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    EUROPEAN PARLIAMENT

    2004

     

    2009

    Session document

    A6-0070/2009

    18.2.2009

    ***IREPORT

    on the proposal for a directive of the European Parliament and of the Councilamending Directive 2006/116/EC of the European Parliament and of theCouncil on the term of protection of copyright and related rights

    (COM(2008)0464 – C6-0281/2008 – 2008/0157(COD))

    Committee on Legal Affairs

    Rapporteur: Brian Crowley

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    PR_COD_1am

     Symbols for procedures

    * Consultation proceduremajority of the votes cast

    **I Cooperation procedure (first reading)majority of the votes cast

    **II Cooperation procedure (second reading)majority of the votes cast, to approve the common positionmajority of Parliament’s component Members, to reject or amend

    the common position

    *** Assent proceduremajority of Parliament’s component Members except in casescovered by Articles 105, 107, 161 and 300 of the EC Treaty and

     Article 7 of the EU Treaty

    ***I Codecision procedure (first reading)majority of the votes cast

    ***II Codecision procedure (second reading)

    majority of the votes cast, to approve the common positionmajority of Parliament’s component Members, to reject or amendthe common position

    ***III Codecision procedure (third reading)majority of the votes cast, to approve the joint text

    (The type of procedure depends on the legal basis proposed by theCommission.)

     Amendments to a legislative text

    In amendments by Parliament, amended text is highlighted in bold italics. Inthe case of amending acts, passages in an existing provision that theCommission has left unchanged, but that Parliament wishes to amend, arehighlighted in bold. Any deletions that Parliament wishes to make in

     passages of this kind are indicated thus: [...]. Highlighting in normal italics isan indication for the relevant departments showing parts of the legislativetext for which a correction is proposed, to assist preparation of the final text(for instance, obvious errors or omissions in a given language version).

    Suggested corrections of this kind are subject to the agreement of thedepartments concerned.

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    CONTENTS

    Page

    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION................................. 5

    EXPLANATORY STATEMENT............................................................................................ 19

    OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY............ 21

    OPINION OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMERPROTECTION......................................................................................................................... 38

    OPINION OF THE COMMITTEE ON CULTURE AND EDUCATION.............................. 48

    PROCEDURE .......................................................................................................................... 59

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    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

    on the proposal for a directive of the European Parliament and of the Council amending

    Directive 2006/116/EC of the European Parliament and of the Council on the term of

    protection of copyright and related rights

    (COM(2008)0464 – C6-0281/2008 – 2008/0157(COD))

    (Codecision procedure: first reading)

    The European Parliament ,

     – having regard to the Commission proposal to the European Parliament and the Council(COM(2008)0464),

     – having regard to Article 251(2) and Articles 47(2), 55 and 95 of the EC Treaty, pursuantto which the Commission submitted the proposal to Parliament (C6-0281/2008),

     – having regard to Rule 51 of its Rules of Procedure,

     – having regard to the report of the Committee on Legal Affairs and the opinions of theCommittee on Industry, Research and Energy, the Committee on the Internal Market andConsumer Protection and the Committee on Culture and Education (A6-0070/2009),

    1. Approves the Commission proposal as amended;

    2. Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

    3. Instructs its President to forward its position to the Council and the Commission.

    Amendment 1

    Proposal for a directive – amending act

    Recital 5

    Text proposed by the Commission Amendment

    (5) Performers generally start their careersyoung and the current term of protection of50 years with regard to performances fixed

    in phonograms and for phonograms oftendoes not protect their performances duringtheir entire lifetime. Therefore, performersface an income gap at the end of theirlifetimes. They are also often not able torely on their rights to prevent or restrictobjectionable uses of their performances

    (5) Performers generally start their careersyoung and the current term of protection of50 years with regard to the fixation of

     performances often does not protect their performances during their entire lifetime.Therefore, performers face an income gapat the end of their lifetimes. They are alsooften not able to rely on their rights to

     prevent or restrict objectionable uses oftheir performances that occur during their

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    that occur during their lifetimes. lifetimes.

     Justification

    The creative contribution of all performers should be recognised and reflected in the

    modification of the directive. To achieve this goal, the scope of the proposal should be

    extended so that audiovisual performers could also benefit from the extended term of protection; therefore the distinction between fixation of the performance in a phonogram or in

    another way is proposed to be deleted (linked to the amendment on Article 3 - paragraph 1 of

     Directive 2006/116/EC).

    Amendment 2

    Proposal for a directive – amending act

    Recital 5 a (new)

    Text proposed by the Commission Amendment

    (5a) The Commission should launch an

    impact assessment procedure in relation

    to the situation of the European

    audiovisual sector in order to consider

    the need for an extension of the term of

     protection of copyright to producers and

    broadcasters in the audiovisual sector;

    that procedure should be completed by 1

     January 2010 so that a proposal for a new

    directive may be presented before June

    2010.

    Amendment 3

    Proposal for a directive – amending act

    Recital 7 a (new)

    Text proposed by the Commission Amendment

    (7a) The Commission should ensure that

     performers and session musicians will not

    be obliged by contractual arrangements

    with any third parties, such as record

    companies, to transfer to those third

     parties the revenues that derive from the

    term of extension from 50 to 95 years.

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    Amendment 4

    Proposal for a directive – amending act

    Recital 8

    Text proposed by the Commission Amendment

    (8) Upon entering into a contractualrelationship with a phonogram producer,

     performers normally have to transfer to the phonogram producers their exclusive rightsof reproduction, distribution, rental andmaking available of fixations of their

     performances. In exchange, performers are paid an advance on royalties and enjoy payments only once the phonogram producer has recouped the initial advanceand made any contractually defined

    deductions. Performers who play in the background and do not appear in thecredits ("non-featured performers") usuallytransfer their exclusive rights against aone-off payment (non recurringremuneration).

    (8) Upon entering into a contractualrelationship with a phonogram producer,

     performers normally have to transfer to the phonogram producers their exclusive rightsof reproduction, distribution, rental andmaking available of fixations of their

     performances. In exchange, performers are paid an advance on royalties and enjoy payments only once the phonogram producer has recouped the initial advanceand made any contractually defined

    deductions. Performers who play in the background and do not appear in thecredits ("non-featured performers") as wellas some other performers who appear in

    the credits ("featured performers") usually transfer their exclusive rightsagainst a one-off payment (non recurringremuneration).

     Justification

    Some performers whose names appear in the credits “featured performers” transfer their

    exclusive rights against a one-off payment. These performers should also benefit from the supplementary remuneration.

    Amendment 5

    Proposal for a directive – amending act

    Recital 9

    Text proposed by the Commission Amendment

    (9) For the sake of legal certainty it

    should be provided that in the absence ofclear indications to the contrary, a

    contractual transfer or assignment ofrights in the fixation of the performanceconcluded before the date by which

     Member States are to adopt measures

    (9) Member States should remain free to

    adopt provisions on the interpretation,adaptation, termination and further

    execution of contracts governing the

    transfer or assignment of the rights of the  performer in the fixation of his

     performance to a phonogram producer

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    implementing the directive shall continue

    to produce its effects for the extended

    term.

    concluded before the extension of the

    term of protection resulting from this

     Directive.

     Justification

     It does not appear suitable that the proposed changes to Directive 2006/116/EC modify Member States' rules on the interpretation, adaptation, termination and further execution of

    contracts on the transfer or assignment of performers' rights to a phonogram producer.

    Therefore, national rules on how performers' rights are transferred, assigned and how the

    contracts on such assignments and transfers are terminated should govern the exercise of the

    'use it or lose it' clause as foreseen in Article 10a, paragraph 6.

