IPI Claims Piracy Costs The US $12 Billion & 71,000 Jobs Annually
The Institute for Policy Innovation (IPI), a Texas concern, claims that global piracy of recorded music costs the United States $12.5 billion in economic output and 71,060 jobs annually.
According to their report, “The True Cost of Sound Recording Piracy to the U.S. Economy,” every year the U.S. workers lose an estimated 71,060 jobs and $2.7 billion in earnings. Of the 71,060 jobs, the report states, 26,860 jobs would have been created in the sound recording and downstream retail industry and 44,200 jobs would have been added in other industries if not for the piracy. Of the $2.7 billion lost in earnings, $1.1 billion is attributable to the sound recording industry or downstream retail industries and $1.6 billion in earnings by workers in other U.S. industries.
In addition, the report estimates that the U.S. government loses at least $422 million in tax revenues due to sound recording piracy, including $291 million in personal income tax and $131 million in lost corporate income and production taxes. IPI claims the purpose of the study is to alert policy makers to the magnitude of the impact sound recording piracy has on the U.S. economy. It is the second in a series of intellectual property papers by the IPI examining the overall economic impact of copyright piracy and patent infringement.