Copyright for a digital age

A rethinking of intellectual property law is long overdue.

We live in a digital age and therefore we should have a fully functioning knowledge-based economy. Why then do we remain saddled with a copyright framework more suited to the 19th century than the 21st?

At the British Library we estimate that by 2020 75 per cent of all books and journals will be published in digital form.  Add to that the exponential growth of the internet and the explosion of mobile technology, and we see that the world is a dramatically different place to the 1980s (the era of the Betamax and personal cassette recorder) when the last major change to copyright legislation took place. 

If through modernising UK copyright law, barriers preventing lawful digital access to a wide range of information can be lowered, UK researchers will have a new world of resources opened up to them, and the speed of discoveries and innovation will be accelerated. For example Japanese and American researchers – industrial or academic – can "mine" information lawfully from the internet and scientific journals there, but in spite of the explosion in “big data” in the UK we cannot. 

Previous governments over the past decade failed to cover themselves in glory when it came to updating UK copyright law. We had four reviews in six years and very little progress since. It is in this context that the efforts of the current government should be applauded. Last year’s Hargreaves review of intellectual property and growth, commissioned by the prime minister, has provided a roadmap for updating the UK’s outdated copyright laws.  As a package, it aims to make the most of new opportunities provided by technological advancements.

The Library recognises that many groups have a stake in this debate: from authors and publishers to the creative industries, higher education and the general taxpaying public.  Copyright reform is clearly an issue with many dimensions and many competing views. Yet it must reflect the realities of the day and we believe the benefits of reform would serve the widest interests of society and enable growth.

The British Library is looking at ways not only to increase access to our 20th-century collections, but also increase access in a way that meets the demands of 21st-century users.  Digitisation therefore plays a massive part in the Library’s current thinking.

However while the National Library of Norway is making all 20th-century Norwegian publications available online, and in France similar moves are afoot, due to UK copyright law this sort of ambition is impossible for the UK research sector in 2012. The need to get permission item by item (taking on average 4 hours per book) means that it would take a digitisation project of 500,000 items over a thousand years of rights clearance work. Even at the end of this we estimate over 40 per cent of the works would be “orphan”, that is to say the rightsholder would not have been identified or located.

Parliament is currently considering the Enterprise and Regulatory Reform Bill, which goes some way towards implementing Professor Hargreaves’s recommendations. This includes licensing of orphan works and also introduces Extended Collective Licensing – a way of streamlining rights clearance en masse and a decades old feature of Scandinavian copyright regimes. Both these things are also currently being consulted on by the US Copyright Office. 

The Library has been supporting the legislation with one minor proviso: that in the case of orphan works, we can provide payment to rightsholders if and when they appear, rather than handing money over in advance to a governmental fund that will only rarely be used. 

All this adds up to very good news. It proposes a way forward that clears the path for mass digitisation while providing safeguards and guaranteeing remuneration for copyright holders. 

The government has also promised a future announcement on updating copyright limitations and exceptions – which in the UK are far behind those of other developed nations.  For example, copying sound recordings and film for personal research or preservation reasons is currently not permitted.  Additionally, in the age of “Big Data”, allowing text mining of information you have bought or have legal access to would be hugely beneficial to the research and technology sectors, improving Britain’s international competitiveness greatly.

The Library is hopeful for progress but past experience of delays and derailments means our optimism remains cautious.  By keeping this round of copyright reform alive – and with the level of ambition imagined in Hargreaves – the government could truly unleash the potential of discovery, innovation and growth for everyone.

Benjamin White is head of intellectual property at the British Library.

A young woman reading an e-book (Photograph: Getty Images)
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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump