Hargreaves review panel presents view on the future of copyright in the UK

“Archaic intellectual property laws obstruct innovation and economic growth, particularly online.” This is the conclusion of the long awaited “Hargreaves report” that was presented this week. Mr. Ian Hargreaves, professor of digital economy at Cardiff University, chaired a review panel into "Intellectual Property and growth" that will give strategic advise to the British government on the "barriers to new internet-based business models" raised by current intellectual property law.

Professor Hargreaves gives ten recommendations to Britsh policy makers on how intellectual property law can help create a positive environment for innovation and economic growth, instead of constraining it. The conclusions of the study reveil that current copyright legislation in the UK is failing to secure its goal of supporting creation and innovation.

As I wrote earlier on this website, the job of Hargreaves's panel is complicated by the number of competing interests. As soon as the panel started their public consultation rounds, they were overloaded with advice, questions and lobbyists. Hargreaves immediately operated in a political arena. When reading the panel’s advice, it becomes apparent they have kept the political agenda in mind, particularly that of the EU.

The review panel recommends the formation of a “digital copyright exchange body” by the end of 2012. This would be a digital registry which startup companies could use to discover what they are able to do legally with someone else's publication, film or piece of music and make licence payments accordingly. European Commissioner Neelie Kroes is a fan of such a copyright registry. According to the panel, a “one stop shop makes it easier to get clearance for using copyright protected material online.” Simultaneously, it will be easier for rights holders to sell licenses.  This new body,  to be run by rights holders, could also be a solution for orphan works issues. A work of art can be “orphan” if it is unclear who has the copyrights to the work, for example because the author has died and no relatives are known. These works are now de facto unusable, as the legitimate owner can resurface at any given time to exert his copyrights. With a central registry, rights holders can be identified more quickly.

Among other things, the panel points out a need to relax the parody exception, to allow content creators like comedians and musicians more leeway. This recommendation was expected, as many experts say restricting the possibility of parody –or quotation for that matter- is in fact a practical barrier to new business development. For example: search engines, live streaming services, mashing-up videos, are all about using bits and pieces of other peoples work to construct a new service or product. To need permission of all rights holders concerned is hindering progress of these innovative concepts. Loosening exemptions to copyright would also allow for the digitisation and posting online of historical archives, this is –again- something the European Commission is advocating.

The same experts that call for loosening quotation and parody exeptions, usually call for introducing a ‘fair use’ provision in British copyright law. However, Mr. Hargreaves does not recommend for the British government to create a fair use provision. “This would not be legally feasible in Europe,” the panel said.

On the whole, the advice of the panel amounts to loosening British copyright, within the possibilities of EU law. In addition, the panel said the UK should take a lead role in creating a exemption from copyright that caters for “adaptability to new technologies”.  This would allow “uses of works that are enabled by new technology in ways that do not directly harm or monetise on the underlying creative work or on the expressive purpose of the work.” It will be interesting to see whether British lawmakers can translate this plan into sensible and practically applicable terms. It is also compelling to read how Hargreaves seems to have steered his advice towards advocating free use of available content and less so towards protecting artists and writers.

Hargreaves addresses this point in his report by stating that there is no question the creative industry needs protection against infringement and piracy must still be fought. Although Hargreaves confirmed that sales and profitability levels of the creative sector are ’experiencing turbulence’ from digital copyright infringement, he also said the sector is ‘holding up reasonably’ overall and, at the macro level of the British economy, the measurable adverse effects are not as extreme as sometimes suggested. The review panel estimates the UK government can add between 0.3% and 0.6% to annual economic growth if their recommendations are followed up.

References: Digital Opportunity, a review of intellectual property and growth (Prof. I. Hargreaves); The Guardian