fair use in the u.s. economy · 2016. 10. 10. · fair use industries also grew at a faster pace...

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Economic Contribution of Industries Relying on Fair Use 2007 PREPARED BY Thomas Rogers Andrew Szamosszegi Capital Trade, Incorporated PREPARED FOR Computer & Communications Industry Association FAIR USE IN THE U.S. ECONOMY

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Page 1: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Economic Contribution of Industries Relying on Fair Use2

00

7

PREPARED BY

Thomas RogersAndrew SzamosszegiCapital Trade, Incorporated

PREPARED FOR

Computer & CommunicationsIndustry Association

FAIR USE IN THE U.S. ECONOMY

Page 2: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Prepared for the Computer & Communications Industry Association (CCIA) by Thomas Rogers and Andrew Szamosszegi, economic consultants with Capital Trade, Incorporated. Capital Trade is a Washington, D.C.-based economic consulting firm that specializes in international trade, economic studies, and statistical analysis of large-scale databases.

Part III of the report was prepared with the assistance of Professor Peter Jaszi of American University Washington College of Law.

© 2007 Computer & Communications Industry Association

Just Rights™ Statement

We recognize that copyright law guarantees that you, as a member of the public, have certain legal rights. You may copy, distribute, prepare derivative works, reproduce, introduce into an electronic retrieval system, perform, and transmit portions of this publication provided that such use constitutes “fair use” under copyright law, or is otherwise permitted by applicable law.

Permission to use our copyrighted works in a manner that exceeds fair use or other uses permitted by law may be obtained or licensed from the Com-puter & Communications Industry Association, 900 Seventeenth Street NW, Suite 1100, Washington DC, 20006.

No copyright is claimed as to any part of any original work of the United States Government or its employees.

Cite as: Thomas Rogers & Andrew Szamosszegi, Fair Use in the U. S. Economy: Economic Contribution of Industries Relying on Fair Use, (CCIA: September 2007) available online at ccianet.org.

Layout and design by Erica A. de Flamand, Charlotte, North Carolina.

ISBN 987-0-9799443-0-7

Printed in the United States of America

TABLE OF CONTENTS

04

06

10

53

54

57

82

Preface

Executive Summary

Economic Contribution of Fair Use and Information

Technology Dependent Industries to the U.S. Economy

References

Appendix I

Appendix II

Appendix III

Page 3: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

PREFACE

CCIA is an association of information and communications technol-ogy firms dedicated to the belief that full, fair and open competition and innovation are the foundation upon which our dynamic technology economy has been built. In our highly competitive markets, technol-ogy innovators depend both upon copyright protection and its limits. The “limited monopoly” created by federal copyright law can encour-age expression and provide crucial protection for products such as software and firmware. At the same time, CCIA and its members also depend on the ability to make fair use of protected works. While CCIA holds copyrights like the copyright protecting this study, for example, we also benefit – along with the rest of the public – from limitations on the reach of copyright, such as the fact that copyright does not extend to the raw data that forms the basis of this study.

Numerous studies have promoted the first half of the copyright equa-tion – the value of copyrighted works, sometimes referred to as the “Copyright Economy” – but have overlooked the second part: the value that the U.S. economy derives from the limits that the Constitution, Congress, and the courts have placed on the rights of copyright hold-ers like ourselves. This study seeks to ascertain the extent of this “Fair Use Economy.”

Following the methodological guidelines set down by the World Intel-lectual Property Organization (WIPO), this study is first economic analysis of that crucial component of the economy.

Fair use protects competition by guaranteeing that companies can reverse engineer software so that their products will work and ‘inter-operate’ with the products of their competitors. Fair use guarantees

journalists, scholars and ordinary citizens the right to quote and abstract from others’ writings, and so buttresses basic rights of free expression. And fair use guarantees that technological inno-vations such as the Internet itself, whose very function is to copy information from one place to another, can operate normally with-out running afoul of copyright law. Fair use thus helps to ensure that the benefits of copyright accrue to the public. It produces a multiplier effect without which we would all be poorer.

The study inside these covers lays out in explicit detail the econom-ics of fair use industries. It is an extensive look at the value repre-sented by balanced copyright. Balanced copyright law – the sort envisioned by the Framers of the Constitution – was once the law of the land. Unfortunately, the past decade has seen a slow ero-sion of this balance. This study illustrates that this erosion is not merely a philosophical issue; it endangers our economic growth and threatens millions of jobs. Our information policy must rec-ognize the importance of the fair use economy and safeguard it from the unintended consequences of perhaps well meaning but overbroad copyright regulation.

Ed BlackPresident & CEOComputer & Communications Industry Association

Page 4: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

As summarized in the enclosed report, the courts have held that fair use is integral to many industries. The courts have established, for example, that fair use permits the main service provided by search engines, that software development depends on making temporary copies to facilitate the programming of interoperability, and that consumers can make copies of television and radio programming for personal use. Industries benefiting from fair use have grown dramatically within the past 20 years, and their growth has had a profound impact on the U.S. economy. The report contains detailed data by industry and summarizes activity and growth in five areas:

REVENUE In 2006, fair use industries generated revenue of $4.5 trillion, a 31 percent increase over 2002 revenue of $3.5 trillion. In percentage terms, the most significant growth occurred in electronic shopping, audio and video equipment manufacturing, Internet publishing and broadcasting, Internet service providers and web search portals, and other information services.

VALUE ADDED Value added equals a firm’s total output minus its purchases of intermediate inputs and is the best measurement of an industry’s economic contribution to national GDP. In 2006, fair use-related industry value added was $2.2 trillion, 16.6 percent of total U.S. current dollar GDP.

Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507 billion to U.S. GDP growth, accounting for 18.3 percent of U.S. current dollar economic growth.

While policymakers pay much attention to copyrights, exceptions to copyright protection also promote innovation and are a major catalyst of U.S. economic growth. Specific exceptions to copyright protection under U.S. and international law, generally classified under the broad heading of Fair Use, are vital to many industries and stimulate growth across the economy. Companies benefiting from fair use generate substantial revenue, employ millions of workers, and, in 2006, represented one-sixth of total U.S. GDP.

Under guidelines published by the World Intellectual Property Organization (WIPO), economic activity associated with copyrights has been studied extensively. To date, however, the economic contribution of industries dependent on fair use has not been quantified. Thus, a primary objective of this study is to fill the gap and provide an initial assessment of the economic contribution generated by companies benefiting from fair use. Fair use is an important restriction to the rights conferred on original works by the U.S. Copyright Act of 1976: “The fair use of a copyrighted work … is not an infringement of copyright.”1 The fair use doctrine, and other limitations and exceptions, have grown in importance with the rise of the digital economy, as fair use permits a range of activities that are critical to many high technology businesses and are an important foundation of the Internet economy.

The beneficiaries of fair use encompass a broad range of companies, particularly those whose business activities involve the Internet, as well as consumers. The ubiquity of the Internet means that its benefits are widespread as well.

� 17 U.S.C. § 107.

EXECUTIVE SUMMARY

Industries that depend on or benefit from fair use include:

• manufacturers of consumer devices that allow individual copying of copyrighted programming;• educational institutions;• software developers; and• internet search and web hosting providers.

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EXECUTIVE SUMMARY [CONTINUED]

EMPLOYMENT

Employment in industries benefiting from fair use increased from 10.5 million in 2002 to 10.8 million in 2006. Thus, about one out of every eight workers in the United States is employed in an industry that benefits from the protection afforded by fair use.

Further illustrating the rapid growth of fair use industries, total payrolls expanded rapidly, rising from $908 billion in 2002 to $1.2 trillion in 2006.

PRODUCTIVITY

Productivity, the amount of goods and services that can be produced with a given number of inputs, is the foundation for rising living standards. From 2002 to 2006, the productivity of U.S. fair use industries increased to over $128,000 per employee in 2006, far exceeding economy-wide productivity of $90,000 per employee. Numerous researchers have determined that information technology companies, including those depending on fair use, have fueled U.S. productivity growth.

EXPORTS

Exports related to fair use industries increased by nearly 50 percent from $131 billion in 2002 to an estimated $194 billion in 2006. Exports of trade-related services, including Internet or online services, rose from $578 million in 2002 to an estimated $2.6 billion in 2005, representing an annual growth rate of 65 percent, the most rapid growth among all the industries represented.

By any measure, the growth rate of fair use industries has outpaced overall economic growth in recent years, fueled productivity gains, and helped the overall economy sustain continued strong growth rates.

The U.S. economy is an increasingly knowledge-based economy that benefits from the dynamic diversity of industries that depend on fair use exceptions to copyright protection. Through the growth of the Internet and related information technology revolution, the U.S. economy has benefited from the creation and rapid expansion of new industries, and a revival of productivity growth that supports higher living standards.

The research indicates that the industries benefiting from fair use and other limitations and exceptions make a large and growing contribution to the U.S. economy. The fair use economy in 2006 accounted for $4.5 trillion in revenues and $2.2 trillion in value added, roughly one-sixth of total U.S. GDP. It employed more than 17 million people and supported a payroll of $1.2 trillion. It generated $194 billion in exports and rapid productivity growth.

The protection afforded by fair use has been a major contributing factor to these economic gains, and will continue to support growth as the U.S. economy becomes even more dependent on information industries.

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ECONOMIC CONTRIBUTION OF FAIR USE INDUSTRIES TO THE U.S. ECONOMY

I. INTRODUCTION

In 2003, the World Intellectual Property Organization (WIPO) produced a guide on surveying the economic contribution of copyright-based industries.2 Even before the guide was completed, several countries had produced reports assessing and promoting the role of copyright-based industries.3 In contrast, the large and growing economic contribution of industries that depend on and/or benefit from limitations and exceptions such as the fair use of copyrighted materials has not been studied extensively. This report’s objective is to fill this gap and, based on a comprehensive review of available data, estimate the economic activity and scope of industries benefiting from fair use.

Fair use is an important restriction to the rights conferred on original works by the U.S. Copyright Act of 1976:4 “The fair use of a copyrighted work for … purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom

� Guide on Surveying the Economic Contribution of the Copy-right-Based Industries, WIPO, Geneva 2003 (“WIPO Guide”). � Id. Table 1.1 in the WIPO Guide lists 13 separate national studies of copyright industries. See also Stephen E. Siwek, Copy-right Industries in the U.S. Economy: The 2006 Report, prepared for the International Intellectual Property Alliance (IIPA), Novem-ber 2006, available at www.iipa.com.

� Michael A. Einhorn, Media, Technology and Copyright: Integrating law and Economics (Edward Elgar Publishing, 2004) at 1.

use), scholarship, or research is not an infringement of copyright.”5 The fair use doctrine, and other limitations and exceptions to copyright,6 have grown in importance with the rise of the digital economy, as fair use permits a range of activities that are critical to many high technology businesses, including search portals and web hosting.7

Industries benefiting from fair use have grown dramatically within the past 20 years, and their growth has had a profound impact on the U.S. economy.8 The development and spread of the Internet as a medium for both business and personal use has been creative and transformative. The creation of new businesses (e.g., Google and Amazon) and business activities has in turn fueled demand from other sectors of the U.S. economy (e.g., fiber optics, routers, and consumer electronics) and transformed a host of business processes (e.g., communications and procurement).

The advent of the Internet and networking technology also has been widely credited with reviving U.S. productivity growth after two-decades of below-trend productivity.9 As higher productivity is an important source of income to labor and capital resources, the “new economy” has helped spur overall economic growth and offset structural declines in other sectors of the economy.

Fair use of copyrighted material and other limitations and exceptions (L&E) are an important foundation of the Internet economy. For example, one force driving the expansion of the Internet as a tool for commerce and education is the user’s ability to locate useful information with widely available search engines.10 The courts have held that the main

� 17 U.S.C. § 107. See Einhorn at 1 and 8, fn. 5.

� The use of “fair use” in this report is a shorthand reference intend-ed to include fair use as well as certain related copyright limitations and exceptions. The complete set of limitations and exceptions stud-ied herein are listed in Part III and described further in Appendix III.

� See, for example, Jonathan Band, “Fair Use: Its Effects on Con-sumers and Industry,” Testimony before the Committee on Energy and Commerce, Subcommittee on Commerce, Trade, and Consumer Protection (November 16, 2005).

� For a literature review and discussion of the impact of the “new economy” on official U.S. economic statistics, see, J. Stephen Lande-feld and Barbara M. Fraumeni, “Measuring the New Economy,” Survey of Current Business (March 2001).

� For a survey of the productivity-related literature, see Landefeld and Fraumeni at 27-8.

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service provided by search engines is fair use.11 Absent the exceptions to copyright law provided by the fair use doctrine, search engine firms and others would face greater liability for infringement, a significant deterrent to providing this valuable service. Such an outcome would thwart the educational purposes and growing commerce facilitated by Internet search engines, thereby reducing the value of the Internet to the economy.

Other important activities made possible by fair use include software development, which in many cases requires the making of temporary copies of existing programs to facilitate the programming of interoperability,12 and web hosting, which could be liable for any infringement by users but for limitations and exceptions.13 The fair use doctrine also permits end users of copyrighted material to make digital copies of programming for personal use. Thus, because of fair use, consumers can enjoy copyrighted programming at a later time (“time-shifting”),14 transfer the material from one device to another (“space shifting”),15 and make temporary cache copies of websites on

�0 Search engine software copies vast quantities of information from publicly accessible websites onto the search engine’s database. Users then access the search engine’s database for relevant informa-tion, retrieving links to the original site as well as to the “cache” copy of the website stored in the database.

�� The Ninth Circuit in Kelly v. Arriba Soft, 336 F.3d 811 (9th Cir. 2003) found that the caching of reduce-sized images copied from websites, and the display of these images in response to search queries, constituted a fair use. It recently reaffirmed that proposition in Perfect 10, Inc. v. Amazon.com, Inc., 487 F.3d 701 (9th Cir. 2007). The district court in Field v. Google, 412 F. Supp. 2d 1106 (D. Nev. 2006) excused Google’s display of text cached in its search database as a fair use.

�� See Sega v. Accolade, 977 F.2d 1510 (9th Cir. 1992); Atari v. Nintendo, 975 F.2d 832 (Fed. Cir. 1992); Sony v. Connectix, 203 F.3d 596 (9th Cir. 2000). (Fair use permits the copying that occurs during the course of software reverse engineering.)

�� Section 512(c) of the Digital Millennium Copyright Act (DMCA) provides safe harbors for the entities hosting user content.

�� Sony Corp. v. Universal City Studios, Inc., 464 U.S. 417, 423-24 (1984).

�� Recording Industry Ass’n of America v. Diamond Multimedia Sys., Inc., 180 F.3d 1072, 1079 (9th Cir. 1999).

the random access memory of their computers.16 The utility derived from these activities has spawned consumer purchases of a broad range of products such as digital video recorders and MP3 players, stimulating additional economic activity in the United States and in all of the countries where the machines used for these activities are manufactured.

Certainly, copyright protection provides an incentive for the production of creative works and these works have a positive impact on the U.S. economy. The positive aspects of copyright protection should not, however, obscure that fair use is also an important economic driver in the digital age. The recognition of the economic benefits of the digital economy made possible by fair use specifically, and the limitations and exceptions to copyright law in general, have led to a spirited debate on the role of copyright law in the digital age.17

To contribute to the debate, this report presents a comprehensive quantification of the growing economic significance of industries benefiting from fair use. The methodology used in the report defines a set of “core industries” that either would not exist, or be much smaller, but for the limitations and exceptions to copyright law. In turn, similar to the WIPO guidelines, we also evaluate the secondary sectors or non-core industries that benefit from fair use.18 The present endeavor is by no means the final word on the subject, but we hope that it will serve as a stimulus to further refinement and better understanding of the digital economy and the important role and economic contribution made by fair use in the digital age.

�� Perfect 10, Inc. v. Amazon.com, Inc., 487 F.3d 701 (9th Cir. 2007).

�� For an explanation of both views, see Joseph Ferrell and Carl Sha-piro, “Intellectual Property, Competition, and Information Technol-ogy,” in Hal Varian, Joseph Ferrell, and Carl Shapiro, ed., The Eco-nomics of Information Technology (Cambridge University Press, Banca Intessa, 2004) at 58-61.

�� The WIPO framework for evaluating copyright-based industries suggests 4 categories: core, interdependent, partial, and non-dedi-cated support industries. WIPO Guide at 27-35. As discussed in Section II, this report adopts a similar but more streamlined defini-tion of core and non-core industries.

INTRODUCTION [CONTINUED]

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II. DESCRIPTION OF FAIR-USE INDUSTRIES

Economic activity occurs when the desire to consume goods or services is met by efforts to supply those goods and services. Suppliers purchase inputs to production, such as land, labor, capital, natural resources, and intermediate inputs, and then add value to those inputs. The good or service that results from these economic activities is then sold to an end user, or to another business which uses the product or service as an input to its production process.

As a general framework for the analysis, we have adopted the guidelines suggested by WIPO, and used in other studies, to evaluate the economic contribution of fair use.19 However, instead of defining four distinct groups of industries as suggested in the WIPO guidelines, we adopted a simpler definition of core and non-core industries that depend on or benefit from fair use. Core industries are defined as industries that produce goods and services whose activities depend in large measure on the existence of limitations and exceptions provided in U.S. copyright law. The heart of the core group includes companies whose operations hinge on the Internet. Due to the nature of the Internet – in particular the intensive use of temporary copies – all of the Internet-based industry groups and industries are included in the fair-use core.20 The tabulation in Part III identifies key core sectors and the corresponding NAICS codes.

As shown in Part III, the core covers a broad range of industries whose output is driven increasingly by activities made possible by fair use and the Internet.21

�� See WIPO at 32. As noted by the WIPO, the “definition and iden-tification of ‘non-core’ industries has been characterized by blur [sic] borders and frequent changes across borders.”

