The government is to undertake a review of intellectual property laws in the UK in a bid to make them "fit for the internet age".
Prime minister David Cameron said that the review will address issues around fair-use provisions to make the UK more friendly towards innovation.
"The founders of Google have said that they could never have started their company in Britain," he said.
"The service they provide depends on taking a snapshot of all the content on the internet at any one time, and they feel that our copyright system is not as friendly to this sort of innovation as it is in the US."
The government will review intellectual property laws to make them more applicable to the types of technology and innovation the internet is driving, according to Cameron.
"I want to encourage the sort of creative innovation that exists in America, " he said.
However, Mark Owen, a lawyer at Hartbottle & Lewis, suggested that the prospect of another review is "depressing" and reflects a lack of strategic thinking in policy making.
"There have been countless expensive and quickly forgotten reviews of copyright in recent years, and it is very unlikely that yet another one will achieve anything much other than waste large amounts of money and time," he said.
Owen argued that the government should look at other ways to make the UK more attractive to technology companies.
"As Google's large presence in Europe attests, laws here don't stop it doing business. But Google doesn't choose the UK for its European headquarters. Instead it's in Ireland because, like many companies, it's attracted by the tax treatment," he said.
"If Cameron really wants to do something to make a difference to investment in technology companies it is to the money he should be looking: our investment climate and risk-taking culture and our tax regimes.
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