Use of Intellectual Property rights across UK industries - www.gov.uk

This paper identifies the UK industries that make the greatest use of intellectual property rights, with patents, trade marks, registered designs and copyright being considered. It assesses the contribution these industries make to the UK economy, in terms of employment, output and exported goods. The analysis in this paper covers the years 2014-2016.

The approach builds on the methodology used by previous studies from the European Union Intellectual Property Office ( EUIPO ) and the European Patent Office ( EPO ) , and by the United States Patent and Trademark Office ( USPTO ) . Both papers categorise industries as intellectual property (hereafter, IP ) intensive if the IP use per 1000 employees is above the industry average.

Applying the above methodology to registered IP rights (patents, trade marks and registered designs) granted to UK companies only, and identifying a smaller subset of industries with noticeably high IP use, allows for an enhanced understanding of IP use within UK industries for domestic policy making. The economic contribution of sectors associated with copyright, an unregistered IP right, has also been included and follows a methodology established by EUIPO / EPO .

Industries with an above average use in IP rights accounted for 26.9% (£298.5 billion) of UK non-financial value-added output , 15.5% (4.5 million) of total UK employment and 52.1% (£159.7 billion) of goods exported.

Industries with a high use of IP rights accounted for 15.0% (£166.5 billion) of non-financial value-added output, 5.1% (1.4 million) of total UK employment and 12.1% (£37.1 billion) of total goods export value.

35.4% of UK industries (218 out of 616 UK industries ) were found to have above average IP usage in any of the four IP rights considered with 14.9% of UK industries (92) having high IP usage. With respect to registered IP rights only (i.e. excluding copyright) 27.9% of UK industries (172) were found to be intensive, and 7.6% (47) were found to be highly intensive.

Industries with an above average use in any of the three registered IP rights (i.e. excluding copyright) accounted for 18.9% (£209.9 billion) of UK value-added output, 11.1% (3.2 million) of total UK employment and 51.2% (£157.2 billion) of total goods export value.

Four industries were found to have high IP use by UK companies in all three registered IP rights, three of which are in the manufacturing sector. A further five are intensive across at least two of the registered IP rights, as shown below:

Industries classified as having high IP use across multiple registered IP rights ( IP per 1000 employees)

SIC Description Patents Trade marks Registered designs 3299 Other manufacturing n.e.c. x x x 6420 Activities of holding companies x x x 2110 Manufacture of basic pharmaceutical products x x x 3099 Manufacture of other transport equipment n.e.c. x x x 1395 Manufacture of non-wovens and articles made from non-wovens, except apparel x x 2432 Cold rolling of narrow strip x x 4635 Wholesale of tobacco products x x 3240 Manufacture of games and toys x x 7740 Leasing of intellectual property and similar products, except copyrighted works x

No industries were found to be highly intensive across all four IP rights considered, but five industries were found to be intensive in both copyright and trade marks .

Centralised management of IP within company organisational structures led to some IP rights being linked to industries relating to ‘head office’ type activities, such as Activities of holding companies . These IP rights were not redistributed to the industries of their subsidiaries, since the complexity of company structures and a lack of data meant that only a negligible number of ‘head office’ IP rights could be reallocated with confidence.

Patents Trade marks Registered designs Copyright Number of UK industries with at least one IP right 360 58.4% 586 95.1% 388 63.0% N/A Number of UK industries classified ‘above average’ use of IP 64 10.4% 116 18.8% 75 12.2% 77 12.5% Number of UK industries classified ‘high’ use of IP 17 2.8% 25 4.1% 18 2.9% 49 8.0% UK non-financial value-added output £79.7bn 7.2% £146.5bn 13.2% £79.7bn 7.2% £156.8bn 14.1% Total UK employment 1.1m 3.9% 2.3m 7.8% 1.1m 3.9% 2.0m 7.0% Total goods export value £120.6bn 39.3% £52.9bn 17.2% £72.9bn 23.8% £14.7bn 4.8%

Industry contributions towards output, employment and exports listed by IP right should not be added, since some have above average use in more than one IP right.

Across the 616 UK industries, trade marks were the most widely used IP right, occurring across over 95% of industries and having the highest number of industries with above average IP use. Compared to patents, registered designs were used more widely and were found to have higher number of industries with above average use. Consistent with the findings for industries with high IP use across all three registered IP rights, the manufacturing sector accounted for the majority of high or above average IP use industries in each of the IP rights.

Intellectual property ( IP ) is an important part of the innovation ecosystem, playing a vital role in enabling innovators to realise the returns from their research and development. The purpose of this paper is to identify which UK industries make relatively the greatest use of patents, trade marks, registered designs and copyright, and the contribution these industries make to the UK economy, in terms of employment, output, and exported goods.

This paper builds on previous international studies of IP use across industries: one conducted jointly by the European Union Intellectual Property Office ( EUIPO ) and the European Patent Office ( EPO ) , and another by the United States Patent and Trademark Office ( USPTO ) .

The IPO have further developed this methodology and applied it to IP rights granted to UK companies. By identifying above average IP use industries in the UK, we obtain the distribution of registered IP rights and identify industries of interest from an IP perspective. These yield different results to similar studies with a broader geographic basis, but this allows for an enhanced understanding of IP use for domestic policy making. Building on the EUIPO / EPO methodology, the IPO have identified a smaller subset of industries with noticeably higher registered IP use.

This report is focused on UK national economic measures and registered IP rights held by UK companies. As with the EUIPO / EPO study, this results in the analysis being affected by cross-border ownership and use of IP . For example, a UK company may be the owner of an IP right but base its manufacturing in a different country. The employment resulting from this manufacturing will not be captured in UK employment statistics and therefore is not considered when calculating industry IP use per 1000 employees. Similarly, the IP owned by foreign companies with a workforce in the UK is not captured in the analysis.

The analysis in this paper covers the time period 2014-2016, while using IP data from 2010-2014 in order to attribute the registered IP rights on a company level.

The economic contributions made by copyright intensive industries to the UK economy are included in this report. Since copyright is an unregistered IP right, a detailed analysis of the distribution and usage of copyright across UK industries is not possible in the same way as the three registered IP rights examined in this report.

This section sets out the methodology used, data limitations to be aware of and guidance on how to interpret the results.

As mentioned in the introduction, the EPO , in collaboration with the EUIPO , have produced papers on IP intensive industries, as has the USPTO . While there are some differences in methodology between the two papers they are largely similar. Both papers identify industries as intensive if the IP use per 1000 employees is above the average for all industries. The papers consider industry use of patents, trade marks and, in terms of the contribution it makes to the UK economy only, copyright. The EUIPO / EPO additionally incorporates registered designs, plant variety rights and geographical indicators in their analysis.

The EUIPO / EPO paper uses IP and economic data from across the EU, and as such incorporates IP use in the UK and UK industry data in its analysis. However, it identifies industries at the EU level and assumes that if an industry is IP intensive in one member state, it is also IP intensive in every other member state including the UK. This aggregation of EU-wide IP filings neglects differences between national economies meaning features specific to the UK economy might be masked by data from other countries. IPO have built on the EUIPO / EPO methodology and applied it to IP rights granted and registered to UK companies. This approach has increased the accuracy in identifying which UK industries make relatively the greatest use of patents, trade marks and registered designs.

Given the dispersion of IP intensive industries in the UK identified, the IPO has introduced an additional ‘cut-off’ point to try to examine the industries appearing in the steepest part of the distribution that we consider to have high IP usage.

