NUJ raises concerns over proposed digital copyright exchange

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A recommendation for the introduction of a digital copyright exchange in the UK raises "serious concerns", the National Union of Journalists said today.

The proposed exchange would address the clearing of copyright content through a common platform for licensing transactions, according to a government-commissioned report on intellectual property, published this week.

The union's comments followed a review of the current system and a consideration of reforms to drive growth and innovation, led by Ian Hargreaves , former editor of the Independent. The report outlines a total of 10 main recommendations for reform of the UK's intellectual property framework, which he claims is currently obstructing innovation and economic growth.

This includes the proposed establishment of a digital copyright exchange, in a bid to address the new ways content is being used, aggregated and distributed on digital platforms.

"This will make it easier for rights owners, small and large, to sell licences in their work and for others to buy them," the report says.

"It will make market transactions faster, more automated and cheaper. The result will be a UK market in digital copyright which is better informed and more readily capable of resolving disputes without costly litigation."

But NUJ freelance organiser John Toner said in a release while this might be feasible for other industries, "it could be problematic for our members, particularly photographers", with concerns that licensing control could be taken away from the creators of the content.

Other aspects of the report were welcomed by the union, such as the overall suggestion that the US-style "fair use" exception is not transposed into European law under the advice that it would cause "significant difficulties".

"We are pleased that the report rejects the so-called 'fair use' doctrine which is based on questionable notions of fairness," Toner said.

"The doctrine, which comes from United States law, permits the use of a creator's work without permission and requires potentially huge legal costs for a successful challenge."

He added the union is also pleased by a recommendation to introduce a small claims track for IP cases in the courts.

"The NUJ has been calling for this for a number of years, and we are delighted that someone has finally listened.

"This should improve the position of freelance journalists, and the difficulty that they face in enforcing their rights against infringers, whether individuals or – far more often – against the very publishers and broadcasters who in the Digital Economy Act 2010 gained new means by which they may pursue infringements of their own interests."

The 10 main recommendations from Hargreaves' report are outlined below:

1. Evidence. Government should ensure that development of the IP System is driven as far as possible by objective evidence.
2. International priorities. The UK should resolutely pursue its international interests in IP, particularly with respect to emerging economies such as China and India, based upon positions grounded in economic evidence.
3. Copyright licensing. In order to boost UK firms' access to transparent, contestable and global digital markets, the UK should establish a cross sectoral Digital Copyright Exchange.
4. Orphan works. The Government should legislate to enable licensing of orphan works.
5. Limits to copyright. Government should firmly resist over-regulation of activities which do not prejudice the central objective of copyright, namely the provision of incentives to creators.
6. Patent thickets and other obstructions to innovation. In order to limit the effects of these barriers to innovation, the Government should take a leading role in promoting international efforts to cut backlogs and manage the boom in patent applications.
7. The design industry. In the next 12 months, the IPO should conduct an evidence based assessment of the relationship between design rights and innovation, with a view to establishing a firmer basis for evaluating policy at the UK and European level.
8. Enforcement of IP rights. The Government should pursue an integrated approach based upon enforcement, education and, crucially, measures to strengthen and grow legitimate markets in copyright and other IP protected fields.
9. Small firm access to IP advice. The IPO should draw up plans to improve accessibility of the IP system to smaller companies who will benefit from it.
10. An IP system responsive to change. The IPO should be given the necessary powers and mandate in law to ensure that it focuses on its central task of ensuring that the UK's IP system promotes innovation and growth through efficient, contestable markets.