    Amendment 6

    Proposal for a directive – amending act

    Recital 9 a (new)

    Text proposed by the Commission Amendment

    (9a) In order to ensure that performers,

    rather than record producers, benefit

     from the extended term of protection, this

     Directive should provide that any contract

    in force assigning any extension of the

    term of protection shall have no effect as

    regards the extension of the term of

     protection from 50 years to the lifetime of

    the performer .

     Justification

    This amendment is designed to ensure that the additional term actually benefit performers.

     Existing contractual arrangements must not therefore be treated as assigning the additional

    term to a phonogram producer. In order to avoid co-ordination problems with respect to the

    additional term, management of the rights is to be entrusted to collecting societies. This will

    require collecting societies to administer the reproduction and distribution rights in relation

    to fixations of performances for the extended term. Given that collecting societies will allow

     for any operator to exploit the performance, there will be no need for a 'use it or lose it

     provision'. Given that collecting societies will keep details of the performers whose

     performances are embodied on phonograms, concerns about lack of clarity as to when a work

     falls into the public domain can be avoided.

    Amendment 7

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    Proposal for a directive – amending act

    Recital 12

    Text proposed by the Commission Amendment

    (12) The first transitional accompanying

    measure should not entail adisproportionate administrative burden on

    small and medium sized phonogram

     producers. Therefore, Member States

    shall be free to exempt certain phonogram

     producers who are deemed small and

    medium by reason of the annual revenue

    achieved with the commercial

    exploitations of phonograms.

    deleted

     Justification

    Tous les artistes interprètes ou exécutants devraient profiter du fonds. Les recettes à verseraux artistes concernés en vertu de cette mesure transitoire sont proportionnelles aux recettes

    du producteur. Le versement sera donc moins important en cas de recette moindre du

     producteur.

    Amendment 8

    Proposal for a directive – amending act

    Recital 14 a (new) 

    Text proposed by the Commission Amendment

    (14a) In order to rebalance contracts

    whereby performers transfer their

    exclusive rights, on a royalty basis, to a

     phonogram producer, a further condition

    attached to term extension should be a

    'clean slate' for those performers who

    have assigned their above-mentioned

    exclusive rights to phonogram producers

    in return for royalties or remuneration. In

    order for performers to benefit fully fromthe extended term of protection, Member

     States should ensure that, under

    agreements between phonogram

     producers and performers, a royalty or

    remuneration rate unencumbered by

    advance payments or contractually

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    defined deductions is paid to performers

    during the extended period.

     Justification

    This provision is essential for performers to enjoy all the royalties due to them for the

    extended period, against a refusal by labels, on grounds that advance payments to the artistshave still not been recouped. Without this additional provision, the extension of the term of

     protection may ultimately only be beneficial to a minority of featured artists.

    Amendment 9

    Proposal for a directive – amending act

    Recital 14 b (new) 

    Text proposed by the Commission Amendment

    (14b) Likewise, in order to ensure that

     performers that transfer their exclusive

    rights in return for a recurring payment

    or remuneration to a producer benefit

     fully from the extended term of protection,

     Member States should ensure that the

    royalty or remuneration rate,

    unencumbered by deductions for advance

     payments or contractually defined

    deductions, is paid to performers during

    the extended period.

     Justification

    This provision is essential for performers to enjoy all the royalties due to them for the

    extended period, against a refusal by labels, on grounds that advance payments to the artists

    have still not been recouped. Without this additional provision, the extension of the term of

     protection may ultimately only be beneficial to a minority of featured artists.

    Amendment 10

    Proposal for a directive – amending actRecital 17

    Text proposed by the Commission Amendment

    (17) Since the objectives of the proposed (17) Since the objectives of the proposed

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    accompanying measures cannot besufficiently achieved by the MemberStates, as national measures in that fieldwould either lead to distortion of theconditions of competition or affect thescope of exclusive rights of the phonogram

     producer which are defined by Communitylegislation and can therefore, be betterachieved at Community level, theCommunity may adopt measures, inaccordance with the principle ofsubsidiarity as set out in Article 5 of theTreaty. In accordance with the principle of

     proportionality, as set out in that Article,this directive does not go beyond what isnecessary in order to achieve thoseobjectives.

    accompanying measures cannot besufficiently achieved by the MemberStates, as national measures in that fieldwould either lead to distortion of theconditions of competition or affect thescope of exclusive rights of the phonogram

     producer which are defined by Communitylegislation and can therefore, be betterachieved at Community level, theCommunity may adopt measures, inaccordance with the principle ofsubsidiarity as set out in Article 5 of theTreaty. In accordance with the principle of

     proportionality, as set out in that Article,this directive does not go beyond what isnecessary in order to achieve thoseobjectives. Among the accompanyingtransitional measures should also include

    the mandatory collective exercise of therights of performers and phonogram

     producers concerning on-demand services

    by broadcasters of their radio or television

     productions of which music from lawfully

     published phonograms is an integral part.

    This system of collective rights

    management complements the

    remuneration regime for the broadcasting

    of lawfully published phonograms under

     Article 8(2) of Directive 2006/115/EC and

     guarantees that, throughout the full term

    of protection of lawfully published

     phonograms, the relevant performers and

     phonogram producers receive a fair share

    of the remuneration also for the on-

    demand use of broadcast productions. 

     Justification

    The extension of the term of protection for performers and phonogram producers aggravates

    the administrative difficulties for radio and television broadcasters to clear the necessary on-

    demand rights for their productions, in particular their archives. The clearance of rights for

    the broadcasting of lawfully published phonograms is already subject to payment of equitableremuneration (Article 8(2) of the Rental and Lending Directive 2006/115/EC), which payment

    is shared between the relevant performers and phonogram producers. In order to achieve

    both efficient rights management, as encouraged by Recital 26 of the 2001 Copyright

    (InfoSoc) Directive, and a fair share for all right-holders also for the on-demand use of

    broadcast productions, it is therefore appropriate to complement this remuneration regime by

    a mandatory collective licensing scheme for such use.

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    Amendment 11

    Proposal for a directive – amending act

    Recital 19

    Text proposed by the Commission Amendment

    (19) Consequently, the harmonisation ofthe term of protection in musicalcompositions with words is incomplete,giving rise to impediments to the freemovement of goods and services, such ascross-border collective managementservices.

    (19) Consequently, the harmonization ofthe term of protection in musicalcompositions with words is incomplete,giving rise to impediments to the freemovement of goods and services, such ascross-border collective managementservices. In order to ensure the removal ofsuch impediments, all such works in

     protection as at the [date of entry into

     force of this Directive] should have thesame harmonised term of protection in all

     Member States. 

     Justification

    The purpose of the Commission proposal is to harmonise the provisions on co-written works

    in order to remove existing obstacles to the free movement of goods and services and

     facilitate multi-territorial licensing. The amendment seeks clarification that the provision

     should take effect as of the entry into force of the Directive in relation to all works still

     protected in the EU at that time.

    Amendment 12

    Proposal for a directive – amending act

    Recital 19 a (new)

    Text proposed by the Commission Amendment

    (19a) If necessary, Member States should

    ensure that the extension of the term of

     protection of performers' rights is

    accompanied by legislative provisions that

    offer protection to performers in the form

    of fair contractual terms in respect of

    transfer or assignment. 

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     Justification

    There is no need for harmonisation at EU-level on the terms of contact on transfer or

    assignment; however, the attention of the Member States should be drawn to the fact that

    usually session performers do not have a real negotiating power therefore the terms of such

    contracts are usually one-sided.

