Memorandum submitted by Creative London
INTRODUCTION
As has been widely discussed in recent years,
many creative industries are undergoing profound change as a result
of digitalisation and the emergence of new media channels such
as broadband Internet and mobile. The impact of this "convergence"
on the production and distribution of media and audio-visual content
is transforming existing practices, with many London-based businesses
facing up to new challenges and competitors, but also considerable
creative and commercial opportunities. Creative London/LDA is
specifically addressing the issue of convergence, and is developing
an effective programme of support for the creative sector, particularly
for start-ups, entrepreneurs and the small, independently-owned
enterprises central to the future success of London's creative
economy.
1. Assessing the Impact of Digitalisation
Across the Sector
An obvious starting point for analysing London's
creative sector, and assessing its support needs, was that of
the productive chain, which highlights the principal activities
and linkages that make up the lifecycle of a product, from origination
through to consumption. For all of the creative industries, we
can identify a highly simplified and generalised production chain
with four key stages:
Stage 1 Creation
The processes by which creative material and
intellectual assets are originated and produced. It is the most
obviously "creative" part of the chain and covers activities
such as the origination and development of ideas, the commissioning
of content etc.
Stage 2 Production
The making, developing, or recording of the
product "one offs", or prototypes, which may be reproduced
later.
Stage 3 Distribution
All of the stages in channeling products and
services into end-user markets: reproduction, shipping, wholesaling,
broadcasting etc. This includes marketing.
Stage 4 Consumption
Includes venue-based exhibition of products
(eg theatres, cinemas etc) as well as retail points and personal
consumption.
We can assess the degree of digitalisation on
each of the creative industries, by looking at how digital media
is impacting and driving change in each of their production chains.
Although rather a crude exercise, the bold text gives an
indication of where digital technologies, platforms and tools
are having a substantive impact, or can be expected to transform
existing working practices.
|
| Creation
| Production | Distribution
| Consumption |
|
| Advertising | Generic professional tools (word processing, design, planning and presentation software)
| A wide range of digital production tools, depending on medium
| Across media channels (print, TV, cinema, online) and therefore increasingly digital
| Depends on media channel |
| Architecture | Generic professional tools, particularly design software
| Industry standard software packages (design, animation,
3-D visioning)
| N/A | Not Applicable (N/A)
|
| Arts/antiques | Very little, although increased interest in digital and interactive art
| Some use of image manipulation and animation tools
| Some e-commerce, online auctions and marketing
| N/A |
| Crafts | Negligible | Negligible
| Some e-commerce and e-marketing, but limited
| Negligible |
| Designer Fashion | Digital design tools important for images,
3-D models
| Digital printing and cutting increasing, but still primarily physical process
| Negligible: e-commerce having little effect on clothes retail
| N/A |
| Film and Video | Relatively simple digital tools to assist writing, design, storyboard etc
| Digital shooting equipment, with onscreen editing, post-production, effects all standard
| Suggestions that it will follow the music inductry, with dowloading of film/TV content
| Both cinema and personal entertainment systems becoming more digitised
|
| Interactive Leisure Software/Games | Digital tools for design, storyboard etc
| Entirely digital production process, similar to software
| e-commerce and
e-marketing increasing, with games downloads or played online
| Onscreen, and completely digital |
| Music | Increasing, with digital instruments and software used to compose
| Digital tools used extensively in recording and production
| Online distribution (both legal and not) is transforming industry and business models
| Digital players are now standard |
| New media | Digital, using design tools
| Entirely digital, wholly based around software authoring tools
| Entirely through digital channels: online, digital TV etc
| Onscreen, and entirely digital |
| Performing Arts | Negligible
| Limited, though multimedia and digital audio-visual being incorporated into productions
| Limited, although e-booking is increasingly common
| Negligible |
| Publishing | Generic professional tools (word processors, illustration packages)
| DTP (digital design, images, text editing, layout etc) is standard
| Digital printing is increasing. E-commerce is well established for books, with many magazines, journals etc now published online
| Print still dominates consumer publishing, but e-books emerging and onscreen is well established for academic, journals, reference etc
|
| Radio | Relatively simple digital tools
| As with music, digital tools used in recording and production
| Digital and online broadcasting increasing
| Digital radios and receivers increasingly common
|
| Television | Relatively simple digital tools to assist writing, design, storyboard etc
| Digital shooting equipment, with onscreen editing, post-production, effects all standard
| Digital broadcasting becoming dominant
| Digital players becoming standard, with increased opportunities for personalisation and interactivity
|
|
As part of Creative London's broader programme of sector
support, the following industries are therefore all being specifically
targeted for support interventions within the context of changes
being brought by new media.
— Television: production and broadcast.
— New media, covering interactive content production,
cross-format media and interaction design services.
— Video games production, for console, PC, wireless
platforms etc.
— Music production and distribution.
In some ways, it could be argued that an approach based around
individual creative sectors makes little sense. The very nature
of the changes being brought by digital technologies means that
previously distinct industries, such as television and games,
are now converging, with considerable overlap in the manner in
which they are produced and distributed. Rather than completely
separate activities, they can all be considered as instances of
digital content.
Increasingly, such intellectual property is no longer envisaged
as a distinct creative product, such as a TV programme, but rather
as digital content with a number of different distribution platforms.
The hit show Big Brother for instance is a TV programme,
video game, website and mobile news service, each of which generates
revenues.