�0 This report uses the 2002 version of the North American Indus-trial Classification System (NAICS). The 1997 NAICS replaced the old SIC standard. In the NAICS convention, a two-digit number refers to an industry sector. For example, the code 51 refers to the Infor-mation sector. Three, four and five-digit codes refer to an industry subsector, a industry group, and industry, respectively. Codes of six or more digits are also considered industries in their own right even though they are part of a larger industry. This study incorporates data mostly at the three and four-digit industry group level, and, as appropriate, at the five-or-more-digit industry level, without double counting. For ease of reference, the Technical Appendix attached to this report lists all of the NAICS codes and official descriptions of the industries and industry groups considered.

�� For example, recent advances in processing speed and software functionality are being used to take advantage of the richer multi-me-dia experience now available from the web. Thus, purchases of new computers and software increasingly are driven by the desire to maxi-

Other information industries depend on fair use exceptions for their ability to engage in basic activities. Additional sectors, such as the education industry, benefit from the non-copyrightability of facts and other fair use freedoms.22

In addition to these core industries, non-core sectors also benefit significantly from fair use. Non-core industries included in this study consist of industries whose activities or output facilitate the output of the fair use core. Companies in these sectors derive a significant amount of their current business from the demand generated by fair use and the Internet, and are interdependent with the core industries.23

As the Internet economy is dynamic, and continues to expand and influence a range of sectors, the core/non-core classification scheme used for this study may undercount the scope of industries benefiting from fair use. It is likely, for example, that many non-core industries benefit from services provided by Internet-based companies that depend on fair use. For purposes of this study, we have adopted a conservative approach and limited the core and non-core industries to the sectors listed above and detailed in Part III. Subsequent studies, benefiting from additional data sources and available information, may show a far greater scope of activity derived from fair use.24

mize the Internet experience, rather than to increase word processing and spreadsheet performance.

�� See, for example, Kurt Larsen and Stéphan Vincent-Larsen, “The Impact of ITC on Terciary Education,” in Brian Kahin and Dominique Foray, ed., Advancing Knowledge and the Knowledge Economy (MIT Press, 2006) at 151-168.

�� WIPO advocates the inclusion of such “interdependent copyright industries” as part of copyright-based industries. WIPO defines interdependent industries as “industries that are engaged in produc-tion, manufacture, and sale of equipment whose function is wholly or primarily to facilitate the creation, production, or use of works and other protected subject matter. See World Intellectual Property Organization (WIPO), Guide on Surveying the Economic Contribution of the Copyright-Based Industries (Geneva, 2003) at 33 (available athttp://www.wipo.org/copyright/en/publications/pdf/copyright_pub_893.pdf).

�� As the Internet economy grows, it is likely that the Commerce Department and other agencies will expand and refine their data col-lection efforts to track this growth.

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III. SPECIFIC INDUSTRY BENEFITS FROM FAIR USE AND OTHER LIMITATIONS AND EXCEPTIONS TO COPYRIGHT LAW

Part III of the report was prepared with the assistance of Professor Peter Jaszi of American University Washington College of Law.

Numerous provisions of U.S. copyright law fall under the broad heading of fair use as the term is used in this study. In this Part, we review the individual provisions and illustrate how they apply to and benefit core and non-core industries. A tabular format provides the most effective presentation of each industry and the specific fair use provision that benefits it. Table 1 aptly summarizes the extended impact of fair use across numerous sectors. The table represents, by NAICS category and description, those industries that depend on fair use in U.S. copyright law. Each NAICS code is followed by citations to statutory provisions and principles of law embodying the limitations and exceptions upon which the described industry depends. Cross-references to other NAICS codes identify interdependent industries. The accompanying glossary in Appendix III supplements the discussion of each fair use provision and identifies relevant court decisions.

For example, the Internet publishing and broadcasting industry, NAICS code 516, appears in the first row of Table 1. The third column of the table indicates that NAICS 516 relies on the following fair use provisions:

• 102(b)—idea/expression dichotomy; • 107—fair use: criticism, comment, news reporting, browser, cache copies; • 512—ISP safe harbors; • 102(a)—noncopyrightability of facts; • 302-304—copyright term; and • 105—no copyright in U.S. government works.

The third column also includes the NAICS codes of six interdependent industries: NAICS 5181 (Internet service providers and web search portals); 3341 (computer and peripheral equipment manufacturing); 5112 (software publishers); 5415 (computer system design and related services); 334413 (semiconductors and related device manufacturing); and 3346 (manufacturing and reproducing magnetic and optical media).

[Text continues on page 40]

TABLE 1

Page 10: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Oth

er

info

rmat

ion

serv

ices

519

Indu

strie

s in

the

Oth

er In

form

atio

n S

ervi

ces

subs

ecto

r gr

oup

esta

blis

hmen

ts s

uppl

ying

info

rmat

ion,

sto

ring

info

rmat

ion,

pro

vidi

ng a

cces

s to

info

rmat

ion,

and

se

arch

ing

and

retr

ievi

ng in

form

atio

n. T

he m

ain

com

pone

nts

of th

e su

bsec

tor

are

new

s sy

ndic

ates

, lib

rarie

s, a

nd a

rchi

ves.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy,

no

n-co

pyrig

htab

ility

of i

nter

face

sp

ecifi

catio

ns);

107

(fa

ir us

e: c

ritic

ism

; te

achi

ng; s

chol

arsh

ip; r

esea

rch)

; 108

(li

brar

y us

es);

109

(fir

st s

ale

doct

rine)

; 51

2 (I

SP

saf

e ha

rbor

s); 3

02-3

04

(cop

yrig

ht te

rm);

105

(no

cop

yrig

ht

in U

.S. g

over

nmen

t wor

ks);

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

334

1,

5112

, 541

5, 3

3441

3, 3

346

Dat

a pr

oces

sing

, ho

stin

g,

and

rela

ted

serv

ices

5182

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

rovi

ding

infr

astr

uctu

re fo

r ho

stin

g or

da

ta p

roce

ssin

g se

rvic

es. T

hese

est

ablis

hmen

ts m

ay

prov

ide

spec

ializ

ed h

ostin

g ac

tiviti

es, s

uch

as w

eb

host

ing,

str

eam

ing

serv

ices

or

appl

icat

ion

host

ing,

pr

ovid

e ap

plic

atio

n se

rvic

e pr

ovis

ioni

ng, o

r m

ay p

rovi

de

gene

ral t

ime-

shar

e m

ainf

ram

e fa

cilit

ies

to c

lient

s. D

ata

proc

essi

ng e

stab

lishm

ents

pro

vide

com

plet

e pr

oces

sing

an

d sp

ecia

lized

rep

orts

from

dat

a su

pplie

d by

clie

nts

or p

rovi

de a

utom

ated

dat

a pr

oces

sing

and

dat

a en

try

serv

ices

.

107

(fai

r us

e: b

row

ser

copi

es);

512

(IS

P

safe

har

bors

); S

ony

prin

cipl

e; s

ee a

lso

exce

ptio

ns li

sted

und

er N

AIC

S 3

341,

51

12, 5

415,

334

413,

518

1, 3

346

Tab

le 1

: F

air

Use

Ind

ust

ry D

efin

itio

ns

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Inte

rnet

pu

blis

hing

an

d br

oadc

astin

g

516

Indu

strie

s in

the

Inte

rnet

Pub

lishi

ng a

nd B

road

cast

ing

subs

ecto

r gr

oup

esta

blis

hmen

ts th

at p

ublis

h an

d/or

br

oadc

ast c

onte

nt e

xclu

sive

ly fo

r th

e In

tern

et. T

he u

niqu

e co

mbi

natio

n of

text

, aud

io, v

ideo

, and

inte

ract

ive

feat

ures

pr

esen

t in

info

rmat

iona

l or

cultu

ral p

rodu

cts

on th

e In

tern

et ju

stifi

es th

e se

para

tion

of In

tern

et p

ublis

hers

and

br

oadc

aste

rs fr

om m

ore

trad

ition

al p

ublis

hers

incl

uded

in

subs

ecto

r 51

1, P

ublis

hing

Indu

strie

s (e

xcep

t Int

erne

t) a

nd

subs

ecto

r 51

5, B

road

cast

ing

(exc

ept I

nter

net)

.

102(

b) (

idea

/exp

ress

ion

dich

otom

y);

107

(fai

r us

e: c

ritic

ism

; com

men

t; ne

ws

repo

rtin

g; b

row

ser,

cach

e co

pies

);

512

(IS

P s

afe

harb

ors)

; 102

(a)

(non

-co

pyrig

htab

ility

of f

acts

); 3

02-3

04

(cop

yrig

ht te

rm);

105

(no

cop

yrig

ht

in U

.S. g

over

nmen

t wor

ks);

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

518

1,

3341

, 511

2, 5

415,

334

413,

334

6

Inte

rnet

se

rvic

e pr

ovid

ers

and

web

se

arch

po

rtal

s

5181

Indu

strie

s in

the

Inte

rnet

Pub

lishi

ng a

nd B

road

cast

ing

subs

ecto

r gr

oup

esta

blis

hmen

ts th

at p

ublis

h an

d/or

br

oadc

ast c

onte

nt e

xclu

sive

ly fo

r th

e In

tern

et. T

he u

niqu

e co

mbi

natio

n of

text

, aud

io, v

ideo

, and

inte

ract

ive

feat

ures

pr

esen

t in

info

rmat

iona

l or

cultu

ral p

rodu

cts

on th

e In

tern

et ju

stifi

es th

e se

para

tion

of In

tern

et p

ublis

hers

and

br

oadc

aste

rs fr

om m

ore

trad

ition

al p

ublis

hers

incl

uded

in

subs

ecto

r 51

1, P

ublis

hing

Indu

strie

s (e

xcep

t Int

erne

t) a

nd

subs

ecto

r 51

5, B

road

cast

ing

(exc

ept I

nter

net)

.

102(

b) (

non-

copy

right

abili

ty o

f int

erfa

ce

spec

ifica

tions

); 1

07 (

fair

use:

sea

rch;

br

owse

r, ca

che

copi

es);

512

(IS

P s

afe

harb

ors)

; Son

y pr

inci

ple;

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

334

1,

5112

, 541

5, 3

3441

3, 3

346

Page 11: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Sof

twar

e pu

blis

hers

5112

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in c

ompu

ter

softw

are

publ

ishi

ng o

r pu

blis

hing

an

d re

prod

uctio

n. E

stab

lishm

ents

in th

is in

dust

ry c

arry

ou

t ope

ratio

ns n

eces

sary

for

prod

ucin

g an

d di

strib

utin

g co

mpu

ter

softw

are,

suc

h as

des

igni

ng, p

rovi

ding

do

cum

enta

tion,

ass

istin

g in

inst

alla

tion,

and

pro

vidi

ng

supp

ort s

ervi

ces

to s

oftw

are

purc

hase

rs. T

hese

es

tabl

ishm

ents

may

des

ign,

dev

elop

, and

pub

lish,

or

publ

ish

only

.

102(

b) (

non-

copy

right

abili

ty o

f int

erfa

ce

spec

ifica

tions

); 1

07 (

fair

use:

rev

erse

en

gine

erin

g); 1

17(a

) (b

ack

up, e

ssen

tial

step

cop

ies)

; Son

y pr

inci

ple;

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

516

, 51

81, 5

182,

334

1, 5

415,

334

413,

334

6

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Aud

io &

vid

eo

equi

pmen

t m

anuf

actu

ring

3343

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in m

anuf

actu

ring

elec

tron

ic a

udio

and

vid

eo

equi

pmen

t for

hom

e en

tert

ainm

ent,

mot

or v

ehic

le,

publ

ic a

ddre

ss a

nd m

usic

al in

stru

men

t am

plifi

catio

ns.

Exa

mpl

es o

f pro

duct

s m

ade

by th

ese

esta

blis

hmen

ts

are

vide

o ca

sset

te r

ecor

ders

, tel

evis

ions

, ste

reo

equi

pmen

t, sp

eake

r sy

stem

s, h

ouse

hold

-typ

e vi

deo

cam

eras

, juk

ebox

es, a

nd a

mpl

ifier

s fo

r m

usic

al

inst

rum

ents

and

pub

lic a

ddre

ss s

yste

ms.

107

(fai

r us

e: b

uffe

r co

pies

, tim

e an

d sp

ace

shift

ing)

; Son

y pr

inci

ple;

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

334

6,

3344

13

Vid

eo ta

pe a

nd

disc

ren

tal

5322

3T

his

indu

stry

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

ren

ting

prer

ecor

ded

vide

o ta

pes

and

disc

s fo

r ho

me

elec

tron

ic e

quip

men

t.

109(

a) (

first

sal

e); s

ee a

lso

exce

ptio

ns

liste

d un

der

NA

ICS

334

3, 3

346

Bus

ines

s to

bus

ines

s el

ectr

onic

m

arke

ts

4251

1

Thi

s in

dust

ry c

ompr

ises

bus

ines

s-to

-bus

ines

s el

ectr

onic

m

arke

ts b

ringi

ng to

geth

er b

uyer

s an

d se

llers

of g

oods

us

ing

the

Inte

rnet

or

othe

r el

ectr

onic

mea

ns a

nd

gene

rally

rec

eivi

ng a

com

mis

sion

or

fee

for

the

serv

ice.

B

usin

ess-

to-b

usin

ess

elec

tron

ic m

arke

ts fo

r du

rabl

e an

d no

ndur

able

goo

ds a

re in

clud

ed in

this

indu

stry

.

See

exc

eptio

ns li

sted

und

er N

AIC

S

5181

, 518

2, 3

341,

511

2, 5

415,

334

413,

33

46

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Com

pute

r an

d pe

riphe

ral

equi

pmen

t m

anuf

actu

r-in

g

3341

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily e

ngag

ed

in m

anuf

actu

ring

and/

or a

ssem

blin

g el

ectr

onic

com

pute

rs,

such

as

mai

nfra

mes

, per

sona

l com

pute

rs, w

orks

tatio

ns,

lapt

ops,

and

com

pute

r se

rver

s; a

nd c

ompu

ter

perip

hera

l eq

uipm

ent,

such

as

stor

age

devi

ces,

prin

ters

, mon

itors

, in

put/o

utpu

t dev

ices

and

term

inal

s. C

ompu

ters

can

be

anal

og, d

igita

l, or

hyb

rid. D

igita

l com

pute

rs, t

he m

ost

com

mon

type

, are

dev

ices

that

do

all o

f the

follo

win

g:

(1)

stor

e th

e pr

oces

sing

pro

gram

or

prog

ram

s an

d th

e da

ta im

med

iate

ly n

eces

sary

for

the

exec

utio

n of

the

prog

ram

; (2)

can

be

free

ly p

rogr

amm

ed in

acc

orda

nce

with

the

requ

irem

ents

of t

he u

ser;

(3)

per

form

arit

hmet

ical

co

mpu

tatio

ns s

peci

fied

by th

e us

er; a

nd (

4) e

xecu

te,

with

out h

uman

inte

rven

tion,

a p

roce

ssin

g pr

ogra

m th

at

requ

ires

the

com

pute

r to

mod

ify it

s ex

ecut

ion

by lo

gica

l de

cisi

on d

urin

g th

e pr

oces

sing

run

. Ana

log

com

pute

rs a

re

capa

ble

of s

imul

atin

g m

athe

mat

ical

mod

els

and

com

pris

e at

leas

t ana

log,

con

trol

, and

pro

gram

min

g el

emen

ts.

102(

b) (

non-

copy

right

abili

ty o

f int

erfa

ce

spec

ifica

tions

); 1

07 (

fair

use:

bro

wse

r co

pies

; buf

fer

copi

es; t

ime

and

spac

e sh

iftin

g; r

ever

se e

ngin

eerin

g); 1

17(a

) (b

acku

p, e

ssen

tial s

tep

copi

es);

Son

y pr

inci

ple;

see

als

o ex

cept

ions

list

ed

unde

r N

AIC

S 5

112,

518

1, 5

182,

334

1,

3344

13

Sof

twar

e pu

blis

hers

5112

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in c

ompu

ter

softw

are

publ

ishi

ng o

r pu

blis

hing

an

d re

prod

uctio

n. E

stab

lishm

ents

in th

is in

dust

ry c

arry

ou

t ope

ratio

ns n

eces

sary

for

prod

ucin

g an

d di

strib

utin

g co

mpu

ter

softw

are,

suc

h as

des

igni

ng, p

rovi

ding

do

cum

enta

tion,

ass

istin

g in

inst

alla

tion,

and

pro

vidi

ng

supp

ort s

ervi

ces

to s

oftw

are

purc

hase

rs. T

hese

es

tabl

ishm

ents

may

des

ign,

dev

elop

, and

pub

lish,

or

publ

ish

only

.

102(

b) (

non-

copy

right

abili

ty o

f int

erfa

ce

spec

ifica

tions

); 1

07 (

fair

use:

rev

erse

en

gine

erin

g); 1

17(a

) (b

ack

up, e

ssen

tial

step

cop

ies)

; Son

y pr

inci

ple;

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

516

, 51

81, 5

182,

334

1, 5

415,

334

413,

334

6

Ele

ctro

nic

shop

ping

4541

11T

his

U.S

. Ind

ustr

y co

mpr

ises

est

ablis

hmen

ts e

ngag

ed

in r

etai

ling

all t

ypes

of m

erch

andi

se u

sing

the

Inte

rnet

.