    Amendment 13

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 2

    Text proposed by the Commission Amendment

    2. Paragraphs 3 to 6 of this article shallapply to contracts on transfer orassignment which continue to produce theireffects beyond the moment at which, byvirtue of Article 3 (1) and (2) in theirversion before amendment by Directive [//insert: Nr. of this amending directive]/EC,the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram.

    2. Paragraphs 3 to 7 of this Article shallapply to contracts on transfer orassignment which continue to produce theireffects beyond the moment at which, byvirtue of Article 3 (1) and (2) in theirversion before amendment by Directive [//insert: Nr. of this amending directive]/EC,the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram.

     Justification

    This provision is essential for performers to enjoy all the royalties due to them for the

    extended period, against a refusal by labels, on grounds that advance payments to the artists

    have still not been recouped. Without this additional provision, the extension of the term of

     protection may ultimately only be beneficial to a minority of featured artists.

    Amendment 14

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 4 – subparagraph 2

    Text proposed by the Commission Amendment

     Member States may provide that a

     phonogram producer whose total annual

    deleted

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    revenue, during the year preceding that

     for which the said remuneration is paid,

    does not exceed a minimum threshold of €

    2 million, shall not be obliged to dedicate

    at least 20 percent of the revenues which

    he has derived, during the year preceding

    that for which the said remuneration is paid, from the reproduction, distribution

    and making available of those

     phonograms in regard of which, by virtue

    of Article 3 (1) and (2) in their version

    before amendment by Directive [// insert:

     Nr. of this amending directive]/EC, the

     performer and the phonogram producer

    would be no longer protected on 31

     December of the said year.

     Justification

    Tous les artistes interprètes ou exécutants devraient profiter du fonds. Les recettes à verser

    aux artistes concernés en vertu de cette mesure transitoire sont proportionnelles aux recettes

    du producteur. Le versement sera donc moins important en cas de recette moindre du

     producteur. 

    Amendment 15

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 5

    Text proposed by the Commission Amendment

    5. Member States may regulate whetherand to what extent administration by

    collecting societies of  the right to obtain anannual supplementary remunerationreferred to in paragraph 3 may be imposed .

    5. Member States shall ensure that  theright to obtain an annual supplementaryremuneration referred to in paragraph 3 isadministered by the collecting society.

    With respect to the administration of

    rights concerning the on-demand services

    by broadcasters of their radio or television

     productions incorporating music from

    lawfully published phonograms, Member States shall ensure that the rights of

     performers and phonogram producers to

     grant or refuse authorisation for such use

    may be exercised only through the

    collecting society which has been

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    established for collecting and distributing

    the remuneration for broadcasting such

     phonograms. 

     Justification

     For the sake of simplifying the administrative procedures, the collecting societies should beentrusted with the administration of the annual supplementary remuneration. (Linked to

    amendment on Recital 13.).

    The extension of the term of protection for performers and phonogram producers aggravates

    the administrative difficulties for radio and television broadcasters to clear the necessary on-

    demand rights for their productions, in particular their archives. The clearance of rights for

    the broadcasting of lawfully published phonograms is already subject to payment of equitable

    remuneration (Article 8(2) of the Rental and Lending Directive 2006/115/EC), which payment

    is shared between the relevant performers and phonogram producers. In order to achieve

    both efficient rights management, as encouraged by Recital 26 of the 2001 Copyright

    (InfoSoc) Directive, and a fair share for all right-holders also for the on-demand use of

    broadcast productions, it is therefore appropriate to complement this remuneration regime bya mandatory collective licensing scheme for such use.

    Amendment 16

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 5 a (new)

    Text proposed by the Commission Amendment

    5a. Collecting societies shall distribute

    those remunerations on an individual

    basis and taking into account the use of

    each performer’s performances. 

     Justification

     It is essential that collecting societies distribute in the most precise way and on individual

    basis the remuneration collected on behalf of performers.

    Amendment 17

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 6 – subparagraph 1

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    Text proposed by the Commission Amendment

    6. If, after the moment at which, by virtueof Article 3 (1) and (2) in their version

     before amendment by Directive [// insert:

     Nr. of this amending directive]/EC, the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram, the phonogram producer ceases to offer copiesof the phonogram for sale in sufficientquantity or to make it available to the

     public, by wire or wireless means, in sucha way that members of the public mayaccess them from a place and at a timeindividually chosen by them, the performer

    may terminate the contract on transfer orassignment. Where a phonogram containsthe fixation of the performances of a

     plurality of performers, they may terminatetheir contracts on transfer or assignmentonly jointly. If the contract on transfer orassignment is terminated pursuant tosentences 1 or 2, the rights of the

     phonogram producer in the phonogramshall expire.

    6. If, after the moment at which, by virtueof Article 3 (1) and (2) in their version

     before amendment by Directive [// insert:

     Nr. of this amending directive]/EC, the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram, the phonogram producer ceases to offer copiesof the phonogram for sale in sufficientquantity or to make it available to the

     public, by wire or wireless means, in sucha way that members of the public mayaccess them from a place and at a timeindividually chosen by them, the performer

    may terminate the contract on transfer orassignment. Where a phonogram containsthe fixation of the performances of a

     plurality of performers, they may terminatetheir contracts on transfer or assignment inaccordance with the applicable national

    laws. If the contract on transfer orassignment is terminated pursuant tosentences 1 or 2, the rights of the

     phonogram producer in the phonogramshall expire.

     Justification

    The obligation for performers to act jointly is not realistic.

    Amendment 18

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 6 – subparagraph 2

    Text proposed by the Commission Amendment

    If, one year  after the moment at which, byvirtue of Article 3 (1) and (2) in theirversion before amendment by Directive [//insert: Nr. of this amending directive]/EC,

    If, five years after the moment at which, byvirtue of Article 3 (1) and (2) in theirversion before amendment by Directive [//insert: Nr. of this amending directive]/EC,

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    the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram, the phonogram is not made available to the public, by wire or wireless means, in such

    a way that members of the public mayaccess them from a place and at a timeindividually chosen by them, the rights ofthe phonogram producer in the phonogramand the rights of the performers in relationto the fixation of their performance shallexpire.

    the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram, the phonogram is not made available to the public, by wire or wireless means, in such

    a way that members of the public mayaccess them from a place and at a timeindividually chosen by them, the rights ofthe phonogram producer in the phonogramand the rights of the performers in relationto the fixation of their performance shallexpire.

     Justification

    Tough the introduction of the ‘use it or loose it’ clause is welcome, it should be made more

     flexible. If the rights are reverted to the performer, this performer should be given a fair

    chance to have his performance exploited before loosing again the rights. Therefore a morereasonable period of time, 5 years, should be given to the performers to make the new

    exploitation possibility feasible.

    Amendment 19

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 6 a (new)

    Text proposed by the Commission Amendment

    6a. Where a performer is entitled

    to recurring payments, neither advance

     payments nor any contractually agreed

    deductions shall be deducted from the

     payments to the performer after the

    moment at which, by virtue of Article 3(1)

    before amendment by Directive [insert the

    number of this amending directive]/EC,

    the performer would be no longer

     protected. 

     Justification

    This provision is essential for performers to enjoy all the royalties due to them for the

    extended period, against a refusal by labels, on grounds that advance payments to the artists

    have still not been recouped. Without this additional provision, the extension of the term of

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     protection may ultimately only be beneficial to a minority of featured artists.

    Amendment 20

    Proposal for a directive – amending act

    Article 2 a (new)

    Text proposed by the Commission Amendment

     Article 2a

     No later than ... *, and every four years

    thereafter, the Commission shall submit

    to the European Parliament, the Council

    and the European Economic and Social

    Committee a report on the application and

    effects of this Directive in which interalia, on the basis of specific information

    supplied by the Member States,

    consideration is given to the effectiveness

    of the measures taken, when this Directive

    was revised, in the light of the objectives

     pursued. The Commission shall examine

    in particular whether extension of the

    duration of rights has had a positive effect

    on the social situation of performers and

    on musical output and whether additional

    measures appear appropriate in order to

    attain those objectives. * Three years after the deadline for transposition

    of this Directive.

