11

Actual conflicts of CMOsActual conflicts of CMOsSpanish and European noveltysSpanish and European noveltys

Les conflits actuels dans la Les conflits actuels dans la société de gestion collective société de gestion collective

Nouveautés de l’Espagne et de l’UENouveautés de l’Espagne et de l’UE

Vanessa Jiménez SerraníaVanessa Jiménez SerraníaPhD candidate University of SalamancaPhD candidate University of Salamanca

22

PLANPLAN

I.I. Spanish system of CMO’sSpanish system of CMO’s1.1. Structural and Juridical OverviewStructural and Juridical Overview

2.2. Antitrust law and Spanish CMOs: focus on general tariffsAntitrust law and Spanish CMOs: focus on general tariffs

II.II. (Provisional) proposal for a Directive (11/07/2012)(Provisional) proposal for a Directive (11/07/2012)1.1. Objectives and legal basisObjectives and legal basis

2.2. Summary repport of the new regulationSummary repport of the new regulation

I.I. Le système espagnol de sociétés de gestion Le système espagnol de sociétés de gestion 1.1. Vision structurelle et juridique generale Vision structurelle et juridique generale

2.2. Droit de la concurrence et SPRD espagnoles: les tarifs Droit de la concurrence et SPRD espagnoles: les tarifs générauxgénéraux

II.II. Proposition (provisoire) de la Directive (11/07/2012)Proposition (provisoire) de la Directive (11/07/2012)1.1. Objectifs et base légaleObjectifs et base légale

2.2. Rapport de synthèse de la nouvelle régulationRapport de synthèse de la nouvelle régulation

33

II

Spanish system of CMO’s Spanish system of CMO’s

Le système espagnol des sociétés de Le système espagnol des sociétés de gestiongestion

44

1.1. Structural and Juridical Overview /Structural and Juridical Overview /

Vision structurelle et juridique Vision structurelle et juridique générale générale

Legislative Royal Decree 1/1996 of 12 April 1996, which approved the Consolidated Text of the Intellectual Property Act (LPI)

Decret Royal 1/1996 12 Avril 1996, qui approuve le Texte consolidé de la Loi de Propriété Intellectuelle (LPI)

55

66

77

System dimension/Dimension du systèmeSystem dimension/Dimension du système

Source: AEVAL 2009Source: AEVAL 2009

88

Spanish CMO’s ProfileSpanish CMO’s Profile

Organised on a not-for-profit basis Organised on a not-for-profit basis

Not –for-profil basisNot –for-profil basis

Be authorised by the Ministry of Culture to operateBe authorised by the Ministry of Culture to operate -159.1 LPI -159.1 LPI Their sTheir scope is setting out in its bylaws, which must meet cope is setting out in its bylaws, which must meet

certain requirements (art. 151 LPI) and be submitted to the certain requirements (art. 151 LPI) and be submitted to the Ministry of Culture as part of the authorisation processMinistry of Culture as part of the authorisation process..

Main objective of collecting societies is “the management of Main objective of collecting societies is “the management of exploitation rights or other economic rights, for the account exploitation rights or other economic rights, for the account and in the interest of various authors or other holders of and in the interest of various authors or other holders of intellectual property rights” (article 147 of the LPI). intellectual property rights” (article 147 of the LPI).

99

Core functions performed by a Core functions performed by a collecting societycollecting society

Grant licence (fees) for use of the works and other subject Grant licence (fees) for use of the works and other subject matter managed; matter managed;

Establish general fees; Establish general fees; Collect the payments deriving from exploitation of works and Collect the payments deriving from exploitation of works and

other protected subject matter; other protected subject matter; Monitor the use made of the works and other protected Monitor the use made of the works and other protected

materials; detect possible infringements and prosecute them; materials; detect possible infringements and prosecute them; Distribute the payments collected amongst the rightholders it Distribute the payments collected amongst the rightholders it

represents, after discounting the administrative cost. represents, after discounting the administrative cost.

