FINAL REPORT 2 The material contained in this report has been developed by the Book Industry Collaborative Council. The views and opinions expressed in the materials do not necessarily reflect the views of or have the endorsement of the Australian Government or of any Minister, or indicate the Australian Government’s commitment to a particular course of action. The Australian Government accepts no responsibility for the accuracy or completeness of the contents and accepts no liability in respect of the material contained in the report. ISBN: 978-1-921916-97-7 (web edition) Except for any material protected by a trade mark, and where otherwise noted, this copyright work is licensed under a Creative Commons Attribution 3.0 Australia licence. To view a copy of this licence, visit: http://creativecommons.org/licenses/by/3.0/au/. 3 BOOK INDUSTRY COLLABORATIVE COUNCIL Contents Membership of the Book Industry Collaborative Council 8 Terms of Reference 10 Foreword 11 Executive summary 13 Introduction: Adapting to change 17 Priority issues: Areas where reform is needed 19 Copyright 20 Data 21 Distribution 22 Exports 24 Lending rights 24 Scholarly book publishing 25 Future skills strategy 26 Strategies to improve capability 28 Copyright 29 Data: Models for industry data collection 29 Distribution 30 Exports 32 Lending rights 33 Scholarly book publishing 35 Future skills strategy 36 Implementation 38 Copyright 39 Data 40 Distribution 41 Exports 43 Lending rights 44 Scholarly book publishing 44 Future skills strategy 45 The book industry and Australian culture 47 Towards a sustainable industry leadership body 50 Rationale 50 Role and functions 51 Structure 51 Financing 51 Progress towards establishment 52 Conclusion 54 Copyright Expert Reference Group 57 Executive summary 59 Background 60 The Copyright Expert Reference Group 60 Purpose and structure of this paper 61 Part One: Copyright and the book industry 62 Copyright regulation in Australia 62 Understanding the regulatory framework and its impact on copyright content 64 Global trends in copyright regulation 69 FINAL REPORT 4 Part Two: Extracting value from copyright in a changing environment 73 Views of various participants in the supply chain 73 Principles 73 Case studies 74 Conclusion 78 Data Expert Reference Group 79 Executive summary 81 Overview 82 Background 82 Data Expert Reference Group 82 Current data collection approaches 84 International approaches 84 Seeking a new approach 85 Identifying data needs 85 Data collection options 86 Data sharing principles 87 Framework 89 Models for data collection 89 Implementation plan 92 Recommendations 93 Distribution Expert Reference Group 94 Executive summary 96 Immediate actions include: 96 Medium to long-term change requires: 97 Part One: Gaining perspective 98 Why distribution efficiency matters 98 The Distribution Expert Reference Group 98 Purpose of this report 99 Understanding the book distribution system 99 Challenge and opportunity 102 Part Two: Framing a solution 104 Book Distribution Efficiency Framework 104 Barriers and potential solutions 104 The future 110 Export Expert Reference Group 111 Executive summary 113 Background 114 The Export Expert Reference Group 114 Issues 116 Challenges and opportunities 117 Outcomes 118 The way forward 120 Conclusion 122 Appendix -­‐ 1 Rights, co-­‐editions and export income and activity survey 123 Introduction 123 5 BOOK INDUSTRY COLLABORATIVE COUNCIL Survey results 124 Appendix -­‐ 2 Rights, co-­‐editions and export case studies 149 Rights 149 Rights – author with international agent 167 Co-Edition 169 Export 172 Initiatives 175 Lending Rights Expert Reference Group 180 Executive summary 182 Part One: Defining the issue 183 Ebooks in libraries 183 About the Lending Rights Expert Reference Group 184 Purpose of this paper 185 Part Two: Current models for ebook supply to libraries 186 Part Three: Finding solutions 187 Principles for consistent models for supply of ebooks to libraries 187 Framework for a digital lending right 191 Part Four: Next steps 196 Recommended actions 197 References 199 Appendix A: Stakeholder consultation 200 Appendix B: Current models for supply Australian of ebooks to libraries 201 Scholarly Book Publishing Expert Reference Group 204 Executive Summary 206 Introduction 207 1.1. About the Scholarly Book Publishing Expert Reference Group 207 1.2. Purpose of this position paper 208 1.3. What is ‘scholarly book publishing’? 