Outcome of consultation on Penalties for Copyright Infringement

In December 2006, the Government commissioned a review of intellectual property (IP) led by Andrew Gowers examining all elements of the IP system. The Review found the system to be broadly satisfactorily, but set out a range of recommendations for action which the Government agreed to take forward.

Recommendation 36 proposed that there should be matched penalties for online and physical copyright infringement, including custodial sentences. However, it is government policy that prison should be reserved mainly for serious and dangerous offenders. Consequently in August 2008 the Intellectual Property Office launched a consultation (351Kb) seeking views on three options based on introducing a new maximum level of financial penalty, (referred to as exceptional statutory maxima) for all IP offences.

The responses (261Kb) received came from representative bodies covering rights holders interests, legal and academic interests, small and medium enterprises (SME’s) and individuals. Many responses endorsed the option to introduce exceptional statutory maxima of £50,000 for all IP offences. It is therefore intended that this option will be adopted, and the Government will be seeking an appropriate legislative vehicle.