Hargreaves Report Demands Copyright Overhaul

The UK’s intellectual property (IP) and copyright laws need to be overhauled to encourage innovation and economic growth, according to a new government review.

The 130-page ‘Digital Opportunity’ report (pdf), complied by Professor Ian Hargreaves of Cardiff University, offers ten recommendations on how to bring the UK’s outdated laws in line with today’s digital era. He believes that his conclusions, if accepted, could add up to £7.9 billion to the UK’s economy and cut the cost of IP-related business by £750 million within a decade.

“In recent years, the UK has failed to make the changes needed to modernise copyright law, for which we will pay an increasing economic price as we make our way into the third decade of the commercial internet,” said Hargreaves. “The recommendations of the review are designed to enhance the economic potential of the UK’s creative industries and to ensure that the emergence of high technology businesses, especially smaller businesses, in other sectors is not impeded by our IP laws.”

Online copyright shop

Among the recommendations, Hargreaves (pictured) suggests the establishment of a “digital copyright exchange,” where licences in copyright content can be bought and sold. This will make market transactions “faster, more automated and cheaper,” and should make it easier to resolve disputes without costly litigation, states the report.

The government is also advised to legislate to permit access to orphan works – where the original musicians, writers, heirs or other copyright owners cannot be traced – an issue that was dropped from the Digital Economy Act at the last minute. This could help prevent valuable works from slipping into obscurity. Rules on lawful copying should also be updated to include things like shifting music from a laptop to an mp3 player, the report states.

Furthermore, Hargreaves’ report states that the government’s IP policy decisions need to be more closely based on economic evidence, and should balance potential benefits for rights holders against impacts on consumers. Most importantly, the IP system must be adaptable, in order to keep up with changes in technology and society.

Chorus of approval

Interestingly, the report seems to have satisfied organisations and lobbying groups on both sides of IP debate.

“Professor Hargreaves has given us the design manual to a 21st century copyright policy,” said Peter Bradwell, of the Open Rights Group. “He shows that we can allow useful activities like new medical research techniques or parodies and maintain flourishing creative industries. This evidence-based blueprint should finally help government balance copyright in the interest of creators, consumers and innovators. It is vital they follow it.”

The report was also welcomed by the Business Software Alliance, although the organisation admitted that it had hoped for stiffer penalties against those that illegally download software.

“While we commend the Government in conducting this review, we’re disappointed they have again neglected to tackle the issue of the UK’s unfair and harmful damages laws,” said Sarah Coombes, senior director of legal affairs for EMEA at BSA. “The absence of a strong deterrent means that the issue of unlicensed software use will continue to remain a drain on our economy and will continue to stifle UK innovation in IP.”

Last week, BSA published its annual report, revealing that software piracy jumped 14 percent worldwide, costing software companies about $59 billion (£36bn).