Patents, trade marks and registered designs which provide protection in the UK have been considered in this paper. We have included:

GB patents granted by the IPO .

. EP(UK) patents from the EPO .

. UK trade mark classes registered by the IPO .

. European trade mark classes registered by the EUIPO .

. UK registered designs issued by the IPO .

. Registered Community designs issued by the EUIPO .

The applicants for these IP rights have been matched to UK company data taken from the FAME database, an extract of which was taken in September 2019 for this analysis.

Identifying industry use of IP requires a link to be made between IP applications and industries. Industry classification information was obtained by matching IP rights to UK company data in the FAME database. Applicant names and addresses provided in IP filings have been matched against company names and addresses in the FAME database. Obtaining this link allows identification of an IP applicant’s primary Standard Industrial Classification (SIC) code (their main business activity).

Not all IP applicants could be matched to company data in FAME and there are various reasons why. This exercise focused on UK companies and matching was only attempted for IP applicants with UK addresses. FAME does not provide information on private individuals or unincorporated businesses so where the named applicant is not a company, industries are not identified. Some matched companies have no associated industry information in FAME so cannot be included in the analysis. Furthermore, changes in business name/address and IP applications using inconsistent names can also complicate the matching process. To ensure the best possible match rate all names and addresses were cleaned consistently across the IP and FAME datasets and a stage of manual matching took place to ensure companies with high IP counts were successfully matched. Table 1 shows a summary of the match rates for each IP right.

Table 1: Summary of IP data matching to SIC codes

(class count) Registered designs UK applicants 24,511 491,278 47,184 Matched to firm data with valid SIC 17,711 320,797 27,932 % match 72% 65% 59%

It should be noted that the data covering registered community designs did not include applications from individuals. As the analysis in this report relies on matching IP applications to companies (and not individuals) there is no effect on the results, however, the reported match rate for designs will be inflated as a consequence. ###2.3 Head office redistribution

Organisational structures of large companies mean it is common practice for IP to be centrally handled for all parts of a business. This leads to IP applications being linked to non-specific industry codes.

Head office activies under the SIC classifications fall under three industries; 6420 Activities of holding companies, 7010 Activities of head offices and 8299 Other business support service activities n.e.c.

A method was applied to redistribute the IP rights of these ‘head office’ companies to reflect the industrial activity of one of their subsidiaries. Very few IP rights were successfully reallocated so this method was not used

2.4 Fractional allocation of IP

Each application for an IP right can have multiple applicants associated with it. IP rights have been allocated fractionally to industries. Each matched applicant for a given application is given an equal share of the IP right, e.g. If there are three applicants matched to three different SIC codes, each industry classification is assigned 1/3 of the IP .

Analysis in this paper considers IP applications filed in the time period 2010-2014 and subsequently granted by end of September 2019. This was linked with economic data from 2014-2016, which is in line with the 2019 EUIPO / EPO report.

The matched dataset allowed IP rights to be aggregated by SIC classification. These IP counts by industry are then combined with national economic statistics (employment, gross value added (GVA), number of companies) which are available by SIC classification. Export data is classified under product codes. Eurostat concordance tables are used to convert goods export data to SIC codes which has been combined with the aggregated IP counts.

It should be noted that this report is focused on IP rights held by UK companies and UK national economic measures. As with the EUIPO / EPO study, this results in the analysis being affected by cross-border ownership and use of IP . For example, a UK company may be the owner of an IP right but base its manufacturing in a different country. The employment and GVA resulting from this manufacturing will not be captured in UK national accounts and therefore is not considered when calculating industry IP use per 1000 employees. Similarly, the IP owned by foreign companies with a workforce in the UK is not captured in the analysis. This cross-border issue is an inevitable consequence of focussing the analysis on a single country, there is also an effect on the calculation of economic contributions which is discussed further in section 7.

A number of economic variables have been used throughout this analysis. A table of sources and caveats can be found in Appendix 1.

2.7 Measuring IP intensity: IP rights per 1000 employees

The methodology used in both EUIPO / EPO and USPTO papers, which we have also applied, calculates how many granted IP rights there are per 1,000 employees in each industry.

(Granted IPRs for industry i (a))/(Total Employees in industry i (b)) x 1000

(a): The number of patents, trade marks or registered designs granted to the 4-digit industry in the time period explained in section 2.5.

Granted IP rights are matched to industry by matching applications to businesses and determining their primary SIC code as reported to Companies House.

(b): The number of employees for each industry is defined as the average number of employees over the time periods explained in section 2.5 .

For this measure to be calculated for an industry with granted IP rights, available employment data is needed. Table 2 shows how many industries are not measured due to lack of employee data available across the time period.

Table 2: Research limitations caused by data coverage issues

IP right Number of industries with IP rights Number of industries not measured by employees Percentage % Patents 360 12 (3.3%) Trade marks 586 36 (6.1%) Registered designs 388 11 (2.8%)

To determine how much use an industry makes of IP , we have three classifications: high, medium and low. The descriptions of these classifications are explained in Table 3. They are also demonstrated in the charts throughout this paper as H, M and L.

Table 3: Classifications of IP usage

Classification of usage of IP Description Above average The industry has an above average use of IP when all industries with that IP are considered High (H) The industry has an above average use of IP out of the industries in the “Above Average” subset Medium (M) The industry has a below average use of IP out of the industries in the “Above Average” subset Low (L) The industry has a below average used of IP when all industries with that IP are considered Unclassified The industry either has no IP or is not measurable due to lack of economic data

The above defined classifications have been used instead of labelling industries as intensive to reflect the shape of the distribution of IP use. The distribution curves shown throughout this report show the distribution of patents per thousand employees across all UK industries that have both the IP right data and available employee data , ranked from highest to lowest; solid lines show where the average value lies, and the dotted lines indicate the average of all industries in sections H and M.

Appendices 2, 3 and 4 contains a list of all industries, their classification description, the number of IP rights within each (separated out by patents, trade marks and registered designs), and IP per 1000 employees.

3. Use of copyright across the UK industries: methodology

Copyright intensive industries have been identified using a WIPO methodology that classifies industries by the percentage of their value that can be attributed to copyright-related activities . WIPO groups industries into four categories depending to the degree to which their activity depends on copyright. These are: core , interdependent , partial and non-dedicated support industries.

While the entire output of the core copyright industries’ activities can be attributed to copyright works, to capture the fact that only a portion of the industries’ activity is related to copyright, each industry has been assigned a factor intensity that represents the economic output from that industry that is related to copyright-related activity. The copyright factors assigned to each industry in the interdependent, partial and non-dedicated support classifications have been adopted directly from the EUIPO / EPO paper.

All core, interdependent and partial copyright industries (with a factor intensity of over 20%) have been included in this paper. Industries identified as “core” are considered as high IP use sectors. All non-dedicated support industries have been excluded as all of them have a factor of just 6%. Table 4 lists the number of industries classified under each category .

Table 4: Copyright intensive industries by WIPO grouping

IP usage Number of industries Number of Industries classified as Copyright Intensive 77 Core 49 Interdependent 22 Partial (with a factor intensity greater than 20% 6

4. Use of registered IP rights across UK industries

Table 5 provides a summary of the number of industries that fall into each category for each registered IP right. 586 (95%) of 616 UK industries had a registered trade mark, the highest of the three registered IP rights. As trade marks offer brand protection, the majority of industries contain at least one trade mark registered to a UK business.