++ Obligation imposes by LPI: Function to provide assistance Obligation imposes by LPI: Function to provide assistance

and support to the rightholdersand support to the rightholders

1010

2. Antitrust law and Spanish CMOs: 2. Antitrust law and Spanish CMOs: focus on general tariffs /focus on general tariffs /

Droit de la concurrence et SPRD Droit de la concurrence et SPRD espagnoles : les tarifs générauxespagnoles : les tarifs généraux

1111

Causes of the dominant positionCauses of the dominant position

Economies of scaleEconomies of scale Blanket licenses Blanket licenses

Reciprocal agreementsReciprocal agreements

Legal entry barriersLegal entry barriers

Be organised on a not for profit basisBe organised on a not for profit basis

Comply with a number of requirements regarding its Comply with a number of requirements regarding its bylawsbylaws

Requirement of prior authorisation from the Ministry of Requirement of prior authorisation from the Ministry of CultureCulture

Mandatory collective managementMandatory collective management

Strategic entry Strategic entry barriersbarriers

Clauses in the reciprocal representation agreements Clauses in the reciprocal representation agreements with collecting societies from other countrieswith collecting societies from other countries

Contractual practices in the contracts with rightholdersContractual practices in the contracts with rightholders

Duration contracts are renewable indefinitely for their Duration contracts are renewable indefinitely for their initial terminitial term

Scope (Music publishers vs SGAE “Daft Punk à Scope (Music publishers vs SGAE “Daft Punk à l’espagnole)l’espagnole)

ExclusivityExclusivity

Lack of transparency on repertoires Lack of transparency on repertoires

Fees for availability that do not take actual use into Fees for availability that do not take actual use into account account

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General fees conflictsGeneral fees conflicts

DEFINITION: DEFINITION:

General fees are of a subsidiary nature, that is, they are General fees are of a subsidiary nature, that is, they are applied in default of an agreement between the collecting applied in default of an agreement between the collecting societies and users. societies and users.

They are also used to determine the amount payable by a They are also used to determine the amount payable by a user into an escrow or judicial deposit in order to have an user into an escrow or judicial deposit in order to have an interim authorisation until the collecting society and user interim authorisation until the collecting society and user reach an agreementreach an agreement

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Systemic failuresSystemic failures

Absence of ex-Absence of ex-ante control of ante control of

tariffstariffs

Collecting societies Collecting societies “are obliged to “are obliged to notifynotify the Ministry the Ministry of Culture of the appointments and removals of their of Culture of the appointments and removals of their directors and representatives, the general fees and directors and representatives, the general fees and modifications thereof, the general contracts made modifications thereof, the general contracts made with associations of users and the arrangements with associations of users and the arrangements made with foreign organisations in their same class, made with foreign organisations in their same class, as well as the documents mentioned in article 156 of as well as the documents mentioned in article 156 of this Act”.this Act”.

Ineffectiveness of Ineffectiveness of the negotiation the negotiation

mechanismsmechanisms

““until the parties reach an agreement, the relevant until the parties reach an agreement, the relevant authorisation shall be understood to be granted if the authorisation shall be understood to be granted if the applicant pays in escrow or in a applicant pays in escrow or in a judicial deposit the judicial deposit the royalty demanded by the collecting society royalty demanded by the collecting society according to the general fee scheduleaccording to the general fee schedule”” (article (article 157.2 of the LPI). 157.2 of the LPI).

Absence of Absence of effective ex post effective ex post

controlcontrol

Intellectual Property Commission (Comisión de Intellectual Property Commission (Comisión de Propiedad Intellectual — IPC), the dispute resolution Propiedad Intellectual — IPC), the dispute resolution mechanism between collecting societies and certain mechanism between collecting societies and certain classes of users envisaged by the LPI, classes of users envisaged by the LPI, had not had not proven to be an effective instrument for solving proven to be an effective instrument for solving pricing conflictspricing conflicts..

