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FEATURES
29 Jul 2009

Online Excusive: Digitalisation creates new threats for IPR rights holders as National Portrait Gallery threaten legal action against Wikipedia

Colin Hulme of Burness writes exclusively for The Firm

Our digital society has no respect for the IP of others. With 90 % of all downloaded music being done illegally - who can dispute this?

The widespread illicit (nil cost) transaction of music, video and software files over the Internet has significantly reduced the intrinsic value of copyright. The theft of copyright is not perceived as a ‘thing’, which is the property of another person.

Each year companies are losing a fortune at the hands of infringers and it is not just the music industry that is ‘feeling the pinch’. This is best illustrated by the National Portrait Gallery’s recent threat of legal action after 3,300 images from its website were uploaded to online encyclopaedia Wikipedia. The Gallery has invested in a digitalisation programme aimed at adding hi resolution paintings to their website for use by the public. So far 60,000 high resolution images have been uploaded onto their site as part of a £1m digitalisation programme

A spokesperson for the Gallery has been quoted as saying that the alleged copying of images from their website is undermining the entire digitalisation programme and the loss of potential licensing revenue is threatening the Gallery’s ability to reinvest in the programme. Illegal copying has other repercussions too as it affects an IPR holder’s ability to protect and ensure the quality and reputation of their works.

What can be done to prevent this growing threat and ensure IPR holders’ rights are protected? IP expert and Partner at Burness LLP, Colin Hulme says that the answer lies in changing public perceptions.

“History has shown us that, wherever there is a market and demand for a product, suppliers will find a way to service that demand. The more successful we dam a river - the more the water builds up behind it and pressure on it is increased. To apply this analogy to online software files, where we can obstruct or hinder the flow of illicit sales, the effect is to increase the price of the files that do get onto the market. By closing down certain file sharing sites we must make the services offered by others more attractive and select. Thereby increasing the value of their business and potentially encouraging new entrants to join a more lucrative market.”

Legal and technological solutions may not be the only solution to controlling online infringement. Extra legal factors will play an important role in deterring online copyright infringement. There is currently no stigma attached to online copyright infringement as it as not perceived as ‘classic’ crime. This attitude must be tackled if change is to be brought about. IPR holders must work together to influence society’s attitude and perceptions to the value and integrity of IPR in digital content.
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