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The Staggering Cost of Copyright Theft

Guest Commentary 11/14/2004 07:00:00 PM Eastern



Author Information
Wright is chairman and CEO of NBC Universal. The passage is excerpted from a speech to The Media Institute, which honored him with its Freedom of Speech Award last month.

Nearly 170 years ago, in Democracy in
America
, the Frenchman Alexis de Tocqueville wrote, “The
sovereignty of the people and the liberty of the press may be looked on as
correlative institutions.” Put more simply: You can't have a free people
without a free press. And, as Thomas Jefferson pointed out, you can't have a
free people without having an informed
people.

That is why, as a news organization, we are alarmed at the flood of
subpoenas that government at all levels is serving on journalists, including
some of our own. If the current legal climate has a chilling effect on
newsgathering, the consequences are serious—and could not come at a worse
time.

There is another part of the Constitution that applies to creative
expression, along with the First Amendment: It is Article 1, Section 8—the
Copyright Clause—which authorizes Congress to grant to “authors and
inventors the exclusive right to their respective writings and discoveries.”
Congress has consistently enforced this for more than 200 years.

It has survived the high-speed printing press, the telegraph, the video
recorder, and even the invention of xerography, which represents the
ultimate test of Congress's will to apply
the full measure of copyright laws. Think about it: It's a machine called …
the copier. And copyright law survived.

Today, this constitutional protection is under enormous pressure and
requires our vigilant attention.

At NBC Universal, we are eager to roll out new digital, on-demand
services. We would like nothing more than to make accessing video as easy as
Apple's iPod has made accessing music. But the experience of the recording
industry—decimated by illegal downloads—teaches an important lesson: If the
technology isn't managed properly, it has the power to do a lot of damage, by
facilitating theft, not commerce.

The costs of not getting this right are huge. Copyright industries such
as television, motion pictures, publishing, and software, whose capital is
almost entirely composed of intellectual property, constitute the nation's
largest source of exports, and 6% of our gross national product. If you include
economic sectors that support these industries or are dependent on them, the
figure doubles to 12% of GDP, or $1.25 trillion, with employment of more than
11 million Americans.

Already, the economic costs of intellectual property theft are
staggering— $250 billion a year. That's more than the combined global
revenues of the nation's top 25 media companies.

We hear repeatedly that intellectual property violations are a fair
price to pay for the advent of a new digital age. And that technological
progress demands a downgrading of the rights of creators, and a legal weakening
of copyrights and patents.

It is a mistake to think that entering this world means embracing theft.
The power of technology drives its success, not the theft of protected content.
The challenge of protecting intellectual property belongs to the core of U.S.
industries and export businesses, Had industrial America, or a military
contractor, been at the front line of this issue instead of music, IP theft
would be seen as a clear violation, and Congress would be quick to take action.
Today, all data and information is easily replicable. Anyone who has information or an idea to transmit has
a stake. Our challenge is to create rules of the road for a digital world that
encourage technological progress yet uphold the values that make commerce
possible.



Author Information
Wright is chairman and CEO of NBC Universal. The passage is excerpted from a speech to The Media Institute, which honored him with its Freedom of Speech Award last month.

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