1414

Endemic failuresEndemic failures

Unfair feesUnfair fees

Relation with the Relation with the economic value of economic value of the use of the the use of the repertoiresrepertoires

Relation to actual Relation to actual useuse

Appropriateness to Appropriateness to the repertoirethe repertoire

CNC resolution of 23 July 2009 in case 651/08, AIE/T5, CNC resolution of 23 July 2009 in case 651/08, AIE/T5, AIE was fined for charging unfair fees to Telecinco. AIE was fined for charging unfair fees to Telecinco.

Supreme Court Judgement of 18 February 2009 Supreme Court Judgement of 18 February 2009 (AIE/T5) and 7 april 2009 (SOGECABLE)(AIE/T5) and 7 april 2009 (SOGECABLE)

SCJ of 15 septembre 2010 (Via Digital)SCJ of 15 septembre 2010 (Via Digital)

SCJ of 13 decembre 2010 (Canal Satelite Digital)SCJ of 13 decembre 2010 (Canal Satelite Digital)

CNC resolution of 07/06/2012 in case S/02002/10, SGAE CNC resolution of 07/06/2012 in case S/02002/10, SGAE vs Complejo Hotelero San Cucaovs Complejo Hotelero San Cucao

Discriminatory Discriminatory pricingpricing

CNC resolution of 9 December 2008 in case 636/07, CNC resolution of 9 December 2008 in case 636/07, Phonograms, fined AGEDI and AIE for discriminating Phonograms, fined AGEDI and AIE for discriminating against SOGECABLE in comparison with TVE and ONO. against SOGECABLE in comparison with TVE and ONO.

CNC resolution 19 December 2011 Aisge vs Spanish CNC resolution 19 December 2011 Aisge vs Spanish Auditorium Federation (FCE) Auditorium Federation (FCE)

SCJ of 22 Decembre 2008 SGAE vs. Vale musicSCJ of 22 Decembre 2008 SGAE vs. Vale music

CNC resolution of 23 July 2009 in case 651/08, AIE/T5, CNC resolution of 23 July 2009 in case 651/08, AIE/T5, the CNC fined AIE for having applied discriminatory fees the CNC fined AIE for having applied discriminatory fees to Telecinco.to Telecinco.

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SOLUTIONSOLUTION

Systemical Systemical

New regulation of the New regulation of the Intellectual Intellectual Property Commission (Comisión de Property Commission (Comisión de

Propiedad Intellectual — IPC)Propiedad Intellectual — IPC)

Alteration of 158 LPIAlteration of 158 LPI

Royal Decree 1889/2011 30 of Royal Decree 1889/2011 30 of decemberdecember

New roles:New roles: MediationMediation Arbitration Arbitration Special procedure for stablishing an Special procedure for stablishing an

substitute amont of general fees substitute amont of general fees (case of disgreement between (case of disgreement between commercial users and CMOs. commercial users and CMOs.

Appel civil jurisdiction. Appel civil jurisdiction.

EndemicalEndemical

SCJ 23 of mars 2011SCJ 23 of mars 2011

1 °) It’s not correct to calculate lost profts 1 °) It’s not correct to calculate lost profts (lucrum cesans) using general fees provided (lucrum cesans) using general fees provided by collecting societies to the competent by collecting societies to the competent authority, only because they have not been authority, only because they have not been objectedobjectedThis implies a very slight degree of This implies a very slight degree of protection.protection.

2 º) The existence of a previous negotiation 2 º) The existence of a previous negotiation process does not justify the application of the process does not justify the application of the general fees, regardless their fairness. So the general fees, regardless their fairness. So the failure of previous conversations is not a failure of previous conversations is not a sufficient reason for CMOs to impose general sufficient reason for CMOs to impose general fees on the other side.fees on the other side.

