Gerry Sutcliffe
Main Page: Gerry Sutcliffe (Labour - Bradford South)Intellectual Property Bill [Lords]
Gerry Sutcliffe Excerpts(10 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Willetts
I do not know to what extent you, Mr Speaker, would permit the debate to range across the entire Hargreaves agenda. We have introduced a small but perfectly formed Bill that delivers part of that agenda, but it is an important part that will help the design industry, in particular. I will try to focus my remarks on what is actually in the Bill. The Government, as a whole, have already implemented some of Hargreaves and there is more to come. However, given that this is the Second Reading of an important Bill, particularly for the design industry, I hope that the right hon. Gentleman will understand that I will try to focus on that.
The crucial change set out in the Bill—the introduction for the first time of criminal sanctions for infringement of design rights—is not intended to have a chilling effect on innovation or legitimate and competitive risk taking in business. The offence has been carefully drafted to ensure that innocent infringement is not caught. In addition, it will be measured to the high criminal standard of proof of “beyond reasonable doubt”.
That measure sparked much debate in the other place, and our colleagues there made a number of changes to the clause to improve and tighten the sanction. The Government proposed an amendment to ensure that incidental use of a copied design would not be criminalised. Following discussions with industry, an additional amendment was made to provide a defence for those having a reasonable belief of non-infringement. That additional defence was welcomed by the Opposition and industry representatives. We have continued to talk with businesses big and small. Some still have concerns about the scope and clarity of the new offence. We are continuing our discussions with them—this relates to the earlier intervention by my hon. Friend the Member for North Wiltshire (Mr Gray)—and I hope to say more about it in Committee.
Our colleagues in the other place have sent us a much improved Bill. We have continued to improve it since it left the other place as other concerns have arisen. The intellectual property Minister, his officials and I have continued to engage with a number of interested parties, such as representatives of the pharmaceutical, aerospace and IT industries, on their concerns. That included discussions on the detailed wording of the qualification criteria for unregistered design rights. We have listened carefully, and I am pleased to announce that I will be tabling an amendment to the clause in Committee in the light of businesses’ concerns that it is unduly broad. It will ensure that the principle of reciprocity between countries is maintained. I am grateful to the IP Federation for raising the issue so effectively.
The Bill also makes a number of small but important changes to the definitions and legal framework protecting UK designs. They all recognise the need, identified by Hargreaves, to simplify and clarify the designs system. The measures include changing the standard position for ownership to make the designer the default owner of a design, rather than the commissioner. Such changes bring UK and EU design laws into harmony and provide a more logical and simplified system for designers and design users.
In addition, the Bill provides protections from infringement for businesses and individuals using designs in specific circumstances. For example, allowing use of an unregistered design for teaching purposes, such as carpentry in a school, is a sensible measure. So too is the provision of a defence for third parties when, in good faith and without copying, they have made preparations to use a design before a similar design is registered. This and other measures in the first half of the Bill provide more certainty for business and are aimed at modernising and improving the design framework.
The Government’s consultation on designs sought views on the introduction of a non-binding opinions service along the same lines as that currently available for patents, and the majority of respondents supported that. As well as this, the Bill will therefore extend the patent opinions service. That means that the Intellectual Property Office will provide a wider range of expert, but non-binding, opinions on IP in disputes. The existing opinions service provides a low cost means of resolving such disputes, in many cases without a need to seek redress in the courts. Almost 70% of respondents to an IPO review who had used the service considered that it should be extended to other areas of IP. Over 65% wished to see it extended to registered designs and 40% wished to see it extended to the UK unregistered design right. Many of these users are small and medium-sized enterprises that could not afford the high costs of civil litigation. We are therefore pleased that the Bill is going to extend the non-binding opinions service.
