Analysis: The potential impact of IP law review on the UK creative industry
This week saw the released of Professor Ian Hargreaves’ long-awaited report into UK IP laws, which according to according to Pannone IP partners Bill Lister and Melanie McGuirk, is a classic example of how less is more – less regulation means more profit. The two analyse what the potential copyright review could mean for the creative industries.
It recognises that digital technology has overtaken UK copyright law which traces its roots back more than three centuries. Even since the laws were last revisited 23 years ago, the new digital world is now a very different place.
The Hargreaves’ report has been broadly welcomed by the creative industries and if his recommendations are implemented by the Government they will untie the knot of regulation - barely understood by many in the legal profession, let alone the public - that is choking the sector, particularly small firms and fledgling enterprises.
The report is an open invitation for the creative industries to join forces, air their views and lobby the government to bring IP laws into the modern digital age.
The report makes a number of recommendations, the most important of which is the establishment of a Digital Copyright Exchange - an online one-stop shop which will make it easier to get clearance for the use of copyright content.
The exchange will loosen up copyright licensing – enabling licences to be granted faster and more effectively and also make it easier for copyright owners, particularly small businesses, to buy and sell licenses.
However, while the proposed exchange will certainly be an advantage for smaller copyright owners, the more substantial rights owners will certainly regard it as a widening and dilution of the market. Lobbying by the bigger players to prevent new IP legislation must therefore be expected.
The report further touches on the current patents and design rights regime and highlights the need to simplify it and unblock the current log jam of patent applications – the so-called ‘patents thicket’ – to speed up exploitation and commercial growth. It also calls on the government to encourage the setting up of a harmonised EU patents regime and patents court.
Hargreaves also advocates the simplification of UK copyright law to make it more straightforward. This move has to be welcomed as it will result in fewer infringements, save by pirates who can be easily dealt with.
The current UK IP regime is a quagmire, particularly for SMEs, which often have their IP rights infringed but have little resources to challenge the infringers in what can often be lengthy and expensive litigation. Hargreaves advocates a ‘small claim track’ in the Patents County Court which would enable them to bring claims of less than £5,000.
Many in the industry complain that their creative ideas are stolen during pitching. One such example of a case dealt with by Bill was of a design agency that pitched for the pre-release publicity campaign for a British comic-horror movie. All of its ten concepts were rejected. The company was however later horrified to see one of its concepts on billboards, buses and TV shows.
Bill advises that while Hargreaves does not specifically address this issue, those involved in the pitching process can protect themselves by ensuring all parties involved sign a confidentiality agreement.
Melanie says that the Hargreaves report “is an opportunity for those in the creative industry sector to speak up and provide evidence to prompt the government to bring in new copyright laws that keep pace with the new digital age”.
However, while it is full of good intentions and raises many issues, the report is rather light on specific solutions to tackle the problems it highlights.
Bill believes that “it is imperative that the creative industry responds with vigour and provide enough evidence to force the government to remove the shackles of legislation and allow the sector to flourish”.