3 °) Profit criteria has to be based on the 3 °) Profit criteria has to be based on the effective use of the repertoire.effective use of the repertoire.

4 °) The agreements carry out by the CMO with 4 °) The agreements carry out by the CMO with other persons or entities to authorize the use other persons or entities to authorize the use of their repertoire also had to be regarded of their repertoire also had to be regarded (equity= non injustified disparity).(equity= non injustified disparity).

1616

(Provisional) proposal for a Directive(Provisional) proposal for a Directive

Proposition (provisoire) de la Directive Proposition (provisoire) de la Directive

1717

1.1. Objectives and legal basis/Objectives and legal basis/

Objectifs et base légaleObjectifs et base légale

1818

Objectives / Objectifs Objectives / Objectifs

Appropriate legal frameworkAppropriate legal framework for the collective management of for the collective management of rights that are administered by rights that are administered by collecting societies collecting societies

Better Better governancegovernance Greater Greater transparency transparency of all of all

collecting societies collecting societies Multi-territorial licensingMulti-territorial licensing of of

the rights of authors in their the rights of authors in their musical works by collecting musical works by collecting societies representing authorssocieties representing authors

Digital Agenda for Europe and the Digital Agenda for Europe and the Europe 2020 Strategy aiming for Europe 2020 Strategy aiming for smart, sustainable and inclusive smart, sustainable and inclusive growthgrowth

Cadre juridique appropriéCadre juridique approprié pour pour la gestion collective des droits qui la gestion collective des droits qui sont administrés par des sociétés sont administrés par des sociétés de gestion collectivede gestion collective

Meilleure Meilleure gouvernancegouvernance Plus grande Plus grande transparencetransparence dans dans

toutes les sociétés de gestion toutes les sociétés de gestion collectivecollective

Concession de Concession de licences licences multiterritorialesmultiterritoriales sur les droits sur les droits des auteurs relatifs à leurs des auteurs relatifs à leurs œuvres musicales par des œuvres musicales par des sociétés de gestion collective qui sociétés de gestion collective qui les représententles représentent

Cadre de la stratégie numérique Cadre de la stratégie numérique pour l’Europ et de la stratégie pour l’Europ et de la stratégie Europe 2020 pour une croissance Europe 2020 pour une croissance intelligente, durable et inclusiveintelligente, durable et inclusive

1919

Legal basis/Base légaleLegal basis/Base légale

Articles 50(2)(g), 53 and 62 TFEU Articles 50(2)(g), 53 and 62 TFEU as facilitating the free provision of as facilitating the free provision of services.services.

Principle of subsidiarity (Article Principle of subsidiarity (Article 5(3) TFEU)5(3) TFEU)

Principle of proportionality (Article Principle of proportionality (Article 5(4) TEU)5(4) TEU)

A directive: This is in conformity A directive: This is in conformity with the requirements of Articles with the requirements of Articles 50(2)(g), 53 and 62 TFEU.50(2)(g), 53 and 62 TFEU.

Article 50, paragraphe 2, point g), Article 50, paragraphe 2, point g), et les articles 53 et 62 du TFUE et les articles 53 et 62 du TFUE puisqu’elle facilite la libre puisqu’elle facilite la libre prestation de services.prestation de services.

Article 5, paragraphe 3, du TFUE, Article 5, paragraphe 3, du TFUE, (principe de subsidiarité) puisque (principe de subsidiarité) puisque le cadre juridique à la fois au le cadre juridique à la fois au niveau national et au niveau de niveau national et au niveau de l’UE s’est révélé insuffisantl’UE s’est révélé insuffisant

Article 5, paragraphe 4, du TFUE, Article 5, paragraphe 4, du TFUE, (principe de proportionnalité)(principe de proportionnalité)

