Memorandum submitted by Periodical Publishers
Association
INTRODUCTION
The Periodical Publishers Association (PPA)
welcomes the Committee inquiry into the challenges and opportunities
for the creative industries arising from the development of new
media platforms.
The challenges and opportunities directly relevant
to the inquiry are a daily part of the lives of the PPA and its
members. Publishing is at the heart of the creative industries.
The European Commission is reviewing the current classification
of the economic activities which fall within "publishing".
Whatever changes are eventually agreed, it is clear that publishing
of magazines, journals and periodicals will remain at the heart
of the sector. The question of how they will be published in the
future is central to the issues to be addressed by the Committee.
The PPA is the trade body for UK magazine publishers.
The association's membership consists of some 500 members who
publish or organise over 4,300 products or services. These include
over 2,500 consumer, business and professional magazines. PPA
members also produce a large range of directories and websites,
in addition to organising conferences, exhibitions and awards.
Many PPA members offer online services, including
websites, online versions of print publications and publications
only available online, or through electronic transmission. Online
publications also encompass consumer, business to business and
contract magazines, and increasingly involve the use of new electronic
rights management systems to help improve the provision of publications
and services to subscribers.
Increased use of digital technologies is having
a significant impact on the way in which magazine publishers compile
and design their products and services, and subsequently publish
and make available their goods and services to customers and individual
consumers.
Ultimately, consumers and rights holders share
the same objectives, involving affordable access to a wide range
of content to satisfy effective demand for consumption across
an ever increasing number of delivery platforms and devices. The
successful use of new technologies (or "new media")
embracing delivery platforms, electronic rights management systems,
and technical protection measures will help to support these ambitions,
stimulating new business models and creating opportunities for
business to offer more choice to the consumer/citizen.
This choice is proving increasingly important
for the UK economy. Creative Industries are recognised as one
of the economy's fastest growing sectors, contributing over £53
billion to the UK in 2002, accounting for 8% of GDP; supporting
1.9 million jobs and growing at an average of 6% between 1997
and 2002, double the rate of the economy as a whole.
In 2001 the publishing sector generated 0.82%
of United Kingdom Gross Domestic Product (compared to an EU average
of 0.48%. Across the EU-25 the sector employed nearly 750,000
people, in almost 64,000 companies. Small and medium sized enterprises
(1-49 employees) represented 97% of all publishing companies in
the EU, but the 0.8% of companies which employed more that 250
people accounted for more that half of the total turnover of the
sector.
The PPA welcomes the opportunity to respond
to the Committee's inquiry and would be pleased to provide further
evidence, written or orally to the Committee in support of the
points raised in this response.
IMPACT OF
RECENT AND
FUTURE DEVELOPMENTS
IN DIGITAL
CONVERGENCE AND
MEDIA TECHNOLOGY
A. Media Policy for the publishing sector
must increasingly take into account the way in which the industry
interacts with other creative industry sectors, particularly those
providing other information society services.[59]59
Access to the Internet and online services is providing consumers
with information search facilities at the touch of a button. This
allows publishers to provide links to detailed information on
topics which might not have been possible within the editorial
constraints of a traditional magazine. Options for readers can
be developed using on line technology which provide greater choice
over the way that consumers may wish to discover and research
information available through the publication. Easy access to
archive articles and information being made available on line
also provide opportunities for consumers to research background
and learn more on specialist topics using services which they
trust and are familiar with.
B. Consumers and businesses are now benefiting
from the flexibility that digital technology affords for transmission
of content. The same service can now be received over an increasing
range of devices. Digital "convergence" is enabling
new on line magazine services to be delivered on line to portable
and mobile devices in addition to television sets. This increases
choice for consumers. But just because online magazines can be
delivered to consumers as part of this wider range of services
does not mean that any regulation of the content of such publishing
services should be treated in the same way as, for example, a
television broadcast service traditionally regulated under the
Television Without Frontiers Directive. Divisions between the
nature of creative industry services which are understood by consumers
must remain both for effective future application of regulatory
regimes, and the way that intellectual property supports the effective
licensing of content within services to which regulation or self
regulation applies.
C. The European Commission's latest study
into the publishing sector must be reviewed, and based upon a
fully up-to-date analysis of the publishing industry.
D. Digital technology, and the opportunities
which it affords for business and consumers, has also brought
into focus the vital importance of maintaining an effective legal
framework for the protection, licensing and enforcement of intellectual
property rights. It is crucial that this importance is understood
and appreciated across government. Cross departmental initiatives
such as the IP Crime Strategy and the recent announcement by the
Chancellor concerning the Gowers review into the UK's intellectual
property framework are welcome. Continued close links with representatives
across the creative industries is vital if these initiatives are
to work effectively. It is hoped that the Committee will endorse
and encourage this.
E. Technical protection measures and rights
management information systems are central to enabling digital
technology to provide increased choice and opportunity for both
consumers and business.