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    EXPLANATORY STATEMENT

    The rapporteur supports the Commission proposal which aims to improve the social situationof performers, and in particular sessions musicians, taking into account that performers areincreasingly outliving the existing 50 year period of protection for their performances. 

    The main proposal of Directive involve extending the term of protection for performers and phonogram producers countries from 50 to 95 years but they also provide for severalaccompanying measures such as establishing a fund for session musicians and introducing“use it or lose it” clauses in contracts between performers and phonogram producers.Legally, the proposals involve amending Directive 2006/116/EC of 12 December 2006 on theterm of protection of copyright and certain related rights. That Directive codified andsuperseded the earlier Directive 93/98/EEC on the term of protection of copyright and certainrelated rights (often referred to as the “Term Directive”) without making substantive changes.

    The intention of the proposals is to benefit both performers and record producers.The extended term would benefit performers who could continue earning money over an

    additional period. A 95-year term would bridge the income gap that performers face whenthey turn 70, just as their early performances recorded in their 20s would lose protection.They would continue to be eligible for broadcast remuneration, remuneration for

     performances in public places, such as bars and discotheques, and compensation payments for private copying of their performances.The extended term would also benefit the record producers. It would generate additionalrevenue from the sale of records in shops and on the Internet.The proposals also put forward a uniform way of calculating the term of protection, when itconcerns a musical composition, containing the contributions of several authors as music isoverwhelmingly co-written; EU-wide, the term of protection of a musical composition wouldexpire 70 years after the death of the last surviving author, be it the author of the lyrics or thecomposer of the music.

    Commission’s proposal to apply a uniform method of calculating the term of protection ofmusical compositions with lyrics whereby, when a musical composition is published withlyrics, the term of protection will be calculated from the death of the last surviving person: theauthor of the lyrics or the composer of the music.

    The current differences in term of protection, particularly between Europe and the US, causelegal uncertainty and piracy especially in the digital environment where there are no

     boundaries and the works can be used at the same moment in different countries. It is anundeniable fact that different terms of protection could help to develop the piracy:

     performances that have fallen into the public domain in one country can be distributed online

    from there to other countries where they are still protected. Finally, Europe is able to protectits artists, one the most important expression of its cultural diversity.

    Equalising term of protection with the U.S. would be an excellent opportunity for Europeeconomy to further the progress of the EU Lisbon Strategy for growth and jobs, whichrecognised the particular importance of promoting the creative industries. At a time when

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    creative industries based on intellectual property are generating an increasing percentage ofGDP in the EU, the current disparity between the term of protection in the EU and the USclearly puts European record companies and performers at a competitive disadvantage.If the European recording industry is to be truly competitive in the global marketplace, the EUneeds to close the gap by equalising term of protection at 95 years to provide a level playingfield with Europe’s main trading partner. A shorter period of time would not achieve this.

    Furthermore, the current increase of the life expectancy of the population during the last yearsmakes the extension of the protection of performers’ rights even more essential for the artistsconcerned. Unfortunately, many performers know popularity and success especially whenthey are young so it is essential that they receive the right economic reward when they are oldevery time their work is communicated to the public.Besides, an extended term would encourage cultural diversity: with an unchanged term, old

     performances gradually loosing copyright protection would inevitably be favoured to thedetriment of contemporary creations. Furthermore, the latter would inevitably seek to pleasethose markets where protection is longer, ignoring the call for local, diversified, content.Finally, it must also be understood that the lack of proper status makes it extremely difficultfor performers in Europe to make a living from their creations, regardless of the size of their

    contribution to the economy of culture in EU. The vast majority of performers has very littleaccess to social security, unemployment compensation or health and safety protection and isgenerally confronted with widespread unfair contractual practices. In this context, the incomegenerated by the intellectual property rights represents a vital source of income for

     performers.

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    16.12.2008

    OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY

    for the Committee on Legal Affairs

    on the proposal for a directive of the European Parliament and of the Council amendingDirective 2006/116/EC of the European Parliament and of the Council on the term of

     protection of copyright and related rights(COM(2008)0464 – C6-0281/2008 – 2008/0157(COD))

    Rapporteur: Erna Hennicot-Schoepges

    SHORT JUSTIFICATION

    The draftswoman welcomes the proposal by the Commission on extending the term of protectionof related rights and creating additional transitory safeguard measures. The proposal recognisesthe importance of performers’ creative and artistic contribution which needs to be properlyreflected upon in the term of protection.

    The draftswoman, however, is of the opinion that, in order to better achieve those objectives, the proposal could be further amended to take into account the economic and social reality andrecent technological developments; and therefore proposes a set of amendments along thefollowing main lines:

    (i)  extension of the scope by including audiovisual performers;(ii)

     

    deletion of the exemption for small recorders from contributing to the fund set aside forsession musicians;

    (iii) simplification of the administration of this fund;(iv)

     

    more flexibility for the ‘use it or loose it’ clause;(v) further assessment of the making available on-line.

    (i) Extension of the scope by including audiovisual performers

    The creative contribution of all performers should be recognised and reflected in themodification of the directive. To achieve this goal, the scope of the proposal should beextended so that audiovisual performers could also benefit from the extended term of

     protection; therefore the distinction between fixation of the performance in a phonogram or in

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    another way is proposed to be deleted. Also, the same starting dates from which the durationof protection is calculated for performers’ rights and for producers’ rights should apply (asforeseen under Article 3, paragraph 2). (Related amendments: Amendment 1 of the draftopinion on Recital 5; Amendment 2 of the draft opinion on Recital 7; and Amendment 10 ofthe draft opinion on Article 3, paragraph 1 of Directive 2006/116/EC.)

    (ii) Deletion of the exemption for small recorders from contributing to the fund set aside forsession musicians 

    The Commission proposed an exemption for small record producers from setting aside at least20 percent of revenues in order to contribute to the fund created for session musicians. Suchexemption would create an unfair situation for the performers and would not strike a fair

     balance between the interest of performers and of small producers. In addition, larger record producers might also try to avoid paying supplementary remuneration by signing licensingcontracts with smaller phonogram producers. Therefore this exemption is proposed to bedeleted. (Related amendments: Amendment 4 of the draft opinion on Recital 12; andAmendment 12 of the draft opinion on Article 10 a (new), paragraph 4, subparagraph 2 ofDirective 2006/116/EC.)

    (iii) Simplification of the administration of the above fund

    In order to simplify the administrative procedures, the collecting societies should be entrustedwith the administration of the above fund. (Related amendments: Amendment 5 of the draftopinion on Recital 13; Amendment 6 of the draft opinion on Recital 14 a (new); andAmendment 13 of the draft opinion on Article 10 a (new), paragraph 5 of Directive2006/116/EC.)

    (iv) More flexibility for the ‘use it or loose it’ clause

    Though the introduction of the ‘use it or loose it’ clause is welcome, it should be made moreflexible. If the rights are reverted to the performer, this performer should be given a fairchance to have his performance exploited before loosing again the rights. Therefore a morereasonable period of time, 5 years, should be given to the performers to make the newexploitation possibility feasible. (Related amendment: Amendment 14 of the draft opinion onArticle 10 a (new), paragraph 6, subparagraph 2.)

