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 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 Prof. Juan Miguel Massot, Director Karina Prieto and Marisa Weiry, Researchers Final Report September 2013 The Economic Contribution of Copyright-Based Industries in Argentina Table of Contents List of Acronyms 8 Executive Summary 10 INTRODUCTION 15 1. BACKGROUND OF THE LEGAL AND INSTITUTIONAL FRAMEWORK OF COPYRIGHT IN ARGENTINA 18 1.1 Institutional aspects of copyright protection 19 1.1.1 Registration and deposit of Act No. 11,723 19 1.1.2 Collective management of copyright 20 1.2 Copyright in the courts of law 20 2. BACKGROUND ON STUDIES ABOUT ACTIVITIES PROTECTED BY COPYRIGHT IN ARGENTINA 22 2.1 Study on the Economic Importance of Industries and Activities Protected by Copyright and Related Rights in the Mercosur Countries and Chile (WIPO – UN Campinhas) 22 2.1.1 Introduction 22 2.1.2 Methodology 22 2.1.3 Results regarding Argentina 23 2.2 Cultural Satellite Account in Argentina 25 2.2.1 Methodology 25 2.2.2 Measurements 26 2.3 Considerations of the methodological differences between the previous background and the present research 29 3. METHODOLOGICAL ASPECTS RELATED TO ESTIMATION OF VALUE ADDED, FOREIGN TRADE AND EMPLOYMENT 30 3.1 Identification of CBIs for Argentina 30 3.2 Sources of information 30 3.3 Methodological difficulties for the identification and measurement of CBIs 33 Copyright-Based Industries in Argentina 3.4 Adjustments to the calculation of gross value added (GVA) of some activities by the copyright factor and the statistical correction coefficient. 34 The Economic Contribution of 3.4.1 Adjustment to GVA calculations of some activities by statistical correction. 34 3.4.2 Adjustments to the calculation of GVA in some activities by the ‘copyright factor’ 37 3.5 Adjustments to GVA due to the inclusion of the non-observed economy (NOE) 38 3.6 Estimation of the 2003-2008 series 39 4. RESULTS OF THE STUDY FOR ARGENTINA 40 4.1 Argentina’s economic structure 40 4.2 CBIs’ value added generation 42 1 4.3 CBIs in the national context 43 4.4 CBIs´ structure 44 4.4.1 Core industries 44 4.4.2 Interdependent copyright industries 45 4.4.3 Partial copyright industries 45 4.4.4 Non-dedicated support industries 47 4.5 CBIs´ real growth 47 5. EMPLOYMENT IN THE COPYRIGHT-BASED INDUSTRIES 49 5.1 Sources of information 49 5.2 Some characteristics of the Argentinian labor market and its evolution 49 5.3 Employment in CBIs 52 5.4 CBIs´ contribution to value added and employment 55 6. CBIs IN THE ARGENTINIAN FOREIGN SECTOR 60 6.1 Sources of information on Foreign Trade 60 6.2 Argentinian foreign trade 60 6.3 CBIs’ Foreign Trade 61 6.4 Exports 62 6.5 Imports 66 6.6 Trade balance of the CBIs 69 6.7 Exports and imports of services 69 7. INTERNATIONAL COMPARISONS OF CBI CONTRIBUTION TO GDP AND EMPLOYMENT 71 8. ANALYSIS OF ECONOMIC SECTORS RELATED TO ACTIVITIES PROTECTED BY COPYRIGHT 74 8.1 Book industry 74 8.1.1 How does the publishing market work? 75 8.1.2 Competitors 80 8.1.3 Book marketing and distribution 82 8.2 Phonograms 85 8.2.1 How does the Argentinian phonographic industry work? 86 8.2.2 Distribution stage 88 8.2.3 Digital marketing 88 8.2.4 Live music 89 8.2.5 Anti-piracy actions 90 8.3 Films 91 8.4 Software 94 8.4.1 Promotion of the software industry 98 8.5 Television and Radio 99 8.5.1 Television 99 8.5.2 Radio 105 8.6 Copyright Collecting Societies 105 8.6.1 SADAIC (Argentine Society of Music Authors and Composers) 106 8.6.2 Argentores (General Society of Authors of Argentina) 107 8.6.3 AADI (Argentine Performers Association) and CAPIF (Argentine Chamber of Phonogram and videogram producers) 107 The Economic Contribution of Copyright-Based Industries in Argentina 8.6.4 SAVA (Argentine Association of Visual Artists) 107 2 8.6.5 Reprographic rights 108 8.6.6 Collective management of the audio-visual sector 108 9. CONCLUSIONS AND RECOMMENDATIONS 109 9.1 Conclusions 109 9.2 Recommendations 111 REFERENCES 113 ANNEXES 116 ANNEX 1 LIST OF PEOPLE INTERVIEWED 116 ANNEX 2: NATIONAL LEGAL FRAMEWORK FOR COPYRIGHT 117 ANNEX 3: LIST OF COPYRIGHT-BASED INDUSTRIES FOR ARGENTINA BY ISIC CNE´04 119 ANNEX 4: ARGENTINE EXPORTS BY CATEGORY 124 ANNEX 5: ARGENTINA 2020 INDUSTRIAL STRATEGIC PLAN (SOFTWARE) 126 Copyright-Based Industries in Argentina The Economic Contribution of 3 Tables Table 1: CBI levels and contribution to GDP at basic prices 12 Table 2: Jobs by type of CBI (in thousands and %) 12 Table 3: Estimated GVA in the Cultural