Australian Cost Benefit Analysis warns of dangers of increased "Fair Use"

A new PcW report cost benefit analysis of fair use versus fair dealing finds that there could be a loss of GDP in the order of $1.3 billion  from the introduction of such an approach in Australia.

This would occur because fair use would see:

  • An increase in litigation costs given how legally uncertain fair use is. (US has almost five times  more litigation than UK on exceptions)
  • A reduction in the production of Australian content (e.g. Canada saw a 98% reduction in education licencing revenue  and closure of multiple local publishing operations)
  • An increase in licencing fees (as effective licencing as occurs under our statutory licence scheme would fall away).

PwC does not find evidence to suggest that fair use would lead a greater innovation

The report has been submitted it to the Productivity Commission for their inquiry into Intellectual Property arrangements.  The Productivity Commission is an Australian Government ‘Economic Think Tank’.

Click here for the report