107

(fai

r us

e: b

row

ser

copi

es; s

earc

h);

109(

a) (

first

sal

e); 5

12 (

ISP

saf

e ha

rbor

s); S

ony

prin

cipl

e; s

ee a

lso

exce

ptio

ns li

sted

und

er N

AIC

S 5

181,

51

82, 3

341,

511

2, 5

415,

334

13, 3

346

Page 12: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Com

pute

r sy

stem

des

ign

and

rela

ted

serv

ices

5415

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

rovi

ding

exp

ertis

e in

the

field

of i

nfor

mat

ion

tech

nolo

gies

thro

ugh

one

or m

ore

of th

e fo

llow

ing

activ

ities

: (1)

writ

ing,

mod

ifyin

g, te

stin

g, a

nd s

uppo

rtin

g so

ftwar

e to

mee

t the

nee

ds o

f a p

artic

ular

cus

tom

er; (

2)

plan

ning

and

des

igni

ng c

ompu

ter

syst

ems

that

inte

grat

e co

mpu

ter

hard

war

e, s

oftw

are,

and

com

mun

icat

ion

tech

nolo

gies

; (3)

on-

site

man

agem

ent a

nd o

pera

tion

of c

lient

s’ c

ompu

ter

syst

ems

and/

or d

ata

proc

essi

ng

faci

litie

s; a

nd (

4) o

ther

pro

fess

iona

l and

tech

nica

l co

mpu

ter-

rela

ted

advi

ce a

nd s

ervi

ces.

See

exc

eptio

ns li

sted

und

er N

AIC

S

516,

518

1, 5

182,

334

1, 5

112,

454

111,

45

4112

, 425

11, 3

3441

3, 3

346

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Wire

d te

leco

mm

uni-

catio

ns c

arrie

rs51

71

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

ope

ratin

g, m

aint

aini

ng o

r pr

ovid

ing

acce

ss

to fa

cilit

ies

for

the

tran

smis

sion

of v

oice

, dat

a, te

xt,

soun

d, a

nd v

ideo

usi

ng w

ired

tele

com

mun

icat

ions

ne

twor

ks. T

rans

mis

sion

faci

litie

s m

ay b

e ba

sed

on a

si

ngle

tech

nolo

gy o

r a

com

bina

tion

of te

chno

logi

es.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 5

415,

518

2, 3

3441

3, 3

346,

33

42

Wire

less

te

leco

mm

uni-

catio

ns c

arrie

rs

(exc

ept

sate

llite

)

5172

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

ope

ratin

g, m

aint

aini

ng o

r pr

ovid

ing

acce

ss

to fa

cilit

ies

for

the

tran

smis

sion

of v

oice

, dat

a, te

xt,

soun

d, a

nd v

ideo

usi

ng w

irele

ss te

leco

mm

unic

atio

ns

netw

orks

. Tra

nsm

issi

on fa

cilit

ies

may

be

base

d on

a

sing

le te

chno

logy

or

a co

mbi

natio

n of

tech

nolo

gies

.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 5

415,

518

2, 3

3441

3, 3

346,

33

42

Ele

ctro

nic

shop

ping

4541

11T

his

U.S

. Ind

ustr

y co

mpr

ises

est

ablis

hmen

ts e

ngag

ed

in r

etai

ling

all t

ypes

of m

erch

andi

se u

sing

the

Inte

rnet

.

107

(fai

r us

e: b

row

ser

copi

es; s

earc

h);

109(

a) (

first

sal

e); 5

12 (

ISP

saf

e ha

rbor

s); S

ony

prin

cipl

e; s

ee a

lso

exce

ptio

ns li

sted

und

er N

AIC

S 5

181,

51

82, 3

341,

511

2, 5

415,

334

13, 3

346

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Ele

ctro

nic

auct

ions

4541

12

Thi

s U

.S. I

ndus

try

com

pris

es e

stab

lishm

ents

eng

aged

in

pro

vidi

ng s

ites

for

and

faci

litat

ing

cons

umer

-to-

cons

umer

or

busi

ness

-to-

cons

umer

trad

e in

new

and

us

ed g

oods

, on

an a

uctio

n ba

sis,

usi

ng th

e In

tern

et.

Est

ablis

hmen

ts in

this

indu

stry

pro

vide

the

elec

tron

ic

loca

tion

for

reta

il au

ctio

ns, b

ut d

o no

t tak

e tit

le to

the

good

s be

ing

sold

.

107

(fai

r us

e: b

row

ser

copi

es; s

earc

h);

109(

a) (

first

sal

e); 5

12 (

ISP

saf

e ha

rbor

s); S

ony

prin

cipl

e; s

ee a

lso

exce

ptio

ns li

sted

und

er N

AIC

S 5

181,

51

82, 3

341,

511

2, 5

415,

334

13, 3

346

Com

pute

r &

of

fice

mac

hine

re

pair

&

mai

nten

ance

8112

12

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in r

epai

ring

and

mai

ntai

ning

com

pute

rs a

nd

offic

e m

achi

nes

with

out r

etai

ling

new

com

pute

rs a

nd

offic

e m

achi

nes,

suc

h as

pho

toco

pyin

g m

achi

nes;

and

co

mpu

ter

term

inal

s, s

tora

ge d

evic

es, p

rinte

rs; a

nd C

D-

RO

M d

rives

.

117(

c) (

mac

hine

mai

nten

ance

or

repa

ir);

see

also

exc

eptio

ns li

sted

und

er N

AIC

S

3341

Com

pute

r sy

stem

des

ign

and

rela

ted

serv

ices

5415

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

rovi

ding

exp

ertis

e in

the

field

of i

nfor

mat

ion

tech

nolo

gies

thro

ugh

one

or m

ore

of th

e fo

llow

ing

activ

ities

: (1)

writ

ing,

mod

ifyin

g, te

stin

g, a

nd s

uppo

rtin

g so

ftwar

e to

mee

t the

nee

ds o

f a p

artic

ular

cus

tom

er; (

2)

plan

ning

and

des

igni

ng c

ompu

ter

syst

ems

that

inte

grat

e co

mpu

ter

hard

war

e, s

oftw

are,

and

com

mun

icat

ion

tech

nolo

gies

; (3)

on-

site

man

agem

ent a

nd o

pera

tion

of c

lient

s’ c

ompu

ter

syst

ems

and/

or d

ata

proc

essi

ng

faci

litie

s; a

nd (

4) o

ther

pro

fess

iona

l and

tech

nica

l co

mpu

ter-

rela

ted

advi

ce a

nd s

ervi

ces.

See

exc

eptio

ns li

sted

und

er N

AIC

S

516,

518

1, 5

182,

334

1, 5

112,

454

111,

45

4112

, 425

11, 3

3441

3, 3

346

Tele

com

mun

i-ca

tions

R

esel

lers

5173

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

urch

asin

g ac

cess

and

net

wor

k ca

paci

ty

from

ow

ners

and

ope

rato

rs o

f the

net

wor

ks a

nd

rese

lling

wire

d an

d w

irele

ss te

leco

mm

unic

atio

ns

serv

ices

(ex

cept

sat

ellit

e) to

bus

ines

ses

and

hous

ehol

ds. E

stab

lishm

ents

in th

is in

dust

ry r

esel

l te

leco

mm

unic

atio

ns; t

hey

do n

ot o

pera

te a

nd m

aint

ain

tele

com

mun

icat

ions

sw

itchi

ng a

nd tr

ansm

issi

on

faci

litie

s.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 5

415,

518

2, 3

3441

3, 3

346,

33

42

Page 13: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tele

com

mun

i-ca

tions

R

esel

lers

5173

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

urch

asin

g ac

cess

and

net

wor

k ca

paci

ty

from

ow

ners

and

ope

rato

rs o

f the

net

wor

ks a

nd

rese

lling

wire

d an

d w

irele

ss te

leco

mm

unic

atio

ns

serv

ices

(ex

cept

sat

ellit

e) to

bus

ines

ses

and

hous

ehol

ds. E

stab

lishm

ents

in th

is in

dust

ry r

esel

l te

leco

mm

unic

atio

ns; t

hey

do n

ot o

pera

te a

nd m

aint

ain

tele

com

mun

icat

ions

sw

itchi

ng a

nd tr

ansm

issi

on

faci

litie

s.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 5

415,

518

2, 3

3441

3, 3

346,

33

42

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Sat

ellit

e Te

leco

mm

uni-

catio

ns51

74

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

rovi

ding

poi

nt-t

o-po

int t

elec

omm

unic

atio

ns

serv

ices

to o

ther

est

ablis

hmen

ts in

the

tele

com

mun

icat

ions

and

bro

adca

stin

g in

dust

ries

by

forw

ardi

ng a

nd r

ecei

ving

com

mun

icat

ions

sig

nals

vi

a a

syst

em o

f sat

ellit

es o

r re

selli

ng s

atel

lite

tele

com

mun

icat

ions

.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 5

415,

518

2, 3

3441

3, 3

346,

33

42

Cab

le a

nd

othe

r pr

ogra

m

dist

ribut

ion

5175

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

as th

ird-p

arty

dis

trib

utio

n sy

stem

s fo

r br

oadc

ast p

rogr

amm

ing.

The

est

ablis

hmen

ts o

f thi

s in

dust

ry d

eliv

er v

isua

l, au

ral,

or te

xtua

l pro

gram

min

g re

ceiv

ed fr

om c

able

net

wor

ks, l

ocal

tele

visi

on s

tatio

ns,

or r

adio

net

wor

ks to

con

sum

ers

via

cabl

e or

dire

ct-

to-h

ome

sate

llite

sys

tem

s on

a s

ubsc

riptio

n or

fee

basi

s. T

hese

est

ablis

hmen

ts d

o no

t gen

eral

ly o

rigin

ate

prog

ram

min

g m

ater

ial.

112

(eph

emer

al r

ecor

ding

s); 1

14(a

) (e

xcep

tion

to s

ound

rec

ordi

ng

perf

orm

ance

rig

ht);

see

als

o ex

cept

ions

lis

ted

unde

r N

AIC

S 3

341,

334

3, 5

112,

51

5120

, 515

2, 3

342

Oth

er

Tele

com

mun

i-ca

tions

5179

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts

prim

arily

eng

aged

in (

1) p

rovi

ding

spe

cial

ized

te

leco

mm

unic

atio

ns a

pplic

atio

ns, s

uch

as s

atel

lite

trac

king

, com

mun

icat

ions

tele

met

ry, a

nd r

adar

sta

tion

oper

atio

ns; o

r (2

) pr

ovid

ing

sate

llite

term

inal

sta

tions

an

d as

soci

ated

faci

litie

s op

erat

iona

lly c

onne

cted

with

on

e or

mor

e te

rres

tria

l com

mun

icat

ions

sys

tem

s an

d ca

pabl

e of

tran

smitt

ing

tele

com

mun

icat

ions

to o

r re

ceiv

ing

tele

com

mun

icat

ions

from

sat

ellit

e sy

stem

s.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 5

415,

518

2, 3

342

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Rad

io &

te

levi

sion

br

oadc

astin

g51

51

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in b

road

cast

ing

imag

es to

geth

er w

ith

soun

d. T

hese

est

ablis

hmen

ts o

pera

te te

levi

sion

br

oadc

astin

g st

udio

s an

d fa

cilit

ies

for

the

prog

ram

min

g an

d tr

ansm

issi

on o

f pro

gram

s to

the

publ

ic. T

hese

es

tabl

ishm

ents

als

o pr

oduc

e or

tran

smit

visu

al

prog

ram

min

g to

affi

liate

d br

oadc

ast t

elev

isio

n st

atio

ns,

whi

ch in

turn

bro

adca

st th

e pr

ogra

ms

to th

e pu

blic

on

a pr

edet

erm

ined

sch

edul

e. P

rogr

amm

ing

may

orig

inat

e in

thei

r ow

n st

udio

, fro

m a

n af

filia

ted

netw

ork,

or

from

ex

tern

al s

ourc

es.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 10

7 (f

air

use:

crit

icis

m, c

omm

ent,

new

s re

port

ing,

par

ody)

; 112

(ep

hem

eral

re

cord

ings

); 1

14(a

) (e

xcep

tion

to s

ound

re

cord

ing

perf

orm

ance

rig

ht);

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

334

3,

3342

Cab

le n

etw

orks

5152

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

ope

ratin

g br

oadc

ast s

tudi

os a

nd fa

cilit

ies

for

over

-the

-air

or s

atel

lite

deliv

ery

of r

adio

and

tele

visi

on

prog

ram

s. T

hese

est

ablis

hmen

ts a

re o

ften

enga

ged

in

the

prod

uctio

n or

pur

chas

e of

pro

gram

s or

gen

erat

e re

venu

es fr

om th

e sa

le o

f air

time

to a

dver

tiser

s, fr

om

dona

tions

and

sub

sidi

es, o

r fr

om th

e sa

le o

f pro

gram

s.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 10

7 (f

air

use:

crit

icis

m, c

omm

ent,

new

s re

port

ing,

par

ody)

; 114

(a)

(exc

eptio

n to

sou

nd r

ecor

ding

per

form

ance

rig

ht);

se

e al

so e

xcep

tions

list

ed u

nder

NA

ICS

33

43, 3

342

Page 14: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Rad

io &

te

levi

sion

br

oadc

astin

g51

51

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in b

road

cast

ing

imag

es to

geth

er w

ith

soun

d. T

hese

est

ablis

hmen

ts o

pera

te te

levi

sion

br

oadc

astin

g st

udio

s an

d fa

cilit

ies

for

the

prog

ram

min

g an

d tr

ansm

issi

on o

f pro

gram

s to

the

publ

ic. T

hese

es

tabl

ishm

ents

als

o pr

oduc

e or

tran

smit

visu

al

prog

ram

min

g to

affi

liate

d br

oadc

ast t

elev

isio

n st

atio

ns,

whi

ch in

turn

bro

adca

st th

e pr

ogra

ms

to th

e pu

blic

on

a pr

edet

erm

ined

sch

edul

e. P

rogr

amm

ing

may

orig

inat

e in

thei

r ow

n st

udio

, fro

m a

n af

filia

ted

netw

ork,

or

from

ex

tern

al s

ourc

es.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 10

7 (f

air

use:

crit

icis

m, c

omm

ent,

new

s re

port

ing,

par

ody)

; 112

(ep

hem

eral

re

cord

ings

); 1

14(a

) (e

xcep

tion

to s

ound

re

cord

ing

perf

orm

ance

rig

ht);

see

als

o ex

cept

ions

list

ed u

nder

NA

ICS

334

3,

3342

Cab

le n

etw

orks

5152

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

ope

ratin

g br

oadc

ast s

tudi

os a

nd fa

cilit

ies

for

over

-the

-air

or s

atel

lite

deliv

ery

of r

adio

and

tele

visi

on

prog

ram

s. T

hese

est

ablis

hmen

ts a

re o

ften

enga

ged

in

the

prod

uctio

n or

pur

chas

e of

pro

gram

s or

gen

erat

e re

venu

es fr

om th

e sa

le o

f air

time

to a

dver

tiser

s, fr

om

dona

tions

and

sub

sidi

es, o

r fr

om th

e sa

le o

f pro

gram

s.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 10

7 (f

air

use:

crit

icis

m, c

omm

ent,

new

s re

port

ing,

par

ody)

; 114

(a)

(exc

eptio

n to

sou

nd r

ecor

ding

per

form

ance

rig

ht);

se

e al

so e

xcep

tions

list

ed u

nder

NA

ICS

33

43, 3

342

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Prin

ting

and

rela

ted

supp

ort

activ

ities

3230

Indu

strie

s in

the

Prin

ting

and

Rel

ated

Sup

port

Act

iviti

es

subs

ecto

r pr

int p

rodu

cts,

suc

h as

new

spap

ers,

boo

ks,

labe

ls, b

usin

ess

card

s, s

tatio

nery

, bus

ines

s fo

rms,

and

ot

her

mat

eria

ls, a

nd p

erfo

rm s

uppo

rt a

ctiv

ities

, suc

h as

da

ta im

agin

g, p

late

mak

ing

serv

ices

, and

boo

kbin

ding

. T

he s

uppo

rt a

ctiv

ities

incl

uded

her

e ar

e an

inte

gral

pa

rt o

f the

prin

ting

indu

stry

, and

a p

rodu

ct (

a pr

intin

g pl

ate,

a b

ound

boo

k, o

r a

com

pute

r di

sk o

r fil

e) th

at is

an

inte

gral

par

t of t

he p

rintin

g in

dust

ry is

alm

ost a

lway

s pr

ovid

ed b

y th

ese

oper

atio

ns.

Pro

cess

es u

sed

in

prin

ting

incl

ude

a va

riety

of m

etho

ds u

sed

to tr

ansf

er

an im

age

from

a p

late

, scr

een,

film

, or

com

pute

r fil

e to

so

me

med

ium

, suc

h as

pap

er, p

last

ics,

met

al, t

extil

e ar

ticle

s, o

r w

ood.

The

mos

t pro

min

ent o

f the

se m

etho

ds

is to

tran

sfer

the

imag

e fr

om a

pla

te o

r sc

reen

to th

e m

ediu

m (

litho

grap

hic,

gra

vure

, scr

een,

and

flex

ogra

phic

pr

intin

g). A

rap

idly

gro

win

g ne

w te

chno

logy

use

s a

com

pute

r fil

e to

dire

ctly

“dr

ive”

the

prin

ting

mec

hani

sm

to c

reat

e th

e im

age

and

new

ele

ctro

stat

ic a

nd o

ther

ty

pes

of e

quip

men

t (di

gita

l or

noni

mpa

ct p

rintin

g)...

.

See

exc

eptio

ns li

sted

und

er N

AIC

S

5111

1, 5

1114

, 511

19

Pho

togr

aphi

c &

ph

otoc

opyi

ng

equi

pmen

t mfg

33

3315

Thi

s U

.S. i

ndus

try

com

pris

es e

stab

lishm

ents

pr

imar

ily e

ngag

ed in

man

ufac

turin

g ph

otog

raph

ic a

nd

phot

ocop

ying

equ

ipm

ent,

such

as

cam

eras

(ex

cept

te

levi

sion

, vid

eo a

nd d

igita

l) pr

ojec

tors

, film

dev

elop

ing

equi

pmen

t, ph

otoc

opyi

ng e

quip

men

t, an

d m

icro

film

eq

uipm

ent.

