Future development of copyright in Europe

Burak ÖzgenGESAC – European Grouping of Societies of Authors and Composers

11.11.2014 European Parliament, Brussels – JURI Hearing

GESAC – European Grouping of Societies of Authors and Composers

GESAC – European Grouping of Societies of Authors and Composers

Collective Management Organisations representing authors and composers – Authors’ societies

More than 1 million creators and rightholders: authors of music, AV, visual and literary arts and music publishers

34 members from across Europe

61% of revenues received through collective management globally

If you ask a creator how important copyright has been …

To ensure that creators are adequately remunerated

To make sure cultural and creative sectors can continue to grow

sustainably

Copyright – Author’s Right

Creative works are driving force for the digital economy

•56% of Europeans use the Internet for cultural purposes; •9 in 10 most watched videos on YouTube are music related.•90% of consumers globally watch video content over the internet, including films, TV programmes, and videos on demand.

how to do that ?

Main priorities for sustainable digital market for CCI

#1: Securing a strong framework for author’s rights allows for cultural diversity and development of a sustainable economy

Statement A:

- Consumers want to access to creative works from anywhere at anytime

•Multi-territory licensing

•Cross-border availability

•Portability

Multi-territory licensing (MTL)

• CRM Dir: A new Dir. entered into force in April 2004 to: “encourage and facilitate multi-territorial and multi-repertoire licensing of author’s rights in musical works for online uses in the EU/EEA”

• It follows the market trend to aggregate for MTL• “Licences for Europe Music Sub-group” was stopped

by EC after the mid-term plenary (July 2013) because there are enough solutions in the market

• Nearly 300 online music services in Europe, over 30 million tracks are licensed

Multi-territory licensing (MTL)

• OnLine Arts (OLA): long standing success story in the MTL market for many years

• MTL also delivered for AV when requested by operators willing to invest cross-border but demand is limited

• Yet, nearly 3000 VOD services in the EU with different business models or genres

Cross-border availabilityWhat we currently do and try:

• A number of European services: iTunes, Spotify, Deezer, Beatport, eMusic, etc.

• Cloud-based services: iCloud, AmazonCloud, X-Box, etc.

• Recommendation on licensing online cross-border broadcast-like services of public service broadcasters

• Dialogue with commercial radios association to cover cross-border access to local radios in their existing licences

But also the market reality shows:

• Demand for pan-European music licensing depends on the repertoire: from around 30 to 0 demand

• Although growing, the pan-European services have still not maturely captured the market

• Services prefer targeting their different audiences in different ways

Collective licensing of voluntarily aggregated repertoire is the recipe

for wider access to widest repertoire!

Collective licensing of voluntarily aggregated repertoire is the recipe

for wider access to widest repertoire!

Portability

• You can access your Spotify/Deezer/iTunes/etc accounts where ever you have internet.

• Those services clear rights for pan-European if not for world-wide

• Same for visual arts, for e-books, magazines and newspapers

• Cross-border portability of subscription services: joint statement by the audio-visual industry (L4E)

… build on continuous developments, rather than starting

over each time…

… build on continuous developments, rather than starting

over each time…

… have a closer look at what effects services to roll-out pan-European …… have a closer look at what effects services to roll-out pan-European …

• Business choices based on language, local marketing strategies focused on local interests, local advertising markets, return on investment, etc.;

• Problems related to cross-border internet/broadband connection and roaming when abroad;

• Lack of efficient cross-border electronic payment structures, especially for young people, combined with a lack of consumer trust in cross-border e-commerce.

• Labour law or tax-related problems for start-ups willing to extend cross-border

Statement B:

People want easier access to cultural and creative works for any type of use they want

demand is created by:demand is created by:

Businesses, start-ups, services

• Appropriate licensing that fits the purpose using the available rights to adapt

Individuals, non-profits, small-scale user

• Specific licensing schemes according to need:– Student parties– Background music on website– Community projects– Small businesses

• Specific licensing schemes for institutional uses– Cultural heritage– Museums– Schools and libraries– Europeana sounds

… you don’t need to weaken rights of creators to address the needs of market and society …… you don’t need to weaken rights of creators to address the needs of market and society …

• What matters is inclusive and convenient access

• Collective licensing for an easy & streamlined access with legal certainty

• Through cooperation, existing rules are flexible enough to address what the market and the society needs

“Creative destruction” is to change the channels to access but NOT to destroy the

creation of works

“take and deliver” approach without ensuring consent and remuneration is not an efficient

economic model, as it would destroy creation (supplier), as well as tax-paying and job-creating

legitimate businesses

Consent and remuneration of creators therefore IS NOT “chilling effect”

For creative destruction to create an efficient market, it needs to be beneficial both for developers of tech and creators of works

… so that, the society can be better off, as they’ll have wider and sustainable choice for quality at

affordable cost …

Collective management is key for access to creative works, as it

- facilitates consent with legal certainty

- according to actual need of the users and

- by remunerating creators

What are the challanges for a fair and balanced digital economy for creative

works?

we asked the creators…

#2: Maintain & promote fair remuneration for creators, in particular from new sources for private copying…

#2: Maintain & promote fair remuneration for creators, in particular from new sources for private copying…

A virtuous cycle worth preserving as stated by the European Parliament Report in 2014

(Castex Report)

- it is indeed !

#3: Re-balancing the transfer of value in digital economy

“Lead the debate on re-balancing value transfer from online intermediaries”*

* taken from “Creators and their authors’ societies call for a European Creative Agenda

for growth and jobs” to EU politicians

Any question, further info?

www.authorsocieties.euwww.meettheauthors.eu

secretariatgeneral@gesac.org