For Economics Teachers
Secondary Lesson Module 1—What are the implications of creativity on the US and world economy? What is the value of creative works?
- Students will identify the contribution that the arts make to the US economy.
- Handout with facts, charts, or other excerpts related to arts and the economy, from the report “Copyright Industries and the U.S. Economy: The 2002 Report” (available on the web at www.iipa.com/pdf/2002_SIWEK_FULL.pdf) (Note: Although this report is protected by copyright, the report’s copyright page states that it may be reproduced for non-commercial purposes or quoted with appropriate attribution to Stephen E. Siwek of Economists Incorporated and the International Intellectual Property Alliance)
- Worksheet with questions about arts and the economy (see step 1 below)
Previous Knowledge and Experiences
- Students have been studying how property rights affect incentives for people to produce and exchange goods and services.
- Distribute the handout and the worksheet to each student. Have students work in groups of two or three to find the following information in the materials you have distributed:
- According to the report, what are the copyright industries? (producers of the following: computer software, including business and entertainment software; theatrical films; TV programs; DVDs and home video and digital representations of audiovisual works; music; records, CDs and audiocassettes; and textbooks, trade books, reference and professional publications and journals [in electronic and print media]).
- For what percentage of the US Gross Domestic Product (GDP) did these industries account in 2001? (5.24%) What amount of money was this? ($535.1 billion)
- How fast did the US copyright industries’ share of the GDP grow in the 24-year period from 1977 to 2001, compared to the remainder of the economy? (more than twice as fast; at an annual rate of 7%, while the rest of the economy trailed at 3%)
- How much did employment in the US copyright industries grow between 1997 and 2001? (more than doubled to 4.7 million workers, accounting for 3.5% of the total US employment)
- How fast did the copyright industries’ rate of employment grow in the 24-year period from 1977 to 2001, compared to the remainder of the economy? (more than three times as fast; 5% versus 1.5%)
- What dollar amount did the US copyright industries achieve in foreign sales and exports in 2001? ($88.97 billion)
- Review the responses with the class as a whole. Discuss with students Table 8 (about employment in copyright and other industries). Both Chart 14 and Table 9 (about revenues generated by foreign sales/exports of selected US core copyright industries), comparing these revenues with those on Chart 6 (about foreign sales/exports for other selected industries).
Indicators of success
- Students describe the contribution of the arts to the US economy
Classroom Extension Have students recognize that the report cited above notes the importance of copyright protection to continued economic growth in the copyright industries. Lead students in a brief discussion about the reasons for this. The discussion should include the fact that the right of ownership to creative works fosters creativity and the distribution of artistic works. Also, the discussion should include reference to the breadth of the creative community, as noted in the report; this includes not only the core industries that create and produce copyright-protected materials, but many other industries that either, create, distribute, or depend upon copyrighted materials. Home Extension Assign students to discuss the breadth and growth of the copyright industry in relation to the economy with their families. Have them find out whether any family members, or family friends work in the industry as it is defined in the report. Ask students to describe in a brief essay the economic importance of the copyright industries to their families and community.
Secondary Lesson Module 2—What are the trade-related aspects of intellectual property rights?
- Students will describe the role of the World Trade Organization’s (WTO) Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement in providing intellectual property rights in international trade
- Handout with excerpts from Overview: The TRIPS Agreement (available at www.wto.org/english/tratop_e/trips_e/intel2_e.htm), including the description of the main features of the agreement and the following sections: “Certain General Provisions,” “Copyright,” and “Related Rights.” (Note: According to this website’s notice about copyright, found on its “How to Contact Us” page [www.wto.org/english/info_e/cont_e.htm], the “WTO encourages broad dissemination of its information, particularly for educational purposes.” Before duplicating any other items from the site, be sure to read the complete information on copyright on that particular page)
- Handout with first three questions/answers from “Frequently asked questions about TRIPS in the WTO” (available at www.wto.org/english/tratop_e/trips_e/tripfq_e.htm) (Note: Questions are “What are “intellectual property rights’?” “Does the TRIPS Agreement apply to all members?” “Which countries are using the general transition periods?” and “Do members have any obligations during the transition period?” Additional questions may be excerpted and the student discussion or assignments expanded accordingly.)
Previous Knowledge and Experiences
- * Students have been studying the role of the World Trade Organization (WTO) in international trade, including its dispute settlement mechanism.
- Distribute the handout with the questions and answers excerpted from “Frequently Asked Questions about TRIPS” and the handout with excerpts from Overview: The TRIPS Agreement. Ask students what the main purpose of copyright protection is, according to the Questions handout. (to encourage and reward creative work) Discuss with students the reasons that this would be important in the global economy.
- Explain that there is no such thing as an international copyright, but the US and nearly 100 other countries are signatories to the international copyright treaty known as the Berne convention, which protects literary and artistic works. The WTO’s subsequent TRIPS Agreement is, however, the most comprehensive multilateral agreement on intellectual property. Explain that the TRIPS agreement is one of the three main pillars of the WTO. Ask students what type of trade they believe the other “pillars” would be. (trade in goods and trade in services). Ask students when the TRIPS Agreement took effect? (1 January 1995).
- Explain that TRIPS requires all members of the WTO to provide strong intellectual property rights, but it allows countries different periods of time for delay in applying its provisions. Ask students what that period is for the “least-developed countries.” (up to eleven years; that is, 1 January 2006, with the possibility of an extension.) Discuss with students the differences in the time frames given for countries to apply the provisions. Ask what obligations such countries would have, even though they have been allowed
to delay application of TRIPS. (must comply with TRIPS obligations in Article 3 on “national treatment” [equal treatment for foreign and domestic individuals and companies] and in Article 4 on “most-favoured nation treatment” [non-discrimination between foreign individuals and companies]
- Distribute the handout with excerpts from Overview: The TRIPS Agreement. Explain that according to the agreement, all WTO member countries must comply with the obligations of the international copyright treaty known as the Berne Convention. TRIPS also introduces obligations that were not addressed in the Berne Convention, or that were not thought to be adequately addressed.
- Lead students in a discussion of the points in the “Copyright” section of the handout (that is articles 9.2, 10.1, 10.2, 11, 12, and 13). Discuss with students how they believe that each of these provisions affects international trade.
Indicators of Success Students describe the way in which the WTO’s TRIPS agreement addresses intellectual property rights in international trade. Classroom extension Direct students’ attention to the Enforcement and Dispute Settlement bullets in the Overview handout used in the above activity. Explain that unlike other international agreements on intellectual property, TRIPS has a strong procedure for enforcement. Ask students to recall what they have learned about the WTO’s dispute settlement mechanism. Discuss how the WTO’s ability to authorize trade sanctions through this mechanism would be instrumental in enforcing the TRIPS provisions.