Risk and Reward: sustaining a higher value-added economy - Business and Enterprise Committee Contents


Memorandum submitted by Alliance Against IP Theft

  1.  Established in 1998, the Alliance Against Intellectual Property Theft (the Alliance) is a unique coalition of 17 UK trade associations and enforcement bodies, providing a single voice for those who share an interest in preventing intellectual property theft in the UK. With a combined turnover of over £250 billion, our members include representatives of the film/TV, video, music, games and business software industries, branded manufactured goods, publishers, retailers and designers.

2.  The Alliance Against IP Theft believes that intellectual property is a cornerstone of the economy. Without a proper IP framework, both in relation to policy to promote it and a legal framework to defend it, other policies designed to enhance innovation will be ineffective.

  3.  IP is often associated with the creative or pharmaceutical industries; however it is of equal importance to the owners of manufactured goods, designers of packaging, jewellery, software, games and fashion. IP is therefore vital to all those who are building higher value-added companies.

  4.  Intellectual property was recognised as being vital to the economy in the Gowers Review, published in December 2006 and in Lord Sainsbury's more recent report into science policy A Race to the Top. The Culture, Media and Sport Committee also noted the importance of IP in its report New Media and the Creative Industries, published in May 2007. These reports clearly laid out the need for an IP framework that helped strengthen economic development.

  5.  While we recognise that the Committee's terms of reference and questions in relation to its inquiry are not necessarily designed to be focused on IP policy, we believe that discussion around the development of a higher value-added economy cannot be separated from discussion of IP. We have therefore focused our response around two questions where we believe discussion of IP policy is most relevant:

    —  What the government can do to further promote higher value-added business activities and innovative thinking among UK businesses.

    —  The effectiveness of machinery of government arrangements in encouraging innovation and creativity.

What the government can do to further promote higher value-added business activities and innovative thinking among UK businesses

  6.  As the Gowers Review pointed out, "The ideal IP system creates incentives for innovation, without unduly limiting access for consumers and follow-on innovators. It also recognised that while the IP system was overall fit for purpose, there was scope for reform".

7.  The Alliance welcomed the Gowers Review and the focus it provided for IP policy. We have also welcomed the implementation by Government of some of its recommendations. There is, however, much still to be done.

  8.  The current consultation on the Law on Damages, being conducted by the Ministry of Justice, is the first concrete test of the Government's commitment to IP. The Alliance would like to see a civil damages regime that clearly acts as a deterrent to IP theft and enables business to help itself. Similarly, we are eagerly awaiting a consultation from the Department for Business, Enterprise and Regulatory Reform into the regulation of markets, including car-boot sales. The Alliance is also keen to ensure that Trading Standards are given the proper resources to enforce IP laws and for the Serious and Organised Crime Agency to become the enforcement agency it was designed to be and not just an intelligence gatherer.

  9.  If the Government can make changes that will enhance the IP framework, businesses will be more likely to commit greater sums of money to innovation, help themselves by defending their IP more vigorously and invest in programmes that help to build understanding about the importance of IP. Commitment across Government departments, not just those with a clear mandate to promote enterprise, would be very helpful.

The effectiveness of machinery of government arrangements in encouraging innovation and creativity

  10.  As the answer to the question above demonstrates, Government policy on IP is impacted by a broad range of departments. While we welcomed the creation of the first ever Minister for IP & Quality during the Government re-organisation, announced at the end of June, enforcement of IP rights (an important part of IP protection) is not his responsibility and it did create yet another Department to manage.

11.  It is clear that those Government departments with a clear role in promoting innovation and creativity have a good understanding of the IP framework and its importance. Other departments however, who are as crucial in the delivery of the legal framework to protect IP, seem less supportive and threaten industry's ability to continue investing in innovation and creativity. The Alliance sees its role as helping to ensure that responsibility is taken across Government to deliver a suitable IP framework, but greater co-ordination and understanding in some Government departments would be helpful.

Members of the Alliance Against IP Theft Include:

    Anti Counterfeiting Group

    British Brands Group

    British Jewellery and Giftware Federation

    British Music Rights

    British Phonographic Industry

    British Video Association

    Business Software Alliance

    Cinema Exhibitors Association

    Copyright Licensing Agency

    Entertainment and Leisure Software Publishers Association

    Entertainment Retailers Association

    Federation against Software Theft

    Film Distributors Association

    Institute of Trade Mark Attorneys

    Newspaper Licensing Agency

    Publishers Licensing Society

    Video Standards Council

October 2007




 
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