The Bill also makes important changes to the patents framework. In particular, innovative businesses in the UK have been waiting for over 40 years for a single European patent system. Creating a business-friendly patent regime for Europe is an important element of the Government’s growth strategy. My right hon. Friend the Prime Minister was instrumental in the negotiations on the unitary patent and the unified patent court. I am therefore very pleased that the Bill gives us the power to implement the pan-European court structure that will underpin the long-awaited unitary European patent system. [Interruption.] I was overcome with emotion at the triumph of the Prime Minister’s negotiating skills on this. The unitary patent could save UK businesses up to £20,000 per patent in translation costs alone—a saving of enormous benefit. Former Supreme Court justice Lord Walker of Gestingthorpe described the unitary patent as
“a remarkably bold step forward, on which successive Governments are to be congratulated, because it has been a very long haul indeed.”
Establishment of the court will further enhance the UK’s reputation as a centre of excellence for commercial dispute resolution, especially in the field of life science patent litigation.
The Hargreaves review stressed the importance of intellectual property for innovation and growth. It argued, however, that policy development in this area had not always been sufficiently directed towards those objectives because of an incomplete evidence base and strong lobbying activity. Innovative businesses grow twice as fast in jobs and in sales as businesses that fail to innovate. The Government therefore want to ensure that the IPO has a sharpened focus on innovation and growth. The Bill requires a report to be submitted to Parliament on how the activities of the IPO contribute to this goal. The report will also increase transparency and allow a wider range of interested parties to scrutinise the work of the IPO.
Mr Gerry Sutcliffe (Bradford South) (Lab)
Will the report that the IPO will provide to Parliament each year include sections to do with the problems that companies and individuals face with intellectual property rights? I recognise the point about showing how the system is working and impacting on growing the economy, but will areas of dispute or problem areas be covered as well?
Mr Willetts
Yes, I certainly envisage the report covering issues where further work may be needed. It will be a report on the IPO’s overall activities.
I now turn to the set of provisions in part 3. I am pleased to be introducing a change that has been called for by the Justice Committee and by the UK’s higher education sector—an exemption to the general right to information under the Freedom of Information Act 2000 to protect pre-publication research. The lack of a dedicated exemption has, for example, left academics worried about whether a freedom of information request might be made for their lab notes before they publish an article in Science or Nature.
The lack of such an exemption has increasingly led businesses to demand contractual guarantees that their data will be secure, which is not only costly in time and resource but has inhibited research collaboration between universities and businesses. For example, the Russell Group has informed the Government that significant university resources were needed to negotiate funding for a studentship with a large multinational company that was unhappy with the perception that its sensitive data might be released. An exceptional compromise agreement was required to resolve that situation, because the university and business were unable to sign off the contract.
Mr Sutcliffe
My hon. Friend will be aware of the report by the Culture, Media and Sport Committee on creativity and innovation, which highlights the importance of the book industry. Will he speak about the concerns of the book industry about the role of Google, whose representatives have visited the Prime Minister’s office 17 times in the past two years?
Mr Wright
I thank my hon. Friend for that question, but where does he think I am getting these statistics, if not from his Committee’s report? It showed the important role that creative industries play in our economy in providing well-paid jobs, innovation and investment in the country. It also mentioned the tension between content companies and technological companies. My hon. Friend mentioned Google, and I seem to remember reading in the transcript of his Committee’s proceedings that the IP Minister, Viscount Younger, said that he finds it more difficult to get into No. 10 Downing street to meet the Prime Minister than the representatives of Google. Perhaps that needs to be dealt with.
In the Committee’s report on that excellent review of the UK creative industries, my hon. Friend and other hon. Members stated:
“Given the importance of the creative sector to the UK economy and the relative importance to that sector of strong IP protection, strongly enforced, the Government must do more to protect and promote UK IP as a system for growth.”
It would be wrong, however, to think of IP as confined only to the creative industries. High-value manufacturing is dependent on innovative design.
Mr Sutcliffe
I hope that we can say more later about the role of Google and the way in which it investigates, or rather does not investigate, the complaints that are made to it. I believe that millions of complaints have not been dealt with.