    (v) Further assessment of on-line making available

    With the increase of use of and demand for on-line services, the making available of performances on-line should be studied in more detail. The Commission should beencouraged to evaluate the current legal and economic situation and assess further the impacts

    of this option. In the frame of such assessment particular attention should be given to the practical administration of the claim for equitable remuneration paid for the performers (suchas how to quantify the financial benefits; and who should pay this remuneration); rules andobligations stemming from the relevant international conventions should also be carefullyconsidered. (Related amendment: Amendment 9 on Recital 19 c (new)).

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    AMENDMENTS

    The Committee on Industry, Research and Energy calls on the Committee on Legal Affairs, asthe committee responsible, to incorporate the following amendments in its report:

    Amendment 1

    Proposal for a directive – amending act

    Recital 9

    Text proposed by the Commission Amendment

    (9) For the sake of legal certainty itshould be provided that in the absence of

    clear indications to the contrary, a

    contractual transfer or assignment of

    rights in the fixation of the performance

    concluded before the date by which

     Member States are to adopt measures

    implementing the directive shall continue

    to produce its effects for the extended

    term. 

    (9) In order to ensure that performers,rather than record producers, benefit

     from the extended term of protection, this

     Directive should provide that any contract

    in force assigning any extension of the

    term of protection shall have no effect as

    regards the extended protection term from

    50 years to the lifetime of the performer. 

     Justification

    This amendment is designed to ensure that the additional term actually benefit performers.

     Existing contractual arrangements must not therefore be treated as assigning the additional

    term to a phonogram producer. In order to avoid co-ordination problems with respect to the

    additional term, management of the rights is to be entrusted to collecting societies. This willrequire collecting societies to administer the reproduction and distribution rights in relation

    to fixations of performances for the extended term. Given that collecting societies will allow

     for any operator to exploit the performance, there will be no need for a 'use it or lose it

     provision'. Given that collecting societies will keep details of the performers whose

     performances are embodied on phonograms, concerns about lack of clarity as to when a work

     falls into the public domain can be avoided.

    Amendment 2

    Proposal for a directive – amending act

    Recital 12

    Text proposed by the Commission Amendment

    (12) The first transitional accompanying

    measure should not entail a

    disproportionate administrative burden on

    deleted

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    small and medium sized phonogram

     producers. Therefore, Member States

    shall be free to exempt certain phonogram

     producers who are deemed small and

    medium by reason of the annual revenue

    achieved with the commercial

    exploitations of phonograms.

     Justification

    The proposed exception creates an unfair situation for the performers and does not strike a

     fair balance of between the interest of performers and of small producers. In addition, larger

    record companies might also try to avoid paying supplementary remuneration by signing

    licensing contracts with smaller phonogram producers. (Linked to the amendment on Article

    10 a (new), paragraph 4, subparagraph 2 of Directive 2006/116/EC.)

    Amendment 3

    Proposal for a directive – amending act

    Recital 13

    Text proposed by the Commission Amendment

    (13) Those monies should be reservedsolely for the benefit of performers whose

     performances are fixed in a phonogram andwho have transferred their rights to the

     phonogram producer against a one-off payment. The monies set aside in this

    manner should be distributed to non-featured performers at least once a year onan individual basis. Member States mayrequire that distribution of those monies isentrusted to collecting societiesrepresenting performers. When thedistribution of those monies is entrusted

    to collecting societies, national rules on

    non-distributable revenues may be

    applied. 

    (13) Those monies should be reservedsolely for the benefit of performers whose

     performances are fixed in a phonogram andwho have transferred their rights to the

     phonogram producer against a one-off payment. The monies set aside in this

    manner should be distributed to non-featured performers at least once a year onan individual basis. Member States mayrequire that distribution of those monies isentrusted to collecting societiesrepresenting performers.

     Justification

    The administration of those monies should be entrusted to collecting societies in order for the

     said monies to be effectively assigned to the beneficiaries indicated in the original proposal of

    the European Commission, i.e. session musicians.

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    Amendment 4

    Proposal for a directive – amending act

    Recital 14 a (new)

    Text proposed by the Commission Amendment

    (14a) Part of the first accompanying

    transitional measure should be the

    mandatory collective exercise of the rights

    of performers and phonogram producers

    concerning on-demand services by

    broadcasters of their radio or television

     productions of which music from lawfully

     published phonograms is an integral part.

    The system of collective rights

    management complements the

    remuneration regime for the broadcasting

    of lawfully published phonograms under Article 8(2) of Directive 2006/115/EC and

     guarantees that, throughout the full term

    of protection of lawfully published

     programmes, the relevant performers and

     phonogram producers also receive a fair

    share of the remuneration for the on-

    demand use of broadcast production. 

     Justification

     For the sake of simplifying the administrative procedures for, among others, radio and

    television broadcasters to clear the necessary on-demand rights for their productions, thecollecting societies should be entrusted with the administration of the annual supplementary

    remuneration. (Linked to amendment on Article 10 a (new), paragraph 5 of Directive

    2006/116/EC.)

    Amendment 5

    Proposal for a directive – amending act

    Recital 14 b (new)

    Text proposed by the Commission Amendment

    (14b) This Directive should provide for

    the re-assessment of the legal protection

    of performers. The digital environment

     provides new possibilities for exploitation

    of protected content, which should benefit

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    all rights holders. To achieve that goal,

    impact assessments should be conducted

    at the Community level and by Member

     States in order to estimate how the legal

     protection of performers should be

    improved, notably with the introduction of

    an exclusive right of making available tothe public to the benefit of performers, for

    the exploitation of their performances in

    such a way that members of the public

    may access them from a place and at a

    time individually chosen by them (i.e. on-

    demand services). In the framework of

    such assessments, particular attention

    should be given to the practical

    administration of claims for equitable

    remuneration for performers (such as

    quantification of financial benefits; and

    responsibility for remuneration). Rulesand obligations laid down in the relevant

    international conventions should also be

    carefully considered.

    Amendment 6

    Proposal for a directive – amending act

    Recital 14 c (new)

    Text proposed by the Commission Amendment

    (14c) In order to rebalance contracts

    under which performers transfer their

    exclusive rights, on a royalty basis, to a

     phonogram producer, a further condition

    attached to term extension should be a

    'clean slate' for those performers who

    have assigned those rights to phonogram

     producers in return for royalties or

    remuneration. In order for performers to

    benefit fully from the extended term of

     protection, Member States should ensurethat, under agreements between

     phonogram producers and performers, a

    royalty unencumbered by advance

     payments or contractually defined

    deductions is paid to performers during

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    the extended period. 

     Justification

    This provision is essential for performers to enjoy all the royalties due to them for the

    extended period, against a refusal by labels, on grounds that advance payments to the artists

    have still not been recouped. Without this additional provision, the extension of the term of protection may ultimately only be beneficial to a minority of featured artists.

    Amendment 7

    Proposal for a directive – amending act

    Recital 19 a (new)

    Text proposed by the Commission Amendment

    (19a) If necessary, Member States should

    ensure that the extension of the term of protection of performers' rights is

    accompanied by legislative provisions that

    offer protection to performers for fair

    contractual terms on transfer or

    assignment.

    Amendment 8

    Proposal for a directive – amending act

    Article 1 – point 1

    Directive 2006/116/ECArticle 3 – paragraph 1 − sentence 2

    Text proposed by the Commission Amendment

    (1) The second sentence of Article 3(1) isreplaced by the following:

    (1) At the end of Article 3(1) the followingsentence shall be added:

    "However, "However, if at the end of this period, a

     performer is alive, the rights of that

     performer shall continue to be protected

    in the performer's lifetime." 

