Hargreaves Review of Intellectual Property and Growth

The Hargreaves Review of Intellectual Property and Growth, or Digital Opportunity - A review of Intellectual Property and Growth, was an independent review of the United Kingdom's intellectual property (IP) system, focusing on UK copyright law. Professor Ian Hargreaves was commissioned to chair a review of how the IP framework supports economic growth and innovation in November 2010 by Prime Minister David Cameron. The review was published in May 2011 and made 10 recommendations to "ensure that the UK has an IP framework best suited to supporting innovation and promoting economic growth in the digital age".

According to the Hargreaves review, the frequency of major IP reviews in the UK indicated the shortcomings of the UK system. There had been four major IP reviews in the past six years, and of the 54 recommendations of the 2006 Gowers Review of Intellectual Property only 25 had been implemented. According to the Hargreaves review, "on copyright issues, lobbying on behalf of rights owners has been more persuasive to Ministers than economic impact assessments." Therefore, the Hargreaves review took on board the importance of having an IP framework which adapts well to change in technology and markets as a guiding theme. The Hargreaves review found that IP policymaking in the UK is not evidence-based, a criticism that had already been made in the 1970s by the Banks Review and the 2006 Gowers Review. In the foreword to the review, Professor Hargreaves summarised what he calls "David Cameron's exam question" as "Could it be true that laws designed more than three centuries ago with the express purpose of creating economic incentives for innovation by protecting creators' rights are today obstructing innovation and economic growth?" "The short answer is: yes", Hargreaves wrote, concluding that "the UK's intellectual property framework, especially with regard to copyright, is falling behind what is needed."

According to the review intellectual property (IP) policy is an increasingly important tool for stimulating economic growth. However, the proliferating use of IP rights can increase IP transaction costs and prevent small innovative companies from entering the market. Digital creative industries rank third in UK exports, behind advanced engineering and financial and professional services. According to the review the further global growth of these businesses required an efficient digital market in the UK in which copyright is licensed speedily and effectively. The review noted the need for IP law to adapt to change as digital communication technology involves the routine copying of text, images and data. However, it found that the IP framework had fallen behind and acted as a regulatory barrier to the creation of new internet based businesses. The review concluded that in order to allow the UK Intellectual Property Office (IPO) to support innovation and promote economic growth on the basis of evidence, institutional changes needed to be made. It recommended that for the first time since its creation as the Patent Office, the IPO should be given an overarching legal mandate to pursue economic objectives, and the powers necessary to make evidence-based recommendations, to, for example, the UK competition authorities.

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