107

(fai

r us

e co

pyin

g); S

ony

prin

cipl

e

Page 15: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Sem

icon

duc-

tors

and

re

late

d de

vice

m

anuf

actu

ring

3344

13

Thi

s U

.S. i

ndus

try

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

man

ufac

turin

g se

mic

ondu

ctor

s an

d re

late

d so

lid s

tate

dev

ices

. Exa

mpl

es o

f pro

duct

s m

ade

by

thes

e es

tabl

ishm

ents

are

inte

grat

ed c

ircui

ts, m

emor

y ch

ips,

mic

ropr

oces

sors

, dio

des,

tran

sist

ors,

sol

ar c

ells

an

d ot

her

opto

elec

tron

ic d

evic

es.

107

(fai

r us

e: r

ever

se e

ngin

eerin

g); S

ony

prin

cipl

e; s

ee N

AIC

S 3

341

Com

mun

ica-

tions

eq

uipm

ent

man

ufac

turin

g

3342

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

one

or

mor

e of

the

follo

win

g m

anuf

actu

ring

activ

ities

:

102(

b) (

non-

copy

right

abili

ty o

f int

erfa

ce

spec

ifica

tions

); 1

07 (

fair

use:

bro

wse

r co

pies

, rev

erse

eng

inee

ring)

; Son

y pr

inci

ple;

see

NA

ICS

334

1, 3

346,

511

2,

5415

, 517

1, 5

172,

517

4, 5

175,

517

9,

5152

, 515

120

tele

phon

e eq

uipm

ent;

radi

o an

d te

levi

sion

bro

adca

stin

g an

d w

irele

ss c

omm

unic

atio

ns e

quip

men

t; an

d ot

her

com

mun

icat

ions

equ

ipm

ent.

Man

ufac

turin

g an

d re

prod

ucin

g m

agne

tic a

nd

optic

al m

edia

3346

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in (

1) m

anuf

actu

ring

optic

al a

nd m

agne

tic

med

ia, s

uch

as b

lank

aud

io ta

pe, b

lank

vid

eo ta

pe,

and

blan

k di

sket

tes

and/

or (

2) m

ass

dupl

icat

ing

(i.e.

, m

akin

g co

pies

) au

dio,

vid

eo, s

oftw

are,

and

oth

er d

ata

on m

agne

tic, o

ptic

al, a

nd s

imila

r m

edia

.

107

(fai

r us

e: ti

me

and

spac

e sh

iftin

g;

brow

ser,

cach

e co

pies

); S

ony

prin

cipl

e;

see

also

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 334

3; 3

342

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Com

mun

ica-

tion

and

ener

gy

wire

and

cab

le

man

ufac

turin

g

3359

20

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts in

sula

ting

fiber

-opt

ic c

able

, and

man

ufac

turin

g in

sula

ted

nonf

erro

us w

ire a

nd c

able

from

non

ferr

ous

wire

dr

awn

in o

ther

est

ablis

hmen

ts.

See

exc

eptio

ns li

sted

und

er N

AIC

S 3

342

Com

pute

r &

pe

riphe

ral

equi

p m

erch

ant

who

lesa

lers

4234

301

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in th

e m

erch

ant w

hole

sale

dis

trib

utio

n of

ne

w a

nd u

sed

com

pute

r ha

rdw

are

and

com

pute

r pe

riphe

ral e

quip

men

t.

See

exc

eptio

ns li

sted

und

er N

AIC

S 3

341

Com

pute

r so

ftwar

e (p

acka

ged)

m

erch

ant

who

lesa

lers

4234

302

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in th

e m

erch

ant w

hole

sale

dis

trib

utio

n of

pa

ckag

ed c

ompu

ter

softw

are

prim

arily

for

end

use.

See

exc

eptio

ns li

sted

und

er N

AIC

S 5

112

Ele

ctric

ap

plia

nce,

T

V &

rad

io

mer

chan

t w

hole

sale

rs

4236

2

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in th

e m

erch

ant w

hole

sale

dis

trib

utio

n of

hou

seho

ld-t

ype

elec

tric

al a

pplia

nces

, roo

m a

ir-co

nditi

oner

s, g

as a

nd e

lect

ric c

loth

es d

ryer

s, a

nd/o

r ho

useh

old-

type

aud

io o

r vi

deo

equi

pmen

t.

See

exc

eptio

ns li

sted

und

er N

AIC

S 3

343

Page 16: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Com

mun

ica-

tions

eq

uipm

ent &

su

pp m

erch

ant

who

lesa

lers

4236

901

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in th

e m

erch

ant w

hole

sale

dis

trib

utio

n of

hou

seho

ld-t

ype

elec

tric

al a

pplia

nces

, roo

m a

ir-co

nditi

oner

s, g

as a

nd e

lect

ric c

loth

es d

ryer

s, a

nd/o

r ho

useh

old-

type

aud

io o

r vi

deo

equi

pmen

t.

See

exc

eptio

ns li

sted

und

er N

AIC

S 3

342

Ele

ctric

al &

el

ectr

onic

go

ods

agen

ts

& b

roke

rs

4251

2036

Thi

s in

dust

ry (

4251

20)

com

pris

es w

hole

sale

trad

e ag

ents

and

bro

kers

act

ing

on b

ehal

f of b

uyer

s or

sel

lers

in th

e w

hole

sale

dis

trib

utio

n of

goo

ds.

Age

nts

and

brok

ers

do n

ot ta

ke ti

tle to

the

good

s be

ing

sold

but

rat

her

rece

ive

a co

mm

issi

on o

r fe

e fo

r th

eir

serv

ice.

Age

nts

and

brok

ers

for

all d

urab

le

and

nond

urab

le g

oods

are

incl

uded

in th

is in

dust

ry.

Ele

ctric

al &

ele

ctro

nic

good

s ag

ents

& b

roke

rs a

re

a su

bset

of t

his

indu

stry

and

are

cla

ssifi

ed u

nder

N

AIC

S 4

2512

036.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 3

343

Rad

io,

tele

visi

on

& o

ther

el

ectr

onic

s st

ores

4431

12

Thi

s U

.S. i

ndus

try

com

pris

es: (

1) e

stab

lishm

ents

kn

own

as c

onsu

mer

ele

ctro

nics

sto

res

prim

arily

en

gage

d in

ret

ailin

g a

gene

ral l

ine

of n

ew c

onsu

mer

-ty

pe e

lect

roni

c pr

oduc

ts; (

2) e

stab

lishm

ents

sp

ecia

lizin

g in

ret

ailin

g a

sing

le li

ne o

f con

sum

er-

type

ele

ctro

nic

prod

ucts

(ex

cept

com

pute

rs);

or

(3)

esta

blis

hmen

ts p

rimar

ily e

ngag

ed in

ret

ailin

g th

ese

new

ele

ctro

nic

prod

ucts

in c

ombi

natio

n w

ith r

epai

r se

rvic

es.

See

exc

eptio

ns li

sted

und

er N

AIC

S 3

343

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Com

pute

r &

so

ftwar

e st

ores

4431

2

Thi

s U

.S. i

ndus

try

com

pris

es: (

1) e

stab

lishm

ents

kno

wn

as c

onsu

mer

ele

ctro

nics

sto

res

prim

arily

eng

aged

in

reta

iling

a g

ener

al li

ne o

f new

con

sum

er-t

ype

elec

tron

ic

prod

ucts

; (2)

est

ablis

hmen

ts s

peci

aliz

ing

in r

etai

ling

a si

ngle

line

of c

onsu

mer

-typ

e el

ectr

onic

pro

duct

s (e

xcep

t co

mpu

ters

); o

r (3

) es

tabl

ishm

ents

prim

arily

eng

aged

in

reta

iling

thes

e ne

w e

lect

roni

c pr

oduc

ts in

com

bina

tion

with

rep

air

serv

ices

.

See

exc

eptio

ns li

sted

und

er N

AIC

S

3341

, 511

2, 3

3441

3

New

spap

er

publ

ishe

rs51

111

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts k

now

n as

ne

wsp

aper

pub

lishe

rs. E

stab

lishm

ents

in th

is in

dust

ry

carr

y ou

t ope

ratio

ns n

eces

sary

for

prod

ucin

g an

d di

strib

utin

g ne

wsp

aper

s, in

clud

ing

gath

erin

g ne

ws;

w

ritin

g ne

ws

colu

mns

, fea

ture

sto

ries,

and

edi

toria

ls;

and

selli

ng a

nd p

repa

ring

adve

rtis

emen

ts. T

hese

es

tabl

ishm

ents

may

pub

lish

new

spap

ers

in p

rint o

r el

ectr

onic

form

.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 10

7 (f

air

use:

crit

icis

m, c

omm

ent,

new

s re

port

ing)

; 105

(no

cop

yrig

ht in

U.S

. go

vern

men

t wor

ks)

Dire

ctor

y,

mai

ling

list,

and

othe

r pu

blis

hers

5111

4

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts k

now

n as

ne

wsp

aper

pub

lishe

rs. E

stab

lishm

ents

in th

is in

dust

ry

carr

y ou

t ope

ratio

ns n

eces

sary

for

prod

ucin

g an

d di

strib

utin

g ne

wsp

aper

s, in

clud

ing

gath

erin

g ne

ws;

w

ritin

g ne

ws

colu

mns

, fea

ture

sto

ries,

and

edi

toria

ls;

and

selli

ng a

nd p

repa

ring

adve

rtis

emen

ts. T

hese

es

tabl

ishm

ents

may

pub

lish

new

spap

ers

in p

rint o

r el

ectr

onic

form

.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

105

(n

o co

pyrig

ht in

U.S

. gov

ernm

ent w

orks

)

Page 17: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Oth

er

publ

ishe

rs51

119

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts k

now

n as

pu

blis

hers

(ex

cept

new

spap

er, m

agaz

ine,

boo

k,

dire

ctor

y, m

ailin

g lis

t, an

d m

usic

pub

lishe

rs).

The

se

esta

blis

hmen

ts m

ay p

ublis

h w

orks

in p

rint o

r el

ectr

onic

fo

rm.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 10

7 (f

air

use:

sch

olar

ship

, res

earc

h,

teac

hing

); 3

02-3

04 (

copy

right

term

); 1

05

(no

copy

right

in U

.S. g

over

nmen

t wor

ks).

Sec

uriti

es,

com

mod

ity

cont

ract

s, a

nd

inve

stm

ents

5231

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

put

ting

capi

tal a

t ris

k in

the

proc

ess

of

unde

rwrit

ing

secu

ritie

s is

sues

or

in m

akin

g m

arke

ts fo

r se

curit

ies

and

com

mod

ities

; and

thos

e ac

ting

as a

gent

s an

d/or

bro

kers

bet

wee

n bu

yers

and

sel

lers

of s

ecur

ities

an

d co

mm

oditi

es, u

sual

ly c

harg

ing

a co

mm

issi

on.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

107

(f

air

use:

res

earc

h); s

ee a

lso

exce

ptio

ns

liste

d un

der

NA

ICS

334

1, 5

182,

541

5,

5171

Mot

ion

Pic

ture

an

d V

ideo

In

dust

ries

5121

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

the

prod

uctio

n an

d/or

dis

trib

utio

n of

mot

ion

pict

ures

, vid

eos,

tele

visi

on p

rogr

ams,

or

com

mer

cial

s;

in th

e ex

hibi

tion

of m

otio

n pi

ctur

es; o

r in

the

prov

isio

n of

po

stpr

oduc

tion

and

rela

ted

serv

ices

.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 107

(f

air

use:

crit

icis

m, c

omm

ent,

paro

dy,

rese

arch

); 3

02-3

04 (

copy

right

term

); 1

05

(no

copy

right

in U

.S. g

over

nmen

t wor

ks)

see

also

exc

eptio

ns li

sted

und

er N

AIC

S

3342

Sou

nd

Rec

ordi

ng

Indu

strie

s51

22

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

pro

duci

ng a

nd d

istr

ibut

ing

mus

ical

re

cord

ings

, in

publ

ishi

ng m

usic

, or

in p

rovi

ding

sou

nd

reco

rdin

g an

d re

late

d se

rvic

es.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 107

(f

air

use:

crit

icis

m, c

omm

ent,

paro

dy,

rese

arch

); 3

02-3

04 (

copy

right

term

) se

e al

so e

xcep

tions

list

ed u

nder

334

3

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Boo

k,

Per

iodi

cal,

and

Mus

ic S

tore

s45

12T

his

indu

stry

gro

up c

ompr

ises

est

ablis

hmen

ts

prim

arily

eng

aged

in r

etai

ling

new

boo

ks, n

ewsp

aper

s,

mag

azin

es, a

nd p

rere

cord

ed a

udio

and

vid

eo m

edia

.

109(

a) (

first

sal

e); s

ee a

lso

exce

ptio

ns

liste

d un

der

NA

ICS

511

1, 5

121,

512

2

Arc

hite

ctur

al,

Eng

inee

ring,

an

d R

elat

ed

Ser

vice

s

5413

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

lann

ing

and

desi

gnin

g re

side

ntia

l, in

stitu

tiona

l, le

isur

e, c

omm

erci

al, a

nd in

dust

rial

build

ings

and

str

uctu

res

by a

pply

ing

know

ledg

e of

de

sign

, con

stru

ctio

n pr

oced

ures

, zon

ing

regu

latio

ns,

build

ing

code

s, a

nd b

uild

ing

mat

eria

ls.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 107

(f

air

use:

crit

icis

m, c

omm

ent,

paro

dy,

rese

arch

); 3

02-3

04 (

copy

right

term

); 1

05

(no

copy

right

in U

.S. g

over

nmen

t wor

ks)

Gra

phic

Des

ign

Ser

vice

s54

143

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in p

lann

ing,

des

igni

ng, a

nd m

anag

ing

the

prod

uctio

n of

vis

ual c

omm

unic

atio

n in

ord

er

to c

onve

y sp

ecifi

c m

essa

ges

or c

once

pts,

cla

rify

com

plex

info

rmat

ion,

or

proj

ect v

isua

l ide

ntiti

es. T

hese

se

rvic

es c

an in

clud

e th

e de

sign

of p

rinte

d m

ater

ials

, pa

ckag

ing,

adv

ertis

ing,

sig

nage

sys

tem

s, a

nd c

orpo

rate

id

entifi

catio

n (lo

gos)

. Thi

s in

dust

ry a

lso

incl

udes

co

mm

erci

al a

rtis

ts e

ngag

ed e

xclu

sive

ly in

gen

erat

ing

draw

ings

and

illu

stra

tions

req

uirin

g te

chni

cal a

ccur

acy

or in

terp

reta

tive

skill

s.

102(

b) (

non-

copy

right

abili

ty o

f int

erfa

ce

spec

ifica

tions

); 1

07 (

fair

use:

com

men

t, pa

rody

, res

earc

h, s

earc

h; b

row

ser,

cach

e co

pies

); 3

02-3

04 (

copy

right

term

); 1

05

(no

copy

right

in U

.S. g

over

nmen

t wor

ks);

11

7(a)

(ba

ckup

, ess

entia

l ste

p co

pies

)

Per

form

ing

Art

s C

ompa

nies

7111

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

pro

duci

ng li

ve p

rese

ntat

ions

invo

lvin

g th

e pe

rfor

man

ces

of a

ctor

s an

d ac

tres

ses,

sin

gers

, da

ncer

s, m

usic

al g

roup

s an

d ar

tists

, and

oth

er

perf

orm

ing

artis

ts.

102(

b) (

idea

/exp

ress

ion

dich

otom

y); 1

07

(fai

r us

e: c

ritic

ism

, com

men

t, pa

rody

, re

sear

ch);

302

-304

(co

pyrig

ht te

rm);

Page 18: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Pro

mot

ers

of

Per

form

ing

Art

s, S

port

s,

and

Sim

ilar

Eve

nts

7113

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in (

1) o

rgan

izin

g, p

rom

otin

g, a

nd/o

r m

anag

ing

live

perf

orm

ing

arts

pro

duct

ions

, spo

rts

even

ts,

and

sim

ilar

even

ts, s

uch

as s

tate

fairs

, cou

nty

fairs

, ag

ricul

tura

l fai

rs, c

once

rts,

and

fest

ival

s, h

eld

in

faci

litie

s th

at th

ey m

anag

e an

d op

erat

e an

d/or

(2)

m

anag

ing

and

prov

idin

g th

e st

aff t

o op

erat

e ar

enas

, st

adiu

ms,

thea

ters

, or

othe

r re

late

d fa

cilit

ies

for

rent

to

othe

r pr

omot

ers.

It a

lso

com

pris

es p

rom

oter

s pr

imar

ily

enga

ged

in o

rgan

izin

g, p

rom

otin

g, a

nd/o

r m

anag

ing

live

perf

orm

ing

arts

pro

duct

ions

, spo

rts

even

ts, a

nd s

imila

r ev

ents

, suc

h as

sta

te fa

irs, c

ount

y fa

irs, a

gric

ultu

ral

fairs

, con

cert

s, a

nd fe

stiv

als,

in fa

cilit

ies

that

are

m

anag

ed a

nd o

pera

ted

by o

ther

s. T

heat

rical

(ex

cept

m

otio

n pi

ctur

e) b

ooki

ng a

genc

ies

are

incl

uded

in th

is

indu

stry

.

See

exc

eptio

ns li

sted

und

er N

AIC

S

5121

, 711

1, 7

115

Age

nts

and

Man

ager

s fo

r Art

ists

, A

thle

tes,

E

nter

tain

ers,

an

d O

ther

P

ublic

Fig

ures

7114

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts o

f age

nts

and

man

ager

s pr

imar

ily e

ngag

ed in

rep

rese

ntin

g an

d/or

m

anag

ing

crea

tive

and

perf

orm

ing

artis

ts, s

port

s fig

ures

, ent

erta

iner

s, a

nd o

ther

pub

lic fi

gure

s. T

he

repr

esen

tatio

n an

d m

anag

emen

t inc

lude

s ac

tiviti

es,

such

as

repr

esen

ting

clie

nts

in c

ontr

act n

egot

iatio

ns;

man

agin

g or

org

aniz

ing

clie

nt’s

fina

ncia

l affa

irs; a

nd

gene

rally

pro

mot

ing

the

care

ers

of th

eir

clie

nts.

