Facts About IP
Intellectual property accounts for over half of all U.S. exports, helping drive 40% of U.S. economic growth. (U.S. Department Of Commerce, “Bush Administration Officials Update Congress On Intellectual Property Enforcement Efforts,” Press Release, 26 July 2006)
In 2005, the American motion picture industry had a $9.5 billion trade surplus, which represented 12% of the entire U.S. private-sector service trade surplus. (“The Economic Impact Of The Motion Picture & Television Production Industry On The United States,” Motion Picture Association Of America, 2006)
U.S. intellectual property is worth between $5.0 trillion and $5.5 trillion—more than the nominal gross domestic product (GDP) of any other country. (Robert J. Shapiro and Kevin A. Hassett, “The Economic Value Of Intellectual Property,” USA For Innovation, October 2005)
America is a net exporter of intellectual property, contributing $37 billion to our trade balance in 2006. (Shayerah Ilias and Ian F. Ferguson, "Intellectual Property Rights and International Trade," Congressional Research Service, 12/20/07)
In 2006 alone, 425,966 applications for patents were submitted in the United States and 173,770 patents were granted, which represented more than 24% of all patents granted worldwide. (“World Patent Report: A Statistical Review,” World Intellectual Property Organization, 2008.)
From 2000 to 2004, new science and engineering jobs were created at a 28% higher rate in IP-intensive industries than in non-IP-intensive areas. (Robert J. Shapiro and Nam D. Pham, “Economic Effects Of Intellectual Property-Intensive Manufacturing In The United States,” World Growth, July 2007)
Average manufacturing workers in IP-intensive states earn approximately $7,000 per year more than average employees in non-IP-intensive states. (Robert J. Shapiro and Nam D. Pham, “Economic Effects Of Intellectual Property-Intensive Manufacturing In The United States,” World Growth, July 2007)
From 2000 to 2004, the average worker in an IP-intensive industry earned approximately 44% more than the average worker in a non-IP-intensive industry did. (Robert J. Shapiro and Nam D. Pham, “Economic Effects of Intellectual Property-Intensive Manufacturing In The United States,” World Growth, July 2007)
As of 2008, IP-intensive industries employed 18 million Americans. (U.S. Department Of Commerce, “Secretary Of Commerce Carlos M. Gutierrez Opinion Editorial,” Press Release, 11 May 2008)
In 2006, American firms owned more than one-third of global IP filings. (Shayerah Ilias and Ian F. Ferguson, “Intellectual Property Rights and International Trade,” Congressional Research Service, 20 December 2007)
Jobs in IP-intensive industries, such as pharmaceuticals and computers and electronics, are expected to grow faster over the next decade than the national average. (Robert J. Shapiro and Nam D. Pham, “Economic Effects Of Intellectual Property-Intensive Manufacturing In The United States,” World Growth, July 2007)
According to a report by the U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement, seizures of products violating IP rights posing potential safety and security risks increased from $27.8 million to $62.5 million. (U.S. Customs and Border Protection & US immigration and Customs Enforcement Report on Intellectual Property Rights, January 2009.)
International and domestic theft of sound recordings costs the U.S. economy $12.5 billion in lost revenue, approximately 71,000 jobs and more than $2 billion in wages to U.S. workers. (Siewick, Stephen E., The True Cost of Sound Recording Piracy to the U.S. Economy, Institute for Policy Innovation Report # 188, 21 August 2007.)
By the end of 2008, there were more than 1 billion PCs installed around the world; nearly half had pirated software on them. With more PCs being shipped into emerging markets, lowering that will be a long-term challenge. “6th Annual BSA and IDC Global Piracy Software Study,” Business Software Alliance & IDC, May 2008.)
According to a report by the Federal Trade Commission counterfeiting is estimated to cost the global automotive parts industry $12 billion a year in lost sales; $3 billion of that total is in the United States. It is also estimated that U.S. auto parts industry lost sales correlates to potentially 200,000- 250, 000 fewer manufacturing jobs. (“Intellectual Property: Protecting Valuable Assets in a Global Market,” MEMA Brand Protection Council, 3rd Edition, June 2009.)
According to the World Health Organization, up to 10% of medicines worldwide are counterfeit—a deadly hazard that could be costing the pharmaceutical industry $46 billion a year. (Balfour, Frederick, Amy Barrett, Diane Brady, Kerry Capell, Paul Magnusson, Carol Matlack, Dexter Roberts, William C. Symonds, and Johnathan Wheatley, “Fakes!,” Business Week, 7 February 2005.)
The U.S.-based Center for Medicine in the Public Interest predicts that counterfeit drug sales will reach $75 billion globally in 2010, an increase of more than 90% from 2005. (“Counterfeiting Facts and Stats,” Protection from Brand Infection, CMO Council. 28 April 2009)
Medications on the WHO’s Essential Drug List that were created in the private sector include the 10 leading drugs for cardiovascular disease, an illness that kills 3 of every 10 people in the world; the 10 leading drugs for mental illness; and the 10 leading drugs for respiratory diseases like asthma, which kills almost 2 out of every 10 people in the world. (Jeff Kindler, CEO Of Pfizer, Committee On Finance, U.S. Senate, Testimony, 15 July 2008)
As of 2007, American scientists, researchers, and doctors were responsible for the creation of 70% of all new medicines. (Former Rep. Billy Tauzin, CEO Of PhRMA, Committee On The Judiciary, U.S. Senate, Testimony, 17 January 2007)
Nearly all of the 300 products on the World Health Organization’s (WHO’s) Essential Drug List came from the R&D-based pharmaceutical industry. (Jeff Kindler, CEO Of Pfizer, Committee On Finance, U.S. Senate, Testimony, 15 July 2008)