Next steps: UK government's response to the Hargreaves Review
The response was published alongside the UK’s International Strategy for Intellectual Property, which identifies the priorities for UK policy-making and reform for the IP system. The government supported the review’s findings with various promises to implement them. The present plan is to implement many of the recommendations by the end of the current parliament—that is by June 2015.
The government recognises that IP is a significant contributor to the UK economy. In 2008, the UK economy saw £137 billion-worth ($224 billion) of intangible investments, beating tangible investments by some £32 billion ($52 billion). This makes the UK one of the largest exporters of intellectual property in the world. IP protection is seen as a driver of growth in the UK economy, especially in regard to its exploitation by small and mediumsized businesses.
Digital Copyright Exchange
The adoption of the Digital Copyright Exchange in the UK will be of most interest to businesses relying on electronic media.
The copyright exchange is intended to: (1) publish the ownership information of copyrighted works, and so provide both a means for businesses to conduct searches prior to use and a deterrent to infringement; (2) facilitate licensing of copyrighted works where owners cannot be located; and (3) create a marketplace for the licensing of copyrighted works. Importantly, the government left open the possibility of incorporating industrial designs into the copyright exchange.
The copyright exchange is likely to dramatically reduce the upfront transactional costs of copyright licensing for users of the system.
The government recognises that the copyright exchange is unlikely to be a success in the absence of extensive content, so it has committed to making Crown copyright material available. It will also encourage statutory bodies to follow suit. Although private businesses will not be made to register their rights with the copyright exchange, the government intends to incentivise businesses to register their works so it can enhance the exchange’s chances of success.
The nature of these incentives has not been made clear, but they must fit into the international and European framework for intellectual property protection.
The government wants the copyright exchange to operate as an electronic marketplace. It envisions that rights owners and purchasers will be able to agree prices and use automated transactions, and so dispense with individually negotiated contractual arrangements.
Industrial designs
The government has committed to conducting research to ascertain whether low-level design protection—vis-à-vis Germany and France— properly serves competitive UK businesses and whether there is a need for the unregistered UK design right given the existence of unregistered Community designs. This research is due to be published by early 2012.
Copyright infringement defences
Infringement defences are to be amended for circumstances where there is no loss of direct commercial benefit. In a cited instance, data mining of lawfully obtained medical research is likely to be facilitated to the extent that it does not undermine the “underlying creative and expressive purpose” of the copyrighted work.
The government also intends to adopt the broadest exceptions to infringement that are likely to support economic growth. Broader defences are likely to be supported by prohibitions on the contractual rights recreating them.
Collecting societies
During the review, Professor Hargreaves received a number of complaints about the conduct of collecting societies. After acknowledging the importance of the role played by such societies, the government committed to imposing minimum standards for voluntary codes of conduct for collecting societies, to be published in early 2012, with a residual power to impose the same if the societies fail to implement adequate codes.
Conclusion
The government’s response shows a marked commitment to adopting recommendations in the Hargreaves Review. The creation of the Digital Copyright Exchange offers the promise of more cost-effective licensing transactions and use of orphaned works. Additionally, further review of the industrial design legislation in force in England will be a relief to users of the system, as long as it serves to reduce the system’s complexity and to increase its effectiveness.
