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Centre for Intellectual Property and Information Law

 
Tuesday, 12 December 2006

A report written by the Centre of Intellectual Property and Information Law reviewing the Economic Evidence Relating to a Proposal to Extend the Term of Copyright in Sound Recordings has been relied on in a significant Government review. A Treasury Committee headed by Andrew Gowers has just completed a wide-ranging review of British intellectual property law. One of the most controversial matters it considered was whether to increase copyright term for sound recordings from its current period of 50 years to either 70 or 95 years. The record industry argued that this would be good for Britain’s balance of trade and good for British performers, as well as good for the industry itself.

Faced with complex economic claims, Gowers sought independent advice. The CIPIL Report came out firmly against changing the existing position. The Report argued that no additional incentive effect could possibly be achieved by offering copyright term extensions to existing works, while such extensions would cause considerable damage to consumer welfare. The Report also indicated that the increased incentive from prospective extension was unlikely to be significant. Arguments that Britain would benefit from such an extension in terms of balance of trade were also problematised. The Gowers Report, issued on December 8th, adopted much of the reasoning, and recommended that the European Commission should retain the existing 50 year term.

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