Table 5: Summary of IP industry usage by registered IP right

IP usage Patents Trade marks Registered designs Number of industries 360 586 388 Above Average (High or Medium) 64 116 75 High 17 25 18 Medium 47 91 57 Low 284 464 302 Unclassified (no employee data) 12 36 11

The following pages show more findings for each registered IP right with distribution charts showing IP right usage across UK industries and tables summarising the high IP usage industries.

Figure 1 shows the distribution of patent use in UK industries. The industries that are categorised as high in patent use are listed in Table 6 with over 75% of the industries classified with a high patent usage are in the manufacturing sector.

Figure 1: Distribution of patent use

Figure 1: Distribution of patent use

Table 6: List of industries with high patent use

SIC SIC description Patents per 1000 employees Number of employees 6420 Activities of holding companies 61.26 3,167 3099 Manufacture of other transport equipment nec 55.31 1,067 2811 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines 48.82 16,733 2899 Manufacture of other special-purpose machinery nec 47.44 8,600 7211 Research and experimental development on biotechnology 45.18 8,133 2311 Manufacture of flat glass 44.44 900 3299 Other manufacturing nec 39.23 21,933 2110 Manufacture of basic pharmaceutical products 27.97 5,167 2344 Manufacture of other technical ceramic products 25.71 467 2611 Manufacture of electronic components 22.33 13,567 2790 Manufacture of other electrical equipment 21.15 9,433 7219 Other research and experimental development on natural sciences and engineering 17.44 115,800 2342 Manufacture of ceramic sanitary fixtures 15.88 567 2352 Manufacture of lime and plaster 14.21 633 1395 Manufacture of non-wovens and articles made from non-wovens, except apparel 14.00 1,000 2051 Manufacture of explosives 13.85 867 2670 Manufacture of optical instruments and photographic equipment 13.83 4,700

Figure 2: Distribution of trade mark use

Figure 2: Distribution of trade mark use graph

The distribution of trade mark use across industries shown in Figure 2 is characterised by a small number of outliers that have high usage and a large number with low usage that tails off very gradually. The highest ranked industry is 1102 Manufacture of wine from grape which has 3,330 trade marks per 1000 employees, can be considered as an extreme outlier. The 25 industries that are categorised with a high use of trade marks per 1000 employees are listed in Table 7, with the total number of employees alongside to assist with interpreting this measure. The 10 highest ranked industries can be considered somewhat as outliers with substantial relative differences between them in IP intensity according to this measure, which can distort the presentation of the distribution of the trade mark use, but the remainder of the industries follow a very flat distribution.

Table 7: Industries with high trade mark use

SIC SIC description TMs per 1000 employees Number of employees 1102 Manufacture of wine from grape 3330 100 6420 Activities of holding companies 841 3,167 5821 Publishing of computer games 672 1,467 5812 Publishing of directories and mailing lists 461 900 7740 Leasing of intellectual property and similar products, except copyrighted works 390 3,133 2110 Manufacture of basic pharmaceutical products 341 5,167 2432 Cold rolling of narrow strip 340 100 3299 Other manufacturing nec 246 21,933 6399 Other information service activities nec 245 10,100 3240 Manufacture of games and toys 189 4,267 4619 Agents involved in the sale of a variety of goods 185 4,233 1399 Manufacture of other textiles nec 177 2,100 3099 Manufacture of other transport equipment nec 166 1,067 1395 Manufacture of non-wovens and articles made from non-wovens, except apparel 163 1,000 5819 Other publishing activities 160 18,700 4782 Retail sale via stalls and markets of textiles, clothing and footwear 159 633 4635 Wholesale of tobacco products 155 1,400 0899 Other mining and quarrying nec 154 1,233 1411 Manufacture of leather clothes 150 267 4617 Agents involved in the sale of food, beverages and tobacco 149 4,833 1419 Manufacture of other wearing apparel and accessories 149 7,200 5829 Other software publishing 142 10,967 2015 Manufacture of fertilisers and nitrogen compounds 141 2,100 1086 Manufacture of homogenised food preparations and dietetic food 139 633 6312 Web portals 128 8,567

Figure 3: Distribution of registered design use

Figure 3: Distribution of registered design use graph

The distribution of registered design use in UK industries shown in Figure 3 is consistent with the the other charts for patents and trade marks, with the distribution showing a small number of industries with a disproportionately high use of registered designs, and a large number with medium to low use. Table 8 lists the 13 industries that are classified as having high registered design use; nine of these are classified as manufacturing industries. As with both patents and trade marks, the manufacturing sector account for the majority of IP usage.

Table 8: List of industries with high design use

SIC SIC classification Registered designs per 1000 employees Number of employees 2571 Manufacture of cutlery 365 367 1622 Manufacture of assembled parquet floors 90 100 7740 Leasing of intellectual property and similar products, except copyrighted works 80 3,133 2680 Manufacture of magnetic and optical media 75 133 3299 Other manufacturing nec 63 21,933 3240 Manufacture of games and toys 55 4,267 6420 Activities of holding companies 49 3,167 4635 Wholesale of tobacco products 46 1,400 1107 Manufacture of soft drinks; production of mineral waters and other bottled waters 40 9,767 1629 Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials 34 6,433 4642 Wholesale of clothing and footwear 31 40,767 2017 Manufacture of synthetic rubber in primary forms 30 200 2432 Cold rolling of narrow strip 30 100 2110 Manufacture of basic pharmaceutical products 29 5,167 1512 Manufacture of luggage, handbags and the like, saddlery and harness 29 2,767 3099 Manufacture of other transport equipment nec 28 1,067 2751 Manufacture of electric domestic appliances 27 8,033 3230 Manufacture of sports goods 27 5,467

5. IP intensive industries and the economy

The analysis below outlines the contribution that industries with high or above average registered IP use, or those classified as copyright intensive , make to the UK economy in terms of non-financial GVA , employment and exports. It is based on IP rights held by UK companies and the economic contributions are calculated from UK national accounts. As with the EUIPO / EPO study, this results in the analysis being affected by cross-border ownership and use of IP although, as noted before, t he EUIPO / EPO did not explore the pattern of IP right usage within individual countries but instead calculated for each country the share of gross domestic product (GDP) and employment of industries found to be IP intensive at the EU level. For example, a UK company may be the owner of an IP right but base its manufacturing in a different country. The employment and GVA which result from this manufacturing will not be captured in UK national accounts and therefore won’t form part of the contributions associated with the company/industry’s use of IP .

15.5% (4.5 million) of total UK employment is attributable to industries with an above average IP use, with 5.1% (1.5 million) being attributable to industries with high use.

Figure 4 shows the proportion of UK employment attributable to those industries with a high or above average (high or medium) use of IP .

Figure 4: Share of employees from industries with above average IP use

Figure 4: Share of employees from industries with above average IP use graph

The higher proportion of employees within those industries with an above average use of trade marks reflects the widespread use of trade marks across sectors relative to patents and registered designs. High use trade mark industries make up 0.4% (0.12 million) of total employment, rising to 7.8% (2.3 million) for all above average industries.

Industries with high use of patents employ 0.7% (0.21 million) of workers, rising to 3.9% (1.1 million) for all above average industries. High use registered design industries account for 0.4% (0.11m) of employment, rising to 3.9% (1.1 million) for above average registered design industries.