F. The PPA believes that the legal protections
for "Digital Rights Management" already recognised in
law at both European level and within EU member states should
be maintained,60[60]
in order that industry can develop and offer an increasingly diverse
choice of products and services for the consumer, including on
line and digital publications.
Effects of unauthorised reproduction and
dissemination of creative content, particularly using new technology;
and what steps can be taken—using new technology, statutory
protection or other means—to protect consumers.
A. Government should support improved education
and awareness to all consumers and in particular citizens about
what "intellectual property" actually is, and why it
is important to them. In this context it is important that people
understand better how intellectual property is really relevant
to their lives both culturally and potentially economically.
A good example of the need for education and
awareness concerns the real scope of products which might fall
under the generic description of "Digital Rights Management".
The PPA has recently set out its more detailed views on this topic
in its submission to the All Party Internet Group.61[61]
Such education will help ensure that consumers are better informed
about the ways in which such products can work to improve efficiency,
and provide for consumer choice.
B. Copyright exceptions and limitations
are traditionally applied in law only in special cases which do
not conflict with a normal exploitation of a work or other subject
matter and do not unreasonably prejudice the legitimate interests
of a rights holder. This flexible test has worked well to enable
and accommodate recent rapid technological developments and should
continue to be recognised and observed.
C. No specific right for libraries to circumvent
technological protection measures is necessary in the light of
the discussions which are taking place between representatives
of both libraries and rights owners, who recognise the mutual
interest in ensuring the right environment to stimulate creativity
and invest in new work in the future.
D. Rather than new rules extending the grounds
for technical protection measures, and other DRM solutions, to
be overridden in the interests of access for specialist groups,
voluntary systems backed by copyright owners must be allowed to
develop. It must be remembered that it is in the commercial interests
of publishers to ensure that consumers are not alienated, and
that effective demand for their products and services is maintained.
E. The market for DRM solutions is a nascent
one. There are few nascent technologies for which there are not
initial technical problems. Government and Parliament should continue
to monitor developments in the marketplace, and the way that new
technical protection measures and rights management information
systems are brought to market, but recognise the careful balance
of interest established by the framework already provided for
under the EC Copyright Directive.
F. Digital technology, and file sharing, have
brought with them opportunities for the unauthorised use of copyright
works, including articles and magazines, at levels which would
have been unthinkable of 50 years ago. The speed and anonymity
of access to unauthorised material in the on line environment
has provided real challenges to all sectors of the creative industries,
including the magazine industry. The valuable work of the IP Crime
Strategy and its links with industry through the National Intellectual
Property Crime Group should be noted and supported by the Committee
and the industry.
G. The level of resource currently allocated
by Trading Standards and other authorities for enforcement of
copyright remains a concern. But the harm being caused to the
economy as a whole through unauthorised use of intellectual property
is now being recognised though the cooperative work of enforcement
agencies and industry. Implementation of s107A of the Copyright,
Designs and Patents Act to give Trading Standards Authorities
a duty to enforce copyright offences recognised in section 107
of the Act remains an important outstanding issue. Balancing action
for enforcement with the education and awareness campaigns about
the value of copyright and other intellectual property will be
important. The Committee is urged to support implementation as
soon as possible.
The extent to which a regulatory environment
should be applied to creative content accessed using non-traditional
media platforms.
A. The PPA supports the current review of
the Television Without Frontiers Directive.62[62]
However, the PPA believes that broadcast services, which are licensed,
enjoy a unique position in our information society. Regulations
that apply to push-services are proportionate and necessary solely
within that context. Such a regulatory regime does not incorporate
unlicensed pull-media such as website publications, and should
continue not to do so.
B. The PPA does not believe there are grounds
for any extension to a Directive such as TVWF if such extension
is counter to the principle of proportionality, and such measures
would be beyond those which are the minimum needed to achieve
the objective of the proper functioning of the internal market.
In this respect it is welcome that the latest proposals for amending
the TVWF Directive recognise that the Directive does not cover
electronic versions of newspapers or magazines.
C. PPA believes that the existing derogated
regulatory and self-regulatory regimes in Member States for print
media are wholly appropriate and proportionate to extend the responsible
approach of the paper-based print publications to that of the
online media.
D. The E-Commerce Directive Article 3 Paragraph
4 (a) (i) already contains suitable provision for derogation such
that Member States may not restrict the freedom to provide information
society services from another Member State except where such measures
are necessary for:
...the protection of minors and the fight against
any incitement to hatred on grounds of race, sex, religion or
nationality, and violations of human dignity concerning individual
persons."
E. The E-Commerce Directive and the regulations
implemented within the UK as a result of this are important for
the proper functioning of the developing Internal Market in e-commerce.63[63]
The ability for new businesses to operate on
line without the level of regulatory oversight which applies to
the operation of television and radio broadcasting services in
the UK has already encouraged diversity and choice of new services
for consumers.
