, of writing contests, exhibitions and fairs, the acquisition of works books, by means the habit of reading modernizationthe and centers documentation and all of archives libraries, community and public for bibliographic centers. The National Fund for the Promotion of Books and Reading was created within this framework, in order in order within this framework, was created of Books and Reading for the Promotion The National Fund of the Promotion carried out by the Global Policy for and actions programmes to support the projects, for this assigned in the National Budget This Fund is composed of the resources Books and Reading. this Act, which well as the penalties charged to parties breaching purpose, donations and legacies, as stated by special laws. are , sets forth a number of major objectives 2001, sets forth a number enacted in and Reading promotion Act 25446 on Book and educational development. cultural promotion industry, to the book related Figure 24: The phonogram market, as a productive chain, starts with the creation of the work by the author and the of the work by the author and chain, starts with the creation The phonogram market, as a productive the with continues process production work. This on that the copyright owners of the who are composer, for responsible musicians of group or musicians and/or singers the are who performers, of participation performing to also entitled are and who recorded, and perceived can be it so that audible the work making himself, if or by the author label, the phonographic producer the record by rights. Performers may be hired . he also takes that role 8.2 Moreover, the licenses are classified according to the way the reproduction is performed: either through through is performed: either reproduction the way the to according classified are the licenses Moreover, and educational user (companies) or student (university determined by form. Fees are photocopy or in a digital unit or page (cultural institutions). or by equipment (business premises), institutions), by photocopy 86 The Economic Contribution of Copyright-Based Industries in Argentina means of internet orcellulartelephone.Bothchannelshelpphonogramstoreachmeans ofinternet theusersandconsumers. means ofcommunication;andontheother, thegrowing digitalchannels,usedformarketingtheproduct by marketing thephysicalformatproduction inrecord shops,inotherrecorded musicpointsofsaleandin Two possible channels coexist at the distribution stage: on the one hand the traditional channel, used for by contract. authorize thedirect orindirect reproduction thereof. Thesaidrightcanbetransferred, assignedorlicensed organization, andofmarketingtheproduct. Theproducer ofphonogramsisgrantedtheexclusiveright to are inchargeofpromoting theworkbymeansofvideoclipproduction, radiobroadcasting andconcert packaging, etc.).Thiscanbecarriedoutbythelabelsthemselvesorthird parties. both thetechnicalandaestheticaspects(suchasarrangements,mixing,recording, editing,graphicarts, recording andeditingservicesaswellallthoseaimedatobtainingthefinishedproduct, including for copieseachtitleandonthephonographicsupport.Uponcompletionofthisstage,labelsprovide copyright isfixedinarangefrom 10-15%ofthesellingprice(Getino,2008),basedonestimateddemand that, theyhavetoacquire thecopyrightonphonogram,whichisagreed through contracts where such Record labelsare responsible forthedevelopmentandproduction ofthephonogrammaterial. Inorder todo 41 below (Figure 25). phonogram reproduction. Thishas ledtoafallinthenumberofsoldphonograms,asshowngraphic recording, reproduction andmusicconsumption,as wellaspiracy, whichhas increased asaresult ofhome had animpactonthecore business,includingthedevelopment ofnewtechnologies,whichhaveaffected The phonogrammarket,asawhole,hasbeeninfluencedbynumberofdifferent factorswhichhave artists. Theytendtofocusonspecificnichesandgenres’. catalogues.According toPalmiero &Krakowiak(2005),‘theIndiesdiscoveranddevelopnewtrends unknown tothemajors.Thisprocess iscarriedoutasatrialstagebefore includingtheminthemajors’ On theotherhand,small-sizedcompaniesoperateinmarketwithperformers,genres, orproducts to marketaphonogramwithinrestricted territorialscopeandforalimitedperiodoftime. corresponding royalties in return.Thisprocess iscarriedout by meansofalicensewhich entitles theholder these companiesacquire rightstoauthorizetheirsubsidiariescopyorprintthetitles,whiletheyreceive the means ofadvertisements,productworshipandthesponsorshipconsumergoods’.Inorder todothis, development ofworldwidepersonalitiespromotedandexploitedthroughmultiplemediasupports,by offices. According toMoreno (2006),’thebusinessofthesegiantentertainmentindustriesisbasedonthe The strategiesdevelopedinthismarketarecompanies’head mainlysetoutbythelargeinternational range ofsmallandmedium-sizedcompaniestraditionallyreferred toasindies. Three companies,commonlyknownasthemajors,coexistinmarkettogetherwithawide international producersPhonogram andvideogramproducers (CAPIF)there are 231labelsintheCityofBuenosAires. as theirmainbusinessmostofthetime.According totheArgentineChamberofPhonogramandvideogram There are around 1,300 phonogram producers in Argentina, although not all of them perform this activity 8.2.1 used inadvertisements. managers incharge ofmusicshows,radio,television andvideobroadcasting, meansofpromotion, including thesaleofsongstobe Record labels are surrounded byavastgroup ofagentswho provide theirservicestothisindustry, suchasmusicpromotion How does the Argentinian phonographic industry work? industry phonographic Argentinian the does How 41 Moreover, publishers The Economic Contribution of Copyright-Based Industries in Argentina87 in ARG pesos ARG in - turnover Total Percentages 2011 100% 13.7% 0.20% 0.11% 0.04% 85.95% $ 395,000,000 $ 345,000,000 $ 295,000,000 $ 245,000,000 $ 195,000,000 $ 145,000,000 $ 95,000,000 $ 45,000,000 2010 2009 2008 2007 2006 Total units sold Total turnover 1% 2012 100% 12.4% 0.05% 0.35% 86.2% 2005 2004 2003 2002 2001 2000 1999 1998 1997 Evolution Evolution Phonogramof Sales 1996 1995 Format 1994 1993 1992 1991 Sales distribution (turnover) by physical support Evolution of Phonogram Sales Evolution 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Total number of phonograms of number Total In units In - DVD (audio and video) Vinyl BLU – RAY Others (cassettes and singles) TOTAL CD Phonogram sales turnover by repertoire includes mainly phonograms in English and from Argentina (local includes mainly phonograms in English and from Phonogram sales turnover by repertoire the 1997-2011 period, though with origin), which constituted the most significant part of turnover through 26). some variations (Figure Source: CAPIF (Argentine Chamber of Phonogram and videogram producersPhonogram and videogram producers) Chamber of Phonogram and videogram producersPhonogram CAPIF (Argentine Source: Table 44: Table The CD, which accounts for 86% of sales, is considered the main physical support in music marketing, The CD, which accounts for 86% of sales, is considered 44). followed by the DVD (audio and video) (Table Despite the fact that data related to sales distribution by labels are not published, experts in this field recognize experts in this field not published, sales distribution by labels are to Despite the fact that data related distributed among over sales are large labels concentrate 70% of sales, while the remaining that the three labels. two hundred The evolution of this industry in Argentina reflects the macroeconomic behavior of the country. It also reflects, It also of the country. behavior the macroeconomic reflects The evolution of this industry in Argentina the total turnover of phonograms sold, the 2001-2002 economic crisis which led through and the number (2003-2007) until 2008 when sales period This was followed by a recovery in sales. to a dramatic reduction in significant than the decrease in sold units was more period, the decrease once again. In the latter reduced due to prices. turnover, the year 2011 Note: Units sold stopped publication from and videogram producers) producersPhonogram CAPIF (Argentine Chamber of Phonogram and videogram Source: Figure 25: 88 The Economic Contribution of Copyright-Based Industries in Argentina Figure 26: Argentina deProductores ArgentineChamber ofPhonogramandvideogram deFonogramas yVideogramas: involves downloadandaccess tocontentthrough mobiletelephones.According todatabyCAPIF(Cámara a meansofdownloadingmusic content;andontheothercellularphoneor mobilesegment,which segment,as Digital marketinginArgentina comprisestwosegments:ontheonehand, internet 8.2.3 (OIC, 2011). companies whichwere locatedhadbeenclosed,changed theirbusinessorhadceasedactivities’ these couldbelocated.Atrend towards theinterruptionofbusinessactivitieswasalsoobserved:half music forsaleinthiscity. However, evenwhenthedata‘initiallyshowedalistof206units,only122 Creative Industries of the City of Buenos Aires (OIC), in 2010 there were 81 shops which offered recorded new conditionswere forced togooutofbusiness.According toresearch carriedoutbytheObservatoryof As maybeobservedinothercountries,therecord shops whichhavenotbeenabletoadjustthemarket’s computers andotherrelated articlessuchassecond-handbooks (OIC,2011). The strategyofthebigrecord shopshasbeenthediversification oftheiroffer, incorporating audioequipment, are Rock&Freud (rock), Zival’s (classicalmusic,jazzandopera)Notorious(jazz). personalised assistanceoftheirknowledgeableandloyalcustomers.Someexamplesthesekindsshops sale ofsupportsandwhichare specialistsincertaingenres (Inzillo,2008).Thesestores survivethankstothe thesmall and medium-sized recordWithin shop group, there are someshopswhichare dedicatedtothe as MusimundoandYenny-El Ateneo,whoseshopsare differentially oriented. On theotherhand,atretail distributionlevelthere are traditionalrecord shopsandbigshopchainssuch national andregional levels. services. According toarea experts,there are fourmainwholesaledistributorsinArgentinawhichoperateat and medium record companies, whereas smaller labels are responsible for their own logistics and distribution plants totherecord shops.Thisserviceinvolvesbothstorageandtransportationisgenerallyusedbylarge At thisstage,wholesaledistributorsare responsible forthedistributionofrecords from themanufacturing 8.2.2 countries. Note: inthisclassificationCAPIFmakesadistinctionbetweenlocal repertoire (from Argentina) and repertoire inSpanishfrom other Source: CAPIF(ArgentineChamberofPhonogramandvideogramproducersPhonogram andvideogramproducers) Digital marketing marketing Digital stage Distribution 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% Turnover byrepertoire 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Local Spanish others and English In compilations Classical music and The Economic Contribution of Copyright-Based Industries in Argentina89 Master Ringtones Audio singles melodies Ringback Others Other audio packs* audio Other Streams Audio singles album complete Audio Music videos 49.0% 72.0% 9.0% 5.0% 1.0% 20.0% % 29.0 14.0% 1.0% segment shows the most important development, since the sales in this segment in this sales the since development, important the most segment shows mobile Digital downloads by their type- Year 2012 Digital downloads by their type- Year Mobile digital content Internet downloads Live music This scenario reflects the incidence of the different kinds of music royalties and their management on a kinds of music the incidence of the different This scenario reflects 28): national basis, as it is illustrated in the following graph (Figure 8.2.4 study a fact, In industry. the to income of source increasing an provides which segment a is music Live both at national level and in the published in 2011 estimating the total music content volume in the market, with other segments in compared growth that live music showed outstanding revealed City of Buenos Aires, in the City of Buenos the country and a 295% increase throughout a 219% increase representing this sector, in 61% to 2005 in 29% from increase significant showed figures These period. 