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Copyright in a digitalworldWhat role for a DigitalRights Agency?
 
Copyright in a digital world
 –
what role for a Digital RightsAgency?
Ministerial introduction
In the Digital Britain Interim Report we set out our vision of making the UK the
world‟s favoured destination for creative companies to grow and invest. That
ambitious vision requires action in many areas, from the work we are doinglooking at infrastructure and funding for broadcasting, to the strategic work onthe future of copyright being undertaken by the Intellectual Property Office. Asone part of this broad ranging approach this paper looks in more detail at howa rights agency can help create an environment in which the creation of digitalcontent is rewarded and innovation is encouraged.At the moment all creative content providers, whether in music, film, books,broadcasting, newspapers, games and business software or sport are, at onelevel or another, struggling to adjust to the new digital world. On the one handthe digitisation of content is a massive opportunity because all content cantravel across all networks and be accessed and viewed on many platforms.This opens the possibility of many new approaches and new markets.On the other hand it poses massive challenges. The old business modelssuited to the analogue environment are not set up to exploit these newmarkets. Whilst there is a plethora of new offerings only a very few havegained significant traction, and it is not yet obvious where the value thatconsumers undoubtedly set on creative content can be extracted andtherefore who can monetise it. New players are now part of the creative valuechain
 –
ISPs, search engines
 –
and may end up being better placed todevelop the customer relationship or exploit the advertising potential fromdriving traffic than those creating and producing the content itself.In the old analogue and physical world a lot of the value in creative content isprotected by restricting where and when it can be accessed. For example,windowing and regional coding in the film industry aims to control who canaccess content at a given time in a given place and to direct the value of thataccess to specific parts of the value chain.But that model is increasingly irrelevant online. Consumers are no longer prepared to be told when and where they can access the content that theywant. They do not see why a TV show that is airing in the US should not beavailable in the UK. They are not willing to wait to see a film at home until
several months after it has passed through the cinemas. They don‟t accept
the logic that says that if you have bought a CD you cannot then copy thatmusic onto your iPod. And of course with digital content perfect copies canbe made with very little time and at virtually no cost.This has undermined the willingness of people to pay
 –
they want the content,
it‟s not offered for sale in the way that they want it, but they can get it easily
and for free from other sources. A substantial proportion of the populationbelieve that it is acceptable to take copies of content for free from pirated
 
sources because the combined benefits of quick, available, easy and freemake a sufficiently tempting offer to overcome natural disinclination to dosomething unlawful.It is very difficult for business to compete on the basis of pay models with
„free‟ and „easy‟, even if that free and easy is also unlawful. We have
nevertheless seen innovation in the content industries over recent years.Increasingly it is possible to get legal access to popular content from a varietyof sources. But it is against a background of ever growing illicit copying. Sothere is a real challenge for all who want the content markets to flourish, andto safeguard the viability of investment in creativity in the future, to cometogether to work out how to move forward. It i
s not Government‟s job to
mandate how rights are traded or used, but we should look at whether we canfacilitate a market space where it would be simpler and easier for commercialand free negotiations to take place.
For the consumer, „inexpensive (or 
appa
rently „free‟) and easy and legal‟ can be an effective substitute for „free,easy but unlawful‟.
We need to encourage rights owners to develop businessand distribution models that meet those consumer needs and fund thecreation of future content.Obviously, as with other countries in Europe, we are mindful of the fact thatour copyright system does not exist in a vacuum, and there will be some limitto what we can achieve within the confines of European and international law.But if we are to achieve our vision, we must not shy away from working outwhere those boundaries are, and making full use of the flexibility we have to
help our creative industries evolve to meet the needs of today‟s market.
 And that is the genesis of the rights agency we proposed in the Digital BritainInterim Report. We see it working alongside some specific legislativeproposals that we believe will make an impact to reduce the incidence of unlawful peer-to-peer file-sharing and, in so doing, start to shareresponsibility for changing and challenging wide-scale infringement.Put at its most ambitious, our vision for a rights agency is to facilitate a major change of approach across the whole value chain as to how content isprovided, packaged and sold to consumers. Business models need todevelop that are not only sustainable but that provide real opportunities tobuild the successful businesses of tomorrow.That is quite an ambition. The paper sets out in more detail the sorts of thingswe think it might do. But much of that should be for industry to decide since if it is going to work then fundamentally this has to be an industry owned,industry led and industry run body. Its key objectives should be buildingdigital content markets, changing the ways that businesses work, theeducation of consumers, and prevention and reduction of online piracy. Thefirst two of those are unequivocally for industry to do and Government shouldstay out of the way. We do have a legitimate role, along with industry, ininforming and educating consumers and we will continue to play our part.Industry will need to agree its own mechanisms for tackling civil infringementwithin the legislative framework.
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