See

exc

eptio

ns li

sted

und

er N

AIC

S

5121

, 711

1, 7

115

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Inde

pend

ent

Art

ists

, Writ

ers,

an

d P

erfo

rmer

s71

15

Thi

s in

dust

ry c

ompr

ises

inde

pend

ent (

i.e.,

free

lanc

e)

indi

vidu

als

prim

arily

eng

aged

in p

erfo

rmin

g in

art

istic

pr

oduc

tions

, in

crea

ting

artis

tic a

nd c

ultu

ral w

orks

or

pro

duct

ions

, or

in p

rovi

ding

tech

nica

l exp

ertis

e ne

cess

ary

for

thes

e pr

oduc

tions

. Thi

s in

dust

ry a

lso

incl

udes

ath

lete

s an

d ot

her

cele

briti

es e

xclu

sive

ly

enga

ged

in e

ndor

sing

pro

duct

s an

d m

akin

g sp

eech

es

or p

ublic

app

eara

nces

for

whi

ch th

ey r

ecei

ve a

fee.

102(

b) (

idea

/exp

ress

ion

dich

otom

y); 1

07

(fai

r us

e: c

ritic

ism

, com

men

t, pa

rody

, re

sear

ch);

302

-304

(co

pyrig

ht te

rm);

Sec

uriti

es a

nd

Com

mod

ity

Exc

hang

es52

32

Thi

s in

dust

ry c

ompr

ises

est

ablis

hmen

ts p

rimar

ily

enga

ged

in fu

rnis

hing

phy

sica

l or

elec

tron

ic

mar

ketp

lace

s fo

r th

e pu

rpos

e of

faci

litat

ing

the

buyi

ng a

nd s

ellin

g of

sto

cks,

sto

ck o

ptio

ns, b

onds

, or

com

mod

ity c

ontr

acts

.

See

exc

eptio

ns li

sted

und

er N

AIC

S

5231

, 518

2, 5

415,

517

1, 5

411

Oth

er F

inan

cial

In

vest

men

t A

ctiv

ities

5239

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

pr

imar

ily e

ngag

ed in

one

of t

he fo

llow

ing:

(1)

act

ing

as

prin

cipa

ls in

buy

ing

or s

ellin

g fin

anci

al c

ontr

acts

(ex

cept

in

vest

men

t ban

kers

, sec

uriti

es d

eale

rs, a

nd c

omm

odity

co

ntra

cts

deal

ers)

; (2)

act

ing

as a

gent

s (i.

e., b

roke

rs)

(exc

ept s

ecur

ities

bro

kera

ges

and

com

mod

ity c

ontr

acts

br

oker

ages

) in

buy

ing

or s

ellin

g fin

anci

al c

ontr

acts

; or

(3)

pro

vidi

ng o

ther

inve

stm

ent s

ervi

ces

(exc

ept

secu

ritie

s an

d co

mm

odity

exc

hang

es),

suc

h as

por

tfolio

m

anag

emen

t; in

vest

men

t adv

ice;

and

trus

t, fid

ucia

ry,

and

cust

ody

serv

ices

.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

107

(f

air

use:

res

earc

h); s

ee a

lso

exce

ptio

ns

liste

d un

der

NA

ICS

334

1, 5

171,

518

2,

5415

Page 19: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Insu

ranc

e C

arrie

rs52

41

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

und

erw

ritin

g (a

ssum

ing

the

risk,

ass

igni

ng

prem

ium

s, a

nd s

o fo

rth)

ann

uitie

s an

d in

sura

nce

polic

ies

and

inve

stin

g pr

emiu

ms

to b

uild

up

a po

rtfo

lio o

f fin

anci

al a

sset

s to

be

used

aga

inst

futu

re c

laim

s. D

irect

in

sura

nce

carr

iers

are

est

ablis

hmen

ts th

at a

re p

rimar

ily

enga

ged

in in

itial

ly u

nder

writ

ing

and

assu

min

g th

e ris

k of

ann

uitie

s an

d in

sura

nce

polic

ies.

Rei

nsur

ance

ca

rrie

rs a

re e

stab

lishm

ents

that

are

prim

arily

eng

aged

in

ass

umin

g al

l or

part

of t

he r

isk

asso

ciat

ed w

ith a

n ex

istin

g in

sura

nce

polic

y (o

r se

t of p

olic

ies)

orig

inal

ly

unde

rwrit

ten

by a

noth

er in

sura

nce

carr

ier.

Indu

strie

s ar

e de

fined

in te

rms

of th

e ty

pe o

f ris

k be

ing

insu

red

agai

nst,

such

as

deat

h, lo

ss o

f em

ploy

men

t bec

ause

of

age

or d

isab

ility

, and

/or

prop

erty

dam

age.

Con

trib

utio

ns

and

prem

ium

s ar

e se

t on

the

basi

s of

act

uaria

l ca

lcul

atio

ns o

f pro

babl

e pa

yout

s ba

sed

on r

isk

fact

ors

from

exp

erie

nce

tabl

es a

nd e

xpec

ted

inve

stm

ent

retu

rns

on r

eser

ves.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

107

(f

air

use:

res

earc

h); s

ee a

lso

exce

ptio

ns

liste

d un

der

NA

ICS

334

1, 5

171,

518

2,

5415

Age

ncie

s,

Bro

kera

ges,

an

d O

ther

In

sura

nce

Rel

ated

A

ctiv

ities

5242

Thi

s in

dust

ry g

roup

com

pris

es e

stab

lishm

ents

prim

arily

en

gage

d in

(1)

act

ing

as a

gent

s (i.

e., b

roke

rs)

in s

ellin

g an

nuiti

es a

nd in

sura

nce

polic

ies

or (

2) p

rovi

ding

oth

er

empl

oyee

ben

efits

and

insu

ranc

e re

late

d se

rvic

es, s

uch

as c

laim

s ad

just

men

t and

third

par

ty a

dmin

istr

atio

n.

See

exc

eptio

ns li

sted

und

er N

AIC

S

5231

, 523

9, 5

241,

541

5

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Insu

ranc

e an

d E

mpl

oyee

B

enefi

t Fun

ds52

51

Thi

s in

dust

ry g

roup

com

pris

es le

gal e

ntiti

es (

i.e.,

fund

s,

plan

s, a

nd/o

r pr

ogra

ms)

org

aniz

ed to

pro

vide

insu

ranc

e an

d em

ploy

ee b

enefi

ts e

xclu

sive

ly fo

r th

e sp

onso

r, fir

m,

or it

s em

ploy

ees

or m

embe

rs.

See

exc

eptio

ns li

sted

und

er N

AIC

S

5231

, 523

9, 5

241

Oth

er

Inve

stm

ent

Poo

ls a

nd

Fun

ds

5259

Thi

s in

dust

ry g

roup

com

pris

es le

gal e

ntiti

es (

i.e.,

inve

stm

ent p

ools

and

/or

fund

s) o

rgan

ized

to p

ool

secu

ritie

s or

oth

er a

sset

s (e

xcep

t ins

uran

ce a

nd

empl

oyee

-ben

efit f

unds

) on

beh

alf o

f sha

reho

lder

s,

unith

olde

rs, o

r be

nefic

iarie

s.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

107

(f

air

use:

res

earc

h); s

ee a

lso

exce

ptio

ns

liste

d un

der

NA

ICS

334

1, 5

171,

518

1,

5415

Lega

l ser

vice

s54

11

Thi

s in

dust

ry c

ompr

ises

offi

ces

of le

gal p

ract

ition

ers

know

n as

law

yers

or

atto

rney

s (i.

e., c

ouns

elor

s-at

-law

) pr

imar

ily e

ngag

ed in

the

prac

tice

of la

w. E

stab

lishm

ents

in

this

indu

stry

may

pro

vide

exp

ertis

e in

a r

ange

or

in

spec

ific

area

s of

law

, suc

h as

crim

inal

law

, cor

pora

te

law

, fam

ily a

nd e

stat

e la

w, p

aten

t law

, rea

l est

ate

law

, or

tax

law

.

102(

b) (

idea

/exp

ress

ion

dich

otom

y);

105

(no

copy

right

in U

.S. g

over

nmen

t w

orks

); 1

07 (

fair

use:

res

earc

h); s

ee a

lso

exce

ptio

ns li

sted

und

er N

AIC

S 3

341,

51

81, 5

415,

517

1, 5

172,

517

4

Page 20: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 1

(co

nti

nu

ed):

Fai

r U

se In

du

stry

Defi

nit

ion

s

Ind

ust

ryN

AIC

S

Co

des

Det

aile

d N

AIC

S D

escr

ipti

on

Rel

ian

ce o

n F

air

Use

Man

agem

ent,

scie

ntifi

c,

& te

chni

cal

cons

ultin

g se

rvic

es

5416

The

indu

stry

NA

ICS

541

61 c

ompr

ises

est

ablis

hmen

ts

prim

arily

eng

aged

in p

rovi

ding

adv

ice

and

assi

stan

ce

to b

usin

esse

s an

d ot

her

orga

niza

tions

on

man

agem

ent

issu

es, s

uch

as s

trat

egic

and

org

aniz

atio

nal p

lann

ing;

fin

anci

al p

lann

ing

and

budg

etin

g; m

arke

ting

obje

ctiv

es

and

polic

ies;

hum

an r

esou

rce

polic

ies,

pra

ctic

es, a

nd

plan

ning

; pro

duct

ion

sche

dulin

g; a

nd c

ontr

ol p

lann

ing.

E

stab

lishm

ents

pro

vidi

ng s

anita

tion

or s

ite r

emed

iatio

n co

nsul

ting

serv

ices

are

incl

uded

in th

is in

dust

ry.

102(

a) (

non-

copy

right

abili

ty o

f fac

ts);

10

2(b)

(id

ea/e

xpre

ssio

n di

chot

omy)

; 10

7 (f

air

use:

sch

olar

ship

, res

earc

h,

com

men

t, cr

itici

sm);

see

als

o ex

cept

ions

lis

ted

unde

r N

AIC

S 3

341,

518

1, 5

112,

54

15, 5

171,

517

2, 5

19, 3

3331

5, 3

3441

3

See

abo

ve.

See

ab

ove.

The

indu

stry

NA

ICS

541

62 c

ompr

ises

est

ablis

hmen

ts

prim

arily

eng

aged

in p

rovi

ding

adv

ice

and

assi

stan

ce to

bu

sine

sses

and

oth

er o

rgan

izat

ions

on

envi

ronm

enta

l is

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),

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; see

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1,

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IV. METHODOLOGY AND DATA SOURCES

a. Methodology

Using primarily U.S. government data, the study quantifies the economic contribution of core and non-core industries based on five economic measures: revenue, value added, employment, payroll, and exports.25 For each item, we compiled data for 2002 and 2006. These two data points provide recent snapshots of economic activity and also serve to highlight the growth trend. As discussed below in each subpart, due to the newness of the Internet economy and lags in the publication of 2006 information, detailed data were, in some cases, limited. Where data were lacking, the discussion contained in Appendix I describes the methodology and alternative data sources relied on to fill in the gaps and/or report data on a common basis.

i. Revenue

The revenue data for the core and non-core industries was based on statistics issued by the Department of Commerce. The underlying revenue data for each industry appear in Table 1 of Appendix II. Although the Department’s Bureau of Economic Analysis (BEA) publishes data on gross output, defined as the market value of an industry’s production, the BEA data currently are presented according to the 1997 NAICS, which does not break out gross output separately for Internet industry sectors, such as Internet publishing and broadcasting, Internet service providers, and web search portals. More detailed Internet industry-specific data are not available until the 2002 revision of the NAICS codes. Thus, the 2002 Economic Census, which presents revenue data using both the 1997 and 2002 NAICS codes, is the best source of market value of output for the Internet-based, core industries.26, 27

�� This approach is consistent with the WIPO Guide which suggests measuring the size of the industries as a percentage of GDP, employ-ment, and foreign trade. WIPO Guide at 36.

�� The Economic Census presents data on sales, shipments, re-ceipts, revenue, or business done. The specific measure used is industry-dependent. For example, for manufacturing establishments, the Economic Census presents data on the net selling values, f.o.b. mine or plant after discounts and allowances (exclusive of freight and excise taxes), of all products shipped. For information industries, the Economic Census presents data on gross receipts from customers or clients for services provided, from the use of facilities, and from merchandise sold. In this report, we refer to sales data from the Eco-nomic Census as “revenue.” See Economic Census descriptions at http://www.census.gov/econ/census02/text/sector00/00rcptot.htm.

�� For some industries, such as insurance and legal services, gross output data are used because revenue data differs markedly from gross output data.

For core and non-core industries, we estimated 2006 revenue using official data releases, estimates from industry publications and the trade press, or by applying prior years’ growth rates in gross output to 2005 data.

After compiling the 2006 revenue data by industry, we summed the data to obtain the estimated revenue associated with core and non-core industries that benefit from fair use.

ii. Value Added

While revenue data are an important measurement of company growth, value added data are a better indicator of the contribution of an industry to overall economic growth. The reason is simple. Revenues include the values of intermediate inputs purchased from other industries and from within the same industry. As a result, neither revenue nor gross output can be compared to Gross Domestic Product (GDP), which is based on total value added and is the most commonly used measure of national economic output.

In contrast, value added excludes intermediate purchases, and thereby captures the value that is added by the labor and capital resources within each industry. Industry value added is analogous to GDP, and can be used to assess the contribution of an industry or industries to U.S. economic growth.

Because value added data are reported at a higher level of aggregation than most of the industries covered in this study, we estimated the 2002 and 2006 value added for fair use industries using the following three step process. First, gross output data was aggregated to the same level of detail as value added data. Second, we computed the ratio of value added to gross output for 2002 and 2005 for the industries offering the best match for each core or non-core industry. Third, we applied the 2002 and 2005 ratios to industry revenue or gross output data for 2002 and 2006 respectively. The resulting estimates for value added were summed to calculate the total value added for core and non-core industries.

iii. Payroll

Payroll data are available for 2002 on a detailed basis according to the 2002 NAICS. As 2006 data by industry were unavailable at the time this report was prepared, we estimated the 2006 payroll figures by applying the 2002 ratio of payroll to value added to the 2006 estimate for value added.28 For each year, the payroll estimates are summed together for core and non-core industries.

�� An alternative approach would be to apply the BEA’s 2005 data on value added to its payroll data. We used the 2002 data as a base because, due to the NAICS codes, it offers more detailed coverage of the core Internet industries.

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iv. Employment

The government publishes annual estimates for employment levels by industry group and industry. The data are summed for 2002 and 2006 to derive values for core and non-core employment.

v. Trade

The government publishes detailed merchandise trade data on the basis of the Harmonized Tariff System. The government also converts these data to a NAICS basis. Data on services trade are reported at a relatively high level of aggregation. As a result, the export data shown in the tables do not distinguish between core and non-core exports. As an alternative, the export data are reported separately between exports of fair use goods and exports of fair use services.

b. Data sources

The main data sources used in this study are the 2002 Economic Census, which is carried out by the Census Bureau of the Department of Commerce; the Bureau of Economic Analysis (BEA) reports on industry gross output and value added; and the Bureau of Labor Statistics of the Department of Labor, which publishes industry employment data on a monthly basis. All the publications and data are available on the web sites maintained by these agencies.29 Other agency databases and reports, described below, were used to complete the data series. The data summarized and presented in this report are provided in Appendix II.

The data tables provided in the 2002 Economic Census contain detailed information on industry revenue, number of establishments, number of employees, and industry payroll.30 The Economic Census is the source for the 2002 revenue and payroll figures in this report. The Census releases the data on a rolling basis, with the later publications containing the most revised data. The final publications of the 2002 Economic Census were released in July 2006. The document Bridge Between 2002 NAICS and 1997 NAICS: 2002 served as the source for new industries with new NAICS codes. The document Comparative Statistics: 2002 was the source for industries whose NAICS categories

�� The BEA publishes more highly aggregated industry data in its monthly journal, Survey of Current Business. The detailed data on the BEA’s web site (http://www.bea.gov) include data that are excluded from published industry estimates because the quality of the un-published estimates is significantly less than that of the higher level aggregates in which they are included. According to BEA, the more detailed industry estimates are more likely to be based on judg-ment trends, on trends in higher level aggregates, or on less reliable source data.

�0 Data are presented separately for employers and non-employers.

that did not change with the 2002 revision. In cases where neither the bridge document nor the comparison document contains estimates for industry revenue at the desired level of detail, the data maintained on the Census website are used.

For 2006, industry revenue is derived from a number of sources, including the Quarterly Services Survey; Monthly Wholesale Trade: Sales and Inventories; historical data from the Advance Monthly Sales for Retail and Food Services, Manufacturers’ Shipments, Inventories, and Orders; and the Current Industrial Reports series, all published by Census. For industries where official 2006 revenue data were unavailable, estimates were derived from trends in the BEA’s gross output data, or by applying trends in output and producer prices from databases maintained by the Federal Reserve and the BLS, respectively. In a few instances, industry estimates were based on industry-published or trade press data.31

The value added ratios are sourced from the BEA website, which contains a number of tables detailing gross output, value added, and the components of value added for 1998 to 2005. The BEA data on value added are presented at a higher level of aggregation than the gross output data, but the BEA’s data files contain concordances between the two sets of data that facilitate the calculation of the appropriate ratios.

Data on employment levels in 2002 and 2006 are reported on the BLS website, which presents data on a highly detailed basis for both years using 2002 NAICS-based categories.