2005-2009 the within Aires 2009 (OIC, 2011). Notes:* playlists, sales in public places and others, provided these are not singles, albums or music videos. these are Notes:* playlists, sales in public places and others, provided and videogram producers) Chamber of Phonogram and videogram producersPhonogram CAPIF (Argentine Source: (b) (a) Figure 27: As regards digital download content, audio singles hold the leading position since they represent 50% of the the leading position since they represent download content, audio singles hold digital As regards internet below graphs to illustrate both segments appear 73% of the mobile content. The downloads and 27). (Figure At present the the present At results the is smaller than this figure 2011. However, of the total digital content sales in 75% represented in this decrease (in 2010) and 86% (in 2009). The two years which amounted to 96% observed in the last to CAPIF data, the internet in the internet subscription according segment, since an increase is due to share year. obtained in the previous with the results in 2011 compared a 68% increase model represented producersPhonogram and videogram producers), in 2012 the digital market represented a 57% increase in increase a 57% represented the digital market in 2012 videogram producers), and producersPhonogram income total 15.3% of the represented These results year. the previous obtained results to the sales compared music (music in physical or digital format). recorded arising from 90 The Economic Contribution of Copyright-Based Industries in Argentina Figure 28: access tocontentandledinfringementofintellectualrights,amongothers. complete discographywere removed, aswellunauthorizedapplicationsinsocialnetworkswhichenabled sites were cancelled,forinstanceonlinesalepagesphysicalsupportandwebsitesdirect downloadof physical format and on digital media (online) have been taken. In fact, during the last year, several piracy CAPIF pointsoutthatthroughout 2012importantactionsagainstunauthorizeduseofphonograms in 8.2.5 production Source: Producers) CAPIF(ArgentineChamberofPhonogramandVideogram Note: Therighttosynchronisation allows forthesynchronisation ofapre-existent musicalworkwithimageswithinanaudio-visual Source: CAPIF (2012) those obtainedinthelastyears. the launch of new music services in the Argentinian market, which will allow for even better results than A sustainedincrease intheincomeresulting from bydigitalcontent is expectedfor2013,coupledwith CAPIF topubliclybroadcast musicvideos. Channel andMixplayTV(GrupoDLA)are the TV/Cablechannelproducers whichwere authorizedby Much MusicandHTV(Turner Group), CM(Crónica),Quiero músicaenmiidioma(Artear) andConcert the grantingoflicensesto250othersthrough companiesauthorizedbyCAPIF. premises (Dubbing)causedbythegrantingof licensestoover120pointsofsaledirectly byCAPIFand In 2012there wasa58%increase inthelicensesgranted tocompaniesplaymusicintheirbusiness (Terra), Cienradios(La100)andBatanga.com(BatangaInc.). Argentina has 48 licensed sites to provide webcasting services to end-users, for example Sonora música In 2012,9websiteswhichincludednon-interactive music webcastingwere launched.Atpresent, obtained theprevious year. there wasa38%increase intheincomearisingfrom licensesgrantedbyCAPIF, compared totheresults As evidenceoftheconsistentdevelopmentnewbusinessesassociatedwithdigitalmarket,in2012 representation ofthoserecord labelswhichseekthiskindofprotection. has become a strategic aim ofthecollective management oftheNew Media area of CAPIF, which acts in In thelastyears,licensingofmusicservicesfornon-interactive uses intheArgentinian digital market Anti-piracy actions Anti-piracy Share ofincomebymusicsalesin% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% Licenses and non-interactive online uses for phonogram and video clips video and phonogram for uses online non-interactive and Licenses 2005 2006 2007 for 2005-2011 2008 2009 2010 2011 Físico Vivo Digital Radio y TV Sincronización The Economic Contribution of Copyright-Based Industries in Argentina91 1 43 10 2011 6 38 2010 8 5 32 Co-productions Production services films produced Nationally 2009 8 6 32 2008 42 3 32 13 2007 9 6 43 2006 8 4 29 2005 Number of cinematographic productions by their type (in their units) type by productions ofcinematographic Number 5 33 2004 Cinematographic productions by type Films 0 20 10 40 30 50 60 On the exports of content, see Pis Díez & García (2013). On the exports of content, see Pis Díez & García 42 As regards film exhibition, the audience figures in 2011 were about 42.5 million at national level. These in 2011 were film exhibition, the audience figures As regards not 2004 could obtained in peak 44.5 million the however, since 2009; recovery constant showed a figures again. be reached Source: Department for the Study and Research of the Film Industry in Argentina (DEISICA) for the Study and Research Department Source: Figure 29: With regard to film production (feature films) in Argentina, 54 productions were registered in 2011, showing registered productions were Argentina, 54 films) in (feature to film production With regard downward was a halt in the There year. the previous observed with the results compared a 22% increase mainly national These were was registered. productions since 2006, in which year a peak of 58 observed trend produced in the of those and constitute an average 75% films and TV films include feature and productions production of the total share had a 13% films co-produced of this period In the beginning 2004-2011 period. the period peak of 27% (13 films) in 2007. In spite of this, the reached and increased (5 films) but this share films could not be counterbalanced that year. fall in nationally produced At present the production of feature films and short films, as well as other activities, are a part of the value and short films, as well as other activities, films of feature production the At present internet, such as television, for a series of screens of audio-visual content developed chain in the production (ICT) and the and communication technology In fact, the development of information and movie theatres. favouring companies, the scope for production kinds of content have broadened digitalization of different new activities such as animation. the incorporation of 8.3 92 The Economic Contribution of Copyright-Based Industries in Argentina Figure 30: 43 Source: Department fortheStudyandResearch oftheFilmIndustryinArgentina(DEISICA) Figure 31: up over75%ofthetotalticketsaleincome,showingapeak83%in2011(Figure 31). saleanalysiscarriedoutthrough the2004-2011periodshowedthatfilmsproducedTicket bytheUSAmade Source: DepartmentfortheStudyandResearch ofFilmIndustryinArgentina(DEISICA). Sales incurrent pesos. $ 1,000,000,000 $ 1,200,000,000 $ 800,000,000 Ticket sales in ARG pesos $ 200,000,000 $ 400,000,000 $ 600,000,000 $ 1,000,000,000 $ 100,000,000 $ 200,000,000 $ 300,000,000 $ 400,000,000 $ 500,000,000 $ 600,000,000 $ 700,000,000 $ 800,000,000 $ 900,000,000 Audience figuresandticketsales Ticket salesbyfilmorigin $ 0 $ 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2004 Audience -in units- -in Audience ($)- pesos ARG -in sales Ticket 2005 EE.UU. Audience figures andticket sales Ticket sales evolutionfilm originby 2006 Argentina 1997-2011 period 1997 - 2007 2011 Period Others 2008 2009 2010 43 2011 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 0 The Economic Contribution of Copyright-Based Industries in Argentina93 the 44 322 Total 11,144 42,490,429 $ 973,138,693 In units and ARS - 85 1606 Others 4,660,599 $ 108,010,766 104 1,226 3,041,135 Argentina $ 59,521,190 133 USA 8,312 34,788,695 $ 805,606,737 Year 2011 Year Audience figures, releases, copies and ticket sales by film origin (USA, Argentina and others) copies and ticket sales by film Audience figures, releases, This indicator and its variation could be supported by the increase or decrease in the audience figures obtained by the year´s most in the audience figures or decrease This indicator and its variation could be supported by the increase ticket sales had an audience of 2.4 million people, record widely seen Argentine film. In fact, in 2009, the Argentine film with reach an audience of one million did not even following years the Argentinian films with the highest audience figures in the whereas people. Audience (figures) Releases (units) Copies (units) Ticket sales (ARS) Ticket 44 As regards demand, it was even less diversified than the supply, since 82% of the audience showed a since 82% less diversified than the supply, demand, it was even As regards 7% of the audience. gained only releases film nationally-produced whereas for the USA releases, preference for the second trend maintained a downward Argentine releases of the audience who preferred The share less than half of that obtained in 2009, which was the represented that achieving a figure consecutive year, releases showed a peak of 15.8%, favouring Argentine film of the audience year in which the share Considering he supply in terms of number of copies in that same year, it can be observed that the Argentine the that observed be can it year, same that in copies of number of terms in supply he Considering films USA-produced whereas 11% of this figure, represented since it was significantly smaller, industry share of the total number of units. by other countries accounted for 14% amounted to 75% and films produced Source: Department for the Study and Research of the Film Industry in Argentina (DEISICA) of the Film Industry in Department for the Study and Research Source: Table 45: Table In 2011, a total of 322 films were released, showing a 7% increase compared with the results obtained the results obtained with the compared increase showing a 7% released, were total of 322 films In 2011, a rest of the films and the in Argentina (104) produced films). 32% of these movies were year (300 previous in the USA. produced 41% of which were origin, of foreign were highest result in the last twenty years. highest result 94 The Economic Contribution of Copyright-Based Industries in Argentina 45 (2010) and24%(2011). dynamics. Aftertheslightdecrease observed in2009,salespresented aquickrecovery withresults of19% in salesyear-on-year were positiveandshowedincreases ofover18%;thisproved theexistenceofhealthy Sales inthisperiod–shownUSD(Figure theexceptionof 2009,variations 31)–tripledtheirresults. With The information technology (IT) market in Argentina showed sustained growth in the 2003-2011 period. 8.4 assess thecondition andevolutionofthissectorup toJune30 Data originatedby publicationsbytheChamberof Software and ITServicesCompaniesinArgentina (CESSI)from jointsurveys to aforementioned districtare alsoapplicabletoeducationalactivitiesrelevant totheaudio-visualindustry. national capitaland10yearsinthecaseofcompaniesownedbyforeign capital.Thebenefitswithinthe as wellotherstampduties).Thisprotection extendsover15yearsinthecaseofcompaniesowned by this districtare exemptedfrom localtaxes(suchasgross incometax,publiclighting andcleaningtaxes from thepaymentofGross IncomeTax (ISIB:ingresos brutos).Furthermore, thecompanieslocatedwithin considered PYME(‘pequeñaymedianaempresa’: smallandmediumsizedenterprises)are exempted By virtueofthisAct,allcompaniesintheCityBuenosAiresare thatbecauseoftheirturnover the CityofBuenosAires. Ortúzar,This districtislocatedintheareas Chacarita,Villa knownasPaternal, PalermoandColegialesin related totheaudio-visual industry, specialised suppliers as well as otherproviders and relevant institutions. productions. ThisActprovides anarea forthegeographicalconcentrationofinterconnected companies animation and video games as well as all the creative and artistic services directly related to audio-visual The activitiesbenefitedbythisActinclude:production oftelevisioncontents,films,advertisements, with thatofanindustrialbusinessandwhosetaxtreatment isthesameasthatofanindustrialactivity. This new Act considers the film industry asa productive activity with transformation ability compatible of thisMinistry, anActforthePromotion ofAudio-visual ArtswaspassedinSeptember, 2011. this scenario and through the initiative of DGIC together with the Within General Investment Department through the DGIC (Dirección General de Industrias Creativas: General Department of Creative Industries). of theCity Buenos Airesdeveloped by the Ministry of EconomicDevelopment of theGovernment In the City of Buenos Aires, policies relevant to the audio-visual sector and other creative industries were City ofBuenosAires royalties arisingfrom thebroadcasting oftheirworksontelevision. From 2011,itwaspossiblefordirectors offilmsandaudio-visualworkstostartcollectingcopyright films inseveralspacesthathavebeendesignatedforthebenefitoffilmindustry. by organizingfilmcompetitionsandoffering guaranteesfortheexhibitionofnationally-produced Arts) istheorganizationresponsible forthepromotion ofthefilmindustrybygrantingfundsandloans, INCAA (‘InstitutoNacionaldeCineyArtesAudiovisuales’:NationalInstituteforFilmsandAudio-visual Software 45 Sector legislation and policies and legislation Sector th 2011. The Economic Contribution of Copyright-Based Industries in Argentina95 2011 3,399 3,443 2011 2010 2,795 2,711 2010 2009 2,306 2,307 2009 2008 2,324 2,372 2008 1,897 1,955 2007 2007 1,575 1,516 2006 2006 In US dollars (millions) In US dollars (millions) 1,327 1,283 2005 2005 870 1,135 2004 2004 Software and IT services and Software Hardware and supplies Telecommunications IT 559 1,055 2003 2003 0 0 4,000 2,000 8,000 6,000 2,000 1,000 5,000 4,000 3,000 7,000 6,000 10,000 14,000 12,000 In US dollars (millions) dollars US In In US dollars (millions) dollars US In Annual IT sales by sector Software turnover Software Source: CICOMRA (Chamber for IT and Communications in the Argentine Republic) – Prince & Cooke CICOMRA Source: by companies in the IT provided but which are of IT nature Note: ‘Services’ include certain solutions that may not strictly be considered business. Figure 33: If we analyze the annual turnover results of the IT sector in detail, we will observe that in 2011, 50% of these If we analyze the annual turnover results services sector. to the software-IT while the other 