    - if a fixation of the performance

    otherwise than in a phonograph is

    lawfully published or lawfully

    communicated to the public within this

     period, the rights shall expire 50 years

     from the date of the first such publication

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    or the first such communication to the

     public, whichever is the earlier,

    - if a fixation of the performance in a

     phonograph is lawfully published or

    lawfully communicated to the public

    within this period, the rights shall expire

    95 years from the date of the first such

     publication or the first such

    communication to the public, whichever is

    the earlier.

     Justification

    The extension should apply to performers only, and only until they die. This proposal mirrors

    the current Greek law, which has not been harmonized. The Commission has indicated that it

    has declined to bring enforcement proceedings against Greece, because it regards the Greek

     provision as preferable to the current harmonized law. No extension is justified for

     phonogram producers, a 50 year fixed term being more than sufficient time in which torecoup any investment.

    Amendment 9

    Proposal for a directive – amending act

    Article 1 – point 2

    Directive 2006/116/ECArticle 3 – paragraph 2 − sentences 2 and 3

    Text proposed by the Commission Amendment

    (2) In the second and third sentence of

     Article 3(2) the cipher "50" is replaced by

    the cipher "95" 

    deleted  

     Justification

     In order to ensure that phonograms are exploited during the fifty year term of protection for

    the benefit of performers, an additional qualification is added to the rights of phonogram

     producers. Where a published phonogram ceases to be available to the public for a period of

    three years, the performers shall be entitled to reclaim both the rights in the performances

    embodied and the rights in the phonograms (without which it would not be possible to exploit

    the former rights). Where all performers act in concert, these rights vest in the performers,which will enable them either to enter into a new exploitation contract, to make the fixation

    available or to place the fixation in the public domain. Where the performers are unable or

    unwilling to act in concert, the rights must be vested in a collecting society, which will

    distribute revenues to the various performers equitably.

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    Amendment 10

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 1

    Text proposed by the Commission Amendment

    1. In the absence of clear indications tothe contrary, a contract, concluded before[insert date before which Member Statesare to transpose the amending directive, asmentioned in Article 2 below], whereby a

     performer has transferred or assigned hisrights in the fixation of his performance toa phonogram producer (hereinafter: a"contract on transfer or assignment"), shall

     be deemed to continue to produce itseffects beyond the moment at which, byvirtue of Article 3 (1) and (2) in theirversion before amendment by Directive [//insert: Nr. of this amending directive], the

     performer  and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram.

    1. A contract, concluded before [insert date before which Member States are totranspose the amending directive, asmentioned in Article 2 below], whereby a

     performer has transferred or assigned hisrights other than to a collecting society inthe fixation of his performance to a

     phonogram producer (hereinafter: a"contract of transfer or assignment"), shall

     be deemed not to produce any effect beyond the moment at which, by virtue of Article 3 (1) in their version beforeamendment by Directive [// insert: Nr. ofthis amending directive], the performer  would be no longer protected in regard of,respectively, the fixation of the

     performance.

     Justification

    This amendment is designed to ensure that the additional term actually benefit performers. Existing contractual arrangements must not therefore be treated as assigning the additional

    term to a phonogram producer. In order to avoid co-ordination problems with respect to the

    additional term, management of the rights is to be entrusted to collecting societies. This will

    require collecting societies to administer the reproduction and distribution rights in relation

    to fixations of performances for the extended term. Given that collecting societies will allow

     for any operator to exploit the performance, there will be no need for a 'use it or lose it

     provision'. Given that collecting societies will keep details of the performers whose

     performances are embodied on phonograms, concerns about lack of clarity as to when a work

     falls into the public domain can be avoided.

    Amendment 11

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 2

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    Text proposed by the Commission Amendment

    2. Paragraphs 3 to 6 of this article shallapply to contracts on transfer or

    assignment which continue to produce

    their effects beyond the moment at which,by virtue of Article 3 (1) and (2) in their

    version before amendment by Directive [//

    insert: Nr. of this amending directive]/EC,

    the performer and the phonogram

     producer would be no longer protected in

    regard of, respectively, the fixation of the

     performance and the phonogram. 

    2. Where a performer has not transferredthe management of his rights to a

    collecting society as regards the additional

    term of protection that is conferred as aresult of this Directive, the collecting

    society which manages rights of the same

    category shall be deemed to be mandated

    to manage his rights. The performer shall

    retain his moral rights.

     Justification

    This amendment is designed to ensure that the additional term actually benefit performers.

     Existing contractual arrangements must not therefore be treated as assigning the additionalterm to a phonogram producer. In order to avoid co-ordination problems with respect to the

    additional term, management of the rights is to be entrusted to collecting societies. This will

    require collecting societies to administer the reproduction and distribution rights in relation

    to fixations of performances for the extended term. Given that collecting societies will allow

     for any operator to exploit the performance, there will be no need for a 'use it or lose it

     provision'. Given that collecting societies will keep details of the performers whose

     performances are embodied on phonograms, concerns about lack of clarity as to when a work

     falls into the public domain can be avoided.

    Amendment 12

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 2 a (new)

    Text proposed by the Commission Amendment

    2a. Where a performer has transferred his

    exclusive rights for a recurring payment,

    no advance payments nor contractually

    defined deductions shall be deducted from

    the recurring payment due to the performer. 

    Amendment 13

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    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 3

    Text proposed by the Commission Amendment

    3. Where a contract on transfer orassignment gives the performer a right to

    claim a non recurring remuneration, the

     performer shall have the right to obtain

    an annual supplementary remuneration

     from the phonogram producer for each

     full year in which, by virtue of Article 3

    (1) and (2) in its version before

    amendment by Directive [// insert: Nr. of

    this amending directive]/EC, the

     performer and the phonogram producer

    would be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram. 

    3. The collecting society shall distributethe revenues received from the

    exploitation of phonograms equitably, and

    in such a manner as to reflect the nature

    and extent of the contribution of each

     performer whose protected performance is

    embodied in a phonogram. 

     Justification

    This amendment is designed to ensure that the additional term actually benefit performers.

     Existing contractual arrangements must not therefore be treated as assigning the additional

    term to a phonogram producer. In order to avoid co-ordination problems with respect to the

    additional term, management of the rights is to be entrusted to collecting societies. This will

    require collecting societies to administer the reproduction and distribution rights in relation

    to fixations of performances for the extended term. Given that collecting societies will allow

     for any operator to exploit the performance, there will be no need for a 'use it or lose it

     provision'. Given that collecting societies will keep details of the performers whose

     performances are embodied on phonograms, concerns about lack of clarity as to when a work

     falls into the public domain can be avoided.

    Amendment 14

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10 a – paragraph 4 – subparagraph 2

    Text proposed by the Commission Amendment

     Member States may provide that a

     phonogram producer whose total annual

    revenue, during the year preceding that

    deleted

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     for which the said remuneration is paid,

    does not exceed a minimum threshold of €

    2 million, shall not be obliged to dedicate

    at least 20 percent of the revenues which

    he has derived, during the year preceding

    that for which the said remuneration is

     paid, from the reproduction, distributionand making available of those

     phonograms in regard of which, by virtue

    of Article 3 (1) and (2) in their version

    before amendment by Directive [// insert:

     Nr. of this amending directive]/EC, the

     performer and the phonogram producer

    would be no longer protected on 31

     December of the said year.

     Justification

    The proposed exception creates an unfair situation for the performers and does not strike a fair balance of between the interest of performers and of small producers. In addition, larger

    record companies might also try to avoid paying supplementary remuneration by signing

    licensing contracts with smaller phonogram producers. (Linked to the amendment on Recital

    12.)

    Amendment 15

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/EC

    Article 10a – paragraph 5

    Text proposed by the Commission Amendment

    5. Member States may regulate whetherand to what extent administration by

    collecting societies of  the right to obtain anannual supplementary remunerationreferred to in paragraph 3 may be imposed .

