Bruno Racine President, Bibliothèque nationale de France 78th IFLA General Conference and Assembly August 2012, Helsinki, Finland Digitisation of Public Heritage via Public Private Partnerships A French Business Model

2 libraries impact economy  Libraries have turned into economic players  Public entities have to deal with scarcer public funds  New business models must be found and worked out by libraries

3 an European will for a sustainable model  “By 2012 propose a sustainable model for financing the EU public digital library Europeana and digitisation of content” [A Digital Agenda for Europe, 2010]A Digital Agenda for Europe  European Commission recommends that member States “encourage partnerships between cultural institutions and the private sector in order to create new ways of funding digitisation of cultural material and to stimulate innovative uses of the material […]” [Commission Recommendation on the digitisation and online accessibility of cultural material and digital preservation, Official JournalOfficial Journal L 283, 2011/29/10, pp.39-45]

4 What kind of Public Private Partnerships (PPP) for the digitisation of the public domain resources ?

5 genealogy websites artworks on demand knowledge dissemination print on demand different types of partnerships From the last decade, the BnF has been involved in different types of partnerships & business models

6 a new type of PPP  From 2011 on, the BnF has been engaged in a new type of partnership : based on refundable public investments under public authorities control with ROI expected  BnF ‘Investments for the future’ partnerships : public domain resources (mainly)

7 a major change in the financing of digitisation  The National Loan launched by the Government brings an important change to the way policies for digitisation are implemented in France and particularly at BnF : from State subsidies to Public Private Partnership  Public financing of digitisation projects will be made through participation in equity shareholding (equity finance) => no direct State subsidies given to cultural institutions  This will come as a massive complement to digitisation programmes directly funded by the State (6 M€/year)

8 Investments for the future agenda  The French Government has decided to invest in  higher / professional education & training  research  industry & SMEs  sustainable development  digital economy Fonds pour la société numérique: €4 billion (€750 million dedicated to digital economy)

9 digitisation enhancement  BnF call for partnership as part of “Investments for the Future” (July 8th, 2011) : 12 corpuses to be digitised  ancient books from 1470 to 1700  300,000 to 500,000 French printed books in the public domain  French press from 1780 to 1940  78 rpm records & microgroove records  medieval or modern manuscripts  portrait collections  genealogy & family history  cartography & representations of France & foreign countries  local history  music scores  history of fashion (photography)  French cinema (from its origins to World War II)

10 conditions for financing digitisation  To secure public financing for digitisation, cultural operators must present projects that satisfy a number of conditions :  be implemented together with one or several private partners (public private partnership model). Each funding partner can either support one or several projects or collaborate with a third party to carry through digitisation or marketing phases  be largely financed by the private sector (leveraging)  demonstrate that they are economic viable  provide a return on the State’s investment in the medium term (ROI within 5 to 10 years)  allow private companies to develop activities in the digital sector  The projects must : enhance the economic value of digital data and allow for the profitable exploitation of digital content lead to the development of new services and new products for all types of users

11 BnF partnership criteria  Call for partnership yielded 21 proposals  Main selection criteria for partnerships  quality & scale of digitisation projects  scientific & cultural relevance of projects  economic feasibility of projects  amount of digitisation costs funded & level of financial return for BnF  accessibility to digital resources mainly via Gallica

12 the value of investing in digitisation  To set up business plan for each digitisation projects, the BnF has to identify (with its partners) different way of creating commercial value for the digital materials  Print on demand  Sale of digital files [for new kinds of data distribution (eg. Multimedia mobile phones) or for the re-use of data by specialized companies (eg. Genealogy)]  Sale of documentary corpuses made on demand ore more widely (B2C)  Development of commercial and academic products for scientific, cultural and educational institutions (B2B)  The BnF has also to identify and try to measure the global economic benefits of the digitisation projects  Safeguard national cultural heritage  Increase and diversify digital materials  Set up conditions for a knowledge-based economy development as well as research development  Develop of the digital economy  Contribute to sustainable development

13 BnF-Partenariats  The BnF, which cannot be directly funded by the Fonds pour la société numérique, has to create a company to carry out this mass digitisation programme : BnF-Partenariats  BnF Executive Board authorizes the creation of BnF- Partenariats. December 8th,  BnF-Partenariats registered. April 30th, Funded with €10 M €3 M : operating (initial funding by FSN) €7 M : project investments  €2,5 M gross margin expected after 15 years

14 a first set of 4 digitisation projects  70,000 ancient books from 1470 to 1700 All incunabula will be digitised  725,000 music records and sound archives  38,000 French literature titles  10 million French press pages

15 commercial aspects & user access  The contracting partner will be granted with a 7- to 10-year exclusivity period  The user will get  free access on Gallica intra muros (“in-house”)  limited access on Gallica “outside the premises” during the exclusivity period  at the end of the exclusivity period: free access on Gallica

16 ppp as a leveraging tool  Public–private partnership leverages  €1 publicly invested allows a €3 digitisation effort  time to digitise the whole heritage will be divided by 3 or 4  job creation  mass digitisation

17 The digitisation of 20th century heritage

18 The digitisation of 20th century out-of-commerce works : the French current situation  For all recent works, the authors have signed clauses on digital rights  Older works are in the public domain  Between the two: the “black hole”  The general rule is that the proprietary rights of the author last for 70 years after the author’s death (Art. L123-1, French Intellectual property code )  All the books published in the 20th century but now unavailable which have not been digitised and for which a solution needs to be found in order to make them available online while respecting authors’ rights  titles

19 A law is born  A deal agreed by all parts :  The Ministry for Culture and Communication  The Commissioner-General of Investment  The French Publishers Assocition  The French Society of Literary Authors  The National Library of France  A law unanimously voted. February. 23rd, 2012

20 Principles of the law (1)  An out-of-commerce work is A book Non commercially available In print or in digital format Published in France Before January 1rst 2001  A collective management society to be established Rights under collective management are only rights for digital reproduction and representation This avoids to have to renegociate every contract signed between authors and editors Equal representation of authors and publishers, in order to ensure the collection and fair distribution of copyrights when works are brought back to market  A database to be created and run by the Bibliothèque nationale de France

21 Principles of the law (2)  An « opt out » principle Authors will have six months, after the publication of their works in the database to exercise their right to withdraw one, several or all of their works Authors may at any time, later on, step out if they consider the digital exploitation of their works to be prejudicial to their honour and this without compensation from their part The notion of moral right is essential in every situation If the publisher decides not to join he must exploit the book by himself within 2 years If not, a third part may be given the right to do so (on a non exclusive basis and for a five year period, renewable), by the collective management society. Rightholders are to be paid their share If the publisher and the author agree to join the collective management society, the publisher must distribute the work within three years after he has agreed to its exploitation

22 Principles of the law (3)  Original publishers have a “preference right”, 10 years renewable, on licenses granted by the collective management organisation for the digital exploitation of a work. The use of it also compels the publishers to actually make the book commercially available  Special cases: If no publisher is to be found and if the author agrees, the exploitation of the book is granted to a third party by the collective management society for a five year period, renewable and on a non exclusive basis. the author will get 50% of the benefits

23 Principles of the law (4)  Orphan work - A protected and disclosed work whose rightholder can not be identified or found despite diligent, proven and serious searches. - Covered de facto in this agreement. - Multiple authorships : a work can not be considered orphan if one rightholder has been identified. A publisher will get a non exclusive right to publish an orphan work for a 5 year period He will keep 50% of the benefits The share of the author will go to the collective management society. After 10 years, the sum goes to public libraries Libraries will be entitled to digitise and put on line works whose rightholders can not be found 10 years after the 1rst authorization of exploitation

24 The BnF as a key player

25 The BnF as a key player  The BnF is in charge of organizing the digitisation based on its collections in accordance with the collective management society  A new mass digitisation programme running alongside with its current one  In 2013 : selection of titles with the strongest commercial potential 2014 onwards : 50> titles a year, a cost of €5>6M

26 The BnF as a key player : the business model  The BnF will get one digital copy of every title  « In house » : free access on Gallica, the BnF digital library  « Outside the premises » : limited access on Gallica  users will be allowed to browse (up to 10>20% of a work) and then will be directed towards e-retailing platforms  The BnF will get a fee on each copy sold whose amount will increase along with the return on investment

27 Thank you for your attention