Argument: Creativity will suffer if ACTA is brought in

Many within the creative industries have developed business models that work with the Internet. A few giants – frequently not producing the most artistically acclaimed work – are simply trying to defend their monopolistic profits. The idea that any of the companies involved in these negotiations are serious about protecting creativity is undermined both by the products and their response to anything new or threatening to their corporate interests. Instead this is holding up the process of creative destruction, whereby new better ideas sweep away the old that will be outcompeted, [i] by standing in the way of this in the digital world ACTA is stifling both creativity and the economy. The opposition to this legislation has come from actual creatives – programmers, artists, performers and others as well as researchers academics and more. It is being promoted by the very commercial interests that also seek to suck the life-blood out of genuine art, research and ingenuity [ii] .

This is all about protecting the commercial interest of those corporations that have ceased to have much to do with any of these processes and simply want to make the most out of what they already control through copyright. It is and remains profoundly anti-competitive and a retrograde step in terms of developing any artistic, scientific or intellectual field. By securing, through copyright, established technologies, paradigms, and industries, the agreement undermines the very competition that so many of its proponents claim to endorse. Indeed the only thing it can be demonstrated to do is to allow organisations to steal widely held information by slapping a copyright or brand on it.

[i] Cox, W. Michael and Alm, Richard, ‘Creative Destruction’, The Concise Encyclopedia of Economics, 2008.

[ii] Creative Freedom Federation, New Zealand.

Candidate 1: "ACTA is needed to protect brands

There is a genuine value to a brand – in part because, for clothing companies for example, it is a mark of quality as much as it is of origin. However even if that were not the case, the brand identity of a company is part of its legal property and should be protected in the same way and stock or cash against theft.

The very fact that people are so keen to buy branded clothing and other products – even when pirated – demonstrates that there is a value to those brands.

ACTA doesn’t seek to control people’s rights to wear any pair of jeans or trainers or other type of product. It simply says that if someone wants to own Levi jeans or Nike trainers they should pay the price set by Levis or Nike. If they don’t want to pay the premium then they are at liberty to buy different unbranded products."
Candidate 2: "Government is about taking tough decisions rather than pandering to majoritarian whims. Legislation such as this protect industries in the creative, IT, manufacturing and medical sectors. The support it has garnered among trades union demonstrates that they, at least, recognise that it is about protecting jobs. It is no surprise that many people prefer to buy products that are cheap – or better, free – but government has a responsibility to protect the livelihoods of its citizens with rather more enthusiasm that the right to download free movies. It would be interesting to see where the democratic deficit goes when entire industries start collapsing because of counterfeiting."
Candidate 3: "Piracy in an Internet age.

In an age of such easy global communications, the threat of piracy is far greater for creative industries than it has ever been before. There is a huge difference between a few cheap video copies and global downloads available free of charge. With sites making movies that cost millions available for free, it poses a real threat to major studios. For example The Institute for Policy Innovation believes the global music industry loses $12.5 billion a year due to piracy resulting in 71,060 lost jobs. [i]

The fact that these sites are so popular demonstrates that music and movies are popular but that people are unwilling to pay real cost of producing that quality of product.

The reality is that creative material is produced not just by a handful of millionaire actors and producers but by thousands of screen-writers, technicians and backroom staff; all of whom have to be paid. To do that studios, music producers and publishers need some guarantee of a return on their initial investment.

[i] Siwek, Stephen E., ‘The True Cost of Sound Recording Piracy to the U.S. Economy’, The Institute for Policy Innovation, 21 August 2007."
Candidate 4: "ACTA promotes medical research

Companies that accept huge research costs – such as the pharmaceutical industries – need the surety of knowing that they will have some payback for that research. Without that there is little point in them undertaking the research in the first place and medical science will suffer.

It’s easy to say that manufacturing a pill only costs two cents – the reality is that a trial alone can cost upwards of $100m with the whole research and development per approved drug costing billions. [i] The framework

for doing that is one that requires a profit for investors and security for researchers.

Allowing for generic medicines to undermine that end point profit discourages the necessary blue-sky thinking and ground-breaking research as they’re risky and may not see a financial return. As a result, those medicines that are proven ‘sellers’ need to make the profit for the long-term investment that will be required for cures for cancer, AIDS and other global killers. Stopping pharmaceutical companies from making a healthy profit on established antibiotics and similar medicines means that they then don’t have the financial muscle to be able to fund the long development and large amount of research necessary to create the drugs of the future. If they then believe those drugs will quickly be recreated and turned into generics they will give up researching entirely.

[i] Herper, Matthew, ‘The Truly Staggering Cost of Inventing New Drugs’, Forbes, 10 February 2012."
Candidate 5: "The EU [i] has described this agreement as a balance of the interests of all stakeholders – including customers or other users. Nobody is banned from freely sharing their own ideas, inventions or research; merely from ripping off that of other people. The oppositions need not worry about the articles it mentions as they are targeted not at individuals but at other commercial outfits.

What is described as privatizing data is in fact increasing functionality and ensuring interoperability. Ask anyone who uses an Apple device or have become accustomed to using Microsoft Outlook and they will testify that their products work best when used together with other similar products. By allowing other organisations to copy these services you are only harming consumers.

[i] European Commission, ‘ACTA – Anti-counterfeiting Trade Agreement’, 4 July 2012."
Candidate 6: "The major corporations, which seem to exercise the opposition so greatly, are also major employers and major investors. In addition to which counterfeiting is a much greater threat to small corporations that are dependent on one good idea and lack the financial muscle to protect that idea, for example Ifttt, an internet startup was cloned by a Chinese company, Linggan, while it was still in beta. [i] The people that have something to fear from this agreement are those with no ideas seeking to skim a profit off the energy and effort of others [ii] .

Importantly protecting intellectual property rights can also encourage innovation, by ensuring that start-ups keep creating new ideas and are sure they can profit from them. We need to ensure that there are sufficient incentives for entrepreneurs, of which intellectual property is one important component.

[i] Sam, ‘Speedy Chinese Clone Copies Startup Still in Beta’, TechinAsia, 23 August 2011.

[ii] A list of supporters"

The major corporations, which seem to exercise the opposition so greatly, are also major employers and major investors. In addition to which counterfeiting is a much greater threat to small corporations that are dependent on one good idea and lack the financial muscle to protect that idea, for example Ifttt, an internet startup was cloned by a Chinese company, Linggan, while it was still in beta. [i] The people that have something to fear from this agreement are those with no ideas seeking to skim a profit off the energy and effort of others [ii] .

Importantly protecting intellectual property rights can also encourage innovation, by ensuring that start-ups keep creating new ideas and are sure they can profit from them. We need to ensure that there are sufficient incentives for entrepreneurs, of which intellectual property is one important component.

[i] Sam, ‘Speedy Chinese Clone Copies Startup Still in Beta’, TechinAsia, 23 August 2011.

[ii] A list of supporters