    5. Member States shall ensure that  theright to obtain an annual supplementaryremuneration referred to in paragraph 3 isadministered by the collecting society.

     Justification

     For the sake of simplifying the administrative procedures, the collecting societies should be

    entrusted with the administration of the annual supplementary remuneration. (Linked to

    amendment on Recital 13.)

    Amendment 16

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    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 5 a (new)

    Text proposed by the Commission Amendment

    5a. With respect to the exercise of rights

    concerning on-demand services by

    broadcasters relating to their radio or

    television productions incorporating

    music from lawfully published

     phonograms, Member States shall ensure

    that the rights of performers and

     phonogram producers to grant or refuse

    authorisation for such use shall be

    exercised solely through the collecting

    society which has been established for

    collecting and distributing theremuneration for broadcasting such

     phonograms. 

     Justification

     Although it is possible for the rights of copyright holders to fair remuneration to be cleared

    through the relevant collecting society, there is no corresponding legal obligation in relation

    to the associated rights of performers.

    The proposed provision would make it easier for broadcasters to clear the relevant rights,

    ensure the rightholders received fair remuneration and allow Europe's citizens access to

    culturally, historically and politically important material from broadcasters' archives.

    Amendment 17

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 6 – subparagraph 1

    Text proposed by the Commission Amendment

    6. If, after the moment at which, by virtueof Article 3 (1) and (2) in their version

     before amendment by Directive [// insert: Nr. of this amending directive]/EC, the performer and the phonogram producerwould be no longer protected in regard of,

    6. If, after the moment at which, by virtueof Article 3 (1) and (2) in their version

     before amendment by Directive [// insert: Nr. of this amending directive]/EC, the performer and the phonogram producerwould be no longer protected in regard of,

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    respectively, the fixation of the performance and the phonogram, the phonogram producer ceases to offer copiesof the phonogram for sale in sufficientquantity or to make it available to the

     public, by wire or wireless means, in such

    a way that members of the public mayaccess them from a place ant at a timeindividually chosen by them, the performermay terminate the contract on transfer orassignment. Where a phonogram containsthe fixation of the performances of a

     plurality of performers, they may terminatetheir contracts on transfer or assignmentonly jointly. If the contract on transfer orassignment is terminated pursuant tosentences 1 or 2, the rights of the

     phonogram producer in the phonogram

    shall expire.

    respectively, the fixation of the performance and the phonogram, the phonogram producer ceases to offer copiesof the phonogram for sale in sufficientquantity or to make it available to the

     public, by wire or wireless means, in such

    a way that members of the public mayaccess them from a place and at a timeindividually chosen by them, the performermay terminate the contract on transfer orassignment. Where a phonogram containsthe fixation of the performances of a

     plurality of performers, they may terminatetheir contracts on transfer or assignment 

     jointly or individually in accordance withthe applicable national laws. If thecontract on transfer or assignment isterminated pursuant to sentences 1 or 2, the

    rights of the phonogram producer in the phonogram shall expire.

    Amendment 18

    Proposal for a directive – amending act

    Article 1 – point 4

    Directive 2006/116/ECArticle 10a – paragraph 6 – subparagraph 2

    Text proposed by the Commission Amendment

    If, one year  after the moment at which, byvirtue of Article 3 (1) and (2) in theirversion before amendment by Directive [//insert: Nr. of this amending directive]/EC,the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram, the phonogram is not made available to the public, by wire or wireless means, in such

    a way that members of the public mayaccess them from a place and at a timeindividually chosen by them, the rights ofthe phonogram producer in the phonogramand the rights of the performers in relationto the fixation of their performance shall

    If, five  years after the moment at which, byvirtue of Article 3 (1) and (2) in theirversion before amendment by Directive [//insert: Nr. of this amending directive]/EC,the performer and the phonogram producerwould be no longer protected in regard of,respectively, the fixation of the

     performance and the phonogram, the phonogram is not made available to the public, by wire or wireless means, in such

    a way that members of the public mayaccess them from a place and at a timeindividually chosen by them, the rights ofthe phonogram producer in the phonogramand the rights of the performers in relationto the fixation of their performance shall

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    expire. expire.

     Justification

    Tough the introduction of the ‘use it or loose it’ clause is welcome, it should be made more

     flexible. If the rights are reverted to the performer, this performer should be given a fair

    chance to have his performance exploited before loosing again the rights. Therefore a morereasonable period of time, 5 years, should be given to the performers to make the new

    exploitation possibility feasible.

    Amendment 19

    Proposal for a directive – amending act

    Article 1 – point 4 a (new)

    Directive 2006/116/ECArticle 10a a (new)

    Text proposed by the Commission Amendment

    (4a) The following Article shall be

    inserted:

    "Article 10aa

    Where a performer has transferred or

    assigned the exclusive right to authorise

    or prohibit the making available to the

     public, by wire or wireless means, in such

    a way that members of the public may

    access them from a place and at a time

    individually chosen by them, of the fixation of his performance, that

     performer shall retain the right to obtain

    an equitable remuneration to be paid by

    the user for the making available to the

     public of his fixed performance. 

    The right of the performer to obtain an

    equitable remuneration for the making

    available to the public of his performance

    cannot be waived.

    This remuneration is collected and

    administered by a performers’ collectingsociety."

     Justification

     A remuneration to the performers has to be recognised by those who make the performance

    available to the public.

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    PROCEDURE 

    Title  Term of protection of copyright and related rights 

    References  COM(2008)0464 – C6-0281/2008 – 2008/0157(COD) 

    Committee responsible  JURI 

    Opinion by 

    Date announced in plenary 

    ITRE 2.9.2008

     

    Drafts(wo)man Date appointed

     

    Erna Hennicot-Schoepges

     

    25.9.2008 

    Discussed in committee  13.11.2008 

    Date adopted  11.12.2008 

    Result of final vote  +:  –:

     

    0: 

    19 

    10 

    Members present for the final vote 

    John Attard-Montalto, Jan Březina, Jorgo Chatzimarkakis, DragoşFlorin David, Den Dover, Nicole Fontaine, Adam Gierek, NorbertGlante, András Gyürk, Fiona Hall, Erna Hennicot-Schoepges, ReinoPaasilinna, Vladimír Remek, Teresa Riera Madurell, Britta Thomsen,Catherine Trautmann, Claude Turmes, Nikolaos Vakalis

     

    Substitute(s) present for the final vote  Etelka Barsi-Pataky, Ivo Belet, Manuel António dos Santos, NeenaGill, Edit Herczog, Vladimir Urutchev, Lambert van Nistelrooij

     

    Substitute(s) under Rule 178(2) present

    for the final vote 

    Louis Grech, Aurelio Juri, Sepp Kusstatscher, Eva Lichtenberger, RosaMiguélez Ramos, María Sornosa Martínez

     

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    12.12.2008

    OPINION OF THE COMMITTEE ON THE INTERNAL MARKET AND CONSUMERPROTECTION

    for the Committee on Legal Affairs

    on the proposal for a directive of the European Parliament and of the Council amendingDirective 2006/116/EC of the European Parliament and of the Council on the term of

     protection of copyright and related rights(COM(2008)0464 – C6-0281/2008 – 2008/0157(COD))

    Rapporteur: Emmanouil Angelakas

    SHORT JUSTIFICATION

    Your rapporteur generally supports the Commission proposal to extend the term of protectionfor performers and phonogram producers countries from 50 to 95 years. Taking the view thatthe proposal is a sensible reflection of the fact that performers are increasingly outliving theexisting 50 year period of protection, your rapporteur is not proposing any amendments to thisextension.