Une directive: Cette procédure Une directive: Cette procédure est conforme aux exigences de est conforme aux exigences de l’article 50, paragraphe 2, point l’article 50, paragraphe 2, point g), et des articles 53 et 62 du g), et des articles 53 et 62 du TFUETFUE

2020

2. 2. Summary repport of the new Summary repport of the new regulation/regulation/

European license passeportEuropean license passeport

Rapport de synthèse de la nouvelle Rapport de synthèse de la nouvelle régulationrégulation

Passeport européen de Passeport européen de licencelicence

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T.1 GENERAL PROVISIONST.1 GENERAL PROVISIONS

Article 1 Subject matter Article 1 Subject matter This Directive lays down requirements necessary to This Directive lays down requirements necessary to

ensure the proper functioning of the management of ensure the proper functioning of the management of copyright and related rights by collecting societies. copyright and related rights by collecting societies.

It also lays down requirements for multi-territorial It also lays down requirements for multi-territorial licensing by collecting societies of authors' rights in licensing by collecting societies of authors' rights in musical works for online use.musical works for online use.

Article 2 Scope Article 2 Scope Titles I, II and IV with the exception of Articles 36 and 40 Titles I, II and IV with the exception of Articles 36 and 40

shall apply to all collecting societies established in the shall apply to all collecting societies established in the Union. Union.

Title III and Articles 36 and 40 of Title IV shall only apply to Title III and Articles 36 and 40 of Title IV shall only apply to those collecting societies managing authors' rights in those collecting societies managing authors' rights in musical works for online use on a multi-territorial basis. musical works for online use on a multi-territorial basis.

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T.2 COLLECTING SOCIETIEST.2 COLLECTING SOCIETIES

Do not impose on rightholders Do not impose on rightholders whose rights they manage any whose rights they manage any obligations which are not obligations which are not objectively necessary for the objectively necessary for the protection of the rights and protection of the rights and interests interests

Rightholders:Rightholders: Right to authorise a collecting Right to authorise a collecting

society of their choice society of their choice (absolute freedom)(absolute freedom)

Right to terminate the Right to terminate the authorisation or to withdraw authorisation or to withdraw States of their choice (serving States of their choice (serving reasonable notice not reasonable notice not exceeding six months)exceeding six months)

express consent specifically express consent specifically for each right or category of for each right or category of rights or type of worksrights or type of works

Membership rules:Membership rules: Collecting societies shall Collecting societies shall

accept rightholders as accept rightholders as members if they fulfil the members if they fulfil the membership requirements. membership requirements. They may only refuse a They may only refuse a request for membership on request for membership on the basis of objective criteria. the basis of objective criteria. These criteria shall be These criteria shall be included in the statute or the included in the statute or the membership terms of the membership terms of the collecting society and shall be collecting society and shall be made publicly availablemade publicly available

General meetingGeneral meeting Supervisory function Supervisory function

responsible for continuously responsible for continuously monitoring the activities and monitoring the activities and the performance of the duties the performance of the duties of the persons entrusted with of the persons entrusted with managerial responsibilities managerial responsibilities (lim.min)(lim.min)

2323

T.2 COLLECTING SOCIETIEST.2 COLLECTING SOCIETIES Management of rights revenueManagement of rights revenue

Diligent in the collection and the Diligent in the collection and the management of rightsmanagement of rights

Manage and keep separate the Manage and keep separate the rights revenue and any income rights revenue and any income derived from its investment from derived from its investment from its own assets, the income derived its own assets, the income derived from its management services or from its management services or the income derived from any other the income derived from any other activitiesactivities

Rules for investment (best invested Rules for investment (best invested in the best interests of members)in the best interests of members)

Provide social, cultural or Provide social, cultural or educational services funded educational services funded through deductions from rights through deductions from rights revenuerevenue

Distribution and payments no later Distribution and payments no later than 12 months from the end of the than 12 months from the end of the financial year/ equal treatment of financial year/ equal treatment of all categories of rightholders/5 all categories of rightholders/5 years – social servicesyears – social services

Make available to the members of Make available to the members of the collecting society as well as to the collecting society as well as to the public a list of works and other the public a list of works and other subject matter for which one or subject matter for which one or more rightholders have not been more rightholders have not been identified or located. identified or located.

