Hargreaves review urges revamp of copyright laws

Current system impeding British businesses concludes government-backed review

A government-backed review of intellectual property laws has called for a major overhaul of the British copyright system, which it said is hampering the digital economy's growth.

Digital creative industries are now the UK's third-highest sources of exports, according to professor Ian Hargreaves, author of the Digital Opportunity report. But they are being held back by IP laws created three centuries ago, the report argues.

The report calls for the government to create the world's first digital copyright exchange to make it easier for rights holders to sell licences for their work.

"The UK's intellectual property framework, especially with regard to copyright, is falling behind what is needed," Hargreaves wrote.

Copying has become a basic element of numerous industrial processes and the service economy based on the internet - but it was governed by laws designed to protect authors, artists and publishers.

"The UK cannot afford to let a legal framework designed around artists impede vigorous participation in… emerging business sectors," said Hargreaves.

He added industries such as those pursuing medical advances are being impeded because existing laws make it hard for researchers to each study other's data using modern text and data-mining techniques.

The report was welcomed by Peter Bradwell of the Open Rights Group, which campaigns for digital rights. "This evidence-based blueprint should finally help government balance copyright in the interest of creators, consumers and innovators. It is vital they follow it," he said.

The Hargreaves report also calls for changes in the UK copyright laws which would allow individuals to transfer music or video to a different format for personal use.