Written evidence from the Association of Authors’ Agents (TDE 19)
The Association of Authors’ Agents (‘the AAA’) welcomes this opportunity to contribute to the BIS Select Committee inquiry into the UK’s digital economy.
The AAA is a voluntary trade organisation whose membership comprises over 100 British literary agencies. Our members, between them, represent the vast majority of authors writing for the general trade market in the UK, among them some of the best known names in British writing.
We would also refer you to the data provided in the submissions made by our colleagues at the Alliance for Intellectual Property, of which we are a member, and by the Publishers Association, many of whose experiences we share in dealing with such matters.
1 What are the major barriers to UK business success in the digital economy? What steps could the Government take to help businesses to overcome these barriers?
a) i) Innovation in online business is impeded by the presence of monopolistic platforms within most sectors of the market. In the publishing world, this is illustrated by the position of Amazon. To succeed, even innovative start-ups have to operate through Amazon’s platforms – a new online publisher cannot access any significant market share without using the portal of the major distributor, which is Amazon and its Kindle platform.
ii) Government can help through a review of the business practices of large companies such as these, and how they have used their market dominance to leverage their position still further
b) i) Introduction of exceptions to intellectual property legislation, in particular the gold standard of copyright, weakens the thriving creative economy, where licensing solutions are already well established
ii) Government should seek to sustain the existing IP framework in order to maintain the UK creative industries’ successes.
c) i) The UK is a net exporter of creative content. Authors are an important part of this, and the sale of rights in UK writers’ works to publishers in the EU is a very substantial element. However, authors are finding that getting the necessary paperwork certified by HMRC for avoidance of double taxation in certain EU states (for example Germany, Italy, France and Spain) is subject to delays of up to 6 months. Creating a streamlined fast track process for this within HMRC would make a huge difference to UK authors and their agents.
2 How effective are UK financial markets in supporting the digital economy? What actions could the Government take to improve their effectiveness?
As an association the AAA does not have a view on this point, but would refer you to the evidence supplied by our colleagues at the Publishers Association and the Alliance for Intellectual Property.
3 What lessons can be learned from the Government’s support of tech start-ups and other measures targeted at the digital economy? How is this developing around the regions and nations of the United Kingdom?
Successes in this area illustrate the false assumptions of Hargreaves; the existing ‘traditional’ licensing system has generated business, not impeded it.
4 Does the UK’s Intellectual Property regulatory regime provide effective protection for the digital economy and sufficient scope for innovation and competition?
Current legislation, where enforced and upheld, provides an effective and balanced framework for IP trading that protects the creator and benefits the consumer.
5 What actions could the Government take to foster the development of potentially disruptive technologies? Are further safeguards warranted to help existing businesses adapt to the impact of these technologies on their traditional business models?
Government should institute measures that help competitors to large companies, that use their dominant market share to the detriment of content owners and creators, to develop goods and services that offer choice to the consumer. The challenges posed by a lack of diversity in the digital marketplace will only be amplified as we move towards a Digital Single Market. Competition Law must be reviewed in the light of the development of the online sector; when applied here, is it fit for purpose?
The Copyright Hub is an example of a government-sponsored initiative that benefits all parties.
The Sieghart Review of e-lending in public libraries has also provided helpful information and guidance as this nascent sector develops, but e-lending (whether within a commercial or public service environment) must remain under careful review to ensure it does not damage business models that are of fundamental importance to creators and business alike.
6 What actions could the Government take to ensure the availability of a workforce with the skills to support businesses in the digital economy?
Education and training in intellectual property and how to use the IP licensing framework, as well as what it is, is crucial as the ‘digital generation’ matures; for the health of the creative economy, there has to be an understanding of the balance between remuneration for creators and ‘free’, and how investment supports creativity.
The introduction of coding education within schools is welcomed.
Training for freelancers in establishing and successfully operating a small business would be an important life skill for those entering a more diffuse workplace environment.
Support for flexible working hours and practices, to include parental support/childcare provisions, and tax breaks for freelance/small businesses in this sector.
28 October 2015