The six-month review, which was announced by David Cameron last week, will look in particular at 'fair use' provisions for companies using copyrighted materials and the financial barriers to new internet business caused by IP rules.
The review will explore how the current IP system can be changed to drive growth and innovation in the UK's digital media, according to a release from the Department for Business, Innovation and Skills.
Outlining plans for a 'tech city' in East London last week, the prime minister said: "The second new announcement I can make today is to do with intellectual property. The founders of Google have said they could never have started their company in Britain. The service they provide depends on taking a snapshot of all the content on the internet at any one time and they feel our copyright system is not as friendly to this sort of innovation as it is in the United States.
"Over there, they have what are called "fair-use" provisions, which some people believe gives companies more breathing space to create new products and services. So I can announce today that we are reviewing our IP laws, to see if we can make them fit for the internet age. I want to encourage the sort of creative innovation that exists in America."
In addition to his editorship of the Independent, Hargreaves has also worked as a journalist for the Financial Times and as director of BBC News and Current Affairs. His involvement with the review has been described as crucial to its independence.
Last month he was appointed to a new chair at Cardiff University, working with the organisation's journalism and business schools to provide research on the UK's digital economy.
The new role involves exploring digital economy issues across traditional academic boundaries, as well as across boundaries within government and the private sector, Hargreaves told Journalism.co.uk in October.
"The aim is do research and build understanding about how digital communications is affecting everything from the business models for journalism, but also the way the public services are provided," he said.
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