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Paul Armstrong, Kindred's Director of Social Media (http://www.kindredagency.com), on how to drink from the ever-changing social media / digital communication firehose. Paul has previous worked for MySpace Corporate Communications in Los Angeles and has devised digital strategies for Sony, Activision, Yahoo! properties amongst others.

An open letter to the Newspaper Licensing Agency (by Kevin Taylor / CIPR)   

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Picture 17 Kevin Taylor is President, Chartered Institute of Public Relations. [Twitter]

I seem to have stumbled into a parallel universe…  not only do I find myself writing for a PRWeek blog; I’m also in a world where reading my morning newspaper on the internet incurs a daily charge.  In fact, if you are reading this in my parallel world you’ll soon receive my invoice for £1.50.

Or at least, that seems to be the world that the Newspaper Licensing Agency (NLA) wants us all to embrace.

Some background – the NLA is not some government-backed Quango operating with all the force of Parliamentary law.  It is purely a commercial body, owned by some of the newspaper publishers, which uses copyright law as the opportunity to levy fees on commercial and public organisations, suppliers and the PR industry in general for reproducing news content.

Originally the justification for NLA fees was that potential sales of physical newspapers were lost when one person or organisation bought the paper, cut out all the relevant articles, photocopied them and sent them to a whole bunch of potential customers of the original product.

The notion that actual paper sales are important to a newspaper’s business has long since disappeared with the rise of free newspapers – it’s readers that matter because that’s what attracts advertisers.

Of course, cut-out pieces of a newspaper without their adjacent adverts doesn’t really help the newspaper business model and therefore some compensation for the loss of a potential reader of the advertising is an argument that might have some merit.

Hold that thought for just a moment.


Up until the recent announcements by the NLA (well covered in PRWeek) one way for an organisation to avoid NLA charges was for it to forward links to coverage rather than actual cuttings.

Providing a link sent potential readers to the original source of the story and its adjacent advertising, added to the web hits of the site itself, which pleases advertisers, and of course the material is provided on the site free of charge. 

Seems like a perfect solution.  Imagine a local authority press officer who receives an article from his cuttings agency on transport policy in a national newspaper and forwards this as a link to 20 people in the transport planning team, to all 60 councillors and 20 of the council’s most senior managers.

The web site in question receives maybe 100 extra visitors from that authority alone – and that situation gets repeated in the press offices of just about every local authority in the country. Wonderful, thousands more readers, lots of web hits to drive those traffic numbers up and please advertisers.

And then along come our friends at the NLA from their parallel universe who say: “No, that’s covered by copyright law and we need to charge you for providing that link.”

“But the content on the site is free to read,” you foolishly argue. 

Apparently that’s not the point. It’s their site, not yours. If you think it is good for your business to send people to their site, then you must pay.

“But your site depends on readers for its revenue.  I’m effectively sending you customers,” you plead.

But, according to the NLA, you are doing it for your benefit not theirs, therefore you must pay.

It is an absolute nonsense.  If I call someone and tell them a web address – no charge (at least not one proposed yet).  But if I send them the web address by email – that requires an NLA licence and, depending on how I acquired the link in the first place, it could well incur a per-event charge as well.

If instead of sending the link, I send a link to the Google news search that includes the link – no charge.

You see Google news has been exempted from NLA charges.  If the NLA attempted to charge Google one of two things would happen:  with deep pockets for litigation Google could mount a legal challenge to the ridiculous charges; or it could simply drop the newspaper titles concerned from its search engine – causing a massive drop in web visitors to those sites and subsequently a loss of advertising revenue.  Because you see, in the real world, forwarding links to the sites is good for their business.

I want newspapers to be successful and profitable. I want good standards of journalism and I’m prepared to do my bit: buy a quality daily newspaper and not rely on the free sheets.  I hope advertising and online revenues pick up and our best newspapers survive and thrive.

