Copyright Policy, Creativity, and Innovation in the Digital Economy

Copyright law grants exclusive rights to authors in order to encourage the production of creative works, to the benefit of society as a whole. These exclusive rights are balanced by a range of limitations and exceptions that permit some uses of copyrighted works without the need for authorization. Copyright has been a vital contributor to U.S. cultural and economic development for more than two hundred years, fostering the production and dissemination of the valuable expression that has put America at the forefront of the global creative marketplace. "Nothing is more important to American prosperity than jumpstarting our engine of innovation." Both American creativity and the Internet economy are at the heart of that engine, and the relationship between the two has motivated the Department of Commerce's inquiry into this issue. The industries that rely on copyright law are today an integral part of our economy, accounting for 5.1 million U.S. jobs in 2010-a figure that has grown dramatically over the past two decades. In that same year, these industries contributed 4.4 percent of U.S. GDP, or approximately $641 billion. And the demand for content produced by our creators contributes to the development of the broader Internet economy, spurring the creation and adoption of innovative distribution technologies.