No current plans for statutory private copying levy

The government is currently not planning to introduce a levy that would remunerate creators on the sale of electronic goods capable of copying creative content, according to a response to the Culture, Media and Sport (CMS) Committee’s report into creator remuneration.

The report, published in April, concluded that many successful musicians, actors, writers and visual artists struggle to make a living due to gaps in copyright protections.

The CMS Committee called on the government to develop a statutory private copying scheme, often known as the Smart Fund, which would put a small percentage from the sale of electronic devices that copy and store creative content towards a fund that supports creators.

The government’s response says that while the introduction of a private copying exception and levy is not ruled out in the future, further evidence is needed to understand current user behaviour.

“The government considers that the increased take up of streaming services over the past decade may have led to an overall decline in private copying by individuals,” the response, written by Arts Minister Chris Bryant, says.

Bryant added the Intellectual Property Office (IPO) is planning to meet with representatives from the UK’s creative industries to discuss how to strengthen the evidence base on private copying, both domestically and in relation to trade.

Music streaming

The government responded to the committee’s calls for it to drive fundamental reform by saying its current view is that “the best way to address creator concerns on remuneration in music is through dialogue within industry and, where appropriate, industry-led action”.

The Creator Remuneration Working Group, launched by the government earlier this year, is set to continue meeting to explore remuneration issues. 

The government’s response also rejects claims the working group’s membership leaves creators with a minority voice, insteading saying the group has “an adequate and appropriately broad representation from across the music industry”.

“Having a size limited membership for the working group has so far ensured productive conversations, where representatives from across the music sector, including the music creator community, have had the opportunity to engage constructively on issues related to creator remuneration,” Bryant’s response reads.

Artificial intelligence

The government also responded to the CMS Committee’s request that creators have proper mechanisms in place to enforce consent and receive fair compensation when their work is used by artificial intelligence (AI) developers.

In its response, the government acknowledged concerns around a lack of action in this area but said it wants to “strike the right balance” between the creative and artificial intelligence sectors, to both foster innovation and ensure protection for creators and investment in the creative industries.

Bryant said the Department for Culture, Media and Sport, the Department for Science, Innovation and Technology and IPO are working closely together to “understand the issues, opportunities and concerns in detail”.

“Any resolution to these issues may require legislation, as well as technological solutions, agreed standards and international cooperation. The government is fully aware that the present situation is less than ideal for both AI developers and creators as a lack of legal certainty can impact confidence levels.” Bryant’s response added. “We intend to proceed carefully but with a degree of urgency in this area and hope to announce next steps soon.”

CMS Committee Chair Caroline Dinenage said the government must address gaps in copyright protections and support “that are clearly leaving many struggling to get by”.

“The rise of artificial intelligence has had a significant impact on the creative industries across the board,” Dinenage added. 

“The new committee will be continuing to explore how such emerging technologies can be harnessed to help rather than hinder the ability of creators to enjoy a successful career.”