50% belonged group, belonged to the hardware-supplies was significant, since at the beginning for the development of the IT area The importance of this last group a peak of 65% of the over half the sales of the IT segment, reaching of the analyzed period it accounted for total sales in 2003. On the other hand, information technology sales over the same period accounted for an average 52% of On the other hand, information technology respectively in the last two of 55% and 54% with figures the total turnover area, in the telecommunications years. Source: CICOMRA (Chamber for IT and Communications in the Argentine Republic) – Prince & Cooke CICOMRA (Chamber for IT and Communications in the Source: Figure 32: 96 The Economic Contribution of Copyright-Based Industries in Argentina Figure 34: telecommunications (12%),health(10.8%),software andITservices(10.7%),commerce (10.1%). The software andITservices demandanalysisshowsfinancialservices(29%)asthemainclient,followedby generated bythesoftware developmentarea andthesaleofitsownproducts andservices. If weanalyzethesalesofsoftware andITservicessectorindetail,weobservethat62%ofthesewere sector, weobservethatsalestomultinationalcompaniesrepresent 82%ofthetotalresults (Figure 35). maintain theirhighlevelsofcompetitiveness(Figure 34).IntheanalysisofSoftware andITServicesexport not onlyduetothebigvolumeoftheirbusinessbutalsoconstantneedforupdatedsystems Software andITServicesCompanies)statesthatthemainsolutionclientsare multinationalcompanies, As regards clientanalysis,CESSI(Cámaradeempresas deSoftware yServiciosInformáticos:Chamber of Source: CESSI(ChamberofSoftware andITServicesCompaniesinArgentina) 9.7 11.1 Main softwareandITservicesactivities 4.6 3.7 3.4 14.4 3.1 According totheirshareinthetotalsalesofthisgroup Results ofthefirstsemesterin2012.Percentages 2.9 47.2 Others (training,etc.) operation IT for resources Supplyof (design, testing, etc.) resources development Supplyof associated services Sale of third party products and Support IT services Sale of own products and associated Software development Solutions servicesas Outsourcing The Economic Contribution of Copyright-Based Industries in Argentina97 Education Tourism Financial services Telecommunications Health IT services and Software Commerce Manufacturing industry administration Public Energy Media entertainment and Agriculture and industry transportation and Logistics Construction Others* as services Solutions Software development Software IT Support Sale of own products and services associated Sale of third party products services associated and 12.3 45.9 29.3 0.1 10.8 0.3 2.2 0.5 Percentages from the first semester in 2012 Percentages from the first semester in 2012 Percentages from the 2.7 1.7 3 1.1 20.9 8.7 5.8 10.7 5.8 19.7 10.1 8.4 Main software and IT services activities by their share in exports Main software and IT services clients by their share in the total sales clients by their share and IT services Main software As regards the geographical location of the activities in this sector, the Chamber of Software and IT Services the Chamber of Software of the activities in this sector, the geographical location As regards company are although there Companies points out that it is mainly focused in the City of Buenos Aires, Rosario, Aires, Buenos Greater in: mainly country, the over all sites regional and centers different in clusters Source: CESSI (Chamber of Software and IT Services Companies in Argentina) of Software CESSI (Chamber Source: Figure 36: The highest demand was registered in the USA, which accounted for 45% of the sales in the first semester of in the USA, which accounted for 45% The highest demand was registered was an there As a result, year. since it was 59.5% the previous USA share, in the 2012. This was a decrease Brazil and Mexico Chile, Peru, Uruguay, almost 50%, which represented in the Latin American share increase respectively. being the leading countries with 8%, 7.9%, 7%, 5.6% and 5.5% shares, Income from exports represents 26% of the total sales in this sector and the software development area development area and the software 26% of the total sales in this sector exports represents Income from and products own of sale the and support IT by followed result, this of half practically for responsible is associated services. Source: CESSI (Chamber of Software and IT Services Companies in Argentina) CESSI (Chamber of Software Source: Figure 35: 98 The Economic Contribution of Copyright-Based Industries in Argentina scholarship planforITstudents inuniversitiesandtertiaries. one hundred educationalinstitutions (universitiesandothereducationalinstitutions) haslauncheda The MinistryofEducationhas promoted thecreation oftwo-yearTechnical Degree Courses inITalmost – – – – associations appearbelow: (IT programmers, analysts and consultants) in several different technology areas. Some examples of these joined withanumberofeducationalinstitutionsandcompaniestoprovide forthetrainingofprofessionals but alsoduetotheincreasing employmentdemandinthissector. Forthisreason,has thegovernment Another core aspect of thesoftware industryis the training of humanresources, not only toachieve quality Aires, amongothers. we find:Córdoba, Chaco,BuenosAires, SanLuis,Entre Ríos,SantaFe,MendozaandtheCityofBuenos companies thatdecidetolocateintheirterritories.Amongtheprovinces whichoffer these kindsofprogram At thesametime,someofprovincialhavepassedlawswhichoffer governments different benefitsto – – – The incentivesschemeincludes: activities, and/or8%toexports. to the companies:quality certifications, theallocationof3%theirturnover research anddevelopment services account for 50% of activities. These schemes have certain specific requirements to be observed by As aresult, ataxincentiveschemewasdevelopedforthosecompaniesinwhichsoftware industryorIT perspectives forprojected development. provides taxadvantagesbutalsoidentificationofthisactivityasonetheeconomicareas withthebest industry andtogetherwiththeformerlawsetsuparegulatory andreferential frameworkwhichnotonly Act25922/04wascreatedother industrybytheNationalGovernment. forpromotion ofthesoftware 25856/04 states that software production is an industry granted the tax, loan and all benefits inherent to any There hasbeenactivepromotion ofthisindustrysincetheActs25856/04and25922/04were passed.Act 8.4.1 and astrongentrepreneurialcooperationspirit’. of qualifiedhumanresources,theimportanceauniversitytoprovideentrepreneursintechnologyfield regions among other locations. According to CESSI, ’these centers have as common features the availability Córdoba, Mendoza,Tandil, andNorthern MardelPlata,BahíaBlanca,SanLuis,Neuquén,North-eastern be inchargeofthistraining program (2009–2011). low-income youngpeopletojoinIT-related companies.Additionaltrainingwasgivento480people companies (Cisco,IBM,Microsoft, OracleandSunMicrosystems) organised atrainingplanfor12,000 ‘Becas Control+F’: togetherwithCESSI,the MinistryofLabour, Employment andSocialSecurity, 5 and Oracleprovided forthetrainingof800youngpeoplein2007. ‘Invertí enVos’ (InvestinYourself): Through theMinistryofLabour, EmploymentandSocialSecurity, CESSI Sun Microsystems andOracle,offered trainingfor4,000young peoplein2006,2007and2008. EnterTECH IandII:Through thisproject theMinistry ofLabour, EmploymentandSocialSecurity, CESSI, offered trainingfor1,000youngpeoplein2005. +MAS: Through thisproject theMinistry ofLabour, EmploymentandSocialSecurity, CESSIandMicrosoft software exports. which canprove research anddevelopmentexpensesand/orqualitycertification processes and/or 60% reduction inthetotalincometaxamount.Thisbenefitwillbeavailableexclusivelytocompanies social securitycontributionspaidbytheemployers. Tax credit forthepayment ofnationaltaxes(withtheexceptionincometax),equivalentto70% Tax stabilityovernationaltaxesfora10-yearperiod. Promotion of the software industry software the of Promotion The Economic Contribution of Copyright-Based Industries in Argentina99 47 subscription-based or pay television (cable 49 etc. 51 46 common antenna television services, 48 ), decoded television, 50 Television and Radio Television Television Users or television viewers: They demand certain content and state their preferences, which may be preferences, Users or television viewers: They demand certain content and state their studied by companies specialised of each channel. These statistics are the rating share observed through in audience measurements. Content producers: They are in charge of obtaining the necessary means to develop programmes through through charge of obtaining the necessary means to develop programmes in They are Content producers: talent anchors, and/or performers), acquisition of rights, creative activities such as hiring of artists (hosts, any as well as or specially developed for the programme), (real or scenography and the design of props necessary for the development of the content. environment the to create other element to be provided the content to form a content and organise for broadcasting the rights channels: They acquire Television schedule. program the to channels offer They parties. third or owners channel´s the be can These marketers: Channel distribution systems. different the to their subscribers, through part of the grid provided Distributors: They choose the channels which are television systems: do this they use different ‘packages’. To of several technologies and commercial offer television, broadcast and digital, This refers to the air television system coded by certain specific bands in the radio electric spectrum – UHF (ultra-high frequency) and bands in the radio electric spectrum – UHF (ultra-high frequency) to the air television system coded by certain specific This refers by process, decoding with a previous is aimed at reception, MMDS (multichannel multipoint distribution service)-. Their broadcasting signals. 33 analogical signals up to 200 digitally compressed from system subscribers, and it may include the audience who are This service was developed as a supplement to broadcast television, thus enabling signal reception in areas where it could not be where in areas television, thus enabling signal reception This service was developed as a supplement to broadcast one by physical means) of the signals from amplification and distribution (preferably It is in charge of the reception, received. directly by their subscribers. to be received and relays, stations and their repeaters broadcasting or more two types of satellite systems: i) the first uses telecommunication satellites (fixed satellite service), which connect the entity are There ii) the second air or cable; images to the audience through which in turn broadcast which transmits signals with the receptors, recipients of the by their final received satellite), whose signal can be directly broadcast television satellite or DBS (direct uses direct television images by setting up small diameter parabolic antennae. For an overview of media ownership structure see El Cronista (National newspaper) Special Edition 2012.- ‘Quién es quién en el see El Cronista For an overview of media ownership structure (‘Who is who in the Argentinian Market’). argentino’ mercado This service includes public television and the beneficiaries of television station licenses granted by the National Executive Power. Ley de Servicios de Comunicación Audiovisual. Motivos de la Adecuación. (Audio-visual Communication Services Act. Reasons for Ley de Servicios de Comunicación Audiovisual. Motivos de la Adecuación. (Audio-visual Communication for Audio-visual Communication adaptation). AFSCA (Autoridad Federal de Servicios de Comunicación Audiovisual: Federal Authority Services).National Government. • 51 50 47 48 49 46 • • • • 8.5.1 are chain in which the following job roles in terms of a production The television industry can be analyzed found: Notwithstanding this fact, since it is possible that the changes expected to be made in the market as set forth Notwithstanding this fact, since it is possible can be fully verified at medium-term, the following descriptions have by the implementation of this new rule of the television and radio markets based on available information that, descriptions been included. They are due to its specificity or is even completely unavailable. in some cases, is difficult to obtain The objective of this legal framework is the development of mechanisms aimed at promotion, deconcentration deconcentration of mechanisms aimed at promotion, legal framework is the development The objective of this and democratization in the in prices and result decrease to lead to a of competition and encouragement conditions and technologies. A set of admission new information and communication globalization of the of licenses have been for the multiplicity up restrictions and setting market shares regulating requirements of and functioning to be met, some adjustments in the structure for these requirements established. In order expected. the markets are In 2009, Act 26522 on Audio-visual Communication Services was passed in Argentina. This Act sets a new was passed in Argentina. This on