Memorandum submitted by Business Software
Alliance
This submission is made on behalf of the Business
Software Alliance (BSA)[31]
in response to the Culture, Media and Sport Committee Inquiry
into "New Media and the Creative Industries".
The Culture, Media and Sport Committee wishes
to hold an Inquiry into "the challenges and opportunities
for the creative industries arising from the development of new
media platforms| the term `creative industries' includes music,
visual broadcasts, sound broadcasts, film, graphic art, design,
advertising, fashion and games software", expressing an interest
in receiving evidence concerning the following issues:
"The impact upon creative industries of
recent and future developments in digital convergence and media
technology."
BSA members have been the driving force behind
"digital convergence", creating software and hardware
products that are designed to enhance and expand consumer choice
concerning the use and enjoyment of digital content. The digitisation
of creative content has been one of the key technological developments
of the 21st century, enabling consumers to access creative content
in a manner, and at a time and place, that is chosen by the consumer.
This expansion of choice has benefited consumers as the expanded,
multinational marketplace for creative content has developed.
The opportunities for creative industry, and
the potential for even greater expansion of consumer choice, will
be a key feature of the development of digital distribution models.
In this regard, the role of Government will be important in ensuring
that the platform for such distribution is secure, reliable and
unfettered by unnecessary regulation.
"The effects upon the various creative industries
of unauthorised reproduction and dissemination of creative content,
particularly using new technology; and what steps can or should
be taken—using new technology, statutory protection or other
means—to protect creators;" and
"The extent to which a regulatory environment
should be applied to creative content accessed using non-traditional
media platforms."
BSA has recently commented on "the extent
to which a regulatory environment should be applied to creative
content accessed using non-traditional media platforms" in
its response to the All Party Parliamentary Internet Group (APIG)
"Inquiry into Direct (sic) Rights Management".[32]
Certain of the comments made in connection with that Inquiry are
repeated in this response.
In both the online and offline world, the use
of DRM technologies has provided much of the basis for the expansion
of consumer choice in respect of the use of creatively produced
content. As illustrated in a recent study,[33],
UK consumers lead the way regarding the use of DRM-based online
services:
DRM-ENABLED ONLINE MUSIC MARKET, UK
|
| 2003
| 2004 | 2005
| 2006 | 2007
| 2008 |
|
| Downloads (€ million) | 0.7
| 11.1 | 39
| 68.4 | 101.6
| 148.6 |
| Subscription (€ million) | 0.4
| 1.7 | 7.8
| 19.3 | 33
| 45.9 |
| Total (€ million) | 1.1
| 12.8 | 46.8
| 87.7 | 134.6
| 194.5 |
|
Source: Informa Media, 2005.
This expansion in choice would not have been possible without
appropriate levels of legal protection being afforded to the DRM
technologies that facilitate such delivery. It is therefore vital
that the opportunities afforded by the expanded use of DRM technologies
are not restricted by the harmful acts of those that would seek
to bypass DRM technologies, to the disadvantage of content providers
and consumers alike.
DRM technologies should be embraced for the opportunities
they offer, providing as they do the foundation for the vast array
of content delivery systems that provide consumers with the variety
of choice, in terms of content distribution, delivery and pricing
that are now seen as the norm. These technologies must receive
both the appropriate level of robust legal protection and, equally
importantly, a matched commitment to legal protection, that will
ensure that the opportunities afforded by DRM technologies are
not lost. In this regard, BSA members have been suffering for
many years from the problems associated with such "digital
piracy", which now touches many more forms of creative industry
(for example in the controversial field of "file sharing").
Although DRM systems have been developed and used by BSA members
to assist them in their efforts to defeat this problem, regrettably,
such technologies are routinely attacked and circumvented by professional,
organised bodies to the detriment of all who have an interest
in seeing creative industry thrive.
The damage done to creative industry, and the threats posed
to consumers and business alike through piracy, have been the
focus of the efforts of the Alliance Against Counterfeiting and
Piracy in the United Kingdom for several years. BSA does not wish
to repeat, in this paper, the views it has expressed to the UK
Government, both as a member of the Alliance and directly, with
regard to the legislative and enforcement reforms that the UK
Government should adopt—save to say that it remains BSA's
belief that deficiencies in the legislative, procedural and enforcement
frameworks in the United Kingdom contribute significantly to the
levels of digital piracy suffered in the United Kingdom.
"Where the balance should lie between the balance of
creators and the expectations of consumers in the context of the
BBC's creative archive and other developments."
The BBC Creative Archive Licence was set up by the BBC (in
conjunction with certain other parties) to make its archive content
available for download under the terms of a single, shared use
licence scheme. One of the features of the Creative Archive Licence
scheme is to allow private individuals to download content from
the BSA archive for what might be broadly termed "non commercial
purposes".
BSA observes that this innovation on the part of the BBC
is partly in recognition of its unique status as a publicly funded
broadcaster. In terms of the "balance" between the rights
of creators and the expectations of consumers, BSA's comment in
this regard is that the establishing of facilities such as the
Creative Archive Licence should not, by omission or otherwise,
generally create an expectation on the part of consumers that
on-line content is available for use on similar terms.
February 2006
31
The Business Software Alliance is the foremost organization dedicated
to promoting a safe and legal digital world. BSA is the voice
of the world's commercial software industry and its hardware partners
before governments and in the international marketplace. Its members
represent the fastest growing industry in the world. BSA educates
consumers on software management and copyright protection, cyber
security, trade, e-commerce and other Internet-related issues.
BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems,
Borland, Cadence, Cisco Systems, CNC Software/Mastercam, Dell,
Entrust, HP, IBM, Intel, Internet Security Systems, McAfee, Microsoft,
PTC, RSA Security, SAP, SolidWorks, Sybase, Symantec, Synopsys,
The MathWorks, and UGS. See http://www.bsa.org/. Back
32
See www.apig.org.uk/current-activities/apig-inquiry-into-digital-rights-management.html Back
33
BSA Overview of Online Music Sales, Copyright Levies and Related
Matters in the European Union, October 2005. Back
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