The United Kingdom’s Department of Business, Innovation, and Skills (BIS) has honoured its early commitment to one of the more controversial ideas put forward by Professor Hargreaves in his May 2011 Review of Intellectual Property and Growth by announcing the launch of a feasibility study on developing a Digital Copyright Exchange (DCE) in the United Kingdom. The study will be led by Richard Hooper, former Deputy Chairman of Ofcom, the independent regulator and competition authority for the UK communications industries.

BACKGROUND

The Hargreaves Review

In Professor Hargreaves’s view: “In developing the UK’s IP framework to maximise economic growth and innovation, copyright presents our biggest challenge, but also our biggest opportunity”. The creation of a DCE was one of a number of recommendations aimed at taking that opportunity. According to Professor Hargreaves, such an exchange would “boost UK firms’ access to transparent, contestable and global digital markets”, which would boost the UK economy. He did not define clearly how such an exchange would look, other than saying it should be “a network of interoperable databases to provide a common platform for licensing transactions”. The review stated that a range of incentives and disincentives will be needed to encourage rights holders and others to take part and that governance should reflect the interests of participants, working to an agreed code of practice. The review also recommended that the Government should appoint a senior figure to oversee its design and implementation by the end of 2012.

The Government’s Response

In August 2011, the Government published a response to the review in which it expressed its belief that the DCE “will facilitate copyright licensing and realise the growth potential of creative industries”. On announcing the study, BIS said that an exchange could give rights holders the ability to determine the terms on which their works can be made available for others to use. It would also allow consumers to identify rights holders quickly, in order to secure any potential licensing or investment deals.

The Scope of the Study

The study will look at the feasibility of setting up and running a DCE. Richard Hooper will be looking to persons both within and outside the industry to work with him on the project and sees it in terms of two distinct phases. He intends to “talk to people across and outside the sector to find out how they see the licensing challenges facing them. As part of that process, I’ll be looking to meet the key players and to provide opportunities for all those interested to air their views.” Then the study will move on “to forge some common understanding… to produce appropriate industry-led solutions which respond to the spirit of Hargreaves’ vision”.