Mr Leech
I thank my fellow member of the Select Committee for his intervention. He will recall that we visited Google as part of our inquiry, and he will also recall the complacent attitude taken by its representatives to the whole issue, as though it had nothing to do with them and was not their problem. I think we all agreed that it certainly was their problem, and that they should take much more responsibility for tackling it.
Finally, I am disappointed that the Bill does not seek to repeal section 73 of the Copyright, Designs and Patents Act 1988, which was intended to encourage the roll-out of the cable network in the United Kingdom, and allowed cable operators to re-transmit public service broadcasters’ programmes free of charge. At a time when Sky and Virgin are willingly entering into commercial deals with public sector broadcasters for their non-public sector broadcasting content, it is a nonsense that they are still able to make money on the back of free PSB content.
Pete Wishart (Perth and North Perthshire) (SNP)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I also belatedly welcome you, Madam Deputy Speaker, to the Chair. The appointment was perhaps a loss to the no campaign on the constitutional question, but one that we welcome.
I generally welcome the Bill. I have managed to speak in most of the debates on IP since becoming a Member of Parliament, and I have had the great pleasure of introducing a couple of them, but this is the first time in those 13 years that we have had a Bill dedicated to it. It gives us an incredible opportunity to assess the value of IP-supported business and industry to the economy. IP makes a fantastic contribution—4.3% of our GDP, as the Minister said.
Mr Sutcliffe
The hon. Gentleman makes an important point about the importance of IP rights. Does he agree that there is a need to educate most of the country, including young people, about the value and importance of IP rights?
Pete Wishart
The hon. Gentleman is spot on. So much more could be done through educational initiatives. I have seen some important work being done. I have visited schools and seen schoolchildren trade marking their work with the little copyright symbol. They were starting to appreciate that what they produce, even if it is just a drawing, has an intrinsic intellectual value. If we can get across the message that intellectual property is as important as a property right, and if we can encourage that culture, we will be making great strides forward.
It has been reported in recent weeks that the creative sector has grown by 8.6% in recent years, compared with growth of only 0.7% in the general economy. It is the UK’s fastest growing sector and is worth around £71 billion a year. As the Culture Secretary has said, so much of our cultural and creative endeavour rests on important intellectual property rights, which is absolutely spot on. It is the creative industries that are growing us out of recession. Imagine growing our economy on the back of the creativity, talent and imagination of the people of this country. What a fantastic way to grow our economy. That is why it is so important that we get the intellectual framework right.
We have not done too much that is wrong over the past 10 years. The UK remains a leader. We are in the top three countries in practically every cultural discipline, whether music, film, television, publishing or whatever. We must be doing something right. It also comes naturally to people in these isles; we are just naturally creative. That is reflected in the great output we have seen over hundreds of years, in our contribution to invention, talent and creativity. We get something right and we are able to protect it, so we have to be very careful as we progress with intellectual property rights. We tamper with that at our peril. We have to be careful about how we progress.
The genesis of the Bill was in November 2010, when the Prime Minister made his great “Googlesburg” address. I remember coming home one evening and being unable to believe what I was seeing on the television: a UK Prime Minister talking about intellectual property. It was the first time I had seen a UK Prime Minister take an interest in intellectual property, which was great. I was also interested in what he was saying, because I wondered what on earth he was going on about. His basic premise seemed to be that we would never see a Google emerge in the UK because of our restrictive intellectual property laws and copyright framework. He did not say whether it would be a good thing to have a UK Google. The clear thing he said was that we would not be able to create a Google in the UK, and he also said something about our IP rules being restrictive and that they needed to be fixed.
I do not know who was advising the Prime Minister at the time, but it was certainly not the hon. Member for Hove (Mike Weatherley), who is now his adviser, because I know that the hon. Gentleman would never advise him to say such nonsense about the need for a Google to emerge in the UK—he would have advised him to say something much more sensible and measured. Was there perhaps somebody close to Google working at No. 10? Was somebody in a personal relationship with somebody working at No. 10 and advising the Prime Minister? I will leave that question hanging. Thank goodness the hon. Member for Hove is now advising him much more sensibly on such matters. [Interruption.] I see the Whip, the hon. Member for Devizes (Claire Perry), nodding her head. I will return to Google later, because there are lots of important things to be said about that. We have to understand what that has all been underpinned by and the impact and damage that type of process is having.