Audio-visual Communication Services In 2009, Act 26522 services in the country. for audio-visual communication framework regulatory 8.5 Finally, under the framework of Industrial Strategic Plan Argentina 2020, the software value chain organizations value chain organizations 2020, the software Plan Argentina of Industrial Strategic under the framework Finally, goals (For details see Annex 5). defined their long-term 100 The Economic Contribution of Copyright-Based Industries in Argentina channels, report twoofthemostimportantchannelmarketerspossesstheirownchannelsanddonottradethird party contents, suchasrecords, movies,magazines,licenses,theatre plays,musicshows,etc. which, apart from producing television content, also develop the products which are related to these television productions butalsooffer customisedproduct production andmanagementservices.There are companies of whichcouldbeoffered inmultiplatformformats.There are companieswhichnotonlyoffer theirown complete audio-visualcontentproduction and/orare involvedinthetradingoftelevisionprogrammes, some offer different kinds of products and services for the industry. For example, there are companies which offer In thecontentproduction stage,itispossibletofindseveralindependentproduction companieswhich cable operators. between cabletelevisionoperatorsandmarketersalsochannelswhichoffer theirservicesdirectly to stages ofthischain.We canobserveverticalintegrationbetweencontentproducers andchannels,or In Argentinathere are severaldegrees ofintegrationbetweenthecompaniesthathaveapartindifferent 56 55 54 53 52 The followingtable(Table 46)illustrates thetelevisionchanneloffer in2008(CNDC,2008): Defensa delaCompetencia:NationalCommitteefortheDefenceofCompetition,2008), As regards channel ownership, there are several different cases. According to CNDC (Comisión Nacional de processing thecontent. an organisedprogramming scheduleandtheinsertionofadvertisementpromotions, broadcasting and In general,television channels are involved in theselection of content,theorganization of thiscontent into the programmes broadcast onnationalprime-timetelevision. Together theyproduce over50%oftheprogrammes broadcast bythechannelsinArgentina,andmostof Television Producers) foundedin1999,groups independenttelevisionproducers throughout thecountry. CAPIT (CámaraArgentinadeProductoras IndependientesdeTelevisión: ArgentineChamberforIndependent their repeaters. Islands, orworldwide. Exclusivityisnotverifiedfor broadcast channels intheprimarycoverageareas orinareas whichare covered by covered geographicalareas presents somevariation,forexampleArgentina,Uruguay andParaguay;orLatinAmericaCaribbean Trading third partyimagesimpliesexclusivity inacertaingeographicalarea grantedtoacertaincompany. Theextensionofthe Canal 13,Todo Noticias,Metro, Multideporte, Volver andMagazine. This isthecaseofTelevision FederalS.A.whoseonlychannelisTelefe, andArtearS.A,which istheowneroffollowingchannels: December 2007. National CommitteefortheDefence ofCompetition.Dictamensobre ConcentracionesNº619’(Resolution619onConcentration), Source: http://www.capit.org.ar/ For exportoflocalcontent,seePisDiez&Garcia (2013) 55 whereas othercompaniestradeboththeirownandthird partychannels. 53 56 52 54 atthetimeofthat The Economic Contribution of Copyright-Based Industries in Argentina101 Source: National Committee for the Defence of Competition of Defence the for Committee National Source: Canal Rural Satelital Rural Canal Telecentro Canal 26 Canal Televisa Networks Televisa C. de las Estrellas las de C. Telehits Juan Fabri Juan Solo Tango Solo MTV Networks MTV NTV – VH1 – NTV Nickelodeon Discovery Travel & Living & Travel Discovery – – Health & Home Discovery – Educable People & Arts – History Channel/ History – Arts & People Argentina Discovery Kids Discovery – Channel Discovery – Planet Animal Discovery Networks Networks Discovery TyC Max TyC Comnpetencias – Sports TyC Torneos y y Torneos Channel ESPN+ Jetix – Disney Disney – Jetix ESPN Sur SRL Sur ESPN ESPN – – ESPN MGM Networks MGM MGM Gold MGM Casa Club TV Club Casa Hallmark Hallmark FX Fox Kids Fox Geographic National Sports Fox FOX – – Channel Universal – Fox – HBO Plus – AXN – Plus HBO – A&E Cinemax – HBO Olé – Sony Sony – Olé HBO – Cinemax – Entertainment E! Arimax Mundo HBO Group HBO – Channel Warner Movie Top Movie Moviecity – The Film Zone – – Zone Film The – Moviecity LAP TV LAP – 2 Cinecanal – Cinecanal TV Net S.R.L. Net TV DW Deustche Welle Deustche DW N/A BBC world BBC Action Group Action TVE Internacional TVE Multipole RAI ºº TV5 Monde TV5 TV5 Eduardo Galiego Eduardo Galicia TV Galicia Satelital Reality TV – Plus Plus – TV Reality Garage TV Garage Azul televisión Azul – – TV Cosmopolitan TV – CM – TV Sports El El Sports Europa – – Satelital – – elgourment.com Canal á Canal Rock and Pop Pop and Rock 24 América Kids Magic América América Film & Arts – Europa Europa – Arts & Film Chile TV Pramer SCA Pramer America America TEVEFE Telefe Televisora Color Televisora Canal 7 Canal Canal 7 Argentina Argentina 7 Canal Artear Canal 13 Canal Multideporte Volver Todo Noticias Todo Magazine 24 Magazine Muchmusic Crónica TV Crónica Boomerang – G-Channel – Private FTV Argentina – – Argentina – – Internactional CNN Network – TCM – TNT – Spice – – Spice – Venus – – Satelital Utilísima HTV HTV CNN en español – – español en CNN Infinito Cartoon – Retro – – Retro – Space – I-Sat Turner/Claxson – – L.A. TV Playboy Broadcast Aires) Aires) Buenos Buenos cultural group cultural (Greater (Greater children Company Adult Content Adult Nationality or or Nationality Broadcast Films and series and Films GBA Arts Sports Arts/Documentaries News for Content Music Variety Theme 46: Table Television channel offer by theme theme by offer channel Television 102 The Economic Contribution of Copyright-Based Industries in Argentina Table 47: broadcast channelsare: own station, and inseveral cases haverepeaters in therest of theprovinces. The mostimportant private In addition, there are privatebroadcast channels which offer direct area coverage from the locationoftheir throughout Argentina,itsneighbouringcountries,andNorthAmericaaswell(CNDC,2007). and includeitintotheirsystems,through thesatelliteprovider TIBA–bywhichthischannelisbroadcast provinces through fibre-optic linksand/orair reception –sothepaytelevisioncompanies receive thischannel LS 82TVCanal7,abroadcast televisionchannelintheAMBA,whichisalsobroadcast intherest ofthe Until therecent changesinregulations, thismarkethadasinglenationallyownedpublictelevisionchannel, 8.5.1.1 57 • system inArgentinaischaracterisedby: AFSCA (FederalAuthorityforAudio-visualCommunication Services, 2010),pointedoutthatthetelevision (ARS 2,996 million,current valueatthetime),withchannels11and13accountingfor80%ofthisamount. obtained intheprevious year. The channelsintheCityofBuenosAires received 83%ofthistotalamount current valueatthetime.Thisrepresented a10.7%increase, atconstant value,compared withtheresults of Creative Industries (OIC, 2011), broadcast television’s in 2011 was ARS 3,617 million, total turnover The priceoftelevisionadvertisingissetdependingontheseindicators.According todatafrom theObservatory segment orperiodoftime. of theratingsobtainedby each channeloverthetotalratingsobtained by all theotherchannelsinsame same segmentorperiodoftime;audiencelevelsare alsomeasured bytheratingshare,whichisfraction time segment or period of time in comparison with the total percentage of homes viewing television in the measured byrating.Ratingsindicatethepercentage ofhomeswhichare viewingacertainchannelingiven Competition betweenbroadcast televisionchannelsisbasicallyacompetitionforaudiencelevels,which are these channels,eithertothechanneldistributioncompanies,orpaytelevisionsystems. They reach consumersthrough repeaters orthrough thesaleofdistribution rightsbytheownersofeach channels which appear in the table above are the only channels which are distributed on a national basis. Even thoughintheprovinces there are broadcast televisionchannels withtheirownprogramming, thefour Source: CNDC(2007) LS 86TVCanal2 LS 85TVCanal13 LS 84TVCanal11 LS 83TVCanal9 of theCityBuenos Aires. To theeast, RiverPlate serves asanatural boundary. (partidos) of Greater BuenosAires. Thus,itdoesnotconstituteasingle administrativeunit.The area spreads south,westandnorth AMBA: refers totheurbanagglomeration comprisingautonomousCityofBuenosAires as welltheadjacent40 municipalities account for47%to66%ofthetotalprogram schedule(Table 48). schedule inregions exceptfortheAMBAarea are retransmitted productions whichindifferent regions Greater BuenosAires andtheCityofBuenosAires). by theso-called‘mainchannels’whichare locatedintheAMBA (Area Metropolitana deBuenosAires: Significant centralisation,sincemostoftheprogrammes broadcast intheprovinces are thoseoriginated Broadcast Television Broadcast Frequency Private broadcastchannels City ofLaPlata,ProvinceBuenosAires City ofBuenosAires City ofBuenosAires City ofBuenosAires Station Origin 57 Theproductions whichcovermostoftheprogram América TVS.A. Artear S.A. Televisión FederalS.A. Telearte S.A., Owner The Economic Contribution of Copyright-Based Industries in Argentina103 2.0% 64.7% 46.7% 48.4% 66.1% 51.6% productions in hours December 2010/December 2011 December 2010/December Percentage of retransmitted Percentage of retransmitted Nationally co-produced projects Produced in Europe Produced inLatin America Produced in the USA Rerun retransmission Pre-recorded network by Retransmitted parties Third Related Own production 741.0 20,463.0 11,926.0 22,708.0 24,517.0 57,467.0 Total retransmitted retransmitted Total productions in hours AMBA Period: December 2010/ December 2011. In % Period: December 2010/ December 2011. 43,846.0 24,633.0 34,360.0 47,494.0 37,287.0 88,818.0 Provinces Total broadcast* in hours broadcast* Total 0% 50% 40% 30% 20% 10% 90% 80% 70% 60% 100% TV productions by their origin Retransmission hours by region Retransmission Region Regarding own production, the content produced by the provinces accounts for a 24% share, whereas whereas share, a 24% for accounts provinces the by produced the content production, own Regarding segment it must be mentioned that In this last by AMBA accounts for a 37% share. the content produced (29%) in comparison production of own private channels (13, 11, 9 and 2) have a smaller percentage with the public nationally owned TV channel (43%). significant content has more and nationally co-produced In the public nationally owned channel, European of the channels (14% and 22%, respectively). than those observed in the rest shares Fewer content production sources in the provinces than in Greater Buenos Aires and the City of Buenos and the City Buenos Aires than in Greater in the provinces sources Fewer content production in the content production, for programming sources nine different are in AMBA there Whereas Aires. 37). retransmitted content (Figure including two varieties of only five sources; are there provinces Cuyo North-eastern North-western Patagonia AMBA Pampa • Source: AFSCA (Federal Authority for Audio-visual Communication Services) AFSCA Source: • Figure 37: (*) Includes total broadcast time with commercial breaks, which are not included in the programme. Therefore, to calculate actual Therefore, not included in the programme. which are breaks, time with commercial (*) Includes total broadcast AFSCA (2011) block) Source: due to accumulation in each hour (margin of error content time, you must extract 12 minutes per • Table 48: Table 104 The Economic Contribution of Copyright-Based Industries in Argentina Table 49: Table 50: their numberofbeneficiariesintheexactsameperiod(241.5%). systems, ontheotherhand,eventhoºughtheydonothavesameincidenceascabletelevision,doubled Since 2005,thetotalnumberofbeneficiariesthesekindsserviceshasshowna60%increase. Satellite of thetotalnumberhomeswithtelevisionbysubscription. penetration ofthistypeservices,particularlycabletelevisionwhosebeneficiaries represent an82%share had thiskindofservice.Thisaccountedfor69%thetotalhomenumbers.indicatorshowshigh Institute forStatisticsandCensusinArgentina),2011about8,537,728homesthroughout thecountry According todatacollectedbyINDEC(InstitutoNacionaldeEstadísticasyCensoslaArgentina:National This serviceinvolvesmainlyclosedcommunitysystems(orcabletelevision)andsatellitetelevision. 