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To ask the Secretary of State for Business, Innovation and Skills for what reason the estimate of the maximum benefits over 10 years of the Hargreaves reforms has been reduced from £26 billion on Hargreaves' initial report to a net present value of £790 million in the Government's response entitled Modernising Copyright.
Professor Hargreaves' independent report estimated that the potential benefits from making all the changes it recommended would add between £5 billion and £8 billion to the UK economy by 2020. This estimate included benefits from proposals that did not form part of the ‘Modernising Copyright’ response. The two biggest elements in the overall Hargreaves impact package which were not in Modernising Copyright were the creation of the single EU patent, and the Digital Copyright Exchange (DCE). The estimates in Hargreaves' report on copyright exceptions estimated that between £0.4 billion and £2.6 billion would be added by 2020.
The Government's most recent assessment of the value of the changes to copyright exceptions, revised in the light of responses to the Hargreaves review and subsequent consultations, is around £0.5 billion over 10 years. However, this is a net present value figure discounted to today's terms, and does not use the same methodology as was used in the original Hargreaves report. It should be noted that the methodology for the impact assessment process, from which these figures are derived, can underestimate the growth from potential new businesses or new markets, and as such may not fully reflect the likely benefit of the changes.