"Fair Use" of Copyrighted Works Contributed $4.7 Trillion to U.S. Economy in 2007, Reports CCIA

This week, the Computer & Communications Industry Association (CCIA) released the report Fair Use in the U.S. Economy (.pdf) concluding that industries that rely on the "fair use" exception in copyright law contributed $4.7 trillion or 16% of the  U.S. gross domestic product in 2007, growing faster than the other sectors of the U.S. economy.  The report credits the fair use of copyrighted works for the success of search engines, software developers and a number of other "new economy" industries.

The Fair Use Doctrine is derived from Section 107 of the Copyright Act, which reads:

[T]he fair use of a copyrighted work . . . for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright.

The CCIA Report examines industries that benefit from the Fair Use Doctrine, particularly Internet search engines, software developers and the makers of music and media players, and concludes that "exceptions to copyright protection . . . promote innovation and are a major catalyst of U.S. economic growth."  The report cautions that these findings do not necessarily call for scaling back copyright protections:

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 a vital economic driver.

The CCIA report does not explain in detail what "fair use" helped drive the growth of MP3 players, but everyone should keep in mind that, as far as current caselaw is concerned, we still need to pay for songs downloaded from iTunes. 

Incident of the Week: Indictments Issue Against The Individuals Behind RNS, Pirate Site for "Pre-Release" Music

Yesterday, a federal indictment issued charging four individuals for their role in the "Rabid Neurosis" or RNS, an alleged "Internet music piracy group" that distributed copies of music prior to their commercial release.  According to the seven-page indictment (.pdf) filed in the federal court for the Eastern District of Virginia, between 1999 and 2007, RNS obtained and distributed a number of notable albums before they were released, including "Blue Print 2" by Jay-Z, "Encore" by Eminem and "How to Dismantle an Atomic Bomb" by U2. 

The indictment claims that Adil R. Cassim, who used the handle "Kali," was the leader of RNS, while Matthew D. Chow ("RL"), Bennie L. Glover ("ADEG") and Edward L. Mohan, II ("MistaEd") all played high-level roles in the group.  According to federal investigators, these individuals set up and maintained a number of file transfer sites containing thousands of copies of copyrighted music, movies, video games and commercial software.  The Department of Justice press release states that, if convicted, the RNS Four face five years of jail time and a $250,000 fine.