But these latest proposed NLA charges are not the way to fund the newspaper industry. They are nonsensical.  The Government needs to be strong enough to stand up to the newspaper owners and impose some regulation on the NLA. 

They are simply a commercial organisation trying to make a living – but they can’t invent a parallel universe in order to justify their charges.

Kevin Taylor, CIPR President

Still perplexed by the NLA’s proposed new web licence? The CIPR has updated its guidance on the NLA to explain the changes and how these will affect its members. If you have any queries, please contact CIPR Public Affairs Officer Emma Hamilton at emmah@cipr.co.uk because, well, that's the way they want it!

Published Jul 14 2009, 10:51 PM by Paul Armstrong

All Comments

David Pugh, July 15, 2009

Kevin,

These changes are aimed only at a tiny part of newspaper website audience – those who get a direct commercial benefit from using website material in their businesses; users of paid monitoring services and monitoring companies themselves. The traffic generated is barely measurable  –  these services account for merely 0.1% of the total newspaper web audience. However, they generate revenue over £10m per year without paying anything to the owners of the content. We are asking only for a small fraction of the total on behalf of the publishers (without whom there’d be no content to monitor). See www.nla-web.com for details

 
DANIEL DOHERTY, July 15, 2009

Kevin

Thanks for the leadership

Two things...one, driving people to content and showing how influencial a publication/website is, is great PR for these sites etc and also I wonder if they remember where this free content comes from in the first place...PRs.

When the NLA works with the PR sector instead of against it everyone will win.

David's answer refers to monitoring services and their users, ultimately this is a tax on PR and a disincentive to providing free content for media outlets.

 
Paul Armstrong, July 15, 2009

Great comments gents - thanks for posting them.  I think paying for content has a place in the model but it will be a brave man or woman who says that it is what will save paper media.  Personally, from speaking with a number of people in the industry at various levels and...gasp... regular people, I'm not seeing the potential some are - all models I have seen this 'work' in have been highly established brands with somewhat critical/market moving aspects to them.  Perhaps those that are willing to pay will sustain the free for the rest but there's this niggling feeling about 'the average user' willingness to pay for news.  It just feels like history repeating itself…

 

Pingback from  PR Week: CIPR president on the NLA’s backlink charging plans  | Journalism.co.uk Editors' Blog

 

Pingback from  We Are Team Rubber » Newspaper Licensing Authority madness

 
KEVIN TAYLOR, July 16, 2009

David - while I can understand the desire to charge the online monitoring companies for the business they are making from newspaper content; your proposals include double or even treble charging for the content - licence fees will apply to the monitoring company, the receiving PR agency and to the client company or organisation receiving the link. That's three charges to view one piece of free content.

 
FRANCIS INGHAM, July 17, 2009

The PRCA and the CIPR are absolutely united on this -the NLA's proposals are fundamentally unfair, monstrously unreasonable, and -legally- highly dubious at best. It's important that the industry is unified in opposing this back-door tax on knowledge.

That's why we hosted a webcast from the NLA, so that our members could express their anger and opposition -and invited CIPR members to log-in too. At our request, the NLA will be taking part in a series of meetings with the industry. We're organising them and meeting the cost -if people would like to take part, just email me at francis.ingham@prca.org.uk

Francis Ingham, PRCA Director General

 
Paul Armstrong, July 17, 2009

Great debate and looks like a great event Francis. Keep me / the readers posted.

 
FRANCIS INGHAM, July 17, 2009

No worries Paul

 
Rubber Republic - News, July 20, 2009

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Pingback from  NLA stirs up PR hornets nest « pwcom 2.0

 
 
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Don't Fear the Firehose

Paul Armstrong, Kindred's Director of Social Media (http://www.kindredagency.com), on how to drink from the ever-changing social media / digital communication firehose. Paul has previous worked for MySpace Corporate Communications in Los Angeles and has devised digital strategies for Sony, Activision, Yahoo! properties amongst others.

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