The Copyright Industry

Copyright is not only about protecting the rights of creators, but has also become a major branch of industry with significant contributions to the global economy. According to the International Intellectual Property Alliance the U.S. copyright industry has grown almost three times as fast as the economy as a whole for the past 20 years. In 1997, the total copyright industries contributed an estimated US$ 529.3 billion to the U.S. economy with the core copyright industries accounting for US$ 348.4 billion. Between 1977 and 1997, the absolute growth rate of value added to the U.S. GDP by the core copyright industries was 241 %. Also the copyright industry's foreign sales in 1997 (US$ 66.85 billion for the core copyright industries) were larger than the U.S. Commerce Department International Trade Administration's estimates of the exports of almost all other leading industry sectors. They exceeded even the combined automobile and automobile parts industries, as well as the agricultural sector.

In an age where knowledge and information become more and more important and with the advancement of new technologies, transmission systems and distribution channels a further increase in the production of intellectual property is expected. Therefore as copyright establishes ownership in intellectual property it is increasingly seen as the key to wealth in the future.

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Liability of ISPs

ISPs (Internet Service Provider), BBSs (Bulletin Board Service Operators), systems operators and other service providers (in the U.S.) can usually be hold liable for infringing activities that take place through their facilities under three theories: 1) direct liability: to establish direct infringement liability there must be some kind of a direct volitional act, 2) contributory liability: a party may be liable for contributory infringement where "... with knowledge of the infringing activity, [it] induces, causes or materially contributes to the infringing activity of another." Therefore a person must know or have reason to know that the subject matter is copyrighted and that particular uses violated copyright law. There must be a direct infringement of which the contributory infringer has knowledge, and encourages or facilitates for contributory infringement to attach, and 3) vicarious liability: a party may be vicariously liable for the infringing acts of another if it a) has the right and ability to control the infringer's acts and b) receives a direct financial benefit from the infringement. Unlike contributory infringement, knowledge is not an element of vicarious liability.


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