UK Responds to “Hargreaves Report”

::Originally posted on the MI Blog 8/2/11::

Katherine Rushton reported for Telegraph.co.uk yesterday that Vince Cable, UK Business Secretary, gave his “broad backing” to a review by Professor Ian Hargreaves of copyright law, claiming it would stimulate innovation.

“We are removing the barriers to the intellectual property system to encourage innovation. We need a legal framework that supports consumer use rather than one that sees it as regrettable,” he said.

Rushton reported, “The changes are expected to pave the way for Google and Amazon to launch ‘cloud’ music storage systems for UK consumers – although there was still some confusion over whether this could run into conflict with European law. A government spokesman said any conflicts would be dealt with during the consultation period, but Mr Cable said he was ‘confident’ there would not be problems.”

Richard Smirke for Billboard.biz commented that “the most significant decision made is the scrapping of the government’s plan to block copyright infringing websites. The blocking of filesharing and other copyright infringing websites was a key provision of the Digital Economy Act, but that has now been scraped as is it ‘not effective’ and ‘extremely complicated to implement,’ according to Ofcom.”

Smirke says, “The government’s decision to scrap web-blocking has, however, been criticized by sectors of the music industry,” quoting Geoff Taylor, chief executive at U.K. music label trade body BPI, who said, “Every day blatantly illegal foreign sites flout our laws, rip off consumers and musicians and wreak huge damage on our creative sector.

“Government has recognized that blocking such sites could help to reduce levels of infringement, but that there needs to be a more effective framework that enables speedier action than would be possible under the relevant DEA provisions,” Taylor continued, urging the government to “act urgently to put in place effective means to protect consumers, creators and UK jobs from the impact of illegal foreign sites.”

Smirke listed the following points among the ten proposals outlined by the British government as the most notable:

“•The creation of a cross-sectoral Digital Copyright Exchange, thereby easing the process of selling licenses for rights owners.

• Legalizing the currently outlawed practice of copying content from a CD or DVD to a computer or portable device, such as an iPod. In addition to legalizing ‘format shifting’ this reform would also have important ramifications regarding the introduction of digital music lockers in the U.K.

• Copyright exceptions to allow parody to be introduced. “Newport State of Mind,” a take on “Empire State of Mind” by Jay-Z and Alicia Keys, which caused a viral sensation in 2010, has been cited as a parody work that would be allowed under the newly proposed laws. Although the track is still accessible on many websites, EMI initially fought to have it removed from streaming and video services.

•Licensing and clearance procedures for orphan works (material with unknown copyright owners) to be established.

•The introduction of an exception to copyright law for search and analysis techniques known as ‘text and data mining,’ thereby by-passing the need for permission from copyright owners. Research scientists and medical researchers were identified as the core beneficiaries.”

Vince Cable has predicted that the U.K. economy would benefit by £7.9 billion ($12.9 billion) in increased revenue resulting from the proposed changes made in copyright legislation.

“The government also revealed the next steps in how it will deter internet users who repeatedly access copyright infringing material – another key provision of the Digital Economy Act,” reported Smirke.  “Beginning in the second half of 2012, infringers will be sent a warning letter telling them their internet connection has been identified as linked to unlawfully shared copyright material. Consumers who want to appeal will have to pay a £20.00 ($32.80) fee which will be refunded if the appeal is successful.”

Read Katherine Rushton’s article from The Telegraph here.

Read Richard Smirke’s article for Billboard.biz here.

Leave a comment