The Prime Minister then dispatched Ian Hargreaves to solve the Google conundrum. Ian Hargreaves rightly dumped all the Google nonsense as soon as he could. He went to the United States to see if he could introduce the American system of fair use into UK law. When he was prohibited from doing so because of very sensible European legislation, he moved on to the substance of his review by looking at IP’s economic contribution. He came up with 10 recommendations—some good, some bad, some indifferent and some repetitive—that the Government were minded to accept.
Since then, throughout the Hargreaves process, we have been in the business of legislating for those 10 recommendations. Some have required primary legislation, such as the Enterprise and Regulatory Reform Act 2013, and some have required secondary legislation. We are yet to see the statutory instruments, because the Hargreaves process has not concluded. We have this Bill and the SIs are coming forward. One thing that I would like the Minister to tell us—he can intervene now or answer when he responds—is what on earth is happening with the SIs for the rest of the copyright exceptions. He will probably say that they are still with parliamentary counsel and that they are not yet ready to be presented. Well, he had better get a move on, because he only has until March to do it.
I would like to hear about the process for introducing the SIs and what we should expect. I strongly suggest—several Members have said this several times to various Ministers—that we have separate SIs for each of the copyright exceptions. As a matter of principle, it is right and proper that we should be able to assess each of the exceptions individually. It would be unacceptable to bundle them together on a “take it or leave it” basis, particularly the new exceptions, and there are some really important ones, such as parody, copying and all the other ones—I cannot remember what they are, but the Minister knows what I mean. We have to ensure that we see them separately and debate them properly when they come through.
We are getting close to the end of the Hargreaves process. Has it been good? Yes, some of it has been all right. The digital copyright exchange is fantastic—a great little innovation. That part of the process has worked. However, there is a lot of nonsense—stuff that we did not need. In fact, great unhappiness has been caused among many people who represent our creative industries, because when they came to the Government stating their strong concerns about some aspects of Hargreaves they were arrogantly dismissed as though they—the people who have built the success of the industry—did not understand the environment they were working in and the Government or Hargreaves knew it better. There was a great deal of dissatisfaction among people who felt out of sorts with the way the Government went about this business. I hope that if we have a process such as this in future we will be able to look at things much more circumspectly and take everybody with us as we go forward.
I want to make a few remarks about how the Bill has been handled. It is an absolute disgrace that the House of Lords looked at this matter first: it should have been elected Members in this House. Given the value of the role that IP plays in industry and business, we should have considered it first, and if the House of Lords then wanted to look at it and suggest amendments and things we should reconsider, that would have been absolutely fine. Something as important as intellectual property and its contribution to the economy should have been handled first by directly elected Members rather than the House of Lords, talented and well respected as some of its Members may be. It should have been our right and our responsibility.
The Minister responsible for IP is an unelected Lord himself. The hon. Member for Lewisham West and Penge (Jim Dowd) was spot on in his comments. The Minister is anonymous. Not even the Prime Minister could remember his name, so what chance have the rest of us got? It is great that the Minister for Universities and Science is here—who better to have dealing with a Bill on intellectual property than a Minister with a multiplicity of brains?—but the real IP Minister should be taking this Bill forward and held accountable through the questioning of this House’s directly elected Members.
That unelected Lord is a Minister in the Department for Business, Innovation and Skills, which is responsible for the Intellectual Property Office despite the fact that the IPO deals with matters looked after by the Department for Culture, Media and Sport. All the disciplines that the IPO manages and supports are covered by the DCMS, but the IPO is covered by BIS. Is anything as ridiculous as that? Surely we should be trying to bring this together, as suggested by the all-party intellectual property group. I see some of my fellow officers here; the hon. Member for Lewisham West and Penge is its secretary. DCMS would be the perfect fit for the IPO in ensuring that it could work beside all the industries it is there to support. I hope we can resolve this issue.
