Enterprise and Regulatory Reform Bill

John Whittingdale Excerpts

Wednesday 17th October 2012 Commons Chamber

[Mr Wright]

I absolutely agree. I will take this opportunity to wish my hon. Friend a happy birthday for yesterday—a birthday he shares with several other Members, not least the eminent Chair of the Culture, Media and Sport Committee, the hon. Member for Maldon (Mr Whittingdale). My hon. Friend made two important interventions. When he intervened on me he mentioned the lack of consultation and the surprise of important stakeholders, such as UK Music, about these provisions. That is not the way to have clarity about Government policy on something as important as the creative and cultural sectors. I hope that that is a wake-up call, because we have seen the Government do the same elsewhere, for example with the feed-in tariffs and the oil and gas tax charges. To move without any concern for what stakeholders are thinking is not in the best interests of the British economy and industry.

The second point that my hon. Friend made, when he intervened on the Minister, relates to the use of statutory instruments. I rose to say that I felt more confused as a result of the Minister’s comments than I did when I entered the Chamber today. Part of our discussions in Committee was about the fear of bundling some of these points into a single statutory instrument. The Minister must have served on a delegated legislation Committee during his time in the House and will know that the only way the House can express a view on such instruments is by voting in favour or against; there is no way we can express a view on individual provisions. Therefore, will he clarify to what extent he will be able to bundle points relating to copyright exceptions into single SIs, which would not allow the House to express our views?

I now to turn to our amendment 75, which proposes that the Secretary of State

“must have regard to any feasibility study commissioned on the licensing of orphan works in advance of the regulations being laid before Parliament.”

We are not against the concept of orphan works, as I mentioned in Committee, provided that safeguards are in place to ensure that the party that wants to use the work has undertaken a diligent search. I recognise—the Minister alluded to this—the huge benefits that could be unlocked as a result of orphan works licensing. For example, I can anticipate SMEs building new platforms and applications for the re-use of digitised content, with innovation and new business models coming forward to use the content commercially so that Britain can lead the world, enriching the research and cultural environment and thereby consolidating the UK’s position as the destination of choice, whether literally or online, in the 21st century as the place for education and research, particularly in the cultural sector.

The Bill provides the legislative framework for orphan works licensing but is, as is probably inevitable and desirable in primary legislation, high-level and somewhat vague in detail. The crucial details that stakeholders will be looking for have yet to be determined and will be available via regulations. However, it would be useful to get on the record as much certainty and clarity as possible about the Government’s intended direction of travel in order to allow the industry, including existing players and potential new entrants to the market, to start gearing up to use the licences commercially. The purpose of our amendment is to probe the Minister on his intended direction of travel and ensure that a feasibility study considers certain aspects of the policy and that the Government take these findings into account, not in a completely solid way but making sure that these matters are addressed.

Will the Minister indicate the identity of the authorising body or bodies? He mentioned it briefly in his opening remarks, but it would be useful to put a little bit more meat on the bones. What sort of time scale is he working towards? When does he anticipate that the introduction of such schemes, and the laying down of regulations as a preliminary step, will take place? What will be the scope of the orphan work licensing schemes? Will this be done on a sector-by-sector basis? Will it be based on a “specific types of work” approach, or will there be a big bang in which all possible orphan work schemes will be incorporated from day 1?

Will the Minister outline how he anticipates that any diligent search on a work-by-work basis will move forward? I am fairly sure that every such search will have to be done on an individual work basis rather than by batching works together. Am I right in that thinking, or is he considering any change in the individual works versus batch approach? Could diligent searches be re-used within a certain time period? How will the Minister—again, this is part of the feasibility study leading into the regulations—strike the balance between the rights of the licensee, allowing the licence holder to commercially use the rights arising from that licence, and the rights of the relevant rights holder? What will happen in the event that the parent comes forward? How will remuneration be worked out in such an event? Will a certain amount of time be stipulated in regulations following the awarding of an orphan works licence?

We lead the world in the cultural and creative industries, and many people will want to take that away from us for a variety of reasons. We need to make sure that we can maintain our competitive advantage. That requires close co-operation, with an active industrial sector strategy between the industry and Government. Sadly, during the passage of the Bill, that has been lacking in the provisions on copyright. I hope that the Minister has learned his lesson and look forward to his comments.

[Mr John Whittingdale (Maldon) (Con)]

We do not have a lot of time, and I do not want to detain the House unduly. However, although it is recognised that this matter forms only a small part of the Bill, the importance of the creative industries to our national economy, and the contribution that they are making to growth, is so essential that we need to look very carefully at anything that affects the livelihoods of those working there—and the creative industries rest on the protection of intellectual property rights.