Data on fair use exports are sourced from the United States International Trade Commission (USITC), which maintains an online database of merchandise trade, and from the BEA, which maintains trade in services data.

�� Certain revenue estimates were drawn from the Semiconductor Industry Association, Rentrak’s Home Video Essentials, and Supplier Relations US.

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VI. ECONOMIC CONTRIBUTION OF FAIR USE INDUSTRIES

Using the data sources and methodologies described above, this Part presents estimates of the revenues, value added, payroll, employment levels, productivity, and trade of the industries benefiting from fair use and the Internet. Estimates are presented for both core and non-core industries.

a. Revenue

Chart 1 illustrates the estimated revenues for the fair use related core and non-core industries for 2002 and 2006. The data indicate that core and non-core industry revenues totaled $3.5 trillion dollars in 2002. The core group of fair use industries accounted for $1.8 trillion dollars in revenue, approximately 52 percent of the total. The non-core industries accounted for $1.7 trillion, 48 percent of the total.

By 2006, the revenue generated by fair use industries had increased by 31 percent over the 2002 level to $4.5 trillion. Over the four year period, the core industries had become a much larger component of the fair use economy. Core industry revenue in 2006 was $2.5 trillion, 56 percent of the fair use total. Non-core industry revenue in 2006 amounted to $2 trillion, 44 percent of the total, From 2002 to 2006, core fair use revenues expanded by 42 percent, while non-core revenues expanded by 20 percent.

The strong revenue growth by the core industries has been driven by growth in several industries. In percentage terms, the most significant growth occurred in electronic shopping; audio and video equipment manufacturing; and the industry comprised of Internet publishing and broadcasting, Internet service providers and web search portals, and other information services.

b. Value Added

Value added measures the contribution of each industry’s labor and capital to its gross output and to GDP. Industry value added equals an industry’s gross output minus its purchased intermediate inputs. As such, an industry’s value added does not include value added by another industry or double count own-industry value added.

Value added in 2002 for the fair use industries defined in this report are shown in Chart 2. Total value added was an estimated $1.7 trillion in 2002, with the core industries accounting for nearly $1 trillion, and non-core industries accounting for $707 billion. Although the industry value added is significantly less than core and non-core revenue, the value added data show that these industries represented nearly one-sixth of (16.2 percent) of current dollar U.S. GDP in 2002.32 The core share of GDP was 9.4 percent, while the non-core share of GDP was 6.8 percent. By 2006, fair use-related industry value added increased 30 percent to an estimated $2.2 trillion. The value added for the core group of fair use industries expanded to $1.4 trillion, an increase of 39 percent during the four-year period. The value added of the non-core industries was $832 billion, an 18 percent increase over non-core value added in 2002.

�� U.S. GDP in current dollars was $10.5 trillion in 2002 and $13.2 trillion in 2006. For a time series of U.S. current dollar and real GDP, see http://www.bea.gov/national/xls/gdplev.xls.

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In total, fair use industries accounted for 16.6 percent of the U.S. current dollar GDP in 2006. The core industries’ share of GDP expanded from 9.4 percent in 2002 to 10.3 percent in 2006. The non-core industries’ share of GDP declined from 6.8 percent in 2002 to 6.3 percent in 2006. In all, the core and non-core fair use industries contributed $507 billion to U.S. GDP growth during the 2002 to 2006 period, accounting for 18 percent of U.S. current dollar economic growth.

In contrast to nominal GDP, real GDP controls for inflation, and is therefore a better indicator of a country’s true economic growth. In many of the fair use industries, prices declined during the 2002-to-2006 period, meaning that the real growth of value added was even larger than implied by the current dollar growth of value added. When inflation is taken into account, the growth contribution of the core industries to U.S. output growth during 2002 to 2006 was 24.8 percent.33

The growth trends for the fair use economy likely understate its impact. For example, the e-commerce wholesale revenues detailed under specific NAICS codes in the Economic Census only cover electronic trade by establishments engaged in wholesaling. Thus, the commercial activities of manufacturers and merchant wholesalers engaging in e-commerce are excluded from the above revenues and value added estimates.34

�� The estimation procedure for the core contribution to real GDP growth is shown in Appendix II, Table 6.

�� Based on Census Bureau surveys, it is believed that approxi-mately 15 percent of business-to-business e-commerce occurs over the Internet. Using this assumption and other data in the e-com-merce surveys, an estimated $150 billion in revenues and $20 billion in value added can be attributed to the Internet and the fair use economy in 2006. See, for example, U.S. Census Bureau, E-Stats (May 25, 2006), which estimates electronic commerce for wholesale trade and manufacturers.

c. Employment and Payroll

The fair use-related industries measured in this report are major employers in the U.S. economy. Chart 3 below shows the number of employees for 2002 and 2006. The exhibits indicate that employment related to fair use was 16.9 million in 2002 and increased to 17.3 million in 2006.

Employment in the core industries increased from 10.5 million employees in 2002 to 10.8 million employees in 2006. Employment in the non-core industries was virtually unchanged at 6.4 million employees in 2002 and 2006. In 2002, employment in fair use industries accounted for somewhat less than 13 percent of total non-farm employment in the United States.35 That is, about one out of every eight workers in the United States is employed in an industry that benefits from the protection afforded by fair use.

While employment levels have been relatively stable, the payrolls of fair use industries have been expanding. Chart 4 indicates that payroll of all fair use industries increased from $909 billion in 2002 to $1.2 trillion in 2006, an increase of 31 percent. In 2002, core industry payroll was $561 billion, accounting for 62 percent of total fair use payrolls. In 2006, core industry payroll was $781 billion, accounting for 66 percent of total fair use payroll. From 2002 to 2006, the payroll of core industries grew by 39 percent, while the payroll of non-core industries grew by 17 percent.

�� Data on employment by industry are available at http://www.bls.gov/ces/home.htm#data. See series CEU0000000001.

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The combination of stable employment levels and increasing payrolls has produced a sizeable increase in payroll per employee at fair use related firms. Table 2 below indicates that payroll per employee expanded from approximately $54,000 per year in 2002 to $69,000 in 2006. For the core industries, payroll per employee expanded from approximately $54,000 to $72,000.36

�� Because there was no corresponding payroll data for NAICS 5251 (insurance and employee benefit funds), employees from this industry were excluded from the calculations.

d. Productivity

On the supply side, a country’s economic growth depends overwhelmingly on two factors: changes in the level of productive inputs such as labor and capital and the productivity with which those inputs are used. In other words, an economy experiences economic growth if it adds inputs (e.g., more workers and more machines), increases the output associated with a given level of inputs, or does both.

In order to improve the earnings for each productive unit, by increasing real hourly wages, for example, it is necessary to increase productivity.37 Rising productivity is therefore the key to long-term improvements in living standards.

A large body of work attributes the higher productivity growth during and after the late 1990s to IT-producing sectors serving the new economy, and recent work indicates that IT-using industries, not just IT-producing industries, are increasing productivity as well.38

One measure of productivity is value added per employee, which is an indicator of labor productivity. Table 3 contains estimates of labor productivity for the core and non-core fair use industries.

�� For example, if growth is achieved solely by adding workers with-out increasing productivity, then wages will not rise in the long term.

�� See, for example, Erik Brynjolfsson and Lorin M.Hitt, “Computing Productivity: Firm-Level Evidence” (June 2003); MIT Sloan Working Paper No. 4210-01. Dale W. Jorgenson and Kevin J. Stiroh, Raising the Speed Limit: U.S. Economic Growth in the Information Age (May 1, 2000); Tarek M. Harchaoui, Faouzi Tarkhani & Bilkis Khanam, “Information Technology and Economic Growth in the Canadian and U.S. Private Economies,” in Jorgenson, ed., Economic Growth in Canada and the United States in the Information Age (2004); Eco-nomic Report of the President: 2002 (GPO: February 2002) at 58-60; and J. Steven Landenfled and Barbara M. Fraumeni, “Measuring the New Economy,” Survey of Current Business (March 2001) at 23-39.

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The data indicate that there has been strong productivity growth in both the core and non-core industries. Productivity in the fair use economy far exceeds economy-wide productivity, which was approximately $90,000 per employee in 2006.39

The fair use-related industries not only achieve higher than average productivity levels, but they have experienced strong productivity growth during the past four years.

e. Trade

The globalization of the U.S. economy has been one of the primary trends influencing the U.S. economy in recent decades. U.S. trade in goods and services now account for nearly 28 percent of U.S. GDP.40 While the United States runs a large deficit in merchandise trade, it traditionally has run a surplus in services trade, and is believed to hold a comparative advantage in many service sectors. In 2006, the United States surplus in services trade was $81.6 billion.41

Exports are an increasingly important source of sales for firms benefiting from fair use. U.S. manufacturers have a long history in foreign markets, but many Internet firms are relatively new exporters. Due to cross country differences in copyright law and the importance of the Internet to the U.S. economy, U.S. trade officials have been seeking to incorporate fair use limitations and exceptions into free trade agreements. Such provisions are necessary for U.S. Internet service exporters, such as ISPs and search engines, to fully exercise their comparative advantages in foreign markets.

Though the revenue from the goods and services exports of fair use industries are included in the revenues and value added already measured above, they are also reported separately in order to highlight the growing importance of trade to those industries.

�� Based on BEA data for all industries, labor productivity was $88,203 per employee in 2005, the latest year for which data were available at the time this report was written. According to BLS, out-put per hour increased by 1.6 percent in 2006.

�0 See Bureau of Economic Analysis, Gross Domestic Product: First Quarter 2007 (Advance), (April 27, 2007). Exports of goods and services in 2006 were $1,466 billion, imports were $2,228 billion, and U.S. current dollar GDP was $13,247 billion.

�� Id. U.S. service exports in 2006 totaled $430.8 billion, while service imports totaled $349.2 billion.

Chart 5 shows estimated fair-use industry exports. From $131 billion in 2002, fair-use industry related exports increased by nearly 50 percent to an estimated $194 billion in 2006.42 Due to the high level of aggregation of services trade data, it is not practical to distinguish between core and non-core exports. Instead, Chart 5 breaks down exports into goods and services.

Unlike overall exports, which are dominated by merchandise, fair use industry exports are oriented toward services. Financial services constitute the largest portion of fair use service exports, while computers are the major product category of merchandise exports among the fair use industries. Exports of trade-related services, including Internet or online services, rose from $578 million in 2002 to an estimated $2.6 billion in 2005, representing an annual growth rate of 65 percent, the most rapid growth among all the industries represented.43

�� A detailed breakdown of other private service exports for 2006 was not available at the time this report was written. Thus, the ser-vice exports in Chart 5 for 2006 are estimated based on the growth rate for all exports of other private services in 2006.

�� The estimate for 2006 is $2.9 billion in exports. See Appendix II, Table 5.

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VII. CONCLUSIONS

The U.S. economy is an increasingly knowledge-based economy that benefits from the dynamic diversity of core and non-core fair use industries. These knowledge-based industries in turn spur production of additional goods and services that further fuel economic growth.

The Internet and information technology revolution have transformed how information is transmitted and used.44 As a result, the U.S. economy has benefited from the creation and rapid expansion of new industries, and a revival of productivity growth that supports higher living standards.

The growth of the Internet did not occur, of course, in a vacuum. In addition to technological advancements, enlightened limitations and exceptions to U.S. copyright law have nurtured Internet industries by providing space for them to develop and expand their service offerings to meet the needs of consumers and businesses. This transformation has led to a surge in Internet usage, and spurred purchases of Internet infrastructure and computers, the development of new Internet applications, and an explosion of Internet-based transactions that benefit consumers and a broad range of businesses.

This report has sought to measure the footprint of fair use on the U.S. economy. It has considered not only the core fair use industries, but also the suppliers of goods and services to the fair use core and major users.

The research indicates that the industries benefiting from fair use and other limitations and exceptions make a large and growing contribution to the U.S. economy. The fair use economy in 2006 accounted for $4.5 trillion in revenues and $2.2 billion in value added, roughly 16.2 percent of U.S. GDP. It employed more than 17 million people and supported a payroll of $1.2 trillion. It generated $194 billion in exports and rapid productivity growth.

The protection afforded by fair use has been a major contributing factor to these economic gains, and will continue to support growth as the U.S. economy becomes even more dependent on information industries.

�� Brian Kahin and Dominique Foray, eds., Advancing Knowledge and the Knowledge Economy (MIT Press, 2006) at ix.

REFERENCESEinhorn, Michael A. Media, Technology and Copyright: Integrating Law

and Economics. (Northampton, MA: Edward Elgar Publishing, 2004)

Kahin, Brian and Foray, Dominique, eds. Advancing Knowledge and the Knowledge Economy. (Cambridge, MA: MIT Press, 2006).

Kahin, Brian and Varian, Hal R., eds. Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property. (Cambridge, MA: MIT Press, 2000).

Landefeld, Steven J., and Barbara, Fraumeni. “Measuring the New Economy,” Survey of Current Business. March 2001.

Stanley-Allen, Karla L., Empey, Nicholas R., et al. “Preview of the Benchmark Input-Output Accounts for 2002: Preliminary Estimates of Gross Output; Proposed Classification Framework.” Survey of Current Business. September 2005.

Siwek, Stephen E. Copyright Industries in the U.S. Economy: The 2006 Report, prepared for the International Intellectual Property Alliance (IIPA), November 2006, available at www.iipa.com.

Varian, Hal R. “Copying and Copyright.” April 2004 (Revised March 29, 2005).

Varian, Hal R., Farrell, Joseph, and Shapiro, Carl. The Economics of Information Technology. (New York: Cambridge University Press, 2004).

U.S. Census Bureau, Department of Commerce. E-Stats. May 25, 2006.

U.S. Census Bureau, Department of Commerce. Monthly Retail Sales & Seasonal Factors, 1992 - 2007 (Adjusted), at http://www.census.gov/svsd/advretl/view/adv44300.txt

U.S. Census Bureau, Department of Commerce. Monthly Wholesale Trade: Sales and Inventories, at http://www.census.gov/mwts/www/historic1.xls.

U.S. Census Bureau, Department of Commerce. Quarterly Retail E-Commerce Sales. May 16, 2007.

World Intellectual Property Organization, Guide on Surveying the Economic Contribution of the Copyright-Based Industries. Geneva: 2003.

Page 28: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Description of Methodology

This appendix describes the data sources and estimation methodologies used to derive the various measure of economic activity presented in this study.

There are six types of data used in this report: industry revenue, value added, payroll, employment, and exports. The sources and estimation techniques for each are discussed below.

a. Revenues

There are two sources of data on detailed industry output: the Bureau of Economic Analysis (BEA) and the Bureau of the Census (Census), both of which reside in the Department of Commerce. The Bureau of Economic Analysis maintains the official GDP-by-industry accounts. These accounts include annual data on gross ouput, value added, compensation, and employment at detailed levels. The Bureau of the Census conducts the Economic Census every five years and presents monthly and quarterly data on industry sales. The Economic Census, provides data on the number of establishments, revenues, payroll, and paid employees at an even greater level of detail than the BEA’s GDP-by-industry accounts.

This study employs both the GDP-by-industry accounts and the Economic Census. As noted in the text, at the time of this writing, the former was still being organized on the basis of the 1997 NAICS, which does not contain sufficient detail on the Internet-based industries of interest. Because the Economic Census contains data on the basis of both the 1997 NAICS and the 2002 NAICS, we used data from the 2002 Economic Census as the starting point for the detailed industry estimates. The Economic Census is released in stages, with the latter documents containing the most accurate data. For this report, the main sources of Census data were the 2002 Economic Census--Bridge Between 2002 NAICS and 1997 NAICS: 2002, and the 2002 Economic Census--Comparative Statistics: 2002

To make the study more relevant, we also decided to present data for 2006. At the time of this writing, the detailed GDP-by-industry accounts had not yet been updated to 2006. It was thus necessary to collect revenue data from a number of sources including monthly, quarterly, and annual releases by the Bureau of the Census and information provided by the trade press, industry associations, or for-profit industry studies. For some industries, data were not readily

APPENDIX I

available. In those cases, we estimated the 2006 figures by using BEA’s data on gross output through 2005.

The detailed 2002 and 2006 revenue data appear in Appendix II, Table 1. The right-hand column contains information on the particular data source used for the 2006 data. The 2002 data are in most cases sourced from the Economic Census. However, there were exceptions. For example, Census data on insurance carrier industry revenues were extremely large in relation to the BEA’s gross output data. Given that the methodology used to derive industry value added assumes a reasonable comparability between gross output and revenue, the Census’ value for the insurance industry would lead to a large overstatement of that industry’s value added. For the insurance industry, we used the BEA’s data on gross output instead of the Census data. Gross output data are also used for legal and consulting services because a significant share of sales in those industries is made by firms without employees. Data from non-employers are not covered in the two Census publications used for this report.

The creation of the 2006 dataset required several estimation techniques. The BEA’s data on gross output through 2005 were used as benchmarks for assessing the data from other official releases. In several industries, 2006 data were readily available and were consistent with data on gross output. In such cases, we simply used the official data. When the data from the official release was not consistent with data on gross output (i.e., the release data was significantly less than gross output, or covered a more highly aggregated sector) the growth rate implied by the official data was used to estimate 2006 revenue. In other cases, the data sample had changed during the year, and only partial year data were available. In those cases, growth rates from an earlier release were used to estimate full year 2006 data. In some instances, data from the producer price index and industrial production index were used to update the 2005 data to 2006. In other cases, the 2006 value was estimated by applying the 2002 to 2005 growth rate of industry gross output to 2005 data.