The all-party group also suggested that we should have an IP champion. If this is going to work cross-departmentally, we need somebody out there banging the drum for IP-supported business and industry. That is the great forgotten in all this. There are people here who are passionate about IP and recognise its value and importance, but the place should be mobbed—full to the gunwales. This is about billions of pounds and we have to get it right. The problem is that we have an anonymous Minister in a Department that does not serve the industry. We must get this fixed. We should make the hon. Member for Hove our IP champion—an IP tsar who is out there getting things sorted out. He was right to mention the IP tsar in the United States, who is doing a fantastic job. When the all-party group met her, we were all very impressed with the power and clout she has on Capitol Hill to get things done. That is what we need in this country—somebody who will work cross-departmentally to get things resolved and make sure that we are able to take this key matter forward.
On the Bill itself, I do not want to be repetitive—[Interruption.] Come on, let me get this properly into context. We have heard all about the sorts of things that the Bill does. It is great that it covers registered design rights—the great forgotten IP right. It is fantastic that ACID has at last got its way and that this will now be covered by criminal infringement provisions, but it is totally wrong that unregistered designs are not covered too. In the House of Lords there was a big debate about this on clause 13. There has also been a debate within the industry whereby a consensus has developed that if we are to pursue the idea of registered design rights, unregistered design rights must be included. The vast majority of people who work in the design industry are in small or micro-businesses with probably fewer than four people working for them, and they cannot spend so much time making sure that things are registered. We must get this resolved.
Mr Gerry Sutcliffe (Bradford South) (Lab)
It is a great pleasure to be involved in this debate and to follow the hon. Member for Hove (Mike Weatherley), who has shown why he should be the IP tsar. I know that he is the IP adviser to the Prime Minister, but in his contribution he has shown an understanding of the issues that we face. I first became involved in intellectual property rights as the Minister responsible for consumer affairs in the Department of Trade and Industry, and my interest has continued as a member of the Culture, Media and Sport Committee. It has been impressed upon me how important these issues are. The amendment proposed by the hon. Gentleman, which would put education at the heart of this issue, is vital, and I hope the Whips will ensure that he serves on the Committee so that we have the opportunity to debate the issues he raised.
I was grateful to the Minister for initiating this debate in the way he did because it would have been easy for us to get into the usual argy-bargy about how long it has taken to get to this point. My hon. Friend the Member for Lewisham West and Penge (Jim Dowd) is right to say that the Gower report was the predecessor of the Hargreaves review, but it has taken an inordinate length of time to get to where we are today, which is an important stage of discussing an important Bill that will have an impact on creativity. I will chide the Minister a little because he did not mention the Culture, Media and Sport Committee report—unlike my hon. Friend the Member for Hartlepool (Mr Wright)—and what it said about the creative industries and the impact they have on our communities.
I represent a northern city, and we are looking at creativity to replace many of the manufacturing jobs we have lost over the years. The creative industries—whether film, television, the arts, or books—can create lots of new jobs. Bradford university and Bradford college provide opportunities to young people and small and medium-sized enterprises to use creativity as a way of creating those jobs of the future. Intellectual property is a key element of that, which is why the point about education is so strong, especially with the copying and so on that people do because they think they are getting things for free. In fact, that has an impact on the sector, particularly music, film and television.
The Hargreaves review has been broadly accepted by the Government and it is important that we move forward in a progressive way. The point about exceptions in the statutory instruments is a vital message that will be sent to the sector, and it is important we get that right. I hope the Minister will take that issue to his colleagues and ensure that we see the separate installation of the SIs on the exceptions.
I am not anti-Google. I think it does a lot of good, but the way it has operated with regard to intellectual property is a cause for concern. That concern was echoed by the Under-Secretary of State for Culture, Media and Sport, the hon. Member for Wantage (Mr Vaizey), when he appeared before the Select Committee and said that it was easier for Google to get to No. 10 than it was for him—I do not know what that says about him as a Minister, but there are clearly concerns there.