On Second Reading, I suggested to the Secretary of State that clause 57—then clause 56—could be used to make substantial changes to copyright law through statutory instruments. I am grateful to him for meeting representatives of a wide range of creative industries to discuss those concerns. That has led, to some extent, to the amendment that the Government have tabled. As the Minister said, several representatives of the creative industries, such as UK Music, the British Copyright Council, the Publishers Association and the Premier League, have said that they are now satisfied.

However, as the hon. Member for Hartlepool (Mr Wright) said, that is not a unanimous view across the industry. The Minister has assured us that this is about enforcing penalties but, despite the Government’s amendment, the clause does not mention penalties. I am therefore still not clear as to why the Government did not accept the suggestion that they make it absolutely explicit in the Bill that it is all about penalties. Instead, it talks about exceptions, and it still allows changes to be made to copyright law by statutory instrument. Following the Hargreaves report, there is still great suspicion on the part of many of those in the creative industries that there is an intention to try to dilute intellectual property rights. They fear that the clause could be used—perhaps not by this Government but by a future Government—to bring forward changes to copyright law.

Those fears have been expressed, as the hon. Member for Hartlepool said, by a wide range of organisations, including Associated Press, ITN, Getty Images, the Press Association, British Pathé, Agence France Presse and Deutsche Presse-Agentur. I will quote one sentence from the letter they have sent that sums up the problem that the Government face:

“It therefore remains our concern that…the true purpose of Clause 57…as drafted”

is that

“it will be used as a vehicle to push through a number of changes to copyright exceptions recommended by the Hargreaves Review, which we discussed with you at our meeting because of the detrimental impact to business and the creative industries as well as…ultimately…to the UK’s future economic growth.”

I welcome the Minister’s assurance that that is not the Government’s intention, but it must be of concern that a number of organisations that are important to this country retain that suspicion. Anything that the Government can say or do now to allay that suspicion and make it clear that they do not intend to implement the Hargreaves recommendations in a bundle, via a statutory instrument, would be extremely welcome and would reinforce the point that the provision is not about that, but about criminal penalties.

[Pete Wishart (Perth and North Perthshire) (SNP)]

I do not know whether I should break out into song and wish a belated happy birthday to the hon. Members for Cardiff West (Kevin Brennan) and for Maldon (Mr Whittingdale), or declare my favourite band. Whenever the hon. Member for Cardiff West and I appear in the Chamber together, I always try to plug MP4, because we comprise half the band. We will conclude our world tour of UK party conferences this Saturday, which is worth noting as a landmark occasion.

I agree with and endorse what the Chair of the Culture, Media and Sport Committee said about the value of copyright to our creative industries. It is the very essence of what underpins our success and probably makes the UK the leader in so many sectors throughout the world, from music, drama and film to Premier League football. It is the one thing that makes sure that we can continue to deliver that immense conveyor belt of talent that excels right around the world.

We muck about with copyright at our peril and must tread carefully with regard to copyright exceptions. We have to know exactly what we are doing, which is why impact assessments are vital and why the Minister’s confused response alarms me and is of concern. We have to know what the exact impact will be on all the sectors and everybody involved in the creative industries, and listen carefully to what they have to say.

I welcome the amendment, but only half-heartedly. For once, the Government have listened to representatives from the creative industries, who have not received a particularly good welcome from them over the past few years. They feel undervalued and sense that their concerns, which they make eloquently to the Government, are ignored and that, if they are listened to, it is in a half-hearted way.

The issue of copyright exceptions is important. We have had the Hargreaves report, the Government’s response to it and the Intellectual Property Office’s examination of how the report’s recommendations could be implemented. I am sure that the Minister will be thrilled to know that he is about to receive the report by the all-party group on intellectual property, of which I and the hon. Members for Maldon and for Lewisham West and Penge (Jim Dowd) are members. It will suggest various ways in which IP policy could be better formulated across Government and across Departments, and suggest the need for a real champion of IP copyright, because that is what is missing.

We need a proper investigation and an impact assessment. The assumptions that underpin a number of the Hargreaves recommendations are nonsense. The examples that caught our eye related to copyright exceptions, such as the assertion that an exception for format shifting would be worth £2 billion to the UK economy. The funniest assumption was the claim that an exception for parody of intellectual property could increase the UK economy by £600,000. Those assumptions were challenged, but they were asserted by the IPO without any real foundation. That is why this House has properly to consider copyright exceptions. If we do not, we will be left with that sort of nonsense. We have to make sure that that does not happen again.

I join others in calling on the Minister to listen to the concerns that the creative industries still have about the potential bundling together of proposals in secondary legislation. The Rolls-Royce model is primary legislation, whereby Members of Parliament can come to the House to have a proper debate and kickabout on proposals for copyright exceptions. If that is not to happen, the Minister must provide a better assurance that there will be separate pieces of secondary, delegated legislation, with full impact assessments, so that we can understand the impact that any further copyright exceptions will have on all the relevant sectors.