INTERNAL MARKET WEEK Intellectual and industrial property rights The EU acquis on copyright and neighbouring rights An overview Tarja Koskinen-Olsson, Finland Budapest, 25 November 2004

Creators, Performers, Investors Natural persons create works Authors of literary or artistic works Performers perform works Producers and publishers invest in works Broadcasters disseminate works Property rights in copyright legislation Copyright and neighbouring/related rights Art, Culture, Knowledge

Copyright Industries in Finland* 4,1 % GDP - CORE INDUSTRIES 0,9 % GDP - INDIRECT INDUSTRIES 5,0 % GDP - TOTAL 4,0 % OF THE TOTAL WORK FORCE * Based on data from the year 1996 (released in 2000)

Core Copyright Industries (4,1%) Print and publishing 1,61 % Software and databases 1,26 % Radio and television 0,37 % Advertising 0,30 % Music 0,20 % Theatre and opera 0,09 % Film and video 0,09 % Architecture 0,09 % Photography 0,08 % Visual arts 0,03 % Industrial design 0,02 %

Copyright Industries in EU Countries* Contribution of Copyright and Related Rights to the European Economy Total gross value added 5,3 % in 15 Member States 3,1 % of total EU employment Largest contributions in Software and databases Print media industries > example of “radiating effect” * Based on data from the year 2000 (released in 2003)

Rationale for copyright protection Encouragement of creativity Enhancement of making works public Protection of moral interests Protection of investments Role in international trade

Copyright is time-limited exclusive right for authors of literary or artistic works to authorise or prohibit certain acts of exploitation of their works

Basic notions Literary or artistic works Economic rights Moral rights originality expression, not ideas or information Economic rights reproduction communication to the public/making available to the public Moral rights paternity and integrity

Basic notions Exceptions or limitations copying for private use quotations, library privileges, etc. Three-step-test special cases only no conflict with normal exploitation no unreasonable prejudice to the legitimate interests of the author

Rights owners, legislators, users How does legislation protect copyright and neighbouring rights? How are rights enforced and managed? How can people enjoy of protected products and services?

Well-functioning copyright system Legislation Enforcement Management Individual management of rights Collective management of rights

National, European, International Copyright is governed by national law in each country Within EU, national laws need to comply with the Directives Protection in other countries is granted through international Treaties/Conventions

International legislation Berne Convention, 1886 Rome Convention, 1961 TRIPS Agreement, 1994 (WTO) Two new WIPO Treaties, 1996 WCT (WIPO Copyright Treaty) WPPT (WIPO Performances and Phonograms Treaty) Entered into force in 2002

Print and publishing Writers Translators Journalists Scientists Publishers of books, journals, magazines and newspapers

Print and publishing Print media and electronic publishing Publishing contracts (books) Collective labour contracts (newspapers) Libraries (reward to writers) Rental and Lending Directive (1992) Photocopying Collective management

Software and databases System designers Programmers Compilers of data Software publishers

Software and databases Legal Protection of Computer Programs Directive (1991) Protected as literary works Legal Protection of Databases Directive (1996) Copyright protection for original databases Special protection for non-original databases

Film and television Script writers Directors Composers Actors Film producers Broadcasters

Film and television Term of Protection Directive (1993) Principal authors Ownership of rights in audiovisual works Especially audiovisual performers Satellite and Cable Directive (1993) Satellite transmission, cable distribution Rental and Lending Directive (1992) Rental of videos and DVDs

Music and sound recordings Composers Text-writers Music publishers Musicians and singers Producers of sound recordings

Music and sound recordings Collective management performing and mechanical rights of creators remuneration rights for neighbouring rights/related rights owners Private copying remuneration levies on blank media and equipment Information Society Directive (2001) introduces fair compensation

Visual arts and photography Painters Sculptors Graphic artists Illustrators Photographers

Visual arts and photography “Droit de Suite” Directive (2001) Resale right of artists Auction sales Long implementation period (2006)

EU Copyright Directives Legal Protection of Computer Programs (1991) Rental and Lending (1992) Neighbouring rights/related rights Satellite and Cable (1993) Term of Protection (1993) Legal Protection of Databases (1996) Copyright in the Information Society (2001) Resale Right (2001)

EU legislation Still in the pipeline Directive on Copyright and Related Rights in the Information Society, 2001 Implementation by the end of 2002 Implemented Old EU Member States: Austria, Denmark, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal, UK New EU Member States*: Czech Rep., Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Rep., Slovenia Still in the pipeline Belgium, Finland, France, Spain, Sweden * info on Cyprus missing

Information Society Directive* Rights in the network environment Reproduction Communication to the public/making available to the public New elements - legal protection of Technological protection measures Rights management information Directive 2001/29/EC, May 2001

Exceptions and Limitations One obligatory exception temporary copies during transmission Twenty optional exceptions Fair compensation is a precondition reprography private copying reproduction of broadcasts by social institutions Application of three step test to all exceptions and limitations

Private use Reproductions on any medium Made by a natural person analogue or digital Made by a natural person For ends neither directly or indirectly commercial On condition of fair compensation which takes into account the application or non-application of technological measures

EU Initiatives on DRM In the future Consultation on digital rights management systems (DRM) A series of consultation meetings in 2003 High Level Group of Experts by DG INFOSOC HLG on DRM, March-July 2004, Report DRM and interoperability (consensus) Private copying levies and DRM Promoting migration towards legitimate services on the Internet In the future Assess the need for action at the EU level

Enforcement EU Directive on Enforcement Network environment Accepted in April 2004 Implementation by April 28, 2006 Joint for all intellectual property rights Network environment EU Directive on E-Commerce, 2001 Articles 12 – 15 (ISP liability) General liability provisions

Communication on Management Management of rights Individual management Collective management Considers whether the current methods of management are hindering the functioning of the Internal Market Especially with the advent of the Information Society (Given on April 19, 2004)

Collective Management Issues that require a legislative approach Establishment and Status of Collecting Societies Relation of Collecting Societies to users Relation of Collecting Societies to rights holders External control of Collecting Societies

Important to remember It is question of literary and artistic works Created by creative people (authors) In which publishers and producers make huge investments Without interesting content the Information Society would be empty Networks and e-commerce rely on material protected by copyright

Art, Culture, Knowledge Economic importance ”Cultural industries” grow more rapidly that the economy on average The role of culture in the society The authors have a right to live on their creation (authors’ right) Citizens have a right to have access to culture Cultural diversity Culture reflects the national identity The value of national culture in the globalizing world