Retained EU Law (Revocation and Reform) Bill

Earl of Clancarty Excerpts

Committee stage
Thursday 23rd February 2023 Lords Chamber

So will the Government ensure that artists’ resale rights are not affected by the changes to REUL, and that the 2006 and 2011 statutory instruments are retained? More generally, I ask the Minister: has the IPO identified all the relevant IP legislation that is in scope and has it analysed the risk of sunsetting? In relation to intellectual property law, will the Minister confirm that any legislation relating to our commitments in international IP treaties, the TCA and trade agreements with Japan, Australia and New Zealand will be retained? Will the Minister further commit that any CJEU judgments in relation to intellectual property law will continue to remain in place should the laws they have to interpret be retained? Finally, will the Minister ensure that the stability of our IP framework and the investment that is reliant on that stability remain in place, so that we continue to have a gold standard of IP rights globally? I beg to move.

[The Earl of Clancarty (CB)]

My Lords, I shall speak briefly to Amendment 6 in the name of the noble Lord, Lord Clement-Jones, to which I have added my name. The noble Baroness, Lady Brinton, has said much of what I was going to say about ARR. I support all the other important amendments in this group, but I want to draw attention in particular to the importance of the artist’s resale right and how important it is for UK artists. I am grateful for the briefing from the Design and Artists Copyright Society, the rights management organisation for visual artists in the UK.

The visual arts play an important role in shaping the perception of the UK, and in our soft power. The artist’s resale right is applied when a work is resold through a gallery or auction house, and it is an invaluable source of income for visual artists, as the noble Baroness, Lady Brinton, pointed out. It is the equivalent of royalties for musicians and authors when their work is replayed or reproduced. Earlier, the Minister, the noble Baroness, Lady Neville-Rolfe, talked about duplication, but, crucially, the operation of this right depends on the regulations referred to in this amendment. It does not depend on the EU or other legislation—it depends on these SIs. So, there is particular concern here with these regulations.

I am put in mind of what the noble Lord, Lord Kerr, said earlier about uncertainty. People have talked about what will happen before the deadline on 31 December. I am very concerned about what we will wake up to on 1 January 2024, when businesses and organisations that depend on particular regulations to operate exactly what they do will find that those regulations have disappeared and that they simply cannot work. That is something the Government need to think hard about.

The resale right supports emerging artists as well as established artists. As DACS points out and as the noble Baroness, Lady Brinton, said, the average artist earns between £5,000 and £10,000 a year for their work in this area—a very small amount—and 81% of artists receiving such royalties use their income to pay for living expenses, including studio rent and materials. So these royalties can give a much-needed boost to those artists, which will in turn help to boost the creative economy.

This source of revenue becomes particularly significant, considering the rising costs of materials and increased rents for studio spaces, for estates that support an artist’s legacy by providing revenues to be used for managing the estate and for conservation, all of which contribute ultimately to the UK’s cultural heritage. The amount of royalties paid to artists is less than 1% of UK post-war and contemporary and modem sales, and as research has pointed out, there is no evidence that these royalties act as a deterrent to the UK art market. ARR is recognised by more than 80 countries worldwide and the principle is enshrined within the Berne convention.

ARR has been included in our own trade agreements, as the noble Baroness, Lady Brinton, said, as well as in the withdrawal agreement with the EU, so the removal of this legislation would be inconsistent with the promises we have already made internationally with others. It is vital for the arts and our cultural heritage that this right is protected, and it should be excluded from the sunset clause.

[Baroness Crawley (Lab)]

My Lords, I shall speak to Amendment 145 in the name of the noble Earl, Lord Lindsay. This amendment, to which my name has been added, has the backing of the Safeguarding Our Standards consumer protection campaign and continues the theme of other exclusion or carve-out amendments in this group, in that it would ensure that the Bill will not apply to any regulations relevant to the Government’s forthcoming digital markets, competition and consumer Bill. Many believe that this DMCC Bill represents the most significant reform of UK competition and consumer protection law in years.

The noble Earl, Lord Lindsay, who cannot be here today, and I work closely together with the Chartered Trading Standards Institute, of which he is president and I am a former president. We thank both CTSI and Which? for their support and advice on this amendment. In the Autumn Statement, the Government committed to bringing forward the DMCC Bill in this Session of Parliament, and it would be good to know from the Minister when that Bill will be published—it is supposed to be imminent. It will provide important reforms to competition and consumer protection law, including providing the Competition and Markets Authority with significant new powers to promote and tackle anti-competition practices and, indeed, updating retained EU law, such as the Consumer Protection from Unfair Trading Regulations 2008, with measures to combat fake reviews and subscription traps. It is likely that businesses around the country will be reviewing their current approach to sales and marketing, given the expected new powers the CMA will impose as far as fines are concerned in relation to consumer law breaches through that Bill.

However, there is a very serious risk that the REUL Bill in front of us today will cut across what the Government are trying to achieve through the digital markets, competition and consumer Bill. That is why we believe that regulations that are in scope of the digital markets, competition and consumer Bill should be excluded from the retained EU law Bill. There is already a precedent for this, as the Financial Services and Markets Bill currently going through Parliament, which has already been talked about today, is excluded from the scope of the retained EU law Bill to avoid the risk of the two different pieces of legislation contradicting one another. We have not yet had a proper answer as to why this precedent is still there. The organisation Which? is, however, on record as arguing that the relevant clauses and schedule in the FSM Bill need to be improved to ensure that decisions about any remaining financial services retained EU law are accompanied by effective consultation as well as parliamentary and stakeholder scrutiny.

I urge the Minister to look carefully at this amendment in light of the need for robust competition and consumer law going forward in a very difficult economic time for many people and businesses.

--- Later in debate ---

[Baroness Wheatcroft (CB)]

The Minister said that, once decisions had been taken, he would update the House on the outcome for the 4,700 pieces of legislation. It was that I was querying.

[The Earl of Clancarty (CB)]

The Minister mentioned that a decision had been made to continue artists’ resale rights. Where was that original decision made and will it continue in the same form that it is now?

[Lord Callanan (Con)]

The Government have signalled our general intention and the importance of the IP protection regime, which of course involves artist resale rights. We have stated our intention for that regime to continue, and we will of course update the House as soon as we have more information.