1.(U) Summary: HMG released its strategy paper to support the UK's
creative sector and move it from the margins to the mainstream of
economic and policy thinking. The creative sector adds GBP 60
Billion ($120 Billion) or 7.3 percent of GDP to the British economy
annually. HMG plans to foster and protect intellectual property by
consulting on legislation that would require internet service
providers (ISP's) to cooperate in taking action against illegal file
sharing. The UK Intellectual Property Office (UK-IPO) plans to put
into action a plan on intellectual property (IP) enforcement and
also promote better understanding of the value and importance of IP.
End Summary.



2. (U) The Department for Culture, Media and Sport, the Department
for Business Enterprise and Regulatory Reform, and the Department
for Innovation, Universities and Skills have collaborated to create
a vision paper for UK's creative economy titled "Creative Britain:
New Talents for the New Economy." The creative sector has grown at
twice the rate of the economy over the past decade. The government's
challenge is to bring the creative industries into the mainstream
and its vision is that Britain's biggest cities will be driven by
the creative economy in ten years time. (The full report is
available at http://www/culture.gov.uk. Click on publications under
"quicklinks" to find it).



3. (SBU) Lisa Vango of UK-IPO told us that there is no new
information on potential legislation by HMG to require ISP's and
rights holders to cooperate against illegal file-sharers in the
strategy paper since we last reported on the topic. She said that it
emphasizes that HMG will not hesitate to legislate if no agreement
is reached and will consult in 2008 with intent to implement
legislation in April 2009. However, Vango said no decision has been
made on what form any legislation would take and that all options
are on the table. This is despite media reports that HMG is leanings
towards a French-style "three strikes" policy for illegal
file-sharers. The December 2006 Gowers Review of UK Intellectual
Property Framework suggested that ISP's and rights-holders should
reach a voluntary agreement on online illegal file-sharing. So far
no agreement has been reached and in January, former Minister for
Intellectual Property, Lord Triesman, announced that if no agreement
is reached by the end of the summer, he would request that HMG
introduce legislation on the subject in the annual Queen's speech in
November. HMG prefers a voluntary or commercial agreement between
ISP's and all relevant sectors.



4. (SBU) UK-IPO will implement the following changes with the goal
of strengthening IP enforcement:

---Explore options for voluntary enforcement funds. The Motion
Picture Association of America is already providing funding to the
UK for IP enforcement and UK-IPO hopes to build on this.

---Pilot a "Fake Free London" campaign on IP enforcement. The UK
Film Council plans to pilot its Fake Free London project in Spring


2008. UK-IPO hopes to use this project to cleanse London of
counterfeit projects in the lead up to the 2012 Olympics. Billy
Watson of the UK Film Council leads this project and told us that
this was part of his long-term plan for the London Fake Free Zone,
but is delighted that HMG is so publically supporting the project.

---Establish and fund a National Center of Excellence. This would be
a national law enforcement center that would provide specialized
knowledge and skills for IP enforcement. Vango said this is a new
idea first proposed in the strategy paper. The project is in its
infancy now, but UK-IPO hopes to begin planning in the next few
months.

---Work with Trading Standards Officers to make best use of the
Proceeds of Crimes Act. This act allows HMG to recover monies earned
through criminal activities. Currently this act is generating around
GBP 500,000 ($1 Million) of monthly from IP related crime-assets.

---Work with the Association of Police Officers to increase IP
enforcement.

---Establish a Ministerial and Industry forum to bring together
rights-holders, consumer groups, the government and technology
companies to discuss new ideas, issues, and solutions to the
challenges and opportunities brought forward from new technology.
Vango said this is another new idea first proposed in this strategy
paper. She said that technology for distributing copyrighted
materials is changing so quickly that HMG needs this discussion
group to ensure that new policies are relevant and useful.



5. (U) HMG will promote better understanding of the value of and
importance of IP through education. HMG is considering including IP
as part of normal school curriculum. In addition, they want
specialist arts and music schools to promote IP with their students.
UK-IPO will also work with stakeholders to create an awareness

LONDON 00000612 002.2 OF 002


campaign meant to inform citizens of their rights regarding IP. In
particular, they want to inform citizens of their rights regarding
file-shifting (e.g transferring music from a CD to a MP3 player) for
personal use.

TUTTLE