Britain’s archaic copyright laws are set for their biggest shake-up in three centuries in a move designed to boost economic growth and reflect the way in which consumers and businesses use protected material in the digital age.
A government-commissioned review on whether Britain’s strict copyright laws are stifling growth says that implementing changes to intellectual property regulations could boost the economy by almost £8 billion.
The Digital Opportunity report recommends a number of measures to make it easier for media and other online companies to use copyrighted material, but stops short of advocating an American-style “fair use” system. This is a legal mechanism, backed by online groups such as Google, that reduces the regulations for companies using copyrighted material when developing new technologies and applications.
Another recommendation from Ian Hargreaves, author of the report and the chair of digital economy at Cardiff University, is the creation of a digital copyright exchange that would act as a “one-stop-shop” for gaining permission to use material under copyright.
The issue of copying media between technology platforms could finally be resolved, with the report recommending that the Government updates rules on what can be copied lawfully. The vast majority of consumers remain unaware that loading music they own on CD to an iPod remains technically illegal, despite attempts to amend the laws five years ago.
The report also addresses the issue of “orphan” works, where the owner of the rights cannot be located, by recommending that the Government should permit companies to exploit media containing such material.
It states that implementing the changes to copyright law could boost the economy by £7.9 billion within a decade, representing a rise in GDP of up to 0.6 per cent. The injection could come partly in the form of parodies and online “mash ups” that use copyrighted material as the basis for new content. Existing laws do not allow for the creators to make money from doing so. An online spoof of Billy Joel’s New York State of Mind, based on the Welsh town of Newport, was taken off the internet last year after a complaint by EMI.
Previous attempts to amend copyright law have failed, most notably in 2005 when most of the recommendations contained in the Gowers Review were not implemented. However, by emphasising the potential boost to the economy, the Hargreaves report may have provided an incentive for the Government to push through new legislation.
The creative industries welcomed the report as they had feared a shift towards a “fair use” system that could hit their bottom line. Geoff Taylor, head of the BPI, the music industry trade
body, said the economics of a copyright exchange needed to be scrutinised, but added: “Professor Hargreaves has sensibly rejected Google’s flawed case for a significant weakening of UK copyright.”
Christine Payne, chair of the Creative Coalition Campaign, said: “We are delighted Professor Hargreaves has listened to the creative sector and rejected moves to change the fundamental principles behind UK copyright law, which would have damaged investment in the UK’s creative industries.
“The decision to omit the US-style ‘fair use’ system is recognition that the UK already has a flexible copyright framework that facilitates fair dealing.”
Steve Purdham, chief executive of the digital music service We7, said: “Anything that simplifies the licensing of copyright material will benefit the digital industries, especially in terms of innovation and growth. However, it must equally protect the value of that copyright.”
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