[Ip-health] Foreign Ownership of Firms in IP-Intensive Industries

Jamie Love james.love at keionline.org
Tue Mar 5 10:05:03 PST 2013

---------- Forwarded message ----------
From: Jonathan Band <jband at policybandwidth.com>
Date: Tue, Mar 5, 2013 at 6:39 PM
Subject: [LawfulUse] Foreign Ownership of Firms in IP-Intensive Industries

Today I'm releasing a paper on foreign ownership of firms in IP
intensive industries.  Here is a summary of the paper:

For decades, U.S. domestic and foreign IP policy has been predicated
on the assumption that U.S. firms dominated both domestic and foreign
markets for IP products. In an effort to evaluate the standing of U.S.
firms in IP intensive industries, this paper identifies the
“nationality” of the leading firms in several important IP industries.
The paper finds that for many industries, this assumption of U.S.
dominance is no longer correct.  This suggests that at times, IP
policies adopted by Congress and the Executive Branch may benefit
foreign corporations at the expense of U.S. consumers.

The paper is at: http://infojustice.org/foreignownrep. An info-graphic
is at http://infojustice.org/foreignowngraph.

Here are some of the paper's key findings:

·      Four of the “Big Six” publishers, the largest English language
trade publishers, are foreign-owned. More than 80 percent of the
global revenue of the Big Six is generated by these foreign-owned
companies.  These foreign-owned companies published more than two
thirds of the trade books in the U.S.

·      Four of the five largest STM (science, technical and
medical)/Professional publishers are foreign-owned.  More than 90
percent of the revenue of the five largest STM/Professional publishers
was generated by foreign-owned firms.

·      Only seven of the world’s 50 largest publishers of all
categories are U.S.-owned.

·      The book publishing industry in Europe has approximately twice
as many employees as in the United States.

·      Of the top ten best-selling fiction authors in any language
whose work is still in copyright, five are foreign.  A British author
wrote three of the top five best-selling books in the U.S. in 2012.

·      Two of the three major record labels are foreign-owned.  These
two labels have a market share of 59 percent.

·      Thirteen of the twenty best-selling recording artists are foreign.

·      Of the 50 most popular motion pictures in the United States in
2012, half were filmed partly or entirely outside of the United

 ·         In 2013, the Oscar winners in thirteen of 24 categories
were foreign. In 2012, the Oscar winners in eleven categories were
foreign.  In 2011, the Oscar winners in eight categories were foreign.

·      Seventy percent of the most recent generation of game consoles
were manufactured by Japanese companies.  Japanese companies have
manufactured 92 percent of all game consoles ever sold.

·      In 2011, foreign companies obtained 7,000 more U.S. patents
than U.S. companies.

·      In 2011 and 2012, seven of the top ten companies receiving U.S.
patents were foreign.

·      57 percent of the global revenue of the fifteen largest
pharmaceutical companies was generated by foreign-owned companies.

·      The majority of the employees of both the U.S. and the
foreign-owned pharmaceutical companies work outside of the United

There is absolutely nothing sinister about foreign ownership of firms
in IP intensive industries, including foreign ownership of companies
originally established in the U.S.  This is to be expected in a
globalized economy with multinational corporations and complex
cross-border supply chains.  Moreover, many countries in Western
Europe and East Asia are at the same level of technological and
economic development as the United States.  The critical point is that
in such a globalized economy, U.S policymakers should no longer assume
without reflection that the beneficiaries of protectionist IP policies
are U.S. firms and, by extension, U.S. workers and shareholders.

The paper is at: http://infojustice.org/foreignownrep. An info-graphic
is at http://infojustice.org/foreignowngraph.

Jonathan Band PLLC
21 Dupont Circle NW
8th Floor
Washington, D.C.  20036
voice: 202-296-5675
  fax: 202-872-0884
email: jband at policybandwidth.com
  web: www.policybandwidth.com

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