Creative London recognises that industry-specific interventions
of the kind delivered by LDA and partners will become increasingly
problematic. For instance, some of the ideas focused around developing
television content or video games markets—in years to come,
it might be more useful to think about more general markets for
digital content. However, for the time being at least, the industry
production chains and distribution channels are sufficiently distinct
to approach the sectors individually, in line with how most professionals
and trade associations currently regard themselves.
2. The Impact of unauthorised reproduction/dissemination
of creative content
Creative London recognises that the value of London's creative
sector resides in the ability of creative enterprises to generate,
commercialise, defend, trade and earn revenues from intellectual
property, particularly in the form of copyright protected creative
content. As such, any copyright infringement, whether online file
sharing between individuals, or the illegal copying and selling
of pirated CDs and DVDs could be expected to impact negatively
on London's sector.
However, Creative London has little indication as to the
nature of this impact. We have not undertaken any research work
on the extent of copyright infringement in London or its impact
on creative enterprises, whether enabled by digital technologies
or not. From our regular consultation with trade associations
and other stakeholders, we are aware that it is a pressing concern
for London's content producers, but it is difficult to assess
its full extent.
The Mayor's Commission on the Creative Industries, which
was convened by the LDA, held a seminar dedicated to intellectual
property, in which the issue of copyright infringement through
digital networks was discussed—although it was not clear
how much of a problem it is, and no attempt has been made to actually
quantify any losses for London's creative sector. In the course
of this seminar, the point was also stressed that considerable
innovation and wealth generation is taking place under different
intellectual property models, such as open source protocols and
creative commons licensing agreements, and that a broad-minded
approach to IP was needed, which can encourage innovation and
enterprise as well as protecting existing rights owners. Many
creative professionals across the sector draw extensively on existing
ideas and work for their creative purposes, and it is therefore
important that an IP framework is not too restrictive, and resources
currently within the public domain are maintained for future and
open use.
We would welcome further research into the relationship between
IP legislation and innovation in the creative industries. In particular,
we feel that in-depth investigation is needed with regards to
new business models in the sector, which many commentators have
suggested will be of increasing importance in the creative economy.
Given the difficulties in preventing digital copyright infringement
through technical means or legal enforcement, particularly in
emerging international markets, consideration should be given
to other approaches by which creative producers can earn revenues
for their work.
Nevertheless, for the vast majority of London's creative
businesses, the traditional models of earnings from defensible
IP, such as copyrighted works, is obviously essential to their
success. To this end, Creative London has helped to establish
the support initiative Own It (www.own-it.org). Based at the London
College of Communication, Own It advises creative freelancers,
entrepreneurs and small businesses on how to retain, defend, negotiate,
value and exploit their intellectual property.
It has developed partnerships with industry associations
and law firms, in order to provide support for enterprises as
diverse as music labels, film makers and visual artists. As part
of its programme, it has specifically looked at new media and
digital technologies.
Own It has been an immediate success, and a testament to
the industry demand for advice/support around IP issues. In just
one year, it has run 45 events, and 5,000 creative professionals
have benefited from its activities. Own It is currently delivering
free one to one IP legal advice which involves six law firms providing
pro bono support to Own It.
An initial survey by Own It into how creatives value their
own and other's intellectual property in their business activity
showed the following:
Unauthorised use of other's intellectual property.
— 80% (79.775%) of respondents have used someone
else's work in their own work without permission.
— Most commonly infringed work was photography,
followed by fonts, then words. Most prevalent infringers: Industrial
product designers (83%), then Film, TV, Radio professionals (82%)
and Illustration, Graphic and Packaging Design (78%).
Unauthorised use of their own intellectual property by others.
— 50% of respondents believe their own work has
been used by others without permission.
— 27% did nothing, 33% complained to friends and
colleagues, 22% contacted the offending party, 12% took legal
advice and 4% took actual legal action.
These statistics clarified the need for Own It to disseminate
IP protection methods, knowledge and application to the creative
industries, and to provide advice on defence of intellectual property.
However, it also shed light on how this sector was valuing
their own and other's rights. The creative industry sector trades
and relies on its own intellectual property for income and growth.
Yet, at the same time, a proportion of it are using other people's
rights for financial gain, without offering any payment or gaining
permission.
Further research obviously needs to be done into what methods
were used for copying, actual or digital, and also why permission
was not sought by the creatives from the rights holders. An initial
assumption is that they are taking a risk and won't get caught,
another is that any permission granted by the rights holders will
result in costs which they can't afford as well as paperwork and
complex license agreements which will be time consuming to administer,
will require legal intervention and will be a distraction from
their core business—being creative.
It became apparent that if the piracy could be turned into
a simple accessible license then multi authoring could be formalised
and a synergy would be achieved that reflected the convergence
of IP protection of one's own work in tandem with the acknowledgement
of the other sources of creative input. Thus, a harmonisation
between the copyright and copyleft systems would be achievable
and practical for the creative practitioners and which mirrored
the way they are currently working using multiple influences and
visual information.
In light of this Own It has now launched Share It: http://www.own-it.org/ipinfo/ipinfo%5Fhsareit/.
Own It and Share It reflect both the traditional and new
IP business models and the spectrum of possibilities for owning,
exploiting, sharing and developing innovation and creativity.
It is now hoped that Own It will be able to inform any further
research into how the Open movement can address the emerging IP
needs of the design and visual art community.
28 February 2006
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