7% (2.0 million) of total UK employment in the UK is attributable to industries that fall under WIPO ’s classification of copyright intensive. Core industries made up the vast majority of this total, with 6.3% (1.8 million) coming from these industries. Interdependent industries accounted for 0.4% (0.12 million) of total employment and partial industries 0.2% (0.07 million).

5.2 Non-financial business economy gross value added

This section refers only to the gross value added (GVA) of the non-financial business economy in the UK (which accounts for 84% of all industries at the 4-digit SIC level and approximately two thirds of the UK economy). Sufficient data is not available at this level of disaggregation for the financial industries.

Figure 5 shows the proportion of UK GVA is attributable to those industries with a high or above average (high or medium) use of IP

Figure 5: Share of non-financial business economy GVA from industries with above average IP use

Figure 5: Share of non-financial business economy GVA from industries with above average IP use graph

Industries with an above average use in at least one of the IP rights accounted for 26.9% of UK value-added output (£298.5 billion) as measured by the Annual Business Survey. Industries with high use of IP rights contributed 15.0% (£166.5 billion) to GVA.

Industries with above average trade mark use account for a relatively high share of non-financial business economy GVA reflecting the fact that a far greater number of industries and businesses own a trade mark than a patent or a registered design.

Table 9 outlines the contributions in absolute terms to economic output by each IP right.

Table 9: Non-financial business economy GVA (£billions) by IP right

Patents Trade marks Registered designs Copyright High 8.8 9.8 8.1 149 Above average (high and medium) 79.7 146.5 79.7 156.8

Above average IP use industries account for a significant share of UK goods export value . 52.1% (£159.7 billion) of total goods export value came from industries with an above average use of at least one IP right, and 12.1% (£37.1 billion) from industries classified as high use.

Figure 6: Share of export of goods from industries with above average IP use

Figure 6: Share of export of goods from industries with above average IP use graph

Industries with above average patent use contributed the most to goods export value, reflecting the fact that above average patent use industries are concentrated in manufacturing.

Figure 6 illustrates that above average industries are significant to UK goods export value. High patent use industries contribute 7.4% (£22.8 billion) of goods export value, rising to 39.3% (£120.6 billion) from above average industries – the highest of the all the rights. High use trade mark industries contribute 3.4% (£10.5 billion) of goods export value, rising to 17.2% (£52.9 billion) of all above average industries. Registered design industries classified as high contribute 3.4% (£10.5 billion) to total goods exports, rising to 23.8% (£72.9 billion) for above average design industries.

5.4 The economic contribution of the copyright intensive industries

The estimates below outline the contribution that industries classified as copyright intensive make to the UK economy as a percentage of non-financial business GVA, employment and export value.

Figure 7: Economic contributions from industries classified as copyright intensive

Figure 7: Economic contributions from industries classified as copyright intensive graph

Figure 7 shows that 7% (2.0 million) of total UK employment in the UK is attributable to industries that fall under WIPO ’s classification of copyright intensive. Core industries made up the vast majority of this total, with 6.3% (1.8 million) coming from these industries. Interdependent industries accounted for 0.4% (121,000) of total employment and partial industries 0.2% (72,000).

As with the three registered IP rights, data is not available for the financial industries, and so this section refers only to the GVA of the non-financial business economy in the UK. Industries classified as copyright intensive accounted for 14% (£156.8 billion) of UK value-added output. Core industries accounted for 13.3% (£149 billion), interdependent industries for 0.6% (£6.7 billion) and partial for 0.1% (£1.2 billion).

Copyright intensive industries accounted for a relatively small share of UK goods export value. Just 4.8% (£14.7 billion) of total goods export value came from industries that were classified as copyright intensive. 2.5% (£7.6 billion) from core, 1.6% (£4.9 billion) from interdependent, and 0.7% (£2.3 billion) from partial copyright industries.

In building on previous studies, the IPO has been able to identify industries with above average IP usage in the UK, and a smaller subset with noticeably higher IP use. As a result we can more accurately estimate the contribution that these industries make to the UK economy and enhance our understanding of IP use within UK industries for domestic policy making.

Whilst this expands our evidence base of the IP usage across UK industries, we recognise that it is not exhaustive and could be further developed. For example, we have analysed the data to define IP intensity per 1,000 employees (which excludes rights owned by individuals from the analysis), but there may be other variables to consider as a measure of intensity for additional insight.

Potential future research options could include extending the time periods for matching IP , company level data and employment data to examine underlying long term trends, as it is likely that either employment or IP applications are relatively more prone to be impacted by changes in macro-economic conditions. The inclusion of other IP rights is also considered as an area for further work. The analysis is currently limited to IP rights registered at the UK IPO expanding this to cover the distribution of geographical indicators and plant variety rights with similar methodologies to the EUIPO / EPO would further enhance our understanding of IP use across UK industries.

Categorising industries at the national level has improved our economic contribution estimates by only considering features specific to the UK economy. With our focus on producing a national picture of registered IP use, we have not considered foreign ownership of IP in the UK or UK companies’ IP use abroad owing to significant data challenges. These are both areas considered for further study, noting that widening the scope of the work would capture IP use outside of the UK economy.

By adopting medium and high IP use classifications, we account for the large variance between industries classified as above average, and the small difference between industries on either side of the average line. The high use measure distinguishes those industries with noticeably higher IP usage that fall within the steeper part of the distribution. In introducing this additional measure of classification, we can illustrate in which industries IP rights are more concentrated and identify their economic contribution.

Company level data from FAME, a commercially available database from Bureau Van Dijk of UK companies containing industry and financial information. An extract of company data was taken in September 2019. This was matched to IP applicants to identify their primary area of activity (4 digit SIC code).

List of Economic data and sources

Variable Source Limitations Employees per 4-digit SIC Business Register and Employment Survey (BRES) 8% of industries supressed GVA of non-financial business economy Annual Business Survey (ABS) This only covers the non-financial business economy. 16% of industries are supressed Export Value per 4-digit SIC HMRC Trade Tables , converted to SIC by using RAMON concordance table Goods only

Appendix 2: Categories – patents

The following table lists those industries identifies as patent intensive (both under the high and medium classifications):

