Managing Intellectual Property

FTC debates hot news and fair use

24 June 2010

Eileen McDermott, New York

The US Federal Trade Commission has proposed several policy recommendations to support what it calls “the reinvention of journalism”

The first recommendation deals with creating additional IP rights to support claims by content owners against so-called news aggregators. This includes potentially passing legislation to clarify the US doctrines of fair use and hot news.

The draft report explains in part that news organisations have suggested expanding IP rights to curb free riding by internet news aggregators, which is cutting into their revenues.

According to the FTC’s sources, newspapers’ revenues from advertising have fallen approximately 45% since 2000. This is because the sheer quantity of news sites available online – including aggregation services – reduces the amount that any one site can charge for advertising.

However, some fear that policy changes aimed at increasing revenue for copyrighted content online could inhibit free speech and access to...



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