Business leaders have welcomed a Government pledge to use a light touch in new media regulations.
The Black Country Chamber of Commerce and the region's leading community arts project say the new creative industries being established in the area would be damaged by the kind of regulation being proposed in some European quarters.
That view was echoed in Birmingham by the city's Chamber.
They spokes out as the EU prepares to revamp crucial media rules in the light of the growth of the internet.
The rapidly expanding European media and entertainment market will be worth around £238 billion by 2008, but the British Government fears its development is threatened by piracy and bureaucracy.
The European Commission and EU governments are discussing the revision of the Television Without Frontiers Directive that governs European broadcasting, but business leaders fear the industry will end up with more, not less, regulation.
Culture Secretary Tessa Jowell says she wants to preserve the light- touch regulation of new media.
"We know that we need new regulations to reflect the fact that TV services are now being delivered via the net and mobile phones. But we don't want to use a sledgehammer to crack a nut as regulation of these platforms will have an enormous impact on how they develop," she told media and TV executives.
A Birmingham Chamber of Commerce and Industry spokesman backed her comments.
He said: "Clearly there needs to be regulation to protect vulnerable groups such as children but I would hope it does not spill over into other areas of the media which are regulating themselves. "In this country we are already regulated in very many areas and I'd welcome the Government's view in using a light touch."
The Black Country's principal creative centre, The Public, is being developed in West Bromwich.
Opening in 2006 it will be Europe's largest community arts development.
Black Country Chamber of Commerce Sandwell director Tony Carroll said: "With The Public opening next year we have a fantastic opportunity to develop a variety of creative industries here in Sandwell, with the potential to dramatically change the local economy."
Sylvia King, chief executive of The Public said: "We've been working with creative businesses from across the region, supporting and uncovering the talents and skills that already exist here."
Ms Jowell said the creative industries need more intellectual rights protection, but less red tape in order to battle piracy and bureaucracy, as well as protecting revenues. "A strong and fair intellectual property regime is absolutely fundamental to a thriving, creative economy. In a digital world it's key to our future prosperity," she said.
Her comments to an audience of TV executives came as the Department for Culture, Media and Sport said it was changing its focus to lobby more on behalf of the UK's TV, publishing, music, film and design industries.
Earlier this month, The Birmingham Post reported how a Midlands IT law expert feared a "cloak and dagger" European shake-up of broadcast regulations could land internet content providers with a set of unworkable rules The European Commission has targeted the internet as part of its review of European Union broadcasting regulations.
Birmingham-based IT litigation solicitor Paul Haswell, of Wragge and Co, Colmore Row, said: "It's all a bit cloak and dagger at the moment. If this is an attempt to introduce EU regulation of the internet via the back door then it will be impossible, in practical terms, to enforce."
Viviane Reding, commissioner for information, society and media, said in a recent statement there was no plan to regulate the internet.
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