208 1.4. The role and benefits of scholarly book publishing 209 The state of play 212 2.1. Key stakeholders 212 2.2. Current business models 214 2.3. Funding sources 215 2.4. Challenges and opportunities 216 2.5. Emerging business models 218 A way forward 220 Conclusion 223 References 224 Acknowledgements 225 Appendix A: Submissions in response to the SBP ERG survey 226 Appendix B: Definitions from the Higher Education Data 3 Collection 201 Specifications 227 1.3.10. Research 227 1.3.12. Research publications 227 9.3.1. Books 227 1.3.4. Commercial publisher 228 FINAL REPORT 6 1.3.9. Peer review 228 9.6. Peer review 228 Appendix C: Disciplines represented by the Learned Academies 230 The Australian Academy of the Humanities 230 The Academy of Social Sciences in Australia 230 Skills Expert Reference Group 231 Executive Summary 233 Part One: Gaining perspective 234 Why skills development is a priority 234 The Skills Expert Reference Group 235 Current status 236 Challenges and opportunities 236 Part Two: Framing a solution 238 Industry Development Framework 238 Part Three: Realising the benefits 243 Engaging stakeholders 243 Next steps 244 Appendix 1: Current training and development activities 245 7 BOOK INDUSTRY COLLABORATIVE COUNCIL Membership of the Book Industry Collaborative Council The membership of the Book Industry Collaborative Council (BICC) comprised representatives from peak book industry associations and experts in fields related to the book industry, including digital communications, research and copyright. Chair Professor David Throsby – Department of Economics, Macquarie University Deputy Chairs Ms Louise Adler – Melbourne University Publishing Dr John Byron – Faculty of Humanities, Curtin University Authors and agents Ms Sophie Masson – Chair, Australian Society of Authors Ms Sophie Hamley – President, Australian Literary Agents Association Book publishers Ms Louise Adler – President, Australian Publishers Association Ms Gabrielle Coyne – Penguin Australia (to October 2012) Ms Lou Johnson – Simon & Schuster Australia (from November 2012) Dr Nathan Hollier – Monash University Publishing Booksellers Mr Jon Page – President, Australian Booksellers Association Mr Bill Concannon – Mary Ryan’s Books Book printers Ms Susan Heaney – President, Printing Industries Association of Australia Mr Ben Jolly – Griffin Press Copyright Mr Nicholas Pullen – Partner, HWL Ebsworth Lawyers Libraries Ms Margaret Allen – Australian Library and Information Association Ms Evelyn Woodberry – Chair, Public Lending Right Committee Research Dr John Byron – Faculty of Humanities, Curtin University Telecommunications and the digital economy Mr Paul Budde – BuddeComm Unions Ms Lorraine Cassin – Australian Manufacturing Workers Union FINAL REPORT 8 Mr Christopher Warren – Media, Entertainment and Arts Alliance Ex-Officio member Dr Anne Byrne – Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education BICC dates of operation: 1 July 2012 to 30 June 2013 9 BOOK INDUSTRY COLLABORATIVE COUNCIL Terms of Reference The terms of reference given to the BICC were to: 1. Give advice to the Minister on the priority issues for the book industry. 2. Oversee implementation of the industry-led reforms identified in the Book Industry Strategy Group report and ensuing Government response. 3. Identify strategies across the book supply chain that increase industry capability and competitiveness and communicate these to industry and government. 4. Develop, communicate and monitor implementation plans for identified industry-led reforms. 5. Build strong productive relationships and linkages with other bodies and assist in bridging any divide between business and research. 6. Identify options for the establishment of a sustainable and independent industry body which can address issues of standards and competitive improvement in the Australian book supply chain. FINAL REPORT 10 Foreword In 2010, the Australian Government established the Book Industry Strategy Group (BISG) and asked it to identify the key priority issues for addressing the need for structural change across the industry supply chain and to recommend appropriate actions to be taken to meet emerging challenges. The BISG identified 21 recommendations for industry reform and presented these to the Government for consideration. One key recommendation from the BISG was for continued collaboration among the sectors of the book industry supply chain to address those challenges that were best approached through cooperation within the industry. In response, the Government established the Book Industry Collaborative Council (BICC) for 12 months to provide industry leadership and develop practical implementation plans to progress the issues identified by the BISG. Guided by the findings of the BISG, the BICC began its work by defining seven priority areas and establishing Expert Reference Groups (ERGs) to consider the issues and to propose forward-looking strategies for industry progress in each of these priority areas. The seven ERGs were set up in the following areas, listed in alphabetical order: Copyright