The estimated 2006 values are likely less accurate than the published 2002 Census data, but we believe they are reasonably accurate approximations.

b. Value Added

Value added is equal to an industry’s gross output minus its intermediate inputs. The value added for each industry was estimated by applying a value added factor to the revenue data. The BEA’s GDP-by-industry accounts contain data on both gross output and value added by industry. The BEA’s industry aggregations are at the two and three-digit NAICS level, while the industries in this study are almost always 4-or-more digit industries. In order to estimate industry value added, industry revenue was multiplied by the value-added-to-gross-output ratio of the appropriate three-digit industry. For example, the software industry (1997 NAICS 5112) accounted for an estimated $132 billion in revenue in 2006. The software industry is considered a publishing

Page 29: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

industry (1997 NAICS 511). To calculate value added for the software industry, we compute the value-added-to-gross-output ratio for NAICS 511 (150,244 / 268,169 = 0.56) for 2005 and applied that factor to $132 billion for a value added in 2006 of $73.7 billion.

To assess the accuracy of this approach we summed the information industry categories used in this report and compared the growth of value added from 2002 to 2006 to the growth value added for the Information sector (NAICS 51) in the BEA’s GDP-by-industry accounts. The growth rates were extremely close (19.3 percent for the study sample versus 19.7 percent for the NAICS 51).

c. Payroll

Payroll includes all forms of compensation, such as salaries, wages, commissions, dismissal pay, bonuses, vacation allowances, sick-leave pay, and employee contributions to qualified pension plans paid during the year to all employees and reported as taxable Medicare Wages and tips. The 2002 data on industry payroll are published in the 2002 Economic Census, the same source used for the revenue data. The 2006 payroll data were estimated based on industry value added estimates for 2006. Specifically, we assumed that in 2006, the ratio of value added to revenue was unchanged from the ratio that prevailed in 2002. To estimate payroll in 2006, 2006 value added was multiplied by the 2002 ratio of payroll to value added. For example, payroll of NAICS 334413, semiconductor and related device manufacturing, was $9.8 billion in 2002, while value added was an estimated $21.7 billion. To derive industry payroll in 2006, the ratio of payroll to value added in 2002, 0.452 was multiplied by estimated value added in 2006, $29.2 billion. Based on this methodology, the payroll of NAICS 334413 in 2006 was an estimated $13.2 billion.

d. Employment

Data on the number of employees by industry are available for both 2002 and 2006 from the Bureau of Labor Statistics. No estimation was required.

e. Foreign Trade

Data on industry merchandise exports are available for both 2002 and 2006 from the USITC. The data for service exports by industry, published by the BEA, are available through 2005 at the time of this writing. To estimate 2006 data, we used Census estimates for “other private services”, which are published in the Census’ FT900, the monthly release of U.S. foreign trade data. This bucket category includes the fair use services industries, though at a higher level of aggregation than data on output and employment. The growth rate of “other private services” exports in 2006 was calculated from the FT900 and applied to the 2005 BEA data on exports by the individual fair use services industries. Ta

ble

1:

Ind

ust

ry R

even

ue

Dat

a fo

r F

air

Use

Ind

ust

ries

(M

illio

ns

of

do

llars

)

Co

re In

du

stri

es

2002

NA

ICS

Co

des

Des

crip

tio

n20

0220

06

3333

15P

hoto

grap

hic

& p

hoto

copy

ing

equi

pmen

t mfg

2,

139

2,39

4

3341

Com

pute

r an

d pe

riphe

ral e

quip

men

t m

anuf

actu

ring

73,5

6260

,852

3343

Aud

io &

vid

eo e

quip

men

t man

ufac

turin

g8,

522

13,1

09

3344

13S

emic

ondu

ctor

s an

d re

late

d de

vice

m

anuf

actu

ring

61,4

7182

,307

3346

Man

ufac

turin

g an

d re

prod

ucin

g m

agne

tic a

nd

optic

al m

edia

7,55

07,

954

4541

11E

lect

roni

c sh

oppi

ng24

,057

110,

059

4541

12E

lect

roni

c au

ctio

ns90

44,

135

5111

1N

ewsp

aper

pub

lishe

rs46

,179

49,0

28

5111

4, 5

1119

Dire

ctor

y, m

ailin

g lis

t, an

d ot

her

publ

ishe

rs24

,422

25,1

02

5112

Sof

twar

e pu

blis

hers

103,

597

131,

598

5161

Inte

rnet

pub

lishi

ng a

nd b

road

cast

ing

6,50

949

,707

5181

Inte

rnet

ser

vice

pro

vide

rs a

nd w

eb s

earc

h po

rtal

s21

,566

519

Oth

er in

form

atio

n se

rvic

es4,

908

5182

Dat

a pr

oces

sing

, hos

ting,

and

rel

ated

ser

vice

s57

,706

70,2

20

5231

Sec

uriti

es, c

omm

odity

con

trac

ts, a

nd

inve

stm

ents

212,

236

354,

776

AP

PE

ND

IX I

I

Page 30: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

AP

PE

ND

IX I

ITa

ble

1 (

con

tin

ued

) :

Ind

ust

ry R

even

ue

Dat

a fo

r F

air

Use

Ind

ust

ries

(M

illio

ns

of

do

llars

)

Co

re In

du

stri

es (

con

tin

ued

)

2002

NA

ICS

Co

des

Des

crip

tio

n20

0220

06

5121

Mot

ion

pict

ure

and

vide

o in

dust

ries

62,9

5195

,726

5122

Sou

nd r

ecor

ding

indu

strie

s15

,338

5239

Oth

er fi

nanc

ial i

nves

tmen

t act

iviti

es10

2,80

915

3,99

0

5241

Insu

ranc

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rrie

rs33

2,46

048

0,54

3

5259

Oth

er in

vest

men

t poo

ls a

nd fu

nds/

22,8

7432

,120

5322

3V

ideo

tape

and

dis

c re

ntal

9,36

410

,288

5411

Lega

l ser

vice

s18

2,09

826

1,47

2

5413

Arc

hite

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ngin

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ervi

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235,

812

5414

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88

5417

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115,

489

611a

Edu

catio

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1,30

015

6,06

6

7111

Per

form

ing

arts

com

pani

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,864

11,3

96

7115

Inde

pend

ent a

rtis

ts, w

riter

s, a

nd p

erfo

rmer

s9,

338

9,50

7

8112

12C

ompu

ter

and

offic

e m

achi

ne r

epai

r an

d m

aint

enan

ce6,

380

7,20

2

Cor

e In

dust

ries

Tota

l1,

790,

647

2,54

1,34

1

AP

PE

ND

IX I

ITa

ble

1 (

con

tin

ued

) :

Ind

ust

ry R

even

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Dat

a fo

r F

air

Use

Ind

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(M

illio

ns

of

do

llars

)

No

n-C

ore

Ind

ust

ries

2002

NA

ICS

Co

des

Des

crip

tio

n20

0220

0632

30P

rintin

g an

d re

late

d su

ppor

t act

iviti

es95

,592

91,3

93

3342

Com

mun

icat

ions

equ

ipm

ent m

anuf

actu

ring

66,1

4371

,802

3359

20C

omm

unic

atio

n an

d en

ergy

wire

and

cab

le

man

ufac

turin

g11

,360

13,6

10

4234

301

Com

pute

r &

per

iphe

ral e

quip

mer

chan

t w

hole

sale

rs

217,

790

250,

630

4234

302

Com

pute

r so

ftwar

e (p

acka

ged)

mer

chan

t w

hole

sale

rs

14,7

3016

,951

4251

1B

usin

ess

to b

usin

ess

elec

tron

ic m

arke

ts2,

765

12,1

90

4236

2E

lect

ric a

pplia

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TV

& r

adio

mer

chan

t w

hole

sale

rs

59,8

3078

,696

4236

901

Com

mun

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ions

equ

ipm

ent &

sup

p m

erch

ant w

hole

sale

rs

78,3

0910

3,00

0

4251

2036

Ele

ctric

al &

ele

ctro

nic

good

s ag

ents

&

brok

ers

50,6

1863

,223

4431

12R

adio

, tel

evis

ion

& o

ther

ele

ctro

nics

sto

res

48,4

5162

,820

4431

2C

ompu

ter

& s

oftw

are

stor

es16

,696

20,4

41

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AP

PE

ND

IX I

I Ta

ble

1 (

con

tin

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Ind

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even

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Dat

a fo

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(M

illio

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of

do

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)

No

n-C

ore

Ind

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ries

(co

nti

nu

ed)

2002

NA

ICS

Co

des

Des

crip

tio

n20

0220

0645

12B

ook,

per

iodi

cal,

and

mus

ic s

tore

s23

,096

24,7

98

5151

Rad

io &

tele

visi

on b

road

cast

ing

48,8

7357

,885

5152

Cab

le n

etw

orks

25,3

7539

,033

5171

Wire

d te

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mm

unic

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ns c

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1,94

819

9,34

4

5172

Wire

less

tele

com

mun

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car

riers

(e

xcep

t sat

ellit

e)99

,158

160,

015

5175

Cab

le a

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ther

pro

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91,8

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22,2

54

5232

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exc

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disc

lose

d N

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disc

lose

d 52

42A

genc

ies,

bro

kera

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and

oth

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sura

nce

rela

ted

activ

ities

126,

406

165,

459

5251

Insu

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t fun

ds N

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over

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5415

Com

pute

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stem

des

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and

rela

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serv

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173,

480

198,

441

5416

Man

agem

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serv

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14

0,63

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6,48

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Edu

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47,7

94

7113

Pro

mot

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of p

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,698

13,7

66

7114

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ager

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AP

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I Ta

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con

tin

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): In

du

stry

Rev

enu

e D

ata

for

Fai

r U

se In

du

stri

es (

Mill

ion

s o

f d

olla

rs)

So

urc

es:

1)

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—B

urea

u of

the

Cen

sus,

200

2 E

cono

mic

Cen

sus-

-Brid

ge B

etw

een

2002

NA

ICS

and

199

7 N

AIC

S: 2

002;

Bur

eau

of th

e C

ensu

s, 2

002

Eco

nom

ic C

ensu

s--C

ompa

rativ

e S

tatis

tics:

200

2; h

ttp://

ww

w.c

ensu

s.go

v/ec

on/c

ensu

s02/

data

/us/

US

000.

HT

M;

and

Bur

eau

of E

cono

mic

Ana

lysi

s at

http

://w

ww

.bea

.gov

/indu

stry

/gdp

byin

d_da

ta.h

tm

2)

2006

—D

ata

for

2006

are

eith

er a

ctua

l dat

a fr

om, o

r au

thor

s’ e

stim

ates

bas

ed o

n, B

urea

u of

Eco

nom

ic A

naly

sis

at h

ttp://

ww

w.b

ea.g

ov/in

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ry/g

dpby

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; Bur

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abor

Sta

tistic

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eral

Res

erve

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rd o

f G

over

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dust

rial p

rodu

ctio

n);

Sem

icon

duct

or I

ndus

try

Ass

ocia

tion

(Glo

bal B

illin

gs R

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the

Am

eric

as);

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trak

’s

Hom

e V

ideo

Ess

entia

ls ™

; Sup

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r U

S R

elat

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at w

ww

.min

dbra

nch.

com

; and

the

follo

win

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blic

atio

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om th

e B

urea

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Cen

sus:

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rent

Indu

stria

l Rep

orts

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(06)

and

MQ

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-4; Q

uart

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mer

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ales

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urve

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us is

sues

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thly

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lesa

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rade

: Sal

es a

nd In

vent

orie

s; M

onth

ly R

etai

l Sal

es a

nd

Sea

sona

l Fac

tors

; and

Ann

ual R

evis

ion

of M

onth

ly R

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l and

Foo

d S

ervi

ces:

Sal

es a

nd In

vent

orie

s Ja

nuar

y 19

92 th

roug

h F

ebru

ary

2007

.

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AP

PE

ND

IX I

I Ta

ble

2:

Ind

ust

ry V

alu

e A

dd

ed D

ata

for

Fai

r U

se In

du

stri

es (

Mill

ion

s o

f d

olla

rs)

Co

re In

du

stri

es

2002

NA

ICS

Co

des

Des

crip

tio

n20

0220

0633

3315

Pho

togr

aphi

c &

pho

toco

pyin

g eq

uipm

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fg

861

925

3341

Com

pute

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ral e

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men

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actu

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25,9

5521

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3343

Aud

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t man

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2

3344

13S

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d re

late

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Man

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edia

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lect

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7845

4112

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auct

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201

5111

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ewsp

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pub

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rs22

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27,5

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5111

4, 5

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Dire

ctor

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ailin

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publ

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rs12

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14,0

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5112

Sof

twar

e pu

blis

hers

51,1

2073

,987

5161

Inte

rnet

pub

lishi

ng a

nd b

road

cast

ing

3,05

7

25,3

9351

81In

tern

et s

ervi

ce p

rovi

ders

and

web

sea

rch

port

als

10,1

28

519

Oth

er in

form

atio

n se

rvic

es2,

305

AP

PE

ND

IX I

I Ta

ble

2 (

con

tin

ued

): In

du

stry

Val

ue

Ad

ded

Dat

a fo

r F

air

Use

Ind

ust

ries

(M

illio

ns

of

do

llars

)

Co

re In

du

stri

es (

con

tin

ued

)

2002

NA

ICS

Co

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Page 33: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

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PE

ND

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Page 34: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

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PE

ND

IX I

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Page 35: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

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PE

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Page 36: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

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PE

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Page 37: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

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rel

ated

ser

vice

s21

,398

28,3

25

Tab

le 4

(co

nti

nu

ed):

Ind

ust

ry P

ayro

ll D

ata

for

Fai

r U

se In

du

stri

es (

Mill

ion

s o

f d

olla

rs)

Co

re In

du

stri

es (

con

tin

ued

)20

02 N

AIC

S C

od

esD

escr

ipti

on

2002

2006

5231

Sec

uriti

es, c

omm

odity

con

trac

ts, a

nd

inve

stm

ents

69,0

4896

,163

5121

Mot

ion

pict

ure

and

vide

o in

dust

ries

10,4

0215

,885

5122

Sou

nd r

ecor

ding

indu

strie

s2,

251

5239

Oth

er fi

nanc

ial i

nves

tmen

t act

iviti

es30

,047

41,6

10

5241

Insu

ranc

e ca

rrie

rs83

,555

116,

567

5259

Oth

er in

vest

men

t poo

ls a

nd fu

nds/

1,28

31,

666

5322

3V

ideo

tape

and

dis

c re

ntal

1,66

61,

502

5411

Lega

l ser

vice

s69

,875

102,

827

5413

Arc

hite

ctur

al, e

ngin

eerin

g, a

nd r

elat

ed s

ervi

ces

66,7

0910

1,91

0

5414

3G

raph

ic d

esig

n se

rvic

es2,

769

3,68

0

5417

Sci

entifi

c re

sear

ch &

dev

elop

men

t ser

vice

s 43

,699

55,6

26

611a

Edu

catio

n se

rvic

es64

,579

86,2

53

7111

Per

form

ing

arts

com

pani

es3,

267

3,41

0

7115

Inde

pend

ent a

rtis

ts, w

riter

s, a

nd p

erfo

rmer

s4,

324

4,38

1

8112

12C

ompu

ter

and

offic

e m

achi

ne r

epai

r an

d m

aint

enan

ce2,

252

2,50

9

Co

re In

du

stri

es T

ota

l56

1,23

478

1,02

4

AP

PE

ND

IX I

I

Tab

le 4

(co

nti

nu

ed):

Ind

ust

ry P

ayro

ll D

ata

for

Fai

r U

se In

du

stri

es (

Mill

ion

s o

f d

olla

rs)

No

n-C

ore

Ind

ust

ries

2002

NA

ICS

Co

des

Des

crip

tio

n20

0220

0632

30P

rintin

g an

d re

late

d su

ppor

t act

iviti

es25

,626

26,7

52

3342

Com

mun

icat

ions

equ

ipm

ent m

anuf

actu

ring

10,6

9311

,675

3359

20C

omm

unic

atio

n an

d en

ergy

wire

and

cab

le

man

ufac

turin

g1,

715

1,85

6

4234

301

Com

pute

r &

per

iphe

ral e

quip

mer

chan

t w

hole

sale

rs

19,6

4922

,232

4234

302

Com

pute

r so

ftwar

e (p

acka

ged)

mer

chan

t w

hole

sale

rs

2,52

82,

860

4251

1B

usin

ess

to b

usin

ess

elec

tron

ic m

arke

ts62

269

4236

2E

lect

ric a

pplia

nce,

TV

& r

adio

mer

chan

t w

hole

sale

rs

2,20

22,

288

4236

901

Com

mun

icat

ions

equ

ipm

ent &

sup

p m

erch

ant

who

lesa

lers

9,

944

12,8

59

4251

2036

Ele

ctric

al &

ele

ctro

nic

good

s ag

ents

& b

roke

rs

1,46

42,

187

4431

12R

adio

, tel

evis

ion

& o

ther

ele

ctro

nics

sto

res

5,28

76,

577

4431

2C

ompu

ter

& s

oftw

are

stor

es1,

832

2,15

3

4512

Boo

k, p

erio

dica

l, an

d m

usic

sto

res

2,61

72,

696

5151

Rad

io &

tele

visi

on b

road

cast

ing

11,6

5512

,879

5152

Cab

le n

etw

orks

2,84

94,

088

AP

PE

ND

IX I

I

Page 38: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

Tab

le 4

(co

nti

nu

ed):

Ind

ust

ry P

ayro

ll D

ata

for

Fai

r U

se In

du

stri

es (

Mill

ion

s o

f d

olla

rs)

No

n-C

ore

Ind

ust

ries

(co

nti

nu

ed)

2002

NA

ICS

Co

des

Des

crip

tio

n20

0220

06

5171

Wire

d te

leco

mm

unic

atio

ns c

arrie

rs47

,805

36,7

46

5172

Wire

less

tele

com

mun

icat

ions

car

riers

(ex

cept

sa

telli

te)

13,1

1719

,748

5175

Cab

le a

nd o

ther

pro

gram

dis

trib

utio

n 8,

553

12,7

02

5173

, 517

4, a

nd 5

179

Oth

er te

leco

mm

unic

atio

ns2,

932

3,56

1

5232

Sec

uriti

es a

nd c

omm

odity

exc

hang

es

5242

Age

ncie

s, b

roke

rage

s, a

nd o

ther

insu

ranc

e re

late

d ac

tiviti

es37

,076

46,8

41

5251

Insu

ranc

e &

em

ploy

ee b

enefi

t fun

ds

5415

Com

pute

r sy

stem

des

ign

and

rela

ted

serv

ices

72,3

9983

,604

5416

Man

agem

ent,

scie

ntifi

c, &

tech

nica

l con

sulti

ng

serv

ices

43

,089

61,7

62

611b

Edu

catio

n se

rvic

es20

,930

26,4

14

7113

Pro

mot

ers

of p

erfo

rmin

g ar

ts, s

port

s, a

nd s

imila

r ev

ents

2,02

02,

366

7114

Age

nts

and

man

ager

s fo

r ar

tists

, writ

ers,

and

pe

rfor

mer

s1,

415

1,65

8

No

n-C

ore

Ind

ust

ries

To

tal

347,

459

406,

772

AP

PE

ND

IX I

I

AP

PE

ND

IX I

I Ta

ble

4 (

con

tin

ued

): In

du

stry

Pay

roll

Dat

a fo

r F

air

Use

Ind

ust

ries

(M

illio

ns

of

do

llars

)

So

urc

es:

1)

2002

—B

urea

u of

the

Cen

sus,

200

2 E

cono

mic

Cen

sus-

-Brid

ge B

etw

een

2002

NA

ICS

and

199

7 N

AIC

S: 2

002;

Bur

eau

of th

e C

ensu

s, 2

002

Eco

nom

ic C

ensu

s--C

ompa

rativ

e S

tatis

tics:

200

2; a

nd h

ttp://

ww

w.c

ensu

s.go

v/ec

on/c

ensu

s02/

data

/us/

US

000.

