Baroness Delyth Morgan - NESTA Creative Industries Summit
London - 15 February 2008

Thank you for inviting me to speak at this event. I am delighted to be here - in my new position as Minister for IP - and to set the context for what I'm sure will be a fascinating session.

Intellectual property - in particular copyright - is a vital part of the overall framework for the creative industries and underpins all past, present and emerging business models. There is no doubt that the creative industries are a valuable part of our culture and our society - increasingly they are also a valuable part of our economy - contributing around 8% of GVA (gross value added).

The last few years have seen major changes in the way that we create, distribute and enjoy creative content. Creators now do things we only dreamed of a short while ago - bringing new worlds to life through CGI. Distributors can reach newer and larger audiences, while users too have seen many changes. It is clear that the digital age and the growth of the internet have provided new opportunities to both consumers and creators.

As well as new opportunities, change often brings new challenges - and this is very much true in the area of copyright. Some of these key challenges are clear - others are still to come.

While UK and EU laws have already been adapted to meet some of these it is only right that we pause occasionally to consider whether the framework remains relevant and to act if we see clear gaps.

Andrew Gowers considered this very question in his 2006 review - looking at whether the UK's IP framework was ‘fit for purpose' in the digital age. His conclusion - that the UK's system was broadly sound but that changes were needed in some areas - was accepted by the government and a programme of work has been underway for the past 14 months to take these recommendations forward.

Some have already been implemented - for example in April 2007 we gave new powers to Trading Standards Officers to help in the fight against piracy and counterfeiting. Additional funds are being provided over the next three years - with almost £8 million in 2008-09.

In other areas it has taken a bit longer to develop proposals for taking forward the recommendations - considering in detail how things might work in practice. One such area is the recommendations relating to copyright exceptions.

Gowers recommended extending existing exceptions to cover new technologies - embracing the new methods of learning and teaching that digitisation has provided. He also recommended an entirely new exception to reflect the realities of the world we live in - I refer of course here to the recommendation to introduce an exception for ‘format shifting' to legalise the common practice amongst consumers of copying their CD collections to their MP3 players.

An important consultation on possible changes to these exceptions was launched last month by my predecessor Lord Triesman - and I hope you will contribute.

One recommendation that has attracted particular interest recently is recommendation 39 concerning possible government action to tackle illicit file-sharing.

Discussions to develop a voluntary solution are ongoing and while I hope that they will be fruitful we must also consider whether regulation is needed. To this end - in the spring we will be consulting on how we might tackle this issue. I'd stress that, despite what you might have gleaned from the recent media coverage, nothing has been decided yet, but what is clear is that whatever approach we take - voluntary or legislative - the status quo is not an option. We want and need your views and support to develop solutions that work.

Another area where action is planned in the coming year is in the area of DRMs - where government will be taking forward recommendations on consumer information and DRM labelling as well as on providing a web interface to enable users to complain about DRMs blocking their use of copyright exceptions.

Is Gowers the final word? I may only have been in the job for a few weeks but to me the answer is 'No' . The Gowers Review made an excellent start - it confirmed that the UK's IP policy still provides appropriate incentives to encourage innovation and creativity; it put IP policy firmly on the government's agenda; and it identified a number of areas where changes were needed.

However - we are already seeing new technologies and business approaches emerge which may raise further challenges. As the Minister for IP I am committed to ensuring that the IP framework remains relevant and to keeping it under review.

What are we seeking? Essentially three things:

Firstly, a copyright system that is relevant to the world in which we live and which strikes the right balance between the interests of creators and users.

Clearly legislation will be an important part of this but we must not think that all the answers lie in laws - which take time to prepare and can become quickly outdated.

Secondly - we need to make sure we have the right tools in place to tackle the problems of copyright infringement.

This means acting to make sure the enforcement framework - both civil and criminal - is effective and also that direct action is being taken to tackle IP crime.

However solutions may lie in other areas too.

Technological advancements may help by reducing the amount of illegal content, while licensing deals can provide a pragmatic solution - by legitimising content (like You Tube's licence covering the use of British copyright protected songs in videos posted on its website) - although it is important that we remain mindful of the needs of consumers and in particular ensure that exceptions which permit legal use are respected.

Business models must also keep pace with new technology - and with consumer demand. In a world where users increasingly expect quick, easy - and more controversially free - access it is important that businesses react quickly to embrace new opportunities and meet new challenges. While some have responded quickly - others have been slow to react.

Finally - we need to focus on helping consumers to understand the copyright rules and to respect them. Many digital users are young people who have grown up expecting free access, so it will be no mean feat to encourage respect for IP - however it is in all of our interests.

So, where to now?

To find the right answers we need to engage with creators and content distributors, with technology companies, with users and with experts in the worlds of business and academia.

Beyond what's needed for the Gowers recommendations we have no clear plans to amend the copyright framework at this time. We would prefer to see further development of business solutions and self-regulation to tackle the problems we face. Such solutions are ultimately preferable - being quicker and more flexible to future change

However if we see a need to make changes to the law - we will look to do so - with proper consultation of course.

The Creative Economy Strategy - which is due to be published shortly - is highly relevant - looking not just at IP issues but across the piece at the whole range of issues which affect the strength and sustainability of our creative industries.

Similarly, the joint DCMS/BERR Convergence Think Tank will add further flavour to the debate - looking at the business, regulatory and policy challenges and opportunities that convergence in the communications sectors is bringing and what the implications are for the consumer and society.

Further afield - we are also seeing action on the European front.

The issues we face are complex - and as noted before - the solutions are not necessarily regulatory ones. The debate will go on - domestically, within Europe and internationally - and I intend to play an active part in it. I would also urge you - the academic community - to play your part too.