Specific recommendations included reversing the burden of proof to the claimant, rather than the defendant, in libel cases involving corporations; making lawyers more accountable for the cost of cases; and introducing a one year limitation for libel actions regarding internet publications.
Labour MP and former journalist Paul Farrelly discussed some of the reasons for holding the inquiry - one of the longest the committee has undertaken - at a press briefing yesterday.
Tesco's successful action against the Guardian over inaccurate tax allegations in 2008 was, Farrelly said, "one of the most flagrant uses of our pernicious libel laws by a big corporation in modern times".
The committee suggests that a new category of tort should be introduced in which a corporation must prove "actual damage" to its business, before an action can be brought.
The report was welcomed widely by the industry; a spokesman from the Guardian praised its recommendations to curb practices being used by corporations and wealthy individuals "to suppress free speech both here and abroad".
"However, there remains a great deal of work to be done to convert concerns and recommendations into meaningful actions," said GMG's spokesman, in a statement.
The Libel Reform campaign, a coalition of the Index on Censorship, English PEN and Sense About Science, was similarly delighted, saying it could "could kick off real reform".
More than 200 MPs have now signed a parliamentary Early Day Motion (EDM) calling for libel reform, said Jonathan Heawood, director of English PEN.
"The select committee report by John Whittingdale MP, will add to the rising chorus of voices within Westminster calling for reform of our outdated libel laws. These cases benefit no-one except £400 an hour lawyers," he said.
MP Evan Harris, who proposed the EDM, said in a statement: "The committee's recommendation that there be a statutory public interest defence to libel for responsible journalism is a clear sign to the political parties that there is parliamentary, as well as public appetite to protect responsible free speech."
Full coverage of the CMS reports findings at this link...
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