253NormanbyRoad
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www.oup.com.au
ARBN007510125
19November2015
SubmissioninresponsetoIntellectualPropertyArrangements
ProductivityCommissionIssuesPaper,October2015
OxfordUniversityPressispleasedtohavethisopportunitytorespondtotheProductivity
Commission’sIssuesPaperonIntellectualPropertyArrangements.Thisresponseconcernsonlythe
followingquestionthattheIssuesPaperhasraised:
Whatrolecanfairdealingand/orfairuseprovisionsplayinstrikingabetterbalancebetween
creatorsandconsumers?
‘DebateonchangestocopyrightfocusesonthebenefitsandcostsimposedonAustralians,bothon
consumersandproducersofcreativeworks.Empiricalassessmentofthecostsandbenefitsis
difficult,bothinassessingtheimpactsoftheseagreementsAustraliahasalreadyjoined,andfor
assessingtheprospectiveimpactsofanynewagreement.’i
Thissubmissionfocusesonthepotentialimpactsofanynewagreementthatchangesthedefinition
andtermsof‘fairdealing’or‘fairuse’provisionsfortheprotectionofcopyrightinworksby
providingasummaryoftheimpactonOxfordUniversityPressinCanada.
Casestudy:OxfordUniversityPressCanada
Canada’snew‘fairdealing’guidelines,whichwereadoptedin2012,andwhichredefinedwhatcan
becopiedwithoutcompensationtocreatorsandpublishers,hashadsignificantnegativeimpactson
educationalpublishinginCanada.Thenewguidelinespromotethesystematiccopyingof10%ofa
chapterorawork,entirenewspaper,journalormagazinearticles,shortstoriesandmore.Asa
resultofthechangetotheguidelines,schoolsinCanadanolongerpayroyalties(licencefees)for
copyingpublishedworks.ii
In2014,OxfordUniversityPressceasedpublishinginitsschoolsdivisionforanumberofreasons,
includingdecliningprovincialbudgetsandaweakerpost-recessioneconomy,butmostsignificantly
becauseofthelossoflicencingincomedistributedonbehalfofschoolsbyAccessCopyright
(equivalenttoAustralia’sCopyrightAgency).iiiDavidStover,thethenPresidentofOxfordUniversity
PressCanada,assertedthattheroyalties,whichwerearound$10millionfortheK-12education
market,werea‘significantfactorinmakingschoolpublishingviable…’.Theimpactthatthechanges
hadonOxfordUniversityPressisjustoneexampleofthesignificantharmthathasbeencausedto
educationalpublishinginCanada.‘Emond,alocallyownedsmallpublisher,alsoceasedpublishing,’
saysGeoffForgoson,GeneralManager&VPFinance.‘Nelson,thelargesteducationalpublisher,
triedtosellitsbusiness,andwhenthisfaileddeclaredaformofbankruptcy.McGrawHillhas
moveddistributiontotheUSandhasseverelyscaledbackitslocalpublishingactivity.Pearsonhas
alsoscaledbacklocalpublishing.WileyisnowentirelybasedintheUS,havingshutdownall
significantoperationsinCanada.TherehavebeensomanylayoffsIhavelostcount.’
SignificantfinancialharmtoAustralianeducationalpublishing
Ifsimilarrevisionsaremadetothedefinitionandtermsof‘fairdealing’or‘fairuse’provisionsin
Australia,OxfordUniversityPressinthiscountrywillbeexposedtohugefinancialrisk,andits
authorsandcreatorswillbesignificantlyimpacted.Licencefeeschargedtoeducationalinstitutions
forcopyingcopyrightedworksareinlieuofroyaltiesnotreceivedthroughthesaleofthesame
works.LicencefeesareasignificantcontributortotheoverallsustainabilityofOxfordUniversity
PressinAustralia;itsauthorsandcreatorsrelyontheirshareoflicencefeestosupplementreduced
royaltypaymentsbecauseconsumerschoosetophotocopythecontentinstead.Licencefeesserve
tosupporttheauthorshipofAustraliancontent.
SignificantimpactonthelivelihoodsofspecialistAustralianeducationalpublishingprofessionals
Ifrevisionsaremadetothedefinitionandtermsof‘fairdealing’or‘fairuse’provisions,thefinancial
livelihoodsofOxfordUniversityPressstaffwillbeputatriskalongwiththeviabilityoftheentire
educationalpublishingindustrythatisreliedonbyschoolstodeliverconcretematerialstosupport
governmentcurricula.OxfordUniversityPressAustraliaworkswiththousandsofcreativeAustralian
citizens,including:
• 167full-timeandpart-timeAustralianemployees
• HundredsoffreelanceandcontractedAustraliancreatorsandagencies,includingeducators,
academics,designers,illustrators,photographers,typesettersandprinters
• ThousandsofAustralianauthors
• GraduatesfromAustralianuniversitypublishingcourses,asignificantproportionwhoare
employedbytheeducationalpublishingindustry.