Average Number above Average 2nd Average (for High classification) 3.55 64 12.50

Sector Description IP Use Value 6420 Activities of holding companies High 61.26 3099 Manufacture of other transport equipment nec High 55.31 2811 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines High 48.82 2899 Manufacture of other special-purpose machinery nec High 47.44 7211 Research and experimental development on biotechnology High 45.18 2311 Manufacture of flat glass High 44.44 3299 Other manufacturing nec High 39.23 2110 Manufacture of basic pharmaceutical products High 27.97 2344 Manufacture of other technical ceramic products High 25.71 2611 Manufacture of electronic components High 22.33 2790 Manufacture of other electrical equipment High 21.15 7219 Other research and experimental development on natural sciences and engineering High 17.44 2342 Manufacture of ceramic sanitary fixtures High 15.88 2352 Manufacture of lime and plaster High 14.21 1395 Manufacture of non-wovens and articles made from non-wovens, except apparel High 14.00 2051 Manufacture of explosives High 13.85 2670 Manufacture of optical instruments and photographic equipment High 13.83 7740 Leasing of intellectual property and similar products, except copyrighted works Medium 11.81 3250 Manufacture of medical and dental instruments and supplies Medium 11.71 2013 Manufacture of other inorganic basic chemicals Medium 11.28 3314 Repair of electrical equipment Medium 11.21 2059 Manufacture of other chemical products nec Medium 10.78 1723 Manufacture of paper stationery Medium 10.77 4690 Non-specialised wholesale trade Medium 10.54 2751 Manufacture of electric domestic appliances Medium 10.33 2640 Manufacture of consumer electronics Medium 10.29 2910 Manufacture of motor vehicles Medium 10.11 1711 Manufacture of pulp Medium 10.00 2432 Cold rolling of narrow strip Medium 10.00 2896 Manufacture of plastics and rubber machinery Medium 9.64 2891 Manufacture of machinery for metallurgy Medium 9.38 2651 Manufacture of instruments and appliances for measuring, testing and navigation Medium 9.36 2016 Manufacture of plastics in primary forms Medium 8.68 2599 Manufacture of other fabricated metal products nec Medium 8.20 0910 Support activities for petroleum and natural gas extraction Medium 7.95 2572 Manufacture of locks and hinges Medium 7.88 2014 Manufacture of other organic basic chemicals Medium 6.96 2814 Manufacture of other taps and valves Medium 6.88 3230 Manufacture of sports goods Medium 6.77 3030 Manufacture of air and spacecraft and related machinery Medium 6.73 2720 Manufacture of batteries and accumulators Medium 6.67 1041 Manufacture of oils and fats Medium 6.43 2892 Manufacture of machinery for mining, quarrying and construction Medium 6.12 2813 Manufacture of other pumps and compressors Medium 5.65 3240 Manufacture of games and toys Medium 5.63 3092 Manufacture of bicycles and invalid carriages Medium 5.57 2229 Manufacture of other plastic products Medium 5.39 4635 Wholesale of tobacco products Medium 5.36 2821 Manufacture of ovens, furnaces and furnace burners Medium 5.32 3220 Manufacture of musical instruments Medium 5.29 2815 Manufacture of bearings, gears, gearing and driving elements Medium 5.06 2893 Manufacture of machinery for food, beverage and tobacco processing Medium 4.94 2740 Manufacture of electric lighting equipment Medium 4.82 1399 Manufacture of other textiles nec Medium 4.76 1512 Manufacture of luggage, handbags and the like, saddlery and harness Medium 4.70 2612 Manufacture of loaded electronic boards Medium 4.65 2369 Manufacture of other articles of concrete, plaster and cement Medium 4.55 2630 Manufacture of communication equipment Medium 4.50 2015 Manufacture of fertilisers and nitrogen compounds Medium 4.29 2812 Manufacture of fluid power equipment Medium 4.28 7220 Research and experimental development on social sciences and humanities Medium 4.20 2849 Manufacture of other machine tools Medium 4.00 8299 Other business support service activities nec Medium 3.83 1396 Manufacture of other technical and industrial textiles Medium 3.56

Appendix 3: Categories – trade marks

The following table lists those industries identifies as Trade mark intensive (both under the High and medium classifications):

Average Number above Average 2nd Average (for High Classification) 37.30 116 127.34

Sector Description IP Use Value 1102 Manufacture of wine from grape High 3330.00 6420 Activities of holding companies High 840.63 5821 Publishing of computer games High 671.59 5812 Publishing of directories and mailing lists High 461.11 7740 Leasing of intellectual property and similar products, except copyrighted works High 390.00 2110 Manufacture of basic pharmaceutical products High 341.03 2432 Cold rolling of narrow strip High 340.00 3299 Other manufacturing nec High 246.34 6399 Other information service activities nec High 244.85 3240 Manufacture of games and toys High 188.91 4619 Agents involved in the sale of a variety of goods High 184.96 1399 Manufacture of other textiles nec High 177.14 3099 Manufacture of other transport equipment nec High 165.94 1395 Manufacture of non-wovens and articles made from non-wovens, except apparel High 163.00 5819 Other publishing activities High 159.89 4782 Retail sale via stalls and markets of textiles, clothing and footwear High 159.47 4635 Wholesale of tobacco products High 155.00 0899 Other mining and quarrying nec High 154.05 1411 Manufacture of leather clothes High 150.00 4617 Agents involved in the sale of food, beverages and tobacco High 149.17 1419 Manufacture of other wearing apparel and accessories High 149.10 5829 Other software publishing High 142.07 2015 Manufacture of fertilisers and nitrogen compounds High 141.43 1086 Manufacture of homogenised food preparations and dietetic food High 138.95 6312 Web portals High 127.94 1052 Manufacture of ice cream Medium 121.32 6203 Computer facilities management activities Medium 120.00 4799 Other retail sale not in stores, stalls or markets Medium 112.95 4642 Wholesale of clothing and footwear Medium 111.97 2790 Manufacture of other electrical equipment Medium 110.88 5920 Sound recording and music publishing activities Medium 108.68 3230 Manufacture of sports goods Medium 106.65 0164 Seed processing for propagation Medium 103.33 4637 Wholesale of coffee, tea, cocoa and spices Medium 100.19 9003 Artistic creation Medium 95.57 1107 Manufacture of soft drinks; production of mineral waters and other bottled waters Medium 94.10 1101 Distilling, rectifying and blending of spirits Medium 90.55 2652 Manufacture of watches and clocks Medium 90.00 7211 Research and experimental development on biotechnology Medium 89.88 4690 Non-specialised wholesale trade Medium 89.85 8299 Other business support service activities nec Medium 88.50 1414 Manufacture of underwear Medium 88.16 1512 Manufacture of luggage, handbags and the like, saddlery and harness Medium 87.83 2899 Manufacture of other special-purpose machinery nec Medium 87.21 9319 Other sports activities Medium 85.78 5911 Motion picture, video and television programme production activities Medium 85.15 2349 Manufacture of other ceramic products Medium 82.94 1041 Manufacture of oils and fats Medium 82.14 1105 Manufacture of beer Medium 81.15 7735 Renting and leasing of air transport equipment Medium 77.50 1103 Manufacture of cider and other fruit wines Medium 77.34 1724 Manufacture of wallpaper Medium 77.00 9002 Support activities to performing arts Medium 74.48 2059 Manufacture of other chemical products nec Medium 72.97 2640 Manufacture of consumer electronics Medium 72.55 1200 Manufacture of tobacco products Medium 71.05 4615 Agents involved in the sale of furniture, household goods, hardware and ironmongery Medium 70.88 1083 Processing of tea and coffee Medium 69.94 5913 Motion picture, video and television programme distribution activities Medium 69.90 6209 Other information technology and computer service activities Medium 69.14 9609 Other personal service activities nec Medium 68.29 4616 Agents involved in the sale of textiles, clothing, fur, footwear and leather goods Medium 67.00 4791 Retail sale via mail order houses or via Internet Medium 66.07 1089 Manufacture of other food products nec Medium 65.52 3220 Manufacture of musical instruments Medium 65.29 5811 Book publishing Medium 64.59 3212 Manufacture of jewellery and related articles Medium 64.52 9411 Activities of business and employers membership organisations Medium 63.48 4634 Wholesale of beverages Medium 63.14 1629 Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials Medium 62.80 2751 Manufacture of electric domestic appliances Medium 61.74 2311 Manufacture of flat glass Medium 60.00 4618 Agents specialised in the sale of other particular products Medium 59.32 1091 Manufacture of prepared feeds for farm animals Medium 58.09 2060 Manufacture of man-made fibres Medium 57.86 1092 Manufacture of prepared pet foods Medium 55.93 2344 Manufacture of other technical ceramic products Medium 55.71 4641 Wholesale of textiles Medium 55.21 1413 Manufacture of other outerwear Medium 54.92 6810 Buying and selling of own real estate Medium 54.86 4774 Retail sale of medical and orthopaedic goods in specialised stores Medium 54.57 5813 Publishing of newspapers Medium 53.22 4613 Agents involved in the sale of timber and building materials Medium 53.21 6120 Wireless telecommunications activities Medium 52.48 1622 Manufacture of assembled parquet floors Medium 50.00 7490 Other professional, scientific and technical activities nec Medium 49.94 6201 Computer programming activities Medium 49.40 1520 Manufacture of footwear Medium 49.25 4789 Retail sale via stalls and markets of other goods Medium 49.21 1032 Manufacture of fruit and vegetable juice Medium 48.89 3291 Manufacture of brooms and brushes Medium 48.46 0321 Marine aquaculture Medium 47.42 9604 Physical well-being activities Medium 46.20 8560 Educational support activities Medium 46.07 3092 Manufacture of bicycles and invalid carriages Medium 45.86 3514 Trade of electricity Medium 45.83 3103 Manufacture of mattresses Medium 45.23 6499 Other financial service activities, except insurance and pension funding, nec Medium 44.89 1412 Manufacture of workwear Medium 44.10 2020 Manufacture of pesticides and other agrochemical products Medium 43.90 7010 Activities of head offices Medium 43.75 4645 Wholesale of perfume and cosmetics Medium 43.16 2013 Manufacture of other inorganic basic chemicals Medium 43.08 2521 Manufacture of central heating radiators and boilers Medium 41.48 7312 Media representation Medium 41.33 3530 Steam and air conditioning supply Medium 40.91 5814 Publishing of journals and periodicals Medium 40.57 1431 Manufacture of knitted and crocheted hosiery Medium 39.31 1073 Manufacture of macaroni, noodles, couscous and similar farinaceous products Medium 38.57 1820 Reproduction of recorded media Medium 38.10 1084 Manufacture of condiments and seasonings Medium 38.09 4676 Wholesale of other intermediate products Medium 38.05 9329 Other amusement and recreation activities Medium 38.00 6020 Television programming and broadcasting activities Medium 37.53 5590 Other accommodation Medium 37.42 4648 Wholesale of watches and jewellery Medium 37.37