Mr Sutcliffe
How soon I forget. My hon. Friend is right: Viscount Younger did come before the Select Committee, but the hon. Member for Wantage, who is also a Minister from the Department for Culture, Media and Sport, also gave evidence to the Committee on IP rights.
The Committee’s report is worthy of being read by hon. Members who have not yet done so, given the impact that creativity can have on well-being, innovation, and the growth of potential new jobs. When the Committee went to America to look at the creative industries—a difficult job but somebody has to do it—we went to Google and to the film studios. I found it interesting to note the importance of tax credits to the film industry. Film tax credits are one thing I will congratulate the Government on, and moving those measures to high-end television and games will maintain our lead in such things.
Mike Weatherley
Does the hon. Gentleman support my call for the music industry to have a tax credit for A and R, perhaps above the 20% level that they would normally spend?
Mr Sutcliffe
I do. I know it is difficult when, in austere times, we are asking the Treasury to give more tax breaks, but I think it is a case of invest to save: if we do that for the music industry, we will get more back in the fruition and growth of that sector. I support what the hon. Gentleman proposes.
I think that Google has responsibilities and needs to consider the issue raised by BPI—I had forgotten that so many million requests have been made, and I do not think Google responded in anything like the way it needed to. I hope that with this debate, and with pressure from Ministers, we can put some pressure on Google to meet its requirements and responsibilities.
Clause 21 concerns the IPO report. I was grateful that the Minister said that Members would be able to consider all aspects of that report annually, though there are areas where things have not worked out as well as they could have. Returning to my former role as the Minister responsible for consumer affairs, I remember that on issues like trading standards, reports came from many areas of the country showing that things worked well in some places, but not in others. Enforcement is a big issue, and perhaps when we get the opportunity in Committee, we can look at the role of the IPO, trading standards, packaging, and some of the goods that mimic others. As a former sports Minister, I think particularly of the football industry where counterfeit football shirts and so on are produced. There is a tremendous cross-section of areas to consider, which is why it is important to have an IP tsar. We will want to consider clause 21 in greater detail, as well as clause 13 and the issue of criminalisation.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Like my hon. Friend, I am interested in how successful the legislation will be in addressing new kinds of difficulties with intellectual property. Does he think that clause 13(1)(a) will deal with something like TrafficPaymaster, which is the software product marketed by the HowToCorp company? It allowed people to scrape content from websites, and spin it so that it was presented as fresh content, rather than plagiarised content. I would say that that is a form of intellectual property theft. Will clause 13 deal with that?
Mr Sutcliffe
I would be interested to see how the Minister responds to those issues because it is difficult to get to the definition of what is and is not a criminal offence. I understand the arguments on both sides, but having received representations from designers in the furniture manufacturing industry, I feel that we have to do something; we cannot continue without there being recourse to some punishment, or without problems being addressed. I believe that clauses 13 and 21 will take up most of the Committee’s time.
To return to the issue of education raised by the hon. Member for Hove, we need to educate many of our colleagues about these issues and how they affect companies in their constituencies. It will be interesting to look at how we can work together to try to raise the profile of such matters. I know the hon. Gentleman has done that through Rock The House and Film the House and I congratulate him on that work, but more needs to be done.
I want to raise a point about IP rights and what the Government are proposing across the health sector with the introduction of plain packaging for cigarettes, and the IP costs linked to that. Legal opinion has stated that compensation may need to paid to some tobacco companies for their loss of intellectual property rights, which could be between £5 billion and £6 billion. I raise the point because people do not look at the consequences of a loss of IP rights. Perhaps in future debates we will consider that issue on the back of what happens in Australia.
I welcome the Bill and the spirit in which the Minister has said that he will listen to what has been said, so that we can try to enhance and develop it further. This is a great opportunity and at long last IP rights are getting recognition in being addressed by this House.