Significantreductionofnew,creativeandinnovativecontentdevelopedbyAustralian
educationalpublishers,authorsandcreatorsforAustralianteachersandstudents
Ifrevisionsaremadetothedefinitionandtermsof‘fairdealing’or‘fairuse’provisions,ourschools
willhaveasignificantlyreducedchoiceinprintanddigitalcontentdevelopedforourcurricula.
Therewillbefewerpublishers,adecreaseinvarietyandavailabilityofcontent,anddecreased
investmentindevelopingnewandinnovativecontent.Putmostsimply,thefinancialincentivesfor
creatorsandpublisherstodevelopandpublishnew,innovativeAustraliancontentwillbehugely
diminished.And,verysignificantly,ourschoolsandtheirteachers,studentsandthelearning
affordedwillsufferduetothelackofinnovativeAustralianeducationcontentavailable.
Theonusandfinancialburdentosupplementtheshortfallindevelopingnewandinnovative
AustraliancontentwillbetransferredtoFederalandStategovernments
Ifsimilarrevisionsaremadetothedefinitionandtermsof‘fairdealing’or‘fairuse’provisionsin
Australia,therewillbefewerpublishersandfewerauthorsandcreatorswillingtoinvestinand
developnewandinnovativeAustraliancontent,andsoresponsibilityforprovidingnationaland
statecurriculumcontentwillfallontheFederalandstateGovernments,resultinginanewand
significantfinancialcosttothecountry.
Concludingremarks
Ifcopyrightexceptionsneedtobemodified,themodificationsmustbebetterandfairerforall
Australiancitizens,includingitspublishers,authorsandcreators.Themodificationsmustensurethe
financialsustainabilityoftheAustralianeducationalpublishingindustryanditsemployees,and
Australianauthorsandcreators.AnymodificationsmustalsoensurethattheAustralianeducational
publishingindustrycancontinuetoinvestindevelopingnewandinnovativeprintanddigital
contentforAustralianteachersandstudents.
High-qualityresourcescontributetothedeliveryofhigh-qualityeducationandthereforethegrowth
andprosperityofAustralia’seducation.TheAustralian-originatedinnovativecontentthatis
developedbyAustralianeducationalpublishersisaninseparablepartoftheteachingandlearning
thattakesplaceinAustralianschools.Anyrevisionsto‘fairuse’or‘fairdealing’provisionsmustbe
balancedwithasustainableandprofitableAustralianeducationalpublishingindustry.Forthesake
ofusall,andforthesakeofourcapacitytocontinuetodevelopAustralian-originatedinnovative
contentforAustralianschools,wecannotrepeatthemistakesmadeinCanada.InSeptember2015,
areportwaspublishedaboutCanadiancopyrightlawcontinuingtohammerpublishers;theyhave
had‘…devastatingeffectsoneducationalpublishersandwillultimatelycontributetoadeclinein
thequalityandquantityofcontentavailabletostudents’.iv
WehopethattheProductivityCommissionfindsthissubmissionuseful.Pleasedonothesitateto
contactusifwecanbeoffurtherassistance.
i
AustralianGovernmentProductivityCommission,IntellectualPropertyArrangements,Productivity
CommissionIssuesPaper,pp.18-19,October.
ii
InternationalPublishersAssociation,2015,ImpactsoftheCanadianEducationSector’s
Interpretationof‘FairDealing’,3September,http://www.internationalpublishers.org/educationalpublishing/policy-reports/case-studies-and-others/326-impacts-of-the-canadian-education-sector-sinterpretation-of-fairdealing?utm_source=IPA+Newsletters&utm_campaign=bfb0103a56August_2015_newsletter8_19_2015&utm_medium=email&utm_term=0_fc11f8b022-bfb0103a5693931441
iii
Baldassi,Julie,2014,WhythelossofAccessCopyrightroyaltiescouldbedevastatingforeducation
publishers,QuillandQuire,29May,http://www.quillandquire.com/book-news/2014/05/29/whythe-loss-of-access-copyright-royalties-could-be-devastating-for-educational-publishers/
iv
Williams,LeighAnne,withreportingfromGodfrey,Laura,2015,CanadianPublishing2015:
ChangestoCanadianCopyrightLawContinuetoHammerPublishers,PublishersWeekly,18
September
Additionalreference:
AccessCopyright,2014,ImpactsoftheEducationSector’sInterpretationof‘FairDealing’,20July,
http://www.accesscopyright.ca/media/bulletins/impacts-of-the-education-sector%E2%80%99sinterpretation-of-fair-dealing/