China IP: Major Chinese cities’ emphasis on creative industry varies. For example, Beijing emphasizes on industry cluster and policy supporting; Shanghai leans towards scientific development. Which city do you think has the greatest potential on creative industry? Why?
Mr. Howkins: All major cities have potential. Beijing and Shanghai are leading at the moment. However, other cities have the opportunity as well. Each city would develop by its own style. This happens internationally. In America, for example, New York and Los Angeles are very different, so are Milan and Rome. Of course, China’s central planning tends to equalize developments among cities. Nevertheless, specific districts are developing their own reputation.
China IP: Eric Schmidt, the CEO of Google, said that in five years Internet will replace television and radio to take the first place in media. As a leader of the media industry, what is your opinion on Eric’s predication?
Mr. Howkins: He is right. However, the word ‘media’ is so big that different elements develop at different times. Feature films are still made in the same way and still firstly shown in cinemas, and the number of TV watchers in Europe and America is increasing, not decreasing. However, overall, the digital space of the Internet is the main arena. According to our survey, young people in the top 20 industrialized countries would rather give up the Internet access (75%) rather than their TV set (25%). Here, again, we must ask, is China satisfied with having big Chinese companies dominant in China or does China want its companies to expand globally? Now, the Chinese companies seem happy to dominate in China while allowing American companies to dominate in the rest of the world.
Offering creative strategy to Blair government
As most are aware, Britain is the first country to enter urbanization. After the industry revolution in the 18th century, Britain sped up its urbanization. During the 1980s and 1990s, over 90% of the population was clustered in the major cities occupying only 10% of total land area. When hearing the term of “English disease,” many people still have lingering fear. Many side effects such as environmental pollution, ecological degeneration, and urban crimes were introduced during the process of urbanization.
However, “Creative economy” brings Britain new hope. When Blair succeeded as the British Prime Minister in 1997, he took Howkins’ proposal of transiting from the manufacture industry to creative industry. In 1998, Britain issued Creative Industries Mapping Document and became the first country in the world to adopt government policies to push the development of the creative industry. The British government claimed to have overcome all difficulties to help creative talents realize their dreams and ambitions. According to a set of incomplete statistics, the cultural creative industry alone creates an annual output value of GBP one hundred billion. The term “creative economy” used by Howkins is broad, covering fifteen creative industries extending from arts to wider fields of science and technology. According to his estimate, in the year 2000, the creative economy was worth USD 2.2 trillion worldwide and it would grow at a speed of 5 percent annually.
As an authority on creative economy, Howkins stresses that by absorbing the driving force for development from individuals’ creativity, ability and talent, and emphasizing on the development and application of intellectual property, creative economy is an industry that can create potential wealth and job opportunities. He further said artists do not monopolize creativity. Anybody, whether he is a scientist or an ordinary peddler, has creativity. According to his analysis, the development of a global creative economy is now facing four challenges, namely, the cultivation of creative factors, the value standards of creative economy, intellectual property protection and social collaboration. For Howkins, the best thing of a day is getting up with creative ideas.
Director of intellectual property charter
The first British copyright law Statute of Anne became effective in 1710. Until now, it has experienced three hundred years of development and established the base for modern copyright law. Most countries’ copyright legislations are greatly influenced by Statute of Anne. The original definition of copyright describes a relationship between a printer and a copyright owner. In China’s Song Dynasty, there were bans on the unauthorized reprinting of books. Because of various historical reasons, the copyright regulation has long remained at the original level. Nowadays, the copyright concept worldwide has been greatly changed. Copyright industry not only takes a legal sense, but also has its significance on business and financing. “Intellectual property is the currency of our new era; the copyright bureau is the central bank of the 21st century.” said by Howkins at the 2nd International Copyright Expo. Only under the condition that a good “idea” is bestowed with some form, can the idea bring money. Fifty years ago, a few people who knew copyright managed it. At present, the business model built on mutual collaboration raises more requirements on copyright management. The cooperation among capital, equipment, talents, and technology is a very complicated process, but also a rather fragile process. In recent decades, with the perfection of the laws related to intellectual property, people’s ideas in reality turn into money.
Forerunner of digital media
Mr. Howkins is the executive chairperson of Tornado Productions Ltd, which provides webcasting to corporate and media. He is also the director of ITR Ltd, Equator Group plc, Television Investments Ltd and the World Learning Network Ltd. He is busy with his associations with most major media organizations in the world. Regarding IPR, he has advised ABC, Andersen Consulting, BBC, Coopers & Lybrand, European Commission, IBM, ICL, ITV, etc. His fist visit to China occured in 1979. In 1982, he finished the book Communications in China, which tells readers of China’s development in TV, movies, publications and communication industries.
Confronted with the strong competition with digital media, traditional media is now having a hard road to hoe. Not long ago, Bill Gates predicated that three years from now, the revenue of global network ads would reach USD 3 billion, which is equal to the total amount of ads revenue from global newspaper ads. Eric Schmidt, the CEO of Google, also said confidently that network would replace TV and radio. Mr. Howkins told China IP that he does not deny the rapid growth of digital media. Nevertheless, he insists on the significance of the influence of traditional media on the past generation as well as the new.
By Sarah Luo, China IP
