A consultation process that raises the possibility of legalizing so-called format-shifting was launched by Lord Triesman, Minister for Intellectual Property, at the British Library this morning.

“In an increasingly digital world, we need to be sure that our copyright system keeps up with the times and works effectively,” Triesman said. “This consultation is part of a package of measures which is designed to do just that. It explores where the boundaries lie between strong protection for right holders and appropriate levels of access for users. A system valued by right holders and respected by users is critical to the success of UK creativity.”

Plans to update the country’s format-shifting rules received a cautious welcome from Jill Johnstone, director of policy at the National Consumer Council.

“Copying music and films, say, from one piece of equipment to another for your own private use at home or in the car, is currently illegal – even though advances in technology make it possible. This is confusing for consumers and it brings the law into disrepute,” Johnstone said in a statement. “That’s why we support moves to update this discredited law."

But she said that any new measures must be easy to understand, fair to consumers, and flexible enough to deal with future advances in technology.

However, not all copyright owners are happy with the government’s plans.

Alison Wenham, chairperson and CEO of the Association of Independent Music (AIM), which represents independent record companies in the UK, said that the government was at risk of legislating for a particular practice – transferring music from a CD to an MP3 player – that could soon become outdated.

“Business models [for content owners] have changed, are changing and will change,” she told MIP Week. “This is a time of great flux and we are at a very early stage of the technological revolution, so we are very concerned about legislation being tied to a particular technology.”

She said that if format-shifting were to be legalized, it would give consumers an assumed right to copy, even when CDs are superseded by new technology.

Wenham also argued that EU rules prevent the government from introducing exemptions to existing copyright rules without compensating content owners. The UK is one of just three countries in the European Union that does not have a copyright levy. Without one, she said, AIM would oppose the legalization of format-shifting.

Other recommendations outlined by Triesman include plans to allow libraries and archives to use technology to preserve material before it deteriorates or the format it is stored on becomes obsolete, and a new exception under the copyright law for parody.

The first stage of the consultation is open until April 8 2008.

The consultation follows the Gowers Review of Intellectual Property, published in December 2006, which called on the government to reform parts of the UK’s IP system.
Many of Andrew Gowers's recommendations focused on adapting copyright to the internet age and the former editor of the Financial Times specifically recommended the introduction of limited private copying exceptions, such as exist in Germany and France, to enable users to copy music from a CD on to an MP3 player. But he rejected the idea of compensating copyright owners for potential losses with a levy on copyright users.
However, Gowers counter-balanced his recommendations for liberalizing the UK’s copyright regime for consumers by suggesting that anyone who infringes IP online on a commercial scale should face the same penalties as traditional infringers.

In particular, he recommended that the government change the law so that online infringers face up to 10 years in jail, rather than two, to bring penalties for the offence in line with those for physical infringement.

The speech given by Triesman today will be one of the IP minister’s last speeches in his role as minister for intellectual property. He is to step down from the post six months after taking it up after agreeing to become chairman of England’s Football Association.
His successor should be appointed next week.