TERA Associates has released a follow up to their 2010 study on the impact of “piracy” on creative industries in the European Union. The new study, entitled “The Economic Contribution of the Creative Industries to EU GDP and Employment,” makes three arguments:
1) That the creative industries include 8.3 million “core” creative jobs and 5.7 million “interdependent” and “non-dedicated support” jobs, totaling 14% of the EU27 workforce and contributing 6.8% of GDP (€ 860 billion).
2) That between 2008 and 2011, piracy “destroyed” € 27.1 – 39.7 billion in economic value, resulting in a loss of between 64,089 and 955,125 jobs. According to TERA’s forecast, these numbers are likely to climb to € 166-240 billion by 2015, with 600,000 to 1.2 million jobs lost.
3) That although economic depression and other factors may play a role in some sectoral changes, (such as retail), these job and economic losses are attributable to the failure of EU member states to adopt stronger IP enforcement measures.
As a researcher responsible for several studies of the impact of piracy on creative economies, I was asked by consumers’ and citizens’ rights groups in 2011 to provide an independent review of the first TERA study. In those comments, I argued that the report offered a selective account of the economics of infringement that overstated the impact of piracy. Since the new report doubles down on those findings and introduces some new methodologies, I have prepared new comments.