Widening educational exceptions would act as disincentive to development of educational material according to UK report

An economic impact analysis undertaken by PwC has raised fears that proposed changes to educational exceptions will jeopardise the provision of educational material in return for negligible cost savings for content users. The survey was commissioned by The Copyright Licensing Agency (CLA) as part of its response to the Consultation on Copyright which was issued by the Intellectual Property Office (IPO) on behalf of HM Government. The purpose of the report was to provide an economic analysis of the issues relevant to the proposed changes to education exceptions in existing copyright legislation.
The report confirmed the economic contribution of educational publishing (around £400m and employing around 9,400 people in 2010) and reiterated the economic rationale for copyright: to deter free riding (consuming goods without paying), which threatens the sustainability of copyright dependent industries such as educational publishing, and to provide a framework which maintains incentives to produce creative content. It concluded that the market for digital educational publishing in the UK is still fragile. It needs to be supported through copyright policy, not undermined by promoting free-use. The extension of the current education exception to cover digital forms of copying could act as a severe disincentive to the development of digital-based learning resources.
Full PwC report
Full submission of CLA