Copyright Fair Use and the Economy

The copyright legislative process in Washington traditionally focuses on increasing the protection provided to copyrights, based on the assumption that this will strengthen the economy. Recent research, however, indicates that 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. In fact, business enterprises that benefit from fair use generate substantial revenue, employ millions of workers, and, in 2006, represented one-sixth of total U.S. gross domestic product. This economic research suggests that future copyright legislation needs to account for these important limitations if the policy-making process is to stimulate growth.