Government advisory body the Strategic Advisory Board for
Intellectual Property (SABIP) commissioned University College
London (UCL) to undertake research into online consumer behaviour
in the UK and its potential impact on business and government
policy.
UCL's 85-page report suggests that users of file-sharing
networks are illegally consuming billions of pounds-worth of
content for free each year. Its report, Copycats? Digital Consumers
in the Online Age, found that the scale of the problem of illegal
downloading is "huge and growing" but "there are many unknowns
about the figures".
"Sixteen percent of UK consumers are said to regularly 'file
share', and whilst the figure is said to have remained 'flat' in
the recent past, various studies concede that the figure could be
much higher," it says.
Between 44% and 79% of global internet traffic is taken up with
file sharing, according to the report. But the proportion of
file-sharing content that is unauthorised or otherwise illegal is
unknown.
Music industry body the IFPI reported this year that there were
890 million unauthorised music downloads in the UK in 2007 through
file-sharing compared to 140 million paid-for downloads. The UK
film industry claimed that there were just under 100 million
illegal downloads of DVDs in 2007.
The report's authors suggest that "unauthorised downloading has
become a simple reflex for some digital consumers."
"To the digital consumer the economic 'message' of 'Internet
choice' is either confusing or a growingly accepted norm," says the
report. It notes that internet users can access free email, word
processing, internet telephony and social networking services that
historically would have a cost attached.
"The vast availability of this kind of 'free content' changes
existing perceptions of 'ownership' and utility," it says. "One of
the great concerns of industry from these perceptions is the ease
with which digital content can be de-coupled by digital consumers
from its original platform (and the advertising that supports it)
and from its real-world revenue stream. Perhaps a Rights Agency
will help in this area."
The establishment of a digital rights agency to encourage
compliance with copyright law was proposed in the Government's
Digital Britain report earlier this year.
"However, we would argue from the empirical evidence, that when
the digital consumer also gains access to all types of unauthorised
digital content through file sharing mechanisms of various kinds to
use in any number of ways, they are doing so within an environment
where the idea of choosing 'free' is confusingly commonplace," it
says. "This changes not only perceptions about 'ownership' and
'sharing' but – perhaps most crucially – 'value'."
Another finding of the report is that attitudes and behaviours
towards property in the online and physical worlds are very
different.
"If all who undertake unauthorised downloading, uploading and
sharing were prosecuted, up to seven million Britons would have a
criminal record. If all content online was instead 'free' and
downloading was de-criminalized could new business models such as
sponsorship, advertising and the bundling of access with content
pay for the variety, depth and quality of the content we current
enjoy?" ask the authors. "And, if the culture of online behaviour
does require IP laws to change just for specific industries, could
such laws operate also in the physical realm?"
The authors do not attempt to answer these questions.
They acknowledge that "it has never, ever been easier to break
the law"; and they note that, "online there are no 'shoplifters
will be prosecuted' signs, or government health warnings" but they
stop short of saying that there should be.
The report concludes by recommending further research.
Minister of State for Intellectual Property David Lammy said,
"As SABIP's report shows, illegal downloading robs our economy of
millions of pounds every year and seriously damages business and
innovation throughout the UK. It is something that needs tackling,
and we are serious about doing so."
"However, it is also an international problem that needs an
international solution through countries working together," said
Lammy. "We can't expect 12 year olds to become copyright lawyers
before they can switch on a computer, but we can educate people on
enforcement and work towards getting the right people caught and
punished-wherever they live."
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