Appendix 4: Categories – registered designs

Average Number above average 2nd average (for high classification) 5.96 75 26.50

Sector Description IP Use Value 2571 Manufacture of cutlery High 365.45 1622 Manufacture of assembled parquet floors High 90.00 7740 Leasing of intellectual property and similar products, except copyrighted works High 79.79 2680 Manufacture of magnetic and optical media High 75.00 3299 Other manufacturing nec High 62.60 3240 Manufacture of games and toys High 55.43 6420 Activities of holding companies High 49.26 4635 Wholesale of tobacco products High 46.43 1107 Manufacture of soft drinks; production of mineral waters and other bottled waters High 39.62 1629 Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials High 33.73 4642 Wholesale of clothing and footwear High 30.83 2017 Manufacture of synthetic rubber in primary forms High 30.00 2432 Cold rolling of narrow strip High 30.00 2110 Manufacture of basic pharmaceutical products High 29.23 1512 Manufacture of luggage, handbags and the like, saddlery and harness High 28.92 3099 Manufacture of other transport equipment nec High 28.13 2751 Manufacture of electric domestic appliances High 26.95 3230 Manufacture of sports goods High 26.89 4649 Wholesale of other household goods Medium 23.44 4690 Non-specialised wholesale trade Medium 22.90 2814 Manufacture of other taps and valves Medium 22.06 3109 Manufacture of other furniture Medium 21.48 2016 Manufacture of plastics in primary forms Medium 21.27 4799 Other retail sale not in stores, stalls or markets Medium 21.04 5821 Publishing of computer games Medium 20.45 4789 Retail sale via stalls and markets of other goods Medium 20.22 2790 Manufacture of other electrical equipment Medium 18.23 2640 Manufacture of consumer electronics Medium 16.86 2899 Manufacture of other special-purpose machinery nec Medium 16.63 2229 Manufacture of other plastic products Medium 16.59 1419 Manufacture of other wearing apparel and accessories Medium 16.39 2591 Manufacture of steel drums and similar containers Medium 15.52 1399 Manufacture of other textiles nec Medium 15.24 4647 Wholesale of furniture, carpets and lighting equipment Medium 14.74 5829 Other software publishing Medium 14.32 4676 Wholesale of other intermediate products Medium 13.74 1103 Manufacture of cider and other fruit wines Medium 13.59 4615 Agents involved in the sale of furniture, household goods, hardware and ironmongery Medium 13.50 8299 Other business support service activities nec Medium 13.07 2599 Manufacture of other fabricated metal products nec Medium 12.48 2311 Manufacture of flat glass Medium 12.22 1083 Processing of tea and coffee Medium 11.69 3291 Manufacture of brooms and brushes Medium 11.54 1320 Weaving of textiles Medium 11.29 1396 Manufacture of other technical and industrial textiles Medium 10.93 2740 Manufacture of electric lighting equipment Medium 10.71 3220 Manufacture of musical instruments Medium 10.59 2369 Manufacture of other articles of concrete, plaster and cement Medium 10.00 1052 Manufacture of ice cream Medium 10.00 1082 Manufacture of cocoa, chocolate and sugar confectionery Medium 9.67 3212 Manufacture of jewellery and related articles Medium 9.66 2443 Lead, zinc and tin production Medium 8.89 2349 Manufacture of other ceramic products Medium 8.82 4619 Agents involved in the sale of a variety of goods Medium 8.74 1414 Manufacture of underwear Medium 8.57 2344 Manufacture of other technical ceramic products Medium 8.57 2222 Manufacture of plastic packing goods Medium 8.46 2892 Manufacture of machinery for mining, quarrying and construction Medium 8.26 2593 Manufacture of wire products, chain and springs Medium 7.89 9525 Repair of watches, clocks and jewellery Medium 7.87 7410 Specialised design activities Medium 7.44 1723 Manufacture of paper stationery Medium 7.18 4648 Wholesale of watches and jewellery Medium 7.10 2910 Manufacture of motor vehicles Medium 7.08 1395 Manufacture of non-wovens and articles made from non-wovens, except apparel Medium 7.00 4665 Wholesale of office furniture Medium 6.55 1393 Manufacture of carpets and rugs Medium 6.52 4643 Wholesale of electrical household appliances Medium 6.48 4618 Agents specialised in the sale of other particular products Medium 6.43 1041 Manufacture of oils and fats Medium 6.43 2012 Manufacture of dyes and pigments Medium 6.40 2219 Manufacture of other rubber products Medium 6.40 4782 Retail sale via stalls and markets of textiles, clothing and footwear Medium 6.32 3092 Manufacture of bicycles and invalid carriages Medium 6.00 1089 Manufacture of other food products nec Medium 5.97

Appendix 5: Industries list with above average IP use across multiple IP rights

The following table lists all industries that have a high or medium classification in at least one IPR.