8.5.1.2 structure ofthemarket.Forthesereasons, somevariationsinthesefigures are expectedinthemedium term. local third parties.Atthesametimethere are limitstothenetworkretransmission ofcontenttomodifythe regulations forthissector, forexample minimumlimitsforown-produced contentsorproduced by From the date when theAudio-visual Communication Services Act 26522/09 became effective, there are new Source: AFSCA(FederalAuthorityforAudio-visual CommunicationServices) 58 Intercable, The maincabletelevisionproviders inArgentina are Cablevisión/Multicanal,Supercanal, Telecentro andRed Argentina) Source: OIC(ObservatoryofCreative Industries),2011basedondatabyINDEC(NationalInstituteforStatisticsandCensusin digital televisionservices. wide geographicalcoverage ofbothBuenosAires andtheprovinces. DirectTV isthecompanywhichoperates Aires anditssurroundings, Supercanal haswidecoverage intheprovinces, andCablevisión/Multicanal has Coproduced byArgentina Produced byaEuropeancountry Produced byLatinAmericancountries Produced byUSA Reruns Pre-recorded retransmission Third parties Related Cable Satellite Total Own production locations in20provinces ofArgentina. This isanetwork of cableoperatorswhichactsinrepresentation of220smallandmedium-sized companieswithpresence in500 Television by subscription by Television 58 TV productionsbytheirorigin.AnnualaverageinAMBA(GreaterBuenosAires)channels Paid televisionbeneficiariesbysubscription whichoperateindifferent geographicalmarkets.Telecentro operatesmainly intheCityofBuenos 4,900,000.0 5,350,000.0 450,000.0 2005 Origins 5,200,000.0 5,579,000.0 559,000.0 2006 5,480,835.0 6,110,835.0 630,000.0 2007 6,315,000.0 7,204,000.0 889,000.0 2008 Canal 7Argentina 22 14 13 43 – – 1 4 3 6,400,000.0 1,100,000.0 7,500,000.0 2009 6,650,000.0 1,100,000.0 7,750,000.0 Privately ownedchannels 2010 Year 2011.Percentages 10 12 23 29 – 8 8 2 8 7,000,937.0 1,536,791.0 8,537,728.0 2011 Inunits The Economic Contribution of Copyright-Based Industries in Argentina105 59 Copyright Collecting Societies Radio Limit to 24 the number of broadcasting licenses for a single licensee. Limit to 24 the number of broadcasting capital. to 30% of the share corporations, the licensees are cases where capital, in Set the limit of foreign organizations. for non-profit Reserve 33% of radio-electric spectrum and indigenous peoples to participate in broadcasting Authorize cooperatives, national universities services. television (an AM one and an FM one) and with broadcast frequencies with radio each province Provide each municipality with an FM radio frequency. (one). Provide frequencies of 50%, and to include local news have a minimum own production private radio stations to Require programmes. or thematic ones – to air communities stations – except those devoted to foreign all broadcasting Require a minimum 30% of Argentinian music. This characteristic of the industry is known as a ‘two-sided market’. Resolution 637 about economic concentrations. December, concentrations. December, This characteristic of the industry is known as a ‘two-sided market’. Resolution 637 about economic 2007. As regards advertising in pay television, OIC (Observatory of Creative Industries, 2011) pointed out that pointed out 2011) Industries, of Creative (Observatory OIC in pay television, advertising As regards was in 2009, in pay television investment in advertising values rise of 42.6%, at constant the remarkable with this In 2010 advertising continued breaks. in the space for commercial the increase explained mainly by was a slight constant values (+10%). In 2011 there a peak of ARS 679 million at reached and trend upward million at constant values. to show a total of ARS 646.4 results in these decrease From these data it can be observed that income in this market comes mainly from the payment of fees by this market comes mainly from it can be observed that income in these data From advertising. hand, from kind of service and, on the other beneficiaries of this 59 Due to the fact that they are a relatively new type of organization, Copyright Collecting Societies (CCSs) new type of organization, a relatively Due to the fact that they are into the legal and institutional system not included in the Act 11723 of 1933, and their incorporation were de y Compositores in 1936 SADAIC (Sociedad Argentina de Autores However, copyright was slow. regulating 8.6 to be in Argentina, as it has always been considered Collective management of copyright is widespread involve (which other rights and copyrights managing from arising costs the reduce to means an efficient monitoring and collection). protection, The main income source in radio, as in broadcast television, is advertising. According to data published by published data to According advertising. is television, broadcast in as radio, in source income main The was 2.9% of the total advertising radio advertising investment share OIC (2011), in the City of Buenos Aires it did not manage However, year. investment in 2011, which shows stability in comparison with the previous was 7.7%. since 2001, when the share registered trend the downward to reverse Regarding Frequency Modulated (FM) stations, the AFSCA stated that there are 496 authorized radio stations, are there Modulated (FM) stations, the AFSCA stated that Frequency Regarding are for license. As for Amplitude Modulated (AM) stations, there still waiting while 2,200 radio stations are 197 of them. • • • • • • • provisions, at the beginning by these new required are Notwithstanding the modifications yet to be verified that disclosed information about of 2012 the AFSCA (Federal Authority for Audio-visual Communication Services) existing in Argentina. radio frequencies As was previously pointed out, the Audio-visual Communication Services Act sets forth new requirements Audio-visual Communication Services Act sets forth new requirements pointed out, the As was previously to radio services, which: with regard 8.5.2 Pay cable television offers basically two kinds of products: a) the supply of content or channels; and b) the or channels; and of content a) the supply products: kinds of two basically offers television Pay cable to advertise companies which wish those utmost importance for which is the audience of supply of audiences, 2007b). for the Defence of Competition, audiences (CNDC- National Committee such to reach their products 106 The Economic Contribution of Copyright-Based Industries in Argentina (g) (f) (e) (d) (c) (b) terms ofaddedvalueandemployment. The figures showninprevious chaptersdealingwiththeestimationsofCBIsdemonstratetheirimportancein as thePerformers’Society. the marginalcostofillegalcopies.Forthesereasons, there hasrecently appeared awaveofnewCCSs,such difficulty of collecting fees as a result of technological advances, which, among other consequences, reduce need tohaveefficientmechanismsprotect theirrightsandcollect royalties, andtheconsiderable or activitiesalsoprotected byit,togetherwiththeincreasing awareness onthepartofmajoragents being theeconomicdevelopmentofactivitiesprotected bycopyright,aswellthecreation ofnewareas CCSs havegrown innumberandimportanceovertime.There are manyreasons forthis,oneofthem of collectingcopyrightroyalties whenevermusicalworksincludedinitsrepertoire were publiclyplayed. Música: ArgentineSocietyofMusicAuthorsandComposers),wasfoundedasthefirstCCSforpurpose 60 (a) SADAIC isauthorizedto: As setforthinsection3oftheregulatory decree, withregard to theuseofrepertoire undertaken, societies intheworld. its revenue volume,itisthenumberoneassociationinLatinAmerica,andlistedamongtop fifteen with othersimilarassociationsofcountriesthroughout theworld’.Ithasalsobeenhighlightedthatdueto latter, SADAICoperatesbycomplyingwiththereciprocal representation agreements itentered intotogether royalties arisingfrom theuseofmusicalworks,whethertheybeArgentinianorforeign. Inthecaseof and composersofmusic,beingtheonlyorganizationauthorizedtocollect and distribute the copyright those rightsprotected bylaw’.Thus,SADAICwaslegallygiven‘exclusivecollectivemanagementof authors if heshalldeemitappropriate.’ Forthesereasons, itwasnecessaryto‘findasolution adequatelydefend control the useofhiswork,fixa royalty feewhichis reasonable tohisunderstanding,orevenprohibit its use case inotherproperty rightscases’.There are scenariosinwhichitmaybe‘impossible fortherightholderto described doesnotjustregard individualmanagementofcopyrighttobesomethingsimpledo,asitisthe The reason behindthecreation ofSADAIChasbeenexplainedintheseterms:‘Thetheoretical aspectpreviously composers. association, thusgrantingitexclusiverightsregarding managementofbothArgentinian andforeign music This CCS wasacknowledged by Act 17,648 (Regulatory Decree 5,146/69) as aprivate civil and cultural collect copyrightroyalties incaseswhere musicalworksincludedinitsrepertoire were publiclyplayed. of AuthorsandComposersMusictheSocietyComposers.Itsobjectivewasto In 1936,SADAICwascreated asaresult ofthemergertwoauthors’organizations,ArgentineAssociation 8.6.1 From: http://www.sadaic.org.ar –May1st2013. SADAIC (Argentine Society of Music Authors and Composers) and Authors Music of Society (Argentine SADAIC Implement otherenforcement action Act17,648. Request legal,administrativeandpoliceauthorities’intervention forenforcement ofAct11,723. order tofixfees. Monitor revenues arisingfrom ticketing, boxofficesandothervaluesmethodsestablishedin Request preparation andpresentation ofsetlists,as well asprograms andotherverificationelements. Require userstosubmitaffidavits. Verify thatthedocumentsare correct. Fix copyrightroyalties. provided insection36ofAct11,723,andrelated provisions. Determine the conditions to be complied with by users. Grant or deny previous authorization, as 60 The Economic Contribution of Copyright-Based Industries in Argentina107 2008. th 61 SAVA (Argentine Association of Visual Artists) AADI (Argentine Performers Association) and CAPIF (Argentine Chamber of Phonogram and videogram producers) Argentores (General Society of Authors of Argentina) See SC. Mendoza, Sala I, 2000/11715 – SADAIC c. Andesmar S.A. Repertoire LL LXI-2001-J-Z, page. 1673 and Argentina’s Supreme Supreme LL LXI-2001-J-Z, page. 1673 and Argentina’s See SC. Mendoza, Sala I, 2000/11715 – SADAIC c. Andesmar S.A. Repertoire Court of Justice – 23.03-2004 – SADAIC c. Andesmar S.A. S. 129. XXXVII, quoted by Fernández Delpech, op.cit., 142-143. Its objective is to defend the copyright of photographers, artists, sculptors, drawers, engravers, and of all Its objective is to defend the copyright of photographers, artists, sculptors, such end, it grants copyright licenses to use the works other forms of art belonging to the visual arts. To Public Domain arising from royalty is in charge of collecting the SAVA Moreover, of the artists it represents. for the Arts, which uses it (see annex III), which is then handed to the Argentinian National Endowment 61 8.6.4 (Sociedad de Artistas Visuales SAVA The CCS in charge of collective management of copyright of visual works is Civil Association, Argentinos: Argentine Association of Visual Artists), which was founded as a Non-profit Authority on September 10 having been granted its legal status by the Corporation Control According to Decree 1,771/74, AADI is in charge of representing performers and professional musicians, performers and professional is in charge of representing 1,771/74, AADI to Decree According to act as a single collection In 1975 AADI-CAPIF was created producers. phonogram CAPIF represents whereas 1,671/74). Out of the total amount collected, 67% and decree 1,670 agency for both associations (Decree to AADI and 33% to CAPIF. corresponds 8.6.3 associations: AADI in two different grouped of phonograms and videograms are Performers and producers Argentine Performers Association) and CAPIF. (Asociación Argentina de Intérpretes: Section 1 of the previously mentioned law acknowledges Argentores as a ‘private civil cultural mutual law acknowledges Argentores mentioned Section 1 of the previously drama, musical to literature, of works related creators Argentinian and foreign association which represents pantomime, journalism, entertainment, and to the scripts drama, cinema, television, radio, choreography, by radio, cinema or television, or recorded be written or broadcast for continuity of shows, whether they the society is ‘the sounds, images, or images and sound’. Furthermore, on a support capable of registering authors’ associations it is foreign of the heirs and assignees of authors as well as of those representative It shall also be the sole administrator of mutual assistance and representation. agreements linked to through organization to collect the sums yielded by the use of the mentioned of said works, and the only authorized of Argentina in all of the territory is ‘in charge of collecting Because of this, Argentores author repertoires’. in public performances or for fees yielded by the use of said works the whole of the copyright royalty in means already radio, cinema or television or any other broadcasting purposes whether by broadcasting sounds, capable of registering on a material support is recorded that in the future, existence or to be created the means and the methods.’ images, or images and sound, whatever 8.6.2 of Authors of Argentina) is a CCS de la Argentina: General Society (Sociedad General de Autores Argentores cinema, authors and playwrights (theater writers, literature which groups by the Act 20,115 in 1973 created fees. and is in charge of collecting their copyright royalty radio and TV scriptwriters, etc.) together , in terms of recent developments, the total membership of SADAIC developments, the total membership to Memory, in terms of recent and Balance According publishers. represented and 223 are enrolled 9,380 are members, of which 19,102 are 2002/2003 was 28,705, which and 300 publishers represented, registrants it had 19,970 members, 18,997 For the year 2011/2012 for the period period 2002/2003). As for collection, members (+36.8% over the makes a total of 39,267 while collection outside) domestic revenue 18.8 million pesos (76.6 million and million 2002/2003 was 95.3 and on behalf national outdoor $23.1 and $14.4 for totaled 627.2 million pesos ($ 589.8 the period 2011/12 by 543% in increased concept (NEA), revenue for the Arts, NEA). Net latter of the National Endowment the two periods. pesos between current Until 2000, SADAIC also collected royalties derived from public performance of musical movies, but this but this musical movies, performance of public derived from royalties SADAIC also collected Until 2000, to SADAIC has no longer been authorized that moment, As from withdrawn in that year. authorization was performance of such films. for public collect royalties 108 The Economic Contribution of Copyright-Based Industries in Argentina which are outsideDAC’s normalscopewillbecarried outbyArgentores Delpech,op.cit.,146). (Fernández Finally, collective managementofthosecopyrightroyalties yielded byexhibitionofcinematographicworks de Autores yCompositores: ConfederationofAuthorsandComposersSocieties) basedinParis. International latest articlesofassociationdatefrom deSociedades 2006,isamemberofCISAC (ConfederaciónInternacional for filmdirectors andforArgentinianforeign audio-visual worksinthewholeofArgentina.DAC,whose Decree 124/09tobetheonlyrepresentative organizationauthorized tocollectanddistributecopyrightroyalties film directors, andeventhoughithasexisted since1958,itwasonlyin2009thatacknowledgedby The organizationDAC(Directores ArgentinosCinematográficos: ArgentineFilmDirectors Association) represents 6.2 millionpesos. the year 2011 as 28% and 25% for 2012) and 3 million Social Fund contribution. Operating expenses were 18.4 millionasdutypayable(netoffundsforfuture contingencies),9.6millionasamanagementfee(setfor According to the records, in 2011 SAGAI collection amounted to 34.2 billion pesos, which were divided into: activities organizedbytheSAGAIFoundation. role ascollectoranddistributorofthecorresponding royalties, italsopromotes cooperationandcultural America andCaribbean). and receives thesupport and cooperation of CERLALC (Regional Center for the Promotion of Books inLatin Currently, FederationofReproduction CADRAisamemberof IFRRO(International RightsOrganizations) taking courtactionstodefenditsrepresented parties;andraisingawareness ofrespect for copyright. the licensesgranted;distributingcollectedfeesamongauthorsandpublishers;controlling photocopying; licenses forpartialphotocopyingofworksundercertainconditions;collectingcopyrightroyalty feesyieldedby As statedinCADRA’s ownarticlesofassociation,itsmainfunctionsare: fightingagainstpiracy;grantingpaid CADRA istheonlycurrently existinginstitutiontoprotect therightsinthisfield. consequently notalltheauthorsandpublishersinArgentinaare membersofthisorganization.However, CADRA isdifferent from otherCCSsinthatitdoesnothaveexclusivemanagementoftheserights, books andperiodicalpublications. phenomenon ofreprography bycollectingcopyrightroyalty feesonbehalfofauthorsandpublishers by theRegistrationOfficeofLegalEntitiesin2002,andwhoseobjectiveistodefendcopyrightagainst CADRA (AdministrationCenterofReprographic Rights)isanon-profit civilassociationwhichwasauthorized 8.6.5 Argentinian andforeign visualcreators. to promote culturalactivitiesinArgentina.According toSAVA’s website,itrepresents more than50,000 64 63 62 of actorsanddancers.Itcurrently represents more than2,500artistsacross Argentina, audio-visual support.Itwasacknowledgedbythisdecree tobetheonlyCCSauthorizedmanage rights of artistsbelongingtothesector(actors,dancers,dubbingactors)whoseperformanceshavebeenfixedon Performers), wascreated byDecree 1,914/2006anditsobjectiveistomanagetheintellectualproperty rights SAGAI (Sociedad Argentina de Gestión de Actores Intérpretes: Argentine Management Society of Actors and producers. thissectoradistinctionmustbemadebetweenrightsbelongingtoartists,filmdirectors, andfilm Within 8.6.6 total of584,255pesos. associates amountedto925authorsand169editors.Theproceeds distributedfortheyearamounted toa at theyear2011,includingasignificantpercentage ofpublicandprivateuniversitiesinthecountry. The According totheMemoirs,CADRAhadgranted459authorizationspartialreproduction undercompensation Seehttp://www.sagai.org.ar; AccessedonMay1 See http://www.cadra.org.ar. Accessedon May 1 See http://www.sava.org.ar.Accessed onMay1 Reprographic rights Reprographic Collective management of the audio-visual sector audio-visual the of management Collective 63 st 62 2013. st 2013. st 2013. 64 andapartfrom its The Economic Contribution of Copyright-Based Industries in Argentina109 Results for Argentina indicate that CBIs contributed 3.5% of GDP for 2003 and that they increased and that they increased Results for Argentina indicate that CBIs contributed 3.5% of GDP for 2003 industries are The core study. 4.7% in 2008, the last year of the present their contribution to reach GDP in 2008) 70% of the total (3.3% of Argentina’s the main component of CBI: they are restaurants and hotels and contribution to GDP than sectors such as fishing, CBIs make a greater services. personal services, and a similar contribution to that of financial intermediation was because there a period of significant GDP growth in this study was The period considered crisis which began by of the Argentine economy after the deep economic an important recovery ended up as the worst mid-1998 with the Brazilian devaluation and the Russian crisis, and which GDP grew context of recovery, by the country since 1930. In this economic and social crisis suffered than that of the whole at an annual accumulated rate of 8%. CBI dynamism was even greater Making a study with these characteristics implies the need to have access to statistical sources with a sources access to statistical the need to have implies Making a study with these characteristics to copyright. of the industries related measurement to allow for precise high level of disaggregation level and it was at product which allowed for a disaggregation data was no access to micro There it was very valuable Therefore, to make the various adjustments. to other sources necessary to resort with for 2003, the only source of the last economic census with data to have access to the figures employment. information at 5 digits ISIC for value added and for registered The Argentine Republic does not have either specific subject matter courts or an administrative court The Argentine Republic does not have correctional and ordinary courts civil and commercial between parties. Ordinary for dispute resolution of these rights in the usual practice for the exercise matter.The courts have jurisdiction on this subject the negotiation of out-of-court settlements between parties. Argentine Republic has been basically are scarce. brought to justice and cases of conflict identified is low, Even so, the degree to justice indicates that the number cases have been brought the fact that few to piracy, With regard this in infringement and activity illegal of level the studying for basis good a not is prosecutions of reliable enough, to allow us to infer no official statistics, or the information is not are There sector. by copyright, even when interviews, of piracy of goods protected accuracy the degree with relative that the infringement level is generally high, although and partial studies suggest sources the indirect between sectors and goods. greatly it differs considered been always has it as Argentina, in widespread is copyright of management Collective rights other and managingcopyrights from arising costs the reducing of means efficient an be to type new relatively a are that they fact to the Due and collection). monitoring protection, (including in the Act 11723 of 1933, and their incorporation into the not included of organization, CCSswere in 1936 SADAIC was founded However, copyright was slow. legal and institutional system regulating reprographic we have incorporated some new CMO as SAGAI. The recent years as the first CCS. In equivalent to other CCS. rights association linked to CADRA does not yet have a legal framework In short, Argentina has an original legal framework that, although dated, has been regularly revised revised although dated, has been regularly has an original legal framework that, In short, Argentina and advances, the emergence of new formats by technological produced to integrate the changes among other innovations. of rights for other actors of the industry, media, and the recognition and in this area, international agreements system recognizes Argentine regulatory the Additionally, to most of them. the country has adhered Statistical aspects and estimates Legal and Institutional Framework Legal and Institutional CONCLUSIONS AND RECOMMENDATIONS AND CONCLUSIONS Conclusions • • • • • • • • – – 9.1 on the IPDAs. work done main conclusions of the research the The following are 9. 110 The Economic Contribution of Copyright-Based Industries in Argentina – • • • • • • • • • • long-term andstrategicperspective;afactorthatispresent inallofthesemarkets. market channelsandtoreact speedilyfora better exploitationofup-comingopportunities,witha This reality demandsproactive economicagents–bothpublicandprivate –beingabletofigure out this notfullyevidentyet. brought inwiththeapproval ofa new legalframeworkthatwillhaveanimpactonthem,although them, suchasfilmsandsoftware. Inthecasesofradioandtelevision, regulatory changeshavebeen dynamics describedabove,levered bysectoral policiesthatstrongly stimulatetheactivityofsome Throughout the last decade, the dynamics of these markets have been affected by the macroeconomic arts). in generalthosethatrequire qualifiedskillsornon-traditionalones(forexample:software orvisual information technologies,etc.).Thesedriveforward theireconomicactivityandpromote newjobs, opportunities (electronic books,phonogramdigitaldistribution,demandforservicesassociatedto and distributionprocess, bringinginmore competitioninthemarketsandcreating newbusiness Adittionally, these sectors face technological innovations that have an impact on their production barriers toentry, evenwhendealingwithmature markets. they are aboutactivitiesbasedonongoingcreative processes, unpredictable, andwithoutsignificant The study shows that, in general, those industries operate under competitive conditions because films, software, radioandtelevision. available information,aselectionwasmadeofthoseconnectedwiththebookindustry, phonograms, In order to obtain a summary description of some industries related to copyright and based on Sectoral andmarketaspects computers andcomputingequipment. interdependent industries,withacontributionof90%tototalCBIimports,basicallyimports In thecaseofimports,theywere around 6%to8%oftotalimports.Themostrelevant were the industries, mainlypapermanufacturing. industries, withcontributionsbetween50%and59%intheperiod,were theinterdependent Exports ofgoodsproduced byCBIsrepresented just0.6%oftotalexports.Themostimportant services related toCBIs. by 417%,whileimportsgrew by153%.Likewise,inalltheperiod,Argentinawasanetexporterof considerably higherthantheirimports.Servicesexportsgrew from beginningtoendoftheperiod services aswelladvertisingandaudiovisualstandsout.Exportsofthesesectorsare growth ofservicesmustbehighlighted.Theevolutionexportscomputingandinformation In relation toforeign trade,thoughthegoodstradebalanceofCBIsshowedadeficit,exports CBIs. industries were theoneswithgreater contribution,representing 66%oftotalemployment CBIs contributed2.7%ofemploymentin2003while2008thecontributionwas3%.Core out withanincrease of48%. increased by27%in the periodunder study, CBIemployment grew by 44%;core industries stood Growth inemploymentgeneratedbyCBIsisalsosignificant.Whilejobsthewholeeconomy This behaviourcanbeexplainedbytheimportanceacquired byinterdependent activities. economy. Ineveryyearoftheseries,CBIspresent growth rateswhichare greater thanthoseofGDP. The Economic Contribution of Copyright-Based Industries in Argentina111 Legal and Institutional Framework Legal and Institutional this regulation Over time, aspects of copyright. for essential has always provided Act 11723 of 1933 successive interventions have left Yet in several opportunities. and/or enforced has been modified the amended either by rewriting precisely i.e. ‘legal gaps’ which can be out aspects to be considered, techniques which now exist. updated legislative or through law, basic of new legislation introducing should be assessed for the enactment The need and opportunity the regulated by concepts of those a clear scope for that allow principles and establishing definitions new formats and other developments that emerge as technology legal framework, so that current and updated law should be writing a new comprehensive also included. Nonetheless, advances are taking into account that in any way, for copyright not to be altered manner in order done in a careful framework nor the authorities, have accused the inadequate legal neither the actors in the sector, and comprehensive . Likewise, a