Satellite Account 26 Table 4: Jobs in the cultural sector (Cultural Satellite Account) 27 Table 5: Exports and imports of goods and services (Cultural Satellite Account) 28 Table 6: Statistical correction coefficients used in core CBI 35 Table 7: Statistical correction coefficients used in Interdependent CBIs 36 Table 8: Copyright factors for the Partial CBIs 37 Table 9: Copyright factors for the non-dedicated Support CBIs 38 Table 10: Gross Domestic Product 40 Table 11: Value added at constant 1993 prices 41 Table 12: CBIs’ VA levels and contribution to GDP 42 Table 13: CBIs composition 42 Table 14: Composition of core industries 44 Table 15: Composition of interdependent copyright industries 45 Table 16: Composition of partial copyright industries 46 Table 17: Composition of non-dedicated support industries 47 Table 18: CBIs’ and GDP growth rates 47 Table 19: Number of jobs, by category 50 Table 20: Contribution of jobs, by category 50 Table 21: Wage-earners’ contribution to jobs 50 Table 22: Jobs by activity 51 Table 23: Sector structure of jobs 51 Table 24: Jobs by type of CBI (in thousands) 52 Table 25: CBI jobs (in % of total jobs) 54 The Economic Contribution of Copyright-Based Industries in Argentina 4 Table 26: Economic contribution of core CBIs by subgroup 57 Table 27: Economic Contribution of interdependent CBI by subgroup 58 Table 28: Economic contribution of partial CBI by subgroup 59 Table 29: Exports and Imports of Goods 60 Table 30: Exports composition 61 Table 31: List of ISIC activities included in CBIs’ foreign trade 61 Table 32: Exports 63 Table 33: Exports composition by type of industry 63 Table 34: Imports 66 Table 35: Composition of imports by type of industry 66 Table 36: CBI Trade Balance 69 Table 37: Exports and imports of CBI services 70 Table 38: Published books, 2011 77 Table 39: Printed copies, 2011 78 Table 40: Publishing houses sorted by number of published titles 79 Table 41: Publishing houses and published books distribution by turnover and size 81 Table 42: Major publishing houses sorted by theme 81 Table 43: Number of published titles in supports other than paper, Argentina 83 Table 44: Sales distribution (turnover) by physical support 87 Table 45: Audience figures, releases, copies and ticket sales by film origin (USA, Argentina and others) 93 Table 46: Television channel offer by theme 101 Table 47: Private broadcast channels 102 Table 48: Retransmission hours by region 103 Table 49: TV productions by their origin. Annual average in AMBA (Greater Buenos Aires) channels 104 Table 50: Paid television beneficiaries by subscription 104 Copyright-Based Industries in Argentina The Economic Contribution of 5 Figures Figure 1: Working Process 39 Figure 2: CBIs composition 43 Figure 3: Contribution to GDP in % 43 Figure 4: Real growth of GDP and CBIs 48 Figure 5: Employment contribution of CBI 53 Figure 6: Jobs growth 54 Figure 7: CBIs’ contribution to GDP and employment 55 Figure 8: Productivity 56 Figure 9: Composition of exports 64 Figure 10: Exports by ISIC in the core industries 64 Figure 11: Exports by ISIC in the interdependent industries 65 Figure 12: Exports by ISIC in the partially dependent industries 65 Figure 13: Composition of imports 67 Figure 14: ISIC participation of core CBIs in total imports 67 Figure 15: ISIC participation of interdependent CBI in total imports 68 Figure 16: ISIC participation of partial CBIs in total imports 68 Figure 17: CBIs’ contribution to GDP and employment 71 Figure 18: Contribution of CBIs to GDP and employment in Latin and Central America 72 Figure 19: CBI Labor Productivity 73 Figure 20: Book production chain 74 Figure 21: Published book titles and copies 1996-2011 76 Figure 22: Share of the top 20 major publishing houses in total number of titles and copies 79 Figure 23: Market share by number of titles 80 Figure 24: Music production 85 Figure 25: Evolution of Phonogram Sales 87 The Economic Contribution of Copyright-Based Industries in Argentina 6 Figure 26: Turnover by repertoire 88 Figure 27: Digital downloads by their type- Year 2012 89 Figure 28: Share of income by music sales in % 90 Figure 29: Cinematographic productions by type 91 Figure 30: Audience figures and ticket sales 92 Figure 31: Ticket sales by film origin 92 Figure 32: Software turnover 95 Figure 33: Annual IT sales by sector 95 Figure 34: Main software and IT services activities 96 Figure 35: Main software and IT services clients by their share in the total sales 97 Figure 36: Main