    The proposal also include accompanying measures such as establishing a fund for sessionmusicians and it also seek to introduce a uniform way of calculating the term of protectionthat applies to a musical composition with words which contains the contributions of severalauthors. Different Member States apply different systems for such co-written compositions.This leads to difficulties in administering copyright across the Community and difficulties incross-border distribution of royalties for the exploitation that occurs in different MemberStates. Your rapporteur supports the proposal to harmonise rules in this respect, taking theview that the current discrepancies is hampering the effective functioning of the InternalMarket.

    Generally supporting the idea of introducing “use it or lose it” clauses in contracts between performers and phonogram producers, your rapporteur however takes the view that some

    changes should be introduced in this part of the proposal.

    Firstly, in the case of several performers being recorded together, the current proposal obligesthem to act jointly to terminate their contracts on transfer or assignment. This means that 50years after a recording took place, the performers would have to actually agree. This is notrealistic and it is the view of your rapporteur that this should be changed allowing them to actindividually.

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    Secondly, the current proposal is referring to allowing the performer a reasonable time to havehis performance, for which the rights are about to expire, exploited. However, in the proposalthis one year is suggested for this. Your draftsperson does not consider this as a reasonabletime and takes the view that five years is more appropriate in this respect.

    Your rapporteur is also proposing to include an amendment calling upon the Commission to

    report to the European Parliament and the Council on the operation of the transitionalmeasures after five years.

    AMENDMENTS

    The Committee on the Internal Market and Consumer Protection calls on the Committee onLegal Affairs, as the committee responsible, to incorporate the following amendments in itsreport:

    Amendment  1 

    Proposal for a directive – amending act

    Recital 5

    Text proposed by the Commission Amendment

    (5) Performers generally start their careersyoung and the current term of protection of50 years with regard to performances fixedin phonograms and for phonograms oftendoes not protect their performances duringtheir entire lifetime. Therefore, performers

    face an income gap at the end of theirlifetimes. They are also often not able torely on their rights to prevent or restrictobjectionable uses of their performancesthat occur during their lifetimes.

    (5) Performers generally start their careersyoung and the current term of protection of50 years with regard to the fixation of

     performances often does not protect their performances during their entire lifetime.Therefore, performers face an income gap

    at the end of their lifetimes. They are alsooften not able to rely on their rights to prevent or restrict objectionable uses oftheir performances that occur during theirlifetimes.

     Justification

    The creative contribution of all performers should be recognised and reflected in the

    modification of the directive. To achieve this goal, the scope of the proposal should be

    extended so that audiovisual performers could also benefit from the extended term of

     protection; therefore the distinction between fixation of the performance in a phonogram or in

    another way is proposed to be deleted. (Linked to the amendment on Article 3 - paragraph 1of Directive 2006/116/EC.)

    Amendment 2

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    Proposal for a directive – amending act

    Recital 7

    Text proposed by the Commission Amendment

    (7) The term of protection for fixations of

     performances and for phonograms shouldtherefore be extended to 95 years after publication of the phonogram and the

     performance fixed therein. If the phonogram or the performance fixed in a

     phonogram has not been published within

    the first 50 years, then the term of

     protection should run for 95 years from

    the first communication to the public. 

    (7) The term of protection for fixations of

     performances and for phonograms shouldtherefore be extended to 95 years after  therelevant trigger point .

     Justification

    The creative contribution of all performers should be recognised and reflected in themodification of the directive. To achieve this goal, the scope of the proposal should be

    extended so that audiovisual performers could also benefit from the extended term of

     protection; therefore the distinction between fixation of the performance in a phonogram or in

    another way is proposed to be deleted. (Linked to the amendment on Article 3 - paragraph 1

    of Directive 2006/116/EC.)

    Amendment 3

    Proposal for a directive – amending act

    Recital 9

    Text proposed by the Commission Amendment

    (9) For the sake of legal certainty itshould be provided that in the absence of

    clear indications to the contrary, a

    contractual transfer or assignment ofrights in the fixation of the performanceconcluded before the date by which

     Member States are to adopt measures

    implementing the directive shall continue

    to produce its effects for the extended

    term.

    (9) Member States should remain free toadopt provisions on the interpretation,

    adaptation, termination and further

    execution of contracts governing the

    transfer or assignment of the rights of the  performer in the fixation of his

     performance to a phonogram producer

    concluded before the extension of the

    term of protection resulting from this

     Directive.

     Justification

     It does not appear suitable that the proposed changes to Directive 2006/116/EC modify

     Member States' rules on the interpretation, adaptation, termination and further execution of

    contracts on the transfer or assignment of performers' rights to a phonogram producer.

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    Therefore, national rules on how performers' rights are transferred, assigned and how the

    contracts on such assignments and transfers are terminated should govern the exercise of the

    'use it or lose it' clause as foreseen in Article 10a, paragraph 6.

    Amendment 4

    Proposal for a directive – amending actRecital 12

    Text proposed by the Commission Amendment

    (12) The first transitional accompanying

    measure should not entail a

    disproportionate administrative burden on

    small and medium sized phonogram

     producers. Therefore, Member States

    shall be free to exempt certain phonogram

     producers who are deemed small and

    medium by reason of the annual revenueachieved with the commercial

    exploitations of phonograms.

    deleted

    Amendment 5

    Proposal for a directive – amending act

    Recital 13

    Text proposed by the Commission Amendment

    (13) Those monies should be reserved

    solely for the benefit of performers whose performances are fixed in a phonogram andwho have transferred their rights to the

     phonogram producer against a one-off payment. The monies set aside in thismanner should be distributed to non-featured performers at least once a year onan individual basis. Member States may require that distribution of those monies isentrusted to collecting societiesrepresenting performers. When thedistribution of those monies is entrusted

    to collecting societies, national rules onnon-distributable revenues may be applied.

    (13) Those monies should be reserved

    solely for the benefit of performers whose performances are fixed in a phonogram andwho have transferred their rights to the

     phonogram producer against a one-off payment. The monies set aside in thismanner should be distributed to non-featured performers at least once a year onan individual basis. Member States shouldensure that distribution of those monies isentrusted to collecting societiesrepresenting performers. National rules onnon-distributable revenues may be applied.

    Amendment 6

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    Proposal for a directive – amending act

    Recital 14 a (new)

    Text proposed by the Commission Amendment

    (14a) In order to rebalance contracts

    under which performers transfer theirexclusive rights, on a royalty basis, to a

     phonogram producer, a further condition

    attached to term extension should be a

    'clean slate' for those performers who

    have assigned those rights to phonogram

     producers in return for royalties or

    remuneration. In order for performers to

    benefit fully from the extended term of

     protection, Member States should ensure

    that, under agreements between

     phonogram producers and performers, a

    royalty unencumbered by advance payments or contractually defined

    deductions is paid to performers during

    the extended period. 

     Justification

    This provision is essential for performers to enjoy all the royalties due to them for the

    extended period, against a refusal by labels, on grounds that advance payments to the artists

    have still not been recouped. Without this additional provision, the extension of the term of

     protection may ultimately only be beneficial to a minority of featured artists.

    Amendment 7

    Proposal for a directive – amending act

    Recital 15 a (new)

    Text proposed by the Commission Amendment

    (15a) Where a phonogram contains the

     fixation of the performances of a plurality

    of performers, Member States should be

     free to decide whether the performers may

    terminate the transfer or assignment

     jointly or individually. 

    Amendment 8

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    Proposal for a directive – amending act

    Article 1 – point 1

    Directive 2006/116/ECArticle 3 – paragraph 1 – indent 1

    Text proposed by the Commission Amendment

    - if a fixation of the per


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