Culture, Media and Sport committee recommends implementation of Smart Fund to support UK creators
The Culture, Media and Sport (CMS) Select Committee has published a report, for which DACS, ALCS, BECS and Directors UK had provided evidence for, calling for better support and compensation for creators, through a statutory scheme to pay them for their copyright, and the establishment of new support mechanisms for freelancers.
The report follows the CMS session on Creator Remuneration on 19th September 2023. The extension of existing collective licensing schemes was tabled as a means to alleviate low remuneration for creators. Representatives from Collective Management Organisations across the Creative industries provided evidence to the committee on the issues affecting creator remuneration in the UK.
One of the standout recommendations from the report is the implementation of The Smart Fund, which is aimed at compensating creators for private copying of their content. This recommendation is a beacon of hope for creators – including actors, artists, authors and directors - who have long grappled with unpredictable earnings, particularly in the era of digital consumption. The committee recommended that the UK government work with the creative industries to develop a statutory private coping scheme, to be produced in the next twelve months.
The Smart Fund is a proposal by organisations from across the creative industries, that will ensure creators and performers are paid fairly for their work when it is accessed, distributed, and stored on digital devices. It does this using a small percentage from sales of electronic devices which enable copying and storing creative content. The Smart Fund would enable creators to be fairly compensated when their works are copied or moved across digital devices.
This initiative not only addresses the immediate need for creators to receive proper remuneration but also aligns with similar successful schemes implemented in 45 other countries around the world, including Canada, Japan, France, Germany, Spain. It is estimated that implementing such a scheme in the UK could generate between £250-300million a year for creators, without cost to the government or to consumers. In some countries where similar schemes exist, such as Germany and France, 10% to 15% of the residual payment goes into national arts and culture funding.
Dame Caroline Dinenage MP, Chair of the CMS Committee, underscored the urgency of supporting creators in navigating the rapidly evolving landscape of the creative industries.
The Chief Executives from ALCS, BECS, DACS, Directors UK and PICSEL provided the following joint statement:
The way we experience culture is constantly changing. Together, we are campaigning for a statutory mechanism that protects the rights of creators and performers, when their works are enjoyed, shared, and distributed, including across digital devices. The Smart Fund represents a pivotal opportunity to offer creators a sustainable income stream in an ever-expanding digital environment. We call on all political parties to commit to adopting the recommendations laid out in this report in their general election manifesto, particularly the urgent need to implement the Smart Fund to fairly remunerate, resource and recognise our creators.
The extension of existing collective licensing schemes was tabled as a means to alleviate low remuneration for creators.
