This report uses a broader definiti

This report uses a broader definition of digital trade than that used for Digital Trade 1 to reflectinput from public comments the Commission received during the course of theseinvestigations. The Commission defined digital trade more narrowly in Digital Trade 1 as“commerce in products and services delivered over digital networks.” That definition excludedcommerce in most physical goods, such as goods ordered online and physical goods that have adigital counterpart such as hard copy books and software, music, and movies sold on CDs orDVDs. As the Commission reported in Digital Trade 1, input from the public on that definitionreceived at the March 7, 2013, hearing in Washington, DC and in written submissions expresseda wide range of views about that definition, including (1) comments that supported thedefinition; (2) comments that said the requirement that products and services be deliveredover digital networks was overly restrictive and recommended that a broader definition beused; and (3) comments that said the definition was insufficient to capture the value of all of the diverse activities that occur over the Internet such as intra-company activities.22 During thecourse of this investigation, the Commission received an additional public comment concerningthe scope of the definition of digital trade recommending that the Commission make additionalefforts to more comprehensively evaluate the contribution of copyright-intensive goods andservices to digital trade.23 The broader definition of digital trade used in this report reflectsthese concerns raised by U.S. industries.