SIC Description Patents Trade marks Registered designs Copyright 0164 Seed processing for propagation x 0321 Marine aquaculture x 0899 Other mining and quarrying nec x 0910 Support activities for petroleum and natural gas extraction x 1032 Manufacture of fruit and vegetable juice x 1041 Manufacture of oils and fats x x x 1052 Manufacture of ice cream x x 1073 Manufacture of macaroni, noodles, couscous and similar farinaceous products x 1082 Manufacture of cocoa, chocolate and sugar confectionery x 1083 Processing of tea and coffee x x 1084 Manufacture of condiments and seasonings x 1086 Manufacture of homogenised food preparations and dietetic food x 1089 Manufacture of other food products nec x x 1091 Manufacture of prepared feeds for farm animals x 1092 Manufacture of prepared pet foods x 1101 Distilling, rectifying and blending of spirits x 1102 Manufacture of wine from grape x 1103 Manufacture of cider and other fruit wines x x 1105 Manufacture of beer x 1107 Manufacture of soft drinks; production of mineral waters and other bottled waters x x 1200 Manufacture of tobacco products x 1320 Weaving of textiles x 1393 Manufacture of carpets and rugs x 1395 Manufacture of non-wovens and articles made from non-wovens, except apparel x x x 1396 Manufacture of other technical and industrial textiles x x 1399 Manufacture of other textiles nec x x x 1411 Manufacture of leather clothes x 1412 Manufacture of workwear x 1413 Manufacture of other outerwear x 1414 Manufacture of underwear x x 1419 Manufacture of other wearing apparel and accessories x x 1431 Manufacture of knitted and crocheted hosiery x 1512 Manufacture of luggage, handbags and the like, saddlery and harness x x x 1520 Manufacture of footwear x 1622 Manufacture of assembled parquet floors x x 1629 Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials x x 1711 Manufacture of pulp x 1712 Manufacture of paper and paperboard x 1723 Manufacture of paper stationery x x 1724 Manufacture of wallpaper x 1811 Printing of newspapers x 1812 Other printing x 1813 Pre-press and pre-media services x 1814 Binding and related services x 1820 Reproduction of recorded media x 2012 Manufacture of dyes and pigments x 2013 Manufacture of other inorganic basic chemicals x x 2014 Manufacture of other organic basic chemicals x 2015 Manufacture of fertilisers and nitrogen compounds x x 2016 Manufacture of plastics in primary forms x x 2017 Manufacture of synthetic rubber in primary forms x 2020 Manufacture of pesticides and other agrochemical products x 2051 Manufacture of explosives x 2059 Manufacture of other chemical products nec x x 2060 Manufacture of man-made fibres x 2110 Manufacture of basic pharmaceutical products x x x 2219 Manufacture of other rubber products x 2222 Manufacture of plastic packing goods x 2229 Manufacture of other plastic products x x 2311 Manufacture of flat glass x x x 2342 Manufacture of ceramic sanitary fixtures x 2344 Manufacture of other technical ceramic products x x x 2349 Manufacture of other ceramic products x x 2352 Manufacture of lime and plaster x 2369 Manufacture of other articles of concrete, plaster and cement x x 2432 Cold rolling of narrow strip x x x 2443 Lead, zinc and tin production x 2521 Manufacture of central heating radiators and boilers x 2571 Manufacture of cutlery x 2572 Manufacture of locks and hinges x 2591 Manufacture of steel drums and similar containers x 2593 Manufacture of wire products, chain and springs x 2599 Manufacture of other fabricated metal products nec x x 2611 Manufacture of electronic components x 2612 Manufacture of loaded electronic boards x 2620 Manufacture of computers and peripheral equipment x 2630 Manufacture of communication equipment x 2640 Manufacture of consumer electronics x x x 2651 Manufacture of instruments and appliances for measuring, testing and navigation x 2652 Manufacture of watches and clocks x 2670 Manufacture of optical instruments and photographic equipment x 2680 Manufacture of magnetic and optical media x 2720 Manufacture of batteries and accumulators x 2731 Manufacture of fibre optic cables x 2740 Manufacture of electric lighting equipment x x 2751 Manufacture of domestic appliances x x x 2790 Manufacture of other electrical equipment x x x 2811 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines x 2812 Manufacture of fluid power equipment x 2813 Manufacture of other pumps and compressors x 2814 Manufacture of other taps and valves x x 2815 Manufacture of bearings, gears, gearing and driving elements x 2821 Manufacture of ovens, furnaces and furnace burners x 2823 Manufacture of office machinery and equipment (except computers and peripheral equipment) x 2849 Manufacture of other machine tools x 2891 Manufacture of machinery for metallurgy x 2892 Manufacture of machinery for mining, quarrying and construction x x 2893 Manufacture of machinery for food, beverage and tobacco processing x 2896 Manufacture of plastics and rubber machinery x 2899 Manufacture of other special-purpose machinery nec x x x 2910 Manufacture of motor vehicles x x 3030 Manufacture of air and spacecraft and related machinery x 3092 Manufacture of bicycles and invalid carriages x x x 3099 Manufacture of other transport equipment nec x x x 3103 Manufacture of mattresses x 3109 Manufacture of other furniture x 3211 Striking of coins x 3212 Manufacture of jewellery and related articles x x 3220 Manufacture of musical instruments x x x 3230 Manufacture of sports goods x x x 3240 Manufacture of games and toys x x x 3250 Manufacture of medical and dental instruments and supplies x 3291 Manufacture of brooms and brushes x x 3299 Other manufacturing nec x x x 3314 Repair of electrical equipment x 3514 Trade of electricity x 3530 Steam and air conditioning supply x 4613 Agents involved in the sale of timber and building materials x 4615 Agents involved in the sale of furniture, household goods, hardware and ironmongery x x 4616 Agents involved in the sale of textiles, clothing, fur, footwear and leather goods x 4617 Agents involved in the sale of food, beverages and tobacco x 4618 Agents specialised in the sale of other particular products x x 4619 Agents involved in the sale of a variety of goods x x 4634 Wholesale of beverages x 4635 Wholesale of tobacco products x x x 4637 Wholesale of coffee, tea, cocoa and spices x 4641 Wholesale of textiles x 4642 Wholesale of clothing and footwear x x 4643 Wholesale of electrical household appliances x 4645 Wholesale of perfume and cosmetics x 4647 Wholesale of furniture, carpets and lighting equipment x 4648 Wholesale of watches and jewellery x x 4649 Wholesale of other household goods x 4651 Wholesale of computers, computer peripheral equipment and software x 4652 Wholesale of electronic and telecommunications equipment and parts x 4665 Wholesale of office furniture x 4666 Wholesale of other office machinery and equipment x 4676 Wholesale of other intermediate products x x 4690 Non-specialised wholesale trade x x x 4741 Retail sale of computers, peripheral units and software in specialised stores x 4743 Retail sale of audio and video equipment in specialised stores x 4761 Retail sale of books in specialised stores x 4762 Retail sale of newspapers and stationery in specialised stores x 4763 Retail sale of music and video recordings in specialised stores x 4774 Retail sale of medical and orthopaedic goods in specialised stores x 4778 Other retail sale of new goods in specialised stores x 4782 Retail sale via stalls and markets of textiles, clothing and footwear x x 4789 Retail sale via stalls and markets of other goods x x 4791 Retail sale via mail order houses or via Internet x 4799 Other retail sale not in stores, stalls or markets x x 5590 Other accommodation x 5811 Book publishing x 5812 Publishing of directories and mailing lists x 5813 Publishing of newspapers x 5814 Publishing of journals and periodicals x 5819 Other publishing activities x 5821 Publishing of computer games x x 5829 Other software publishing x x 5911 Motion picture, video and television programme production activities x 5912 Motion picture, video and television programme post-production activities x 5913 Motion picture, video and television programme distribution activities x 5914 Motion picture projection activities x 5920 Sound recording and music publishing activities x 6010 Radio broadcasting x 6020 Television programming and broadcasting activities x 6110 Wired telecommunications activities x 6120 Wireless telecommunications activities x 6130 Satellite telecommunications activities x 6190 Other telecommunications activities x 6201 Computer programming activities x 6202 Computer consultancy activities x 6203 Computer facilities management activities x 6209 Other information technology and computer service activities* x 6311 Data processing, hosting and related activities* x 6312 Web portals* x 6391 News agency activities* x 6399 Other information service activities nec* x 6420 Activities of holding companies* x x x 6499 Other financial service activities, except insurance and pension funding, nec* x 6810 Buying and selling of own real estate* x 7010 Activities of head offices* x 7211 Research and experimental development on biotechnology* x x 7219 Other research and experimental development on natural sciences and engineering* x 7220 Research and experimental development on social sciences and humanities* x 7311 Advertising agencies* x 7312 Media representation* x 7410 Specialised design activities* x 7420 Photographic activities* x 7430 Translation and interpretation activities* x 7490 Other professional, scientific and technical activities nec* x 7722 Renting of video tapes and disks* x 7729 Renting and leasing of other personal and household goods* x 7733 Renting and leasing of office machinery and equipment (including computers)* x 7735 Renting and leasing of air transport equipment* x 7739 Renting and leasing of other machinery, equipment and tangible goods nec* x 7740 Leasing of intellectual property and similar products, except copyrighted works* x x x 7990 Other reservation service and related activities* x 8219 Photocopying, document preparation and other specialised office support activities* x 8299 Other business support service activities nec* x x x 8552 Cultural education* x 8560 Educational support activities* x 9001 Performing arts* x 9002 Support activities to performing arts* x 9003 Artistic creation* x 9004 Operation of arts facilities* x 9101 Library and archive activities* x 9102 Museum activities* x 9103 Operation of historical sites and buildings and similar visitor attractions* x 9319 Other sports activities* x 9321 Activities of amusement parks and theme parks* x 9329 Other amusement and recreation activities* x 9411 Activities of business and employers membership organisations* x 9412 Activities of professional membership organisations* x 9499 Activities of other membership organisations nec* x 9525 Repair of watches, clocks and jewellery* x 9604 Physical well-being activities* x 9609 Other personal service activities nec* x