HT

M.

2)

2006

—A

utho

rs’ e

stim

ates

bas

ed o

n da

ta fr

om th

e ab

ove

sour

ces

and

from

dat

a m

aint

aine

d by

the

Bur

eau

of E

cono

mic

A

naly

sis

at h

ttp://

ww

w.b

ea.g

ov/in

dust

ry/g

dpby

ind_

data

.htm

.

Page 39: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

AP

PE

ND

IX I

I Ta

ble

5:

Exp

ort

Dat

a fo

r F

air

Use

Ind

ust

ries

(M

illio

ns

of

do

llars

)

Go

od

s20

0220

06P

rinte

d m

atte

r an

d re

late

d pr

oduc

ts, N

ES

OI

924

1,86

7

Pho

togr

aphi

c an

d ph

otoc

opyi

ng e

quip

men

t74

040

7

Com

pute

r eq

uipm

ent

29,1

5029

,780

Com

mun

icat

ions

equ

ipm

ent

16,7

8433

,027

Aud

io a

nd v

ideo

equ

ipm

ent

3,98

64,

232

Sem

icon

duct

ors

and

rela

ted

devi

ces

709

2,14

2

Mag

netic

and

opt

ical

med

ia32

21,

126

Com

mun

icat

ion

and

ener

gy w

ires

and

cabl

es70

21,

709

Sof

twar

e, N

ES

OI

312

1,00

7 AP

PE

ND

IX I

I Ta

ble

5 (

con

tin

ued

): E

xpo

rt D

ata

for

Fai

r U

se In

du

stri

es (

Mill

ion

s o

f d

olla

rs)

Ser

vice

s 1/

2002

2006

Fin

anci

al s

ervi

ces

21,9

4638

,187

Insu

ranc

e se

rvic

es4,

415

7,65

4

Tele

com

mun

icat

ions

3,89

05,

293

Edu

catio

n S

ervi

ces

12,6

2615

,824

Com

pute

r an

d in

form

atio

n se

rvic

es7,

093

9,23

2

Man

agem

ent a

nd c

onsu

lting

ser

vice

s4,

439

7,19

2

Res

earc

h, d

evel

opm

ent,

and

test

ing

8,14

211

,311

Tape

ren

tals

9,35

011

,629

Arc

hite

ctur

al, e

ngin

eerin

g, a

nd o

ther

tech

nica

l ser

vice

s1,

679

4,09

8

Lega

l ser

vice

s3,

099

4,82

5

Spo

rts

and

perf

orm

ing

arts

170

220

Tra

de-r

elat

ed s

ervi

ces

578

2,92

9

1/ A

t the

tim

e of

this

writ

ing,

BE

A d

ata

on s

ervi

ces

expo

rts

by in

dust

ry w

ere

only

ava

ilabl

e th

roug

h 20

05.

Val

ues

for

2006

wer

e es

timat

ed b

y ap

plyi

ng th

e gr

owth

rat

e of

the

cate

gory

“ot

her

priv

ate

serv

ices

,” w

hich

is a

vaila

ble

from

the

Bur

eau

of C

ensu

s.

Page 40: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

AP

PE

ND

IX I

I Ta

ble

5 (

con

tin

ued

): E

xpo

rt D

ata

for

Fai

r U

se In

du

stri

es (

Mill

ion

s o

f d

olla

rs)

So

urc

es:

1)

Goo

ds: U

SIT

C T

rade

Dat

aweb

at h

ttp://

data

web

.usi

tc.g

ov.

2)

Ser

vice

s: U

.S. D

epar

tmen

t of C

omm

erce

, Bur

eau

of E

cono

mic

Ana

lysi

s, B

alan

ce o

f Pay

men

ts D

ivis

ion

at h

ttp://

ww

w.b

ea.g

ov/

inte

rnat

iona

l/int

lser

v.ht

m, t

ab1b

; and

Bur

eau

of th

e C

ensu

s, F

T90

0: U

.S. I

nter

natio

nal T

rade

in G

oods

and

Ser

vice

s: F

ebru

ary

2007

(A

pril

13, 2

007)

at E

xhib

it 3.

AP

PE

ND

IX I

ITa

ble

6:

Est

imat

ed C

on

trib

uti

on

of

Co

re In

du

stry

Val

ue

add

ed t

o G

DP

(Mill

ion

s o

f d

olla

rs a

nd

Ind

ex v

alu

es, 2

000

= 1

00)

2002

N

AIC

S

Co

des

Des

crip

tio

n

No

min

al V

alu

e A

dd

edV

alu

e A

dd

ed P

rice

Ind

ex20

06 R

eal

Val

ue

Ad

ded

2002

2006

2002

2005

est.

20

0633

3315

Pho

togr

aphi

c &

pho

toco

pyin

g eq

uipm

ent m

fg

861

925

103.

510

1.9

102.

493

5

3341

Com

pute

r an

d pe

riphe

ral e

quip

men

t m

anuf

actu

ring

25,9

5521

,596

66.8

43.7

43.9

32,9

03

3343

Aud

io &

vid

eo e

quip

men

t m

anuf

actu

ring

3,00

74,

652

66.8

43.7

43.9

7,08

8

3344

13S

emic

ondu

ctor

s an

d re

late

d de

vice

m

anuf

actu

ring

21,6

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66.8

43.7

43.9

44,5

04

3346

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ufac

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g an

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prod

ucin

g m

agne

tic a

nd o

ptic

al m

edia

2,66

42,

823

66.8

43.7

43.9

4,30

1

4541

11E

lect

roni

c sh

oppi

ng5,

353

24,3

7899

.410

1.7

102.

323

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4541

12E

lect

roni

c au

ctio

ns20

199

.410

1.7

102.

3

5111

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ewsp

aper

pub

lishe

rs22

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27,5

1610

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95.5

92.9

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Dire

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t, an

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ishe

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97.0

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5112

Sof

twar

e pu

blis

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2073

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195

.592

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rnet

pub

lishi

ng a

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ing

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7

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27,8

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tern

et s

ervi

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rovi

ders

and

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se

arch

por

tals

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2810

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97.0

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er in

form

atio

n se

rvic

es2,

305

105.

699

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.0

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Dat

a pr

oces

sing

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ting,

and

re

late

d se

rvic

es27

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35,8

7310

5.6

99.6

97.0

39,0

87

Page 41: FAIR USE IN THE U.S. ECONOMY · 2016. 10. 10. · Fair use industries also grew at a faster pace than the overall economy. From 2002 to 2006, the fair use industries contributed $507

AP

PE

ND

IX I

ITa

ble

6 (

con

tin

ued

): E

stim

ated

Co

ntr

ibu

tio

n o

f C

ore

Ind

ust

ry V

alu

e ad

ded

to

GD

P(M

illio

ns

of

do

llars

an

d In

dex

val

ues

, 200

0 =

100

)

2002

N

AIC

S

Co

des

Des

crip

tio

n

No

min

al V

alu

e A

dd

edV

alu

e A

dd

ed P

rice

Ind

ex20

06 R

eal

Val

ue

Ad

ded

2002

2006

2002

2005

est.

20

0652

31S

ecur

ities

, com

mod

ity c

ontr

acts

, an

d in

vest

men

ts13

2,96

318

5,17

887

.481

.683

.919

2,96

0

5121

Mot

ion

pict

ure

and

vide

o in

dust

ries

29,2

0044

,589

108.

610

9.2

106.

245

,590

5122

Sou

nd r

ecor

ding

indu

strie

s7,

115

108.

610

9.2

106.

2

5239

Oth

er fi

nanc

ial i

nves

tmen

t act

iviti

es71

,142

98,5

1987

.481

.683

.910

2,65

9

5241

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ranc

e ca

rrie

rs17

2,03

123

9,99

910

5.7

125.

212

8.7

197,

047

5259

Oth

er in

vest

men

t poo

ls a

nd fu

nds/

15,8

2820

,550

162.

511

2.2

115.

328

,952

5322

3V

ideo

tape

and

dis

c re

ntal

4,87

94,

398

99.0

111.

411

5.2

3,77

8

5411

Lega

l ser

vice

s13

0,99

219

2,76

610

9.9

128.

313

1.2

161,

516

5413

Arc

hite

ctur

al, e

ngin

eerin

g, a

nd

rela

ted

serv

ices

89,6

9513

7,02

610

5.7

105.

510

7.9

134,

287

5414

3G

raph

ic d

esig

n se

rvic

es4,

585

6,09

410

5.7

105.

510

7.9

5,97

2

5417

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entifi

c re

sear

ch &

dev

elop

men

t se

rvic

es

52,7

2067

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105.

710

5.5

107.

965

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611a

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catio

n se

rvic

es70

,439

94,0

8011

4.9

132.

113

7.9

78,3

66

7111

Per

form

ing

arts

com

pani

es6,

814

7,11

410

8.8

122.

812

7.0

6,09

5

7115

Inde

pend

ent a

rtis

ts, w

riter

s, a

nd

perf

orm

ers

5,85

85,

935

108.

812

2.8

127.

05,

084

8112

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ompu

ter

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e m

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ne r

epai

r an

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3,90

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124.

112

8.7

3,38

6

TO

TAL

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RE

986,

039

1,36

7,67

1

1,33

9,71

5

AP

PE

ND

IX I

ITa

ble

6 (

con

tin

ued

): E

stim

ated

Co

ntr

ibu

tio

n o

f C

ore

Ind

ust

ry V

alu

e ad

ded

to

GD

P(M

illio

ns

of

do

llars

an

d In

dex

val

ues

, 200

0 =

100

)

Co

ntr

ibu

tio

n c

alcu

lati

on

:

20

0220

06%

Ch

.

Rea

l GD

P In

dex

102.

362

116.

281

13.6

%

Cor

e S

hare

9.4%

Cor

e R

eal V

alue

Add

ed (

2002

dol

lars

)98

6,03

91,

339,

715

35.9

%C

on

trib

uti

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Glossary of Fair Use Provisions

17 U.S.C. § 102(a) (non-copyrightability of facts):The fact/expression dichotomy is a limitation on the scope of

copyright that renders facts non-copyrightable. This principle limits severely the scope of protection in fact-based works. The result of Section 102(a)’s requirement of originality is that raw facts may be copied at will. See Feist Pub’lns, Inc. v Rural Tel. Serv. Co., 499 U.S. 340, 350 (1991).

17 U.S.C. § 102(b) (idea/expression dichotomy): Articulated in Baker v. Selden, 101 U.S. 99, 102-04 (1879) the idea/expression dichotomy represents the principle that copyright may extend to the expression of an idea, but not the idea itself. Section 102(b) explicitly withholds protection from “any idea, procedure, process, system, method of operation, concept, principle, or discovery….” This principle is the source of the merger doctrine, which limits copyright when the number of possible variations for expressing an idea are externally limited. In such case, the limited possibilities of expression merge with the ‘idea’ and become non-copyrightable.

17 U.S.C. § 102(b) (non-protectability of interface specifications): An application of the idea/expression dichotomy, the non-protectability of interface specifications has been established in a line of U.S. copyright cases, notably Lotus Dev. v. Borland Int’l, 49 F.3d 807 (1995) and Computer Assocs. v. Altai, Inc., 982 F.2d 693 (2d Cir. 1992). These courts ruled that interface specifications are not copyrightable, either because they are unprotectable “methods of operation” or because elements dictated by efficiency or necessity lose protection under the merger doctrine.

17 U.S.C. § 105 (no copyright in U.S. government works): The Copyright Act prohibits the Federal Government from

taking copyright in the works that it authors. As a result, all works authored by the Federal Government employees immediately enter the public domain and become freely available for public use.

17 U.S.C. § 107 (fair use: criticism, comment, news reporting, teaching, scholarship, research, etc.): Section 107 of the Copyright Act explicitly protects the fair use of a copyrighted work for purposes including but not limited to criticism, comment, news reporting, teaching (including multiple

APPENDIX III

copies for classroom use), scholarship, or research. Such use is not an infringement of copyright.

17 U.S.C. § 107 (fair use: reverse engineering): Under the fair use doctrine, a person may disassemble a

computer program in order to gain an understanding of the unprotected functional elements of the program, where there is a legitimate reason for doing so and no other means of access to the unprotected elements exists. Sega Enterprises Ltd. v. Accolade, Inc., 977 F.2d 1510 (9th Cir. 1992); Atari v. Nintendo, 975 F.2d 832 (Fed. Cir. 1992).

17 U.S.C. § 107 (fair use: browser copies): Under the fair use doctrine, local cache reproductions of

copyrighted works by the web browsers of individual users are fair use, as they are noncommercial, transformative, necessary for essential Internet functions, and do not supersede copyright holders’ exploitation of their works. Perfect 10, Inc. v. Amazon.com, Inc., 487 F.3d 701, at 726 (9th Cir. 2007).

17 U.S.C. § 107 (fair use: search engine cache copies): Under the fair use doctrine, search engines’ reproduction in their search databases of images and text they crawled on the World Wide Web, and subsequent display of these materials in search results, are permitted because of their significant social utility. Kelly v. Arriba Soft, 336 F.3d 811 (9th Cir. 2003); Field v. Google, 412 F. Supp. 2d 1106 (D. Nev. 2006); Perfect 10, Inc. v. Amazon.com, Inc., 487 F.3d 701 (9th Cir. 2007).

17 U.S.C. § 107 (fair use: time and space shifting): Under the fair use doctrine, users may utilize technological devices to shift the context in which they view copyrighted works, i.e., to tape a program for later viewing on the same or different device. Such use has been held to be paradigmatic noncommercial personal use entirely consistent with the purposes of the Copyright Act. See Sony Corp. of Am v. Universal City Studios, 464 U.S. 417 (1984); Recording Indus. Ass’n of Am. v. Diamond Multimedia Sys., 180 F.3d 1072, 1079 (9th Cir. 1999).

17 U.S.C. § 108 (library uses): The Copyright Act permits libraries and archives to make

reproductions for purposes of preservation, replacement of damaged copies, and inter-library loans.

17 U.S.C. § 109(a) (first sale doctrine): The Copyright Act permits the owner of a lawfully made copy to sell or lend that copy to others.

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17 U.S.C. §§ 110(1) - 110(2) (displays and performances in educational contexts): The Copyright Act permits the performance and display of copyrighted works in the course of face-to-face teaching activities as well as distance education.

17 U.S.C. § 112 (ephemeral recordings): Under the Copyright Act, a radio station may make ephemeral copies of sound recordings for use in its own transmissions in its local service area.

17 U.S.C. § 114(a) (exception to sound recording performance right): Under the Copyright Act, there is no performance right in sound recordings, except for performances by digital audio transmission, e.g., webcasting.

17 U.S.C. § 117(a) (backup, essential step copies): The Copyright Act permits the owner of a copy of a computer program to make a copy of that program: as an essential step in the utilization of the program in conjunction with a computer; or for archival purposes.

17 U.S.C. § 117(c) (machine maintenance or repair): The Copyright Act permits the owner or lessee of a computer, for purposes of maintaining or repairing that computer, to make or authorize the making of a copy of a computer program which is made solely by virtue of activating the computer.

17 U.S.C. §§ 302-304 (copyright term): Consistent with the Constitution’s mandate that Congress may

provide authors with exclusive rights for “limited times,” copyrights expire after a statutory period and enter the public domain. Eldred v. Ashcroft, 537 U.S. 186 (2003).

17 U.S.C. § 512 (service provider safe harbors): Section 512 of Title 17, which originated in the Digital Millennium Copyright Act, limits the copyright remedies available against online service providers engaged in the following activities: transitory communications, system caching, storage of information on systems or networks at direction of users, and information location tools.

Sony principle: Under Sony Corp. of Am v. Universal City Studios, 464 U.S. 417 (1984), the sale of an article of commerce that may be used for both infringing and non-infringing uses will not lead to secondary infringement if the product is capable of substantial noninfringing use.

NOTES

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NOTESNOTES

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Computer & Communications Industry Association

900 17th Street, NWSuite 1100Washington, DC 20006Phone 202-783-0070Fax 202-783-0534www.ccianet.org $9.99

Computer & Communications Industry Association