F. Overall the PPA believes that the existing
copyright and other intellectual property regimes within the EU
provide for a carefully developed system of rights and exceptions
which it would be wrong to alter by changes to Articles 12 to
14 of the Directive.
G. The meaning of "hyperlink"
and "location tool service" is not defined by the Directive.
The Member States which have applied additional provisions to
the concept of liability of hyperlinkers and location tool services,
may find that they have failed to take account of the way that
the concepts have evolved since the Directive was adopted. The
range of information services which might include hyperlinks and
location tool services is increasing. Some of these may promote
unauthorised or other illegal use of copyright or other material
in which intellectual property rights exist, to the overall disadvantage
of the publishing industry.
H. The harmonisation intended by the Directive
has already been challenged as a result of some Member States
already having included liability limitation cover for hyperlinks,
location tool and content aggregation services. This lack of uniformity
would be aggravated, if the United Kingdom enacted its own additions
to the liability provisions of Articles 12 to 14 at this stage.
I. The evolving e-commerce market place
needs to distinguish responsibilities for different types of hyperlinks,
location tool services and aggregation services. Factors that
should be taken into account include: the economic intentions
of those providing the links or services; the practical business
procedures which are developing; and the importance of the protection
and respect for copyright and intellectual property rights.
Whilst wishing to ensure that copyright, neighbouring
rights and other intellectual property rights are left outside
the scope of any further review of the E-Commerce Directive the
PPA would hope that consultation concerning the wider issues raised
by the Law Commission in its Scoping Study 2 relating to defamation
and the law of contempt will help to show how limitations of liability
in these fields warrant further discussion for automated information
links or results of searches. The way in which US law has developed
to distinguish intellectual property law provisions from the provisions
limiting the liability of information content providers for certain
other civil liabilities should be considered in this context.
Appendix 4 (not printed here) includes further background to illustrate
the concerns.
Where the balance should lie between the
rights of creators and the expectations of consumers in the context
of the BBC's Creative Archive and other developments.
A. The work of the Creative Industries Forum
on Intellectual Property64[64]
has been important in enabling not only the weaknesses within
the current legal framework to be considered and addressed, but
also in securing recognition from the government about the importance
of helping people, both users and creators, to appreciate the
value of "intellectual property" as central to the future
health of creative industries within the United Kingdom. This
education will play an important role in enabling the right balance
to be maintained between the rights of creators and the expectations
of consumers as more and more new services are launched in the
digital environment to run alongside more traditional media.
B. The current copyright regime is flexible
enough to allow owners to decide upon whether material can be
made available for others to adapt and develop.
C. The Creative Archive is a new initiative
which should provide additional choice for rights owners (and
through this) for consumers. However, it is important that such
initiatives are properly understood and promoted in context.
As previously noted, the Creative Archive, and
Creative Commons, along with governmental initiatives to widen
the availability of information to consumers will, unless users
are properly educated, confuse and undermine their perception
of the intrinsic value of such information, and lead to the inevitable
decline of information publishing as a viable industry.
Publishers and other rights holders have no
long-term incentive to alienate legitimate consumers, or to stifle
growth of effective demand for new business models. It would be
unfortunate if those who argue that the system for recognising
and rewarding the creators of copyright works is outdated, succeed
in promoting the current debate as one of rights holders versus
consumers—this is not the reality.
D. Copyright exceptions and limitations
have evolved over time, but the underlying principle established
in International Treaties, and more recently within Article 5.5
of the Copyright Directive, must continue to be applied and supported.
E. This provides "Exceptions and limitations
. . . shall only be applied in certain special cases which do
not conflict with a normal exploitation of the work or other subject
matter and do not unreasonably prejudice the legitimate interests
of the right holder".
F. Since the existing regime has enabled rights
owners to choose whether they wish to license the use of their
works by means of sharing licences such as those developed by
Creative Commons, it is unnecessary to make legislative changes
to permit them.
17 February 2006
59 59 Government response to EU Commission Staff Working
Paper on "Strengthening The Competitiveness of the EU Publishing
Sector"-Appendix 1 (not printed here) Back
60
60 See Appendix 2 (not printed here) and the protections afforded
by section 296 Copyright, Designs and Patents Act 1988 as amended. Back
61
61 PPA response to All Party Parliamentary Internet Group inquiry
into Digital Rights Management-December 2005-Appendix 2 (not printed
here) Back
62
62 PPA response to European Commission issues paper on rules applicable
to audiovisual content services-Appendix 3 (not printed here) Back
63
63 PPA Response to DTI Consultation Document on the Electronic
Commerce Directive: The Liability of Hyperlinkers, Location Tool
Service and Content Aggregators-Appendix 4 (not printed here) Back
64
64 Government's response available on DCMS website-<au0,2.5>http://www.culture.gov.uk/global/publications/archive_2005/gr_cifp.htm Back
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