Appendix 6: Classification groupings of copyright industries

Below is a list of all copyright intensive industries used in this paper to estimate the economic contribution these industries make to the UK economy. This is based on industries that are identified by WIPO as copyright intensive and for this paper we only consider those that are thought to have at least 20% of their activity contributable to copyright related activities.

According to WIPO , these industries “as a category would not exist or would be significantly different without copyright in works or other subject matter.” Therefore, their entire economic contribution in terms of non-financial business economy GVA, employment and export value has been considered.

SIC Industry description Factor 5811 Book Publishing 100.0% 5813 Publishing of newspapers 100.0% 5814 Publishing of journals and periodicals 100.0% 5819 Other publishing activities 100.0% 5821 Publishing of computer games 100.0% 5829 Other software publishing 100.0% 5911 Motion picture, video and television programme production activities 100.0% 5912 Motion picture, video and television programme post-production activities 100.0% 5913 Motion picture, video and television programme distribution activities 100.0% 5914 Motion picture projection activities 100.0% 5920 Sound recording and music publishing activities 100.0% 6010 Radio broadcasting 100.0% 6020 Television programming and broadcasting activities 100.0% 6120 Wireless telecommunications activities 100.0% 6201 Computer programming activities 100.0% 6202 Computer consultancy activities 100.0% 6203 Computer facilities management activities 100.0% 6209 Other information technology and computer service activities 100.0% 6312 Web portals 100.0% 6391 News agency activities 100.0% 6399 Other information service activities n.e.c. 100.0% 7311 Advertising agencies 100.0% 7312 Media representation 100.0% 7410 Specialised design activities 100.0% 7420 Photographic activities 100.0% 7430 Translation and interpretation activities 100.0% 9001 Performing arts 100.0% 9002 Support activities to performing arts 100.0% 9003 Artistic creation 100.0% 9101 Library and archives activities 100.0% 9329 Other amusement and recreation activities 100.0% 1811 Printing of newspapers 100.0% 1812 Other printing 100.0% 1813 Pre-press and pre-media services 100.0% 1814 Binding and related services 100.0% 1820 Reproduction of recorded media 100.0% 4761 Retail sale of books in specialised stores 100.0% 4762 Retail sale of newspapers and stationery in specialised stores 100.0% 4763 Retail sale of music and video recordings in specialised stores 100.0% 6110 Wired telecommunications activities 100.0% 6130 Satellite telecommunications activities 100.0% 6190 Other telecommunications activities 100.0% 6311 Data processing, hosting and related activities 100.0% 7990 Other reservation service and related activities 100.0% 8219 Photocopying, document preparation and other specialised office support activities 100.0% 8552 Cultural education 100.0% 9004 OpereationOperation of arts facilities 100.0% 9321 Activities of amusement parks and theme parks 100.0% 9412 Activities of professional membership organisations 100.0%

Interdependent copyright industries are those engaged in the production, manufacture and sale of equipment whose function is wholly or primarily to facilitate the creation, production or use of works and other protected subject matter.

All interdependent copyright industries have been included in the estimates of copyright intensive industries’ contribution to the UK economy. Despite the fact that SIC 4643 Wholesale of electrical household appliances registers a factor intensity below 20%, it is included in the analysis as the EUIPO / EPO included all interdependent copyright industries, regardless of their factor intensity.

SIC Industry description Factor 1711 Manufacture of pulp 25.0% 1712 Manufacture of paper and cardboard 25.0% 2059 Manufacture of other chemical products n.e.c 25.0% 2620 Manufacture of computers and peripheral equipment 30.0% 2630 Manufacture of communication equipment 30.0% 2640 Manufacture of consumer electronics 30.0% 2670 Manufacture of optical instruments and photographic equipment 30.0% 2731 Manufacture of fibre optic cables 30.0% 2823 Manufacture of office machinery and equipment (except computers and peripheral equipment) 30.0% 3220 Manufacture of musical instruments 35.0% 4643 Wholesale of electrical household appliances 19.0% 4651 Wholesale of computers, computer peripheral equipment and software 30.0% 4652 Wholesale of electronic and telecommunications equipment and parts 25.0% 4666 Wholesale of other office machinery and equipment 30.0% 4676 Wholesale of other intermediate products 25.0% 4741 Retail sale of computers, peripheral units and software in specialised stores 33.3% 4743 Retail sale of audio and video equipment in specialised stores 33.3% 4778 Other retail sale of new goods in specialised stores 33.3% 7722 Rental of video tapes and disks 20.0% 7729 Rental and leasing of other personal and household goods 20.0% 7733 Rental and leasing of office machinery and equipment (including computers) 35.0% 7739 Rental and leasing of other machinery, equipment and tangible goods n.e.c 20.0%

Partial copyright industries are industries in which some activities are related to works and other protected subject matter and may involve creation, production and manufacturing, performance, broadcast, communication and exhibition or distribution and sales.