new law should be as flexible per se of being a significant problem has allowed for inclusion of supplementary laws and regulations as the law of 1933, which through for over seventy years, without it becoming necessary for it to be the innovations that have occurred addition to these caveats, any legal changes aspects to be altered.In abolished or for its fundamental of their social and economic impact, and should come from should be accompanied by a deep study involved. consensus among all actors a broad copyright. on jurisprudence largest the with America Latin in countries the of one is Argentina training on copyright matters would avoid heterogeneous Enhancing the technical and professional is a lack of common criteria. Consequently, occur when there criteria in justice administration, which on matter jurisdiction subject of a court with the formation even though Argentina does not require to enhance, deepen and update the training of officers rights, it is necessary intellectual property property intellectual with dealing officials public lawyers, etc.), secretaries, (judges, the Judiciary of parties can duly exercise so that the intervening to copyright, issues, experts, etc. in matters related their duties with utmost responsibility. the collective management society CADRA (Administration Center rights, In the case of reprographic equivalent legal framework to that governing Rights) is not within an the collective of Reprographic management of certain management societies of other sectors, which translates into inefficient legal framework as a copyright. An SGC included in a strong patrimonial rights of the corresponding and generate improvement of wide consensus of their main actors might make an institutional result and supported, among other things, and in the future, both currently a considerable economic result in a study of their social and economic impact. Statistical aspects and estimates and updated constantly is which system statistical national a have to country any for important is It record a comprehensive complies with international since it is fundamental to have field standards, have to order in (supplies/product) relations technical their of aware be to and activities economic of Should this not to public policy-makers. accounts can offer information that national access to all and any methodology derived from these sources data from happen, any information that requires etc. – will be any activity, them – such as satellite accounts or economic contribution calculations of and opportunity, relevance of reliability, limited, because of not complying with the requirements to CBIs. or calculation to be carried out with regard research thus limiting the scope of any study, official a large amount of statistical information from requires out studies of these features carry To it is difficult to obtain the level of detail Unfortunately, with a high level of disaggregation. sources industries based on copyright, in some cases because it is not in the to accurately measure required for the aims pursued and, in other cases, because the to maintain such a breakdown their interest to achieve certain agreements therefore, not publicly accessible. It would be necessary, estimates are Recommendations • • • • • • – – The following are a series of recommendations, resulting from the conducted research, regarding public public regarding the conducted research, from resulting a series of recommendations, The following are to CBIs. to be taken in relation policies and actions 9.2 112 The Economic Contribution of Copyright-Based Industries in Argentina – • • • • in thecircumstances inwhichtheywere introduced. have a negative impact on society in the long run, when they are reverted or when there is a change are nottheresult ofspecificcontroversies orofpracticestrends invogue,whichwouldeventually these changestohavewide sector andsocialconsensus, so thatlegaland regulatory amendments diagnosisandimpact(botheconomicsocial)ofthereforms.concerning Itisalsoimportantfor In thisregard, itisrecommended thatregulatory changesare supportedbythorough research and astableregulation ofpromotion ofexports(forexample,audio-visualworks,software, etc.). it iskeytohavealegalframeworkorganizethedomesticmarket(especially, radioandtelevision) Likewise, inorder tocreate aprofitable sectorthatissocially responsible andsustainableovertime, property rightsandwiththeagreements andtreaties signedbyArgentina. long-termpolicyofdevelopmentandintegrationwhichcomplies with intellectual an international expansion ofactivitiesandinvestmentinindustriesprotected bycopyright.Thisshouldformpartof industry, software industryandfilmindustry)shouldbestimulated,asthesehaveallowedfor The stability, rationalityandmonitoringofsectorincentivemechanisms(forexampleinthebook Sectoral andmarketaspects anticipation ofphenomena,inorder tobeabledealwithpotentialsituationsand/orproblems. that show the status of selected activities, so that there can be control of occurring changes and Monitoring ofthedynamicsCBIsshouldbefostered byestablishinganumberofindicators for aperiodicsurveyofthesame. or arrangementswithofficialstatistical agenciestoaccesstheinformation,ordevelopjointproposals The Economic Contribution of Copyright-Based Industries in Argentina113 Autoridad Federal de Servicios de Comunicación Audiovisual AFSCA (2010) ‘Informe Anual sobre sobre AFSCA (2010) ‘Informe Anual de Servicios de Comunicación Audiovisual Autoridad Federal Buenos Aires. abierta argentina. 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Nación, Presidencia delaNación.(http://sinca.cultura.gov.ar) Estadísticas delSistemadeInformaciónCulturallaArgentina(SInca),Secretaría deCulturala Estadísticas publicadasporelCentro deEstudiosparaelDesarrollo EconómicoMetropolitano (CEDEM). Argentina (DEISICA). Estadísticas delDepartamentodeEstudioeInvestigaciónSindicatolaIndustriaCinematográfica Estadísticas delaCámaraArgentinaProductores (CAPIF). deFonogramasyVideogramas The Economic Contribution of Copyright-Based Industries in Argentina115 Reinoso, S. (2005), ‘Estudio estadístico’, La Nación, edición del27 de abril, Buenos Aires. ‘Estudio estadístico’, La Nación, edición Reinoso, S. (2005), 68 a 77 y Balance General, Ejercicios SADAIC, Memoria convergencia (2012) ‘En la ruta digital. Cultura, de la Nación de la Presidencia de Cultura Secretaría Buenos Aires tecnológica y acceso’, Pasos ‘Cuenta Satélite de CulturaPrimeros de la Nación (2006). de la Presidencia de Cultura Secretaría Buenos Aires. de la Nación, Cultural’. Presidencia en el Mercosur hacia su construcción a de la Nación. ‘El PBI Cultural en Argentina. Una aproximación de Cultura de la Presidencia Secretaría argentina a partir de los datos de la Cuenta Satélite de Cultura la dinámica de la economía de la cultura Buenos Aires. de la Nación, (2004-2009)’, Presidencia la de Cultural Información de ‘Sistema (2010) Nación de la Presidencia la de Cultura de Secretaría la estructura pública de la Argentina a través del presupuesto, Argentina, Hacer la cuenta. La gestión de la Nación, Buenos Aires. de Cultura de la Presidencia institucional y la infraestructura’, Secretaría e Instituto Nacional de Estadística y Censos (INDEC) (2012) ‘Cuenta de Cultura de la Nación Secretaría Buenos octubre, construcción’, su para metodológicos Aspectos Argentina. la en cultura de satélite Aires. Dirección 2004’, Wierny Base Geográfico. Bruto ‘Producto (2011) A. Coremberg & H. Camelo M., Buenos Aires. General de Estadísticas y Censos GCABA, Copyright-Based the of Contribution Economic the Assessing on Studies National (2008) WIPO of Copyright-Based Industries in Ukraine, Geneva Industries – The Economic Contribution Copyright-Based the of Contribution Economic the Assessing on Studies National (2009) WIPO of Copyright-Based Industries in Panamá, Geneva. Industries – The Economic Contribution Pis Diez, E. & García F. (2013) ‘The fragmentation of the television industry value chain. The creation chain. The creation industry value of the television ‘The fragmentation (2013) F. & García Pis Diez, E. en la European paper presentado Conference TV formats in Argentina as a case’, and marketing of Bournemouth, de junio. 13 y 14 Association Conference, Media Management Websites consulted:http://wipo.org/ http://www.jus.gov.ar/derecho-de-autor.aspx http://sinca.cultura.gov.ar/ http://infoleg.mecon. gov.ar/ http://indec.gov.ar/ http://www.sadaic.org.ar/ http://www.cadra.org.ar/ http://www.sagai.org/ http://www.sava.org.ar/ http://www.aadi-capif.org.ar/ http://www.capif.org.ar/ http://www.capit.org.ar/ http://www.cessi.org.ar/ http://www.estadistica.buenosaires.gov.ar/areas/cedem/ http://www.librosar.com.ar/librosar/ [42] [43] [44] [45] [46] [47] [48] [49] [50] [41] [40] 116 The Economic Contribution of Copyright-Based Industries in Argentina Annex 1Listofpeopleinterviewed Annexes – – – – – – – – – – – – – – – – – Fernando Zambra,DirectorFernando ofPromage consultingfirmspecialising instrategy. Board ofCADRA in CopyrightissuesoftheCivilandCommercial ChamberandHouse ofCorrections. Memberofthe Díaz.ProfessorFederico Villalba ofCopyright,MAinIntellectualProperty University Austral.Advisor Laura Teseiro. Businesswoman ofmusiccompanies. Diana Segovia.InstitutionalManageroftheArgentineBookChamber(CAL) Gustavo Schötz.Director, IntellectualProperty Center, SchoolofLaw, UniversityAustral. and Census(INDEC). Gustavo Rodriguez.NationalDirector NationalofAccounts.InstituteStatistics Group, companyoftheArgentinePublicationChamber(CAP) Claudia Reboiras.MAinIntellectualProperty. HeadoftheCopyrightSectorPlanetaPublishing Ethel PisDiez.Professor andresearcher inMediaEconomics,UniversityAustral. Graciela Peiretti. NationalDirector ofCopyrightArgentina,NationalMinisterJustice. (CADRA) Magdalena Iraizoz.ExecutiveDirector oftheCenterReprographic RightsManagementofArgentina Mónica Herrero. Lawyer, expertincopyrightandconsultantpublishing. Gerardo Filippelli.LegalAdvisoroftheArgentineBookChamber(CAL). Eduardo Falcone.HeadofCollectionstheArgentineSocietyAuthorsandCompositors(SADAIC). Census (INDEC). Emma Espagne.NationalDirector Accounts.NationalInstitute of Statistics and ofInternational (CAPIF) Javier Delupi.CEOoftheArgentineChamberPhonogramsandVideograms publishing companies. Ana María Cabanellas. Ex-President of the Argentine Book Chamber (CAL). President of local (SAGAI). Sebastian Bloj.GeneralDirector GeneraloftheArgentinaCollectiveSocietyActorsandPerformers The Economic Contribution of Copyright-Based Industries in Argentina117 65 – SAGAI – as a representative of the actors and dancers from of the actors and dancers from – SAGAI – as a representative Recognition of the Argentine Society Actors Management Civil Performers Recognition of the Argentine Society Actors Management Civil Performers Association for the collection and management of intellectual Argentina and abroad rights over their interpretations. Cinematográficos (DAC.) as the Argentinos Recognition of the Directores territory of film-makers and authors of within the national representation collection, the for their beneficiaries, works and audio-visual and foreign local rights to fixed audio-visual management and sharing of their intellectual works in any hardware. Rights of performers and phonogram producers – Remuneration – Creation – Remuneration – Creation producers Rights of performers and phonogram of AADI-CAPIF- Collecting civil association. – – – Sociedad Argentina de Autores y Compositores de Música (SADAIC). y Compositores – Sociedad Argentina de Autores – Regulation Act 17,648. – General Society of Authors of Argentina (Argentores). – Regulation Act 20,115. AADI – CAPIF – Collective Association. – Creation – Act 1,224/58 – Creation of the National Endowment for the Arts. – Act 1,224/58 – Creation for the Arts. – Regulation of the National Endowment 1978). Public Domain (T.O. – Legal Framework on Rights of Paying – cassette). on films edited in magnetic (video – Tax – Act of Intellectual Property. – Act of Intellectual 11,723. – Regulation of Act – Deposit in ‘custody’. – Returnworks deposited in ‘custody’. unpublished for periodicals. responsible or directors – Indication of editors Article 61 Act 11,723. – Affidavit of published works. Regulations works. – Renewal of deposit of unpublished of the authors. – Public performance of music- Authorization – Regulation of Article 56 Act 11,723. – Interpreters of periodicals. – Microfilm on regulations 41,233/34 and Decree – Modification Articles 35 and 40 – and database. of software – Protection Decree 124/09 Decree Act 17,648 5,146/69 Decree Act 20,115 461/73 Decree 1,671/74 Decree 1,914/06 nº Decree Decree Decree Decree 6,255/58 Decree Resolution 15,850/77 Resolution 21,516/91 Act 11,723 41,233/34 Decree 31,964/39 Decree 71,180/40 Decree 6,422/57 Decree-Act 16,697/59 Decree 7,616/63 Decree 8,478/65 Decree 746/73 Decree 447/74 Decree 1,670/74 Decree performers. 