Government consultation on Copyright & Anti Competition

The Government’s consultation on copyright, addressed the regulatory impact and costs to business of the proposals to impose statutory codes on collective licensing societies, and to introduce new exceptions.

The initial assessments will be reviewed in the light of evidence collected during the consultation process. SBID participated in this process and is pro-active in the Government’s continuing research programme. The consultation published in December 2011 was accompanied by a set of initial impact assessments; the public outcome to date is available from the Intellectual Property Office website.

Great British companies such as British Airways, Shell, Unilever, the Co-op, Tesco, and Balfour Beatty have been investigated over several years for alleged price fixing, fined nearly a quarter of a billion pounds by the OFT, only for each case to collapse because there was no basis in fact, law or economics to support them. The net result is a huge bill for the taxpayer to pay the legal fees. There are 600 employees at the OFT costing us £60 million per annum, let alone compensation to the companies that have been improperly charged so a review is very much needed.

Last year, the Government consulted on proposals to reform the competition regime including merging the Office of Fair Trading and the Competition Commission to create a single Competition and Markets Authority. Among other things, the consultation sought views on proposals to improve the enforcement of the anti-trust prohibitions. The Government will announce their conclusions following the consultation shortly.

One reason why the review looked at merging the Office of Fair Trading and the Competition Commission is to make sure that they are right and fit for purpose for our times and that there are the right resources needed for the world that we live in today. There is no doubt about it that the Office of Fair Trading has had a wonderful reputation in the past, and we would like to think that the new merger, if it goes forward, will take forward the very best of the OFT and the very best of the Competition Commission.

The Government’s aims is to build on the best of the OFT and the best of the Competition Commission in the creation of a world-leading Competition and Markets Authority. The Government recognise that the system for the enforcement of the anti-trust prohibitions is not working as well as it should. Cases take too long and a strong challenge to decisions is often mounted on appeal. It is worth remembering that Britain has a reputation in the world as being one of the best places in which markets work. They are open and fair. We have to make sure that we have timely and effective enforcement. That is what the consultation has been about.

The government Ministry for Fair Trade agrees that whatever reorganisation of the competition authorities is to take place in the future, adequate resources must be made available to ensure that there is effective combating of price-fixing cartels and other anti-competitive practices. The record shows that, on the matter of liability as distinct from the precise amount of penalty, the OFT has been upset on appeal to the Competition Appeal Tribunal only relatively rarely. It has admittedly been told by the Competition Appeal Tribunal that the amount of penalty is sometimes too large and has been reduced. Last year, and I think the year before, the OFT brought in some £60 million to the Exchequer from fines. Fines that had been upheld by the Competition Appeal Tribunal! SBID has been actively involved in the programme to review and reform faults in the current system of interior design and propose methods for improvement over the past three years. The SBID report has been submitted.

The Office of Fair Trading is of course an independent body and is best placed to balance the work that it does; it is not the Government’s place to tell it what to do. However, it is almost impossible for the ordinary consumer trying to deal with the combination of the OFT, Consumer Focus, Consumer Direct, the CBA and the Competition Commission to know where to go when there is an issue and this requires further clarity.

With the restructuring coming, the department must decide where change will take place. It will shortly put some real clarity on its website to direct people under the current structure and with some clear indication where restructuring is going to take us.

The Government will reveal their conclusion in the next few weeks after the finalisation of the consultation…… watch here!

Happy New Year ….. or is it?

REFLECTION

Keeping with tradition, we reflect on the passing year and each New Year revel in the promise of the unknown.  In true tradition, on review of a decade I note the shared optimism for change. The first decade of the millennium promised much in the showroom window but there was nothing in the stockroom. The culture of the past decade was not conducive to building a sustainable society.  A new Society is coming of age.

Our buildings are taller our tempers are shorter, we have bigger houses and smaller families; we plan more, but accomplish less, we create big people with small characters. We have more degrees but less sense, more knowledge, but less judgment.  We have learned how to make a living, but not a life. We have added years to life not life to years. We spend more but have less.  We have more possessions but fewer values.  We have learned to rush, but not to wait. So as each year passes, in review what have we learned.  When we created steep profits, we developed shallow relationships.

On reflection, I conclude we have achieved bigger things, but not better things.  The biggest negative and positive impact on me over the past decade was that of peoples character, it had been jaw dropping shameful by some while witnessing humility in others was quite humbling. If there is one item alone to change in 2011 it is our culture.  This is our moment so in the words of Michael Jackson ……. make that change!

FUTURE

A New Year brings many great expectations, a new VAT rate and a royal wedding.  The banks have made decisions to assist business particularly SME by making borrowing more available. Although the year ahead suggests hope those in business are aware that cash-flow is the key driver of staying power. Employees also know that sales and getting paid is going to be very tough. So the message from the banks is steady the ship we are not yet out of dangerous waters but we can see the horizon and therefore for the first time in a while, we can see hope and opportunity.

HERE & NOW

So if we know where we’ve been and what we got wrong, we have mapped out our plans to move forward, how can we change momentum and steer that vision? How do we get there? The answer is always simple, strip out the dead wood, if it does not work, get rid of it. We must be ruthless in our aim to protect our prosperity.  There is always a way to manage better. Designers need to leave their ego at the door to connect with this business. At SBID regardless of age, heritage and gender, everyone is treated fairly and personally. Our aims are simple, deliver the best service to provide our members with the best tools for the job, opportunities to get the best job and the ultimate resources to procure the job – alone you can do it, together we are the best.

Happy New Year

Vanessa Brady