Tech firms should pay the creators whose work they use | Letter

A proposed £300m annual fund, aimed at funding UK creators, raises an important question: who should benefit from technological advancements? Before committing funds to the public good, AI companies such as Anthropic should first compensate the creators whose work they utilize. Device manufacturers also bear responsibility under this principle: creators should reap the rewards of their work's value generation.

Smartphones, computers, and other devices facilitate the copying and storage of creative content, yet UK creators receive no compensation for private copying, unlike counterparts in more than 40 other countries. The Smart Fund would require manufacturers and importers to contribute modestly to devices used for copying or storing creative work.

This could generate up to £300m annually, providing creators with additional income and supporting skills, cultural programs, and affordable workspaces. For creators struggling with low and declining incomes, these payments would make a significant difference. Visual artists' median annual earnings have fallen to £12,500, 47% lower in real terms compared to 2010.

Authors earn only £7,000 on average from writing, down from £11,300, according to surveys from 2022 and 2018. Audiovisual performers earn a median of £17,500 annually from performing. Yet, it is creators' work that captivates people, sustains their engagement, and fuels innovation. Creators should share in the value their work generates to sustain and enhance this cycle.

The government should enact this principle through the introduction of the Smart Fund. Barbara Hayes, CEO of Authors' Licensing and Collecting Society (ALCS), Tayyiba Nasser, CEO of British Equity Collecting Society (BECS), Christian Zimmermann, CEO of Design and Artists Copyright Society (DACS), and Paul Seheult, CEO of PICSEL, endorse this proposal.