1,671/74 Decree 165/94 Decree Source http://www.jus.gob.ar/derecho-de-autor.aspx; accessed on May 1st 2013. http://www.jus.gob.ar/derecho-de-autor.aspx; Source 65 Gestión Colectiva de Derechos de Autor y Conexos: Paying public domain system: Copyright: Annex 2: National legal framework for Copyright legal framework 2: National Annex 118 The Economic Contribution of Copyright-Based Industries in Argentina International Agreements: International WIPO Treaty onPerformancesand Phonograms,Geneva,1996(RatifiedbyAct25,140). WIPO Treaty onCopyright,Geneva, 1996(RatifiedbyAct25,140). Agreement onTrade-Related IntellectualProperty Rights(RatifiedbyAct24,425). Treaty RegistrationofAudio-visual Works, ontheInternational Geneva 1989(RatifiedbyAct24,039). Organizations, Rome,1961;Geneva,1987(RatifiedbyAct23,921). ConventionontheProtectionInternational ofPerformers,Producers ofPhonogramsandBroadcasting Phonograms, Geneva1971(RatifiedbyAct19,963). Convention for the Protection of Producers of Phonograms against Unauthorized Duplication of Act 22,195). Convention EstablishingWorld IntellectualProperty, Paris,1971.Amendedin1979(Ratifiedby Paris Act,1971(RatifiedbyActs22,195and25,140). (Ratified byAct17,251). ConventionfortheProtection 1886–BrusselsAct,1948 Bern ofLiteraryandArtisticWorks, Bern, Universal ConventiononCopyright,Geneva,1952(RatifiedbyDecree-Act 12,088/57). (Ratified byAct14,186). Inter-American ConventiononCopyright in Literary, ScientificandArtistic Works, Washington, 1946 Convention onLiteraryandArtisticProperty, BuenosAires, 1910(RatifiedbyAct13,585). Treaty onLiteraryandArtisticProperty, Montevideo,1889(RatifiedbyAct3,192). The Economic Contribution of Copyright-Based Industries in Argentina119 6422 6422 2219 9211 2219 2219 52356 71301 92499 52382 52381 and ISIC CNE’04 9213 7494 2222 9231 6420 6420 5233 5139 9214 9214 9214 9211 9212 7130 9211 2230 9213 9213 7499 2230 2213 9231 9214 9219 9249 9214 7499 2212 9220 2212 2211 2219 2221 2222 5139 5239 ISIC Rev. 3.1. ISIC Rev. Economic Activity Studios and commercial photography Allied services Photo agencies and libraries Satellite television Cable television (systems and channels) Writers, directors, actors Writers, Wholesale and retail of recorded music (sale and rental) Artistic and literary creation and interpretation Performances and allied agencies (booking, ticket agencies, etc.) Motion picture and video production and distribution Motion picture exhibition rentals and sales, video on demand Video Allied services National radio and television broadcasting companies Other radio and television broadcasters Independent producers Production/manufacturing of recorded music Printing and publishing of music Composers, lyricists, arrangers, choreographers, writers, directors, Composers, lyricists, arrangers, choreographers, performers and other personnel Libraries Authors, writers, translators Newspapers News and feature agencies Magazines/periodicals Book publishing material Cards, maps, directories and other published magazines, Pre-press, printing, and post-press of books, newspapers, advertising materials (book stores, Wholesale and retail of press and literature newsstands, etc.) List of copyright-based industries for Argentina by ISIC by ISIC for Argentina industries copyright-based List of CNE´04 Sector Core Copyright Industries Photography Motion Picture and Video Radio and Television Music, Theatrical Productions, Operas Press and literature 1. Annex 3: Annex 120 The Economic Contribution of Copyright-Based Industries in Argentina Databases Software and Societies Collecting Copyright Services Advertising Graphic Arts Visual and Programming, developmentanddesignmanufacturing video games,educationalprograms,etc.) Wholesale andretailpre-packagedsoftware(businessprograms, Copyright CollectingSocieties Agencies, buyingservices Graphic design Picture framingandotheralliedservices Art galleriesandotherwholesaleretail Artists Database processingandpublishing 7229 7221 5151 9112 7430 9214 7494 9214 9214 7230 7240 51592 7220 7220 The Economic Contribution of Copyright-Based Industries in Argentina121 7120 3699 52356 71309 51592 52356 51519 52371 51514 51514 52356 51492 52383 ISIC CNE04 3230 5139 5233 7130 3000 5151 7123 3692 5139 5233 3320 5139 5239 3000 5159 2429 5152 5233 2101 5149 5239 ISIC Rev.3.1. Economic Activity TV sets, radios, VCRs, CD players, DVD players, cassette players, CD players, DVD players, cassette players, TV sets, radios, VCRs, and other similar equipment electronic game equipment Computers and equipment Musical instruments Photographic and cinematographic instruments Photocopiers Blank recording material Paper Sector Interdependent Copyright Industries Manufacture, wholesale and retail (sales and rental) of: 2. 122 The Economic Contribution of Copyright-Based Industries in Argentina 3. and footwear Apparel, textiles coins Jewelry and Other crafts Furniture glass goods, chinaand Household and carpets Wall coverings Toys andgames surveying engineering Architecture Interior design Museums Partial Copyright Industries Copyright Partial Sector Apparel, textilesandfootwear Jewelry andcoins Other crafts Furniture Household goods,chinaandglass Wall coveringsandcarpets Toys andgames Architecture, engineering,surveying Interior design Museums Economic Activity ISIC Rev.3.1. 5232 5131 1920 1721 1810 5239 5139 3691 5239 7130 5139 3610 5233 5139 2899 2029 2610 5239 2109 1722 5239 5139 3694 7421 7499 9232 36101+36102+36103 19201+19202 26101+26103 ISIC CNE04 1811+1812 52372 51342 52373 71309 52393 5233 3699 5154 5235 5135 5232 1729 3699 The Economic Contribution of Copyright-Based Industries in Argentina123 51 52 60 61 62 64 ISIC CNE04 61 62 511 513 515 519 521 523 525 601 602 6420 ISIC Rev.3.1. Economic Activity General wholesale and retailing General wholesale and General transportation Telephony and internet Telephony Sector Non-dedicated Support Industries General wholesale and retailing General wholesale and General transportation Telephony and internet Telephony Source: own elaboration based in WIPO Source: 4. 124 The Economic Contribution of Copyright-Based Industries in Argentina Annex 4:Argentineexportsbycategory 2. Manufacturesofagriculturalorigin 1. PrimaryProducts origin Other manufacturesofagricultural Hides andskins Others Soy floursandpellets Soy Sunflower industry Fats,oilsandwasteofthefood Milkproductsandeggs Fishandshellfish Others corned beef) Bovine (fresh,refrig,frozenand Meat Other primary Cooper oreandconcentrates Others Corn Soy Wheat Grainsandoilseeds Others Citrus Pears andquinces Apple Fresh fruits Others Squid Crustaceans (shrimp,scampi) Corvina andotherfrozen Hake Raw seafood Argentine exportsbycategoryinmillionsofUSdollars 10,004 1,675 3,267 2,085 6,341 1,843 1,235 4,303 6,471 2003 727 436 553 271 255 144 592 736 599 474 284 941 182 149 473 383 622 61 82 52 73 76 38 11,927 2,005 3,607 2,344 7,008 1,015 1,230 1,738 1,195 1,367 4,523 6,852 2004 837 496 562 525 322 215 640 665 223 224 154 548 216 477 79 91 49 79 81 52 13,142 2,374 3,798 2,247 7,323 1,356 1,652 2,296 1,368 1,281 5,252 8,110 2005 836 559 718 604 353 295 734 996 308 105 248 209 125 687 171 441 53 85 89 44 15,265 3,010 4,363 2,790 8,537 1,281 1,613 1,335 1,779 1,472 1,264 4,915 8,625 2006 918 685 700 770 418 332 849 400 159 235 211 117 721 101 170 369 107 804 56 11,692 19,214 12,485 3,633 1,007 5,748 4,419 1,393 1,822 1,059 1,486 3,435 2,016 2,253 8,358 2007 895 630 639 422 429 653 166 326 271 158 921 115 291 118 662 82 56 14,853 23,883 11,659 16,083 4,644 1,222 7,197 4,922 1,512 1,620 2,192 1,338 4,621 2,566 3,553 1,267 2008 934 814 446 572 994 919 182 572 338 175 157 385 141 824 73 68 The Economic Contribution of Copyright-Based Industries in Argentina125 650 385 783 845 202 297 4,293 1,478 3,470 2,427 6,506 1,222 7,996 1,691 4,350 1,456 22,059 70,021 626 329 583 396 104 307 2,938 1,203 2,817 1,976 5,319 1,146 6,949 1,296 3,945 1,297 17,333 55,980 582 309 561 357 193 289 2,610 1,224 2,484 1,569 4,034 1,111 7,813 2,406 3,413 1,512 14,843 46,546 97 495 291 150 969 101 273 2,301 1,149 2,319 1,324 2,891 7,150 2,509 3,014 1,254 11,985 40,387 47 67 941 482 272 140 882 245 9,616 2,018 1,713 1,063 2,060 6,181 2,263 2,442 1,164 34,576 37 697 389 211 116 865 536 697 872 188 8,047 1,560 1,545 1,433 5,417 2,296 2,024 29,939 Chemicals and related products Chemicals and related Artificial plastic materials Paper, cardboard, printing and cardboard, Paper, publishing Textiles and clothing Textiles Precious stones and metals Base metals and their manufactures Base metals and their Machinery, electrical equipment electrical Machinery, Land transport equipment Air, sea and river vehicles Air, Other manufactures of industrial origin 3. Manufactures of industrial origin 3. Manufactures 4. Fuel and energy Crude oil Fuels Petroleum gases and others hydrocarbons Electric power Others Total Source: Balance of Payment, INDEC Source: 126 The Economic Contribution of Copyright-Based Industries in Argentina – – iswillingtoacquireThe Government nationallydeveloped software aslongtheproducts meetthe – Conclusions drawnbythesecondroundtable includethefollowing: – – – – – – The mainconclusionsobtainedinthefirst roundtable were thefollowing: 2. 1. public andprivatesectors.Thesetwoguidelinesare: There were two operational guidelines organized in two roundtables with the presence of representatives of year withanaverageof6,250(2018-2020). million, thecreation of74,000newjobsby2020andtheincrease inthenumberofuniversitygraduatesper the quantitativegoalssetupbyPEI2020,suchasincrease intheGross Production Value toUSD7,330 April 2012intheframeworkofIndustrialStrategicPlanArgentina2020(PEI).Theobjectiveistoachieve The firstmeetingofthegroup fortheimplementationofSoftware andITServices Value Chainwasheldin Annex 5: to ascertaintheirtechnological demandswasstated. The needforcommunication withthepublicsectoratalocalleveltoobtainmunicipal production maps various areas ofbusiness. CESSI (ChamberofSoftware andIT ServicesCompanies)andothercompanychamberswhich represent is essential.Inorder toachievethisaim,there wasaproposal forstrengthening therelationship between It wasstatedthatabroader, betterknowledgeofthedemandsfortechnology inotherproductive chains sector. software andthecompaniesinthis istheencouragementofdialoguebetween Government established qualityrequirements. The proposed activitytopromote theacquisitionofnationallyproduced demandforsoftwareThis sectorhasthecapacitytocoverGovernment´s andITservices. encourage employeestocompletetheiruniversitystudies. Another proposed actiontodealwithdrop-out ratesistheimplementationofdifferent incentivesto other universitiesinGreater BuenosAires. being developedatUniversityofLaMatanza(UniversidaddeMatanza),isalsopromoted in project called‘LaEmpresa vaalaUniversidad’(‘ThecompanygoestotheUniversity’)whichiscurrently and theworkplace.ThisdifficultyismainlyobservedinGreater BuenosAires. To dealwiththismatter, a a solutiontothisissuewouldbereducing thedistancebetweenplaceofresidence, theuniversity It isessentialtodecrease drop-out ratesinuniversitycourses.Animportantactionthat mayprovide and thecurrent professional scenario. Programmes mustbeupdatedtocovertheneedsofthisarea regarding therelationship betweencontent activities inschools(lectures, contests,etc.). in Tecnópolis (a technology fair in the City of Buenos Aires), promotion in public media and different representative ofthecurrent professional scenario.Thecommunicationactivitiesproposed were: stands policies targetedtoprimaryandsecondarylevelstudentsthrough actionsthatprove bothattractiveand This increase couldbeachievedthrough theimplementationofactivepromotion andcommunication associated withthisparticularchain. It is essential to increase the number of applicants to the technical degree courses and university courses this particularchain. The available degree courses offered by universities and technical educational institutions are suitable for Cross-sectoral production. The trainingofspecialisedhumanresources. Argentina 2020IndustrialStrategicPlan(Software) The Economic Contribution of Copyright-Based Industries in Argentina127 Improving the articulation and communication of the financing tools between companies, and financing tools between companies, and communication of the the articulation Improving meet the financing needs of companies. of the available instruments to Analyzing the suitability The international insertion of this sector. this sector. in Financing supply and demand for products Specialization patterns. – – The importance of government promotion of the acquisition of products in the software chain by in the software of products government of the acquisition The importance of promotion financing demand. Certain necessary the Ministry of Industry. set up by programmes acceptance of the financing CESSI’s stated though: actions were – – – The following topics remain for further discussion in the near future: for further discussion in the near remain The following topics – – The following are other topics discussed: other topics are The following The Economic Contribution of Copyright-Based Industries in Argentina Creative Industries Series No. 8 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 FreeDigitalPhotos.net Fax: +41 22 733 54 28 Credits for Cover Screenshots: Image (top left) courtesy of franky242 / Image (lower right) courtesy of domdeen / FreeDigitalPhotos.net