Management of rights on behalf of other Management of rights on behalf of other collecting societies collecting societies

Not discriminate/Not apply Not discriminate/Not apply deductions, other than management deductions, other than management feesfees

Relations with usersRelations with users conduct negotiations for the conduct negotiations for the

licensing of rights in good faithlicensing of rights in good faith Information Information Licensing terms shall be based on Licensing terms shall be based on

objective criteriaobjective criteria Tariffs =economic value of the rights Tariffs =economic value of the rights

in tradein trade Transparency and reportingTransparency and reporting

Information provided (+ to -): Information provided (+ to -): Duty:Duty:

rightholders on the rightholders on the management of their rightsmanagement of their rights

other collecting societies other collecting societies on the management of on the management of rights under representation rights under representation agreementsagreements

RequestRequest PublicPublic

Annual transparency reportAnnual transparency report

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T.3 MULTI-TERRITORIAL LICENSING OF ONLINE RIGHTS IN T.3 MULTI-TERRITORIAL LICENSING OF ONLINE RIGHTS IN MUSICAL WORKS BY COLLECTING SOCIETIESMUSICAL WORKS BY COLLECTING SOCIETIES

Member States shall ensureMember States shall ensure that a that a collecting society which grants multi-collecting society which grants multi-territorial licences for online rights in territorial licences for online rights in musical works has sufficient capacity musical works has sufficient capacity to process electronically, in an to process electronically, in an efficient and transparent manner, the efficient and transparent manner, the data needed for the administration of data needed for the administration of such licences, including for identifying such licences, including for identifying the repertoire and monitoring its use, the repertoire and monitoring its use, invoicing users, collecting rights invoicing users, collecting rights revenue and distributing amounts due revenue and distributing amounts due to rightholders. to rightholders.

Collecting society:Collecting society: Provide up-to-date informationProvide up-to-date information Accuracy of multi-territorial Accuracy of multi-territorial

repertoire informationrepertoire information Accurate and timely reporting and Accurate and timely reporting and

invoicinginvoicing Accurate and timely payment to Accurate and timely payment to

rightholders rightholders Possibility of outsource services Possibility of outsource services

which relate to the multi-territorial which relate to the multi-territorial licences it grants. Such licences it grants. Such outsourcing shall not affect the outsourcing shall not affect the liability liability

Agreements between collecting Agreements between collecting societies for multi-territorial licensing societies for multi-territorial licensing

Non-exclusive nature. Non-exclusive nature. The mandated collecting society The mandated collecting society

shall manage those online rights shall manage those online rights on nondiscriminatory termson nondiscriminatory terms

Mandating collecting society Mandating collecting society information to its members of information to its members of the terms of the agreementthe terms of the agreement

Mandated collecting society shall Mandated collecting society shall inform the mandating society of inform the mandating society of the key terms on which its online the key terms on which its online rights are to be licensedrights are to be licensed

Obligation to represent another Obligation to represent another collecting society for multi-territorial collecting society for multi-territorial licensinglicensing

Collecting society which does not Collecting society which does not grant or offer to grant multi-grant or offer to grant multi-territorial licences can request territorial licences can request another collecting societyanother collecting society

Requested collecting society Requested collecting society shall accept such a requestshall accept such a request

2525

T.3 MULTI-TERRITORIAL LICENSING OF ONLINE RIGHTS IN T.3 MULTI-TERRITORIAL LICENSING OF ONLINE RIGHTS IN MUSICAL WORKS BY COLLECTING SOCIETIESMUSICAL WORKS BY COLLECTING SOCIETIES

