Cost of NZ’s copyright term extension overestimated by millions

When New Zealand’s Foreign Affairs and Trade Ministry announced its intention to extend their copyright term from 50 to 70 years, it grossly overestimatedthe cost.

An external economist for the NZ government said the new minimum copyright term would cost consumers up to an extra $55 million a year in higher prices.

The number was published in a summary for the final Trans Pacific Partnership Agreement (TPPA).

“This cost – in terms of foregone savings on books, films, music and other works – increases gradually over 20 years and averages around $55 million a year over the very long term,” read the summary.

However, as reported by Radio NZ, Australian economist George Barker has told the Foreign Affairs, Defence and Trade Select Committee the external economist may have misplaced a decimal point.

“If you take one industry that forms part of that estimated cost – music – [the government is saying] that’s contributing $17m to that $55m. But that number should be around $77,000,” Barker said.

Barker has said the Ministry of Business, Innovation and Employment (MBIE) were not able to provide him with the original data.

Negotiations have concluded for the TPPA and it must now go through the Parliamentary treaty examination process. Once the copyright term is agreed upon, New Zealand will join over 60 countries worldwide who have copyright terms of 70 years or longer. Currently, this list includes the US, all of Europe, South Korea, Singapore and Australia.

Australia joined the ranks in 2005 when it altered its copyright term for sound recordings from 50 years to the life of the author plus 70 years. The move was part of Australia’s free trade agreement with the United States.