Art.30 !!!!!:Art.30 !!!!!: Collecting society does not grant or offer to grant multi-Collecting society does not grant or offer to grant multi-

territorial licences or does not allow another collecting society territorial licences or does not allow another collecting society to representto represent RightholdersRightholders

grant multi-territorial licences in their online rights in grant multi-territorial licences in their online rights in musical works themselves ormusical works themselves or

through any collecting society complying with the through any collecting society complying with the provisions of this Title or any other party they authoriseprovisions of this Title or any other party they authorise

The first collecting society The first collecting society shall continue to grant or offer to shall continue to grant or offer to grant territorial licences unless the rightholders terminate grant territorial licences unless the rightholders terminate their authorisation to manage themtheir authorisation to manage them

2626

T.3T.3

Article 32 Licensing terms in online services Article 32 Licensing terms in online services A collecting society providing multi-territorial licences for online rights in A collecting society providing multi-territorial licences for online rights in

musical works musical works shall not be required to use as a precedent for other shall not be required to use as a precedent for other types of services licensing terms agreed with an online music types of services licensing terms agreed with an online music service providerservice provider, , when the online music service provider is when the online music service provider is providing a new type of service which has been available to the providing a new type of service which has been available to the public for less than three yearspublic for less than three years. .

Article 33 Derogation for online music rights required for radio and Article 33 Derogation for online music rights required for radio and television programmes television programmes

The requirements under this Title shall not apply to collecting societies The requirements under this Title shall not apply to collecting societies which grant, on the basis of the voluntary aggregation of the required which grant, on the basis of the voluntary aggregation of the required rights, in compliance with the competition rules under Articles 101 and 102 rights, in compliance with the competition rules under Articles 101 and 102 TFEU, TFEU, a multi-territorial licence for the online rights in musical a multi-territorial licence for the online rights in musical works required by a broadcaster to communicate or make works required by a broadcaster to communicate or make available to the public its radio or television programmes available to the public its radio or television programmes simultaneouslysimultaneously with or after their initial broadcast as well as any online with or after their initial broadcast as well as any online material produced by the broadcaster which is ancillary to the initial material produced by the broadcaster which is ancillary to the initial broadcast of its radio or television programme. broadcast of its radio or television programme.

2727

T.4 ENFORCEMENT MEASUREST.4 ENFORCEMENT MEASURES

Member States shall ensure that collecting societies make available to their Member States shall ensure that collecting societies make available to their members and rightholders effective and timely proceduresmembers and rightholders effective and timely procedures

Member States shall ensure that disputes between collecting societies and Member States shall ensure that disputes between collecting societies and users submitted to a court, and if appropriate, to an independent and users submitted to a court, and if appropriate, to an independent and impartial dispute resolution body (this last option shall not prevent the parties impartial dispute resolution body (this last option shall not prevent the parties from asserting and defending their rights by bringing an action before a court)from asserting and defending their rights by bringing an action before a court)

Administrative sanctions and measures where the provisions of the national Administrative sanctions and measures where the provisions of the national provisions adopted in the implementation of this Directiveprovisions adopted in the implementation of this Directive

The sanctions and measures shall be effective, proportionate and dissuasiveThe sanctions and measures shall be effective, proportionate and dissuasive

The Commission shall foster regular exchange of information between the The Commission shall foster regular exchange of information between the competent authorities of the Member States and between those authorities competent authorities of the Member States and between those authorities and the Commission on the situation and development of multi-territorial and the Commission on the situation and development of multi-territorial licensinglicensing

Member States shall ensure that, at the latest, [30 months after the entry into Member States shall ensure that, at the latest, [30 months after the entry into force of this Directive], their competent authorities provide the Commission force of this Directive], their competent authorities provide the Commission with a report on the situation and development of multi-territorial licensing in with a report on the situation and development of multi-territorial licensing in their territory.their territory.

The Commission shall conduct regular consultationsThe Commission shall conduct regular consultations