1. Avv. Daniela De Pasquale Content Licenses for the new media LL.M. in Intellectual Property 2006 Università degli Studi di Torino - WIPO Università degli Studi di Torino - WIPO

2. Licensing for the new media From free to fee New products New subjects New business models New contents Information Technology Media MediaTelecommunications New environments Internet – Mobile Phones: - Music - Videogames - Television programs - Information - e/audio book Convergence between

3. Digital Market: Value Chain Artist Right holder / Content Provider Platform End user

4. From the side of the right holder /content provider Interests: Extend business opportunities as much as possible - By conferring rights of exploitation of the services to many subjects Set limits to - Duration of the license -Use of rights (downloading and/or streaming) -Platform -Territory Keep record of such use (technical measures) Avoid grey areas as to the means of exploitation of rights (i.e. internet or mobile)

5. From the side of the platform/intermediary Interests at odds: Obtain an exclusive license Avoid limits to - Duration of the license - Use of rights (downloading and/or streaming) - Territory Exploit the rights through the means of the business models adopted (i.e. internet and mobile)

6. From the side of the final user Interoperability: Consumers want to access and use the content easily through any one of the devices which they own – be that a mobile phone, a portable player, PC or home entertainment systems or TV, or a games platform...

7. Step no. 1 Qualification of rights identification of the rights - and the relevant holder/s - to be procured in order to realize the model of business ? Which is the most relevant problem to face?

8. License of Which rights? reproduction right In order to implement the model of business the subject (content provider/platform owner) needs to procure the following rights: making available to the public right communication to the public

9. License of reproduction right making available to the public right by the holder of the neighbouring right (i.e. Phonogram producer and Performer of the artistic works) In order to implement the model of business the subject may need to procure also the following rights: Further rights for music? communication to the public

10. Step no. 2: which subjects? - Author - Right holder - Content provider

11. Which other subjects? The final users Examples of UGC include digital video, blogging, podcasting, mobile phone photography. From traditional media producers such as broadcasters and production companies to on-line content that is produced by users of websites Democratisation of media production Democratisation of media production through new technologies accessible and affordable, creating the facilities and framework for non-media professionals to publish their own content in prominent places. User-generated contents (UGC)

12. Which other subjects? User-Generated Contents (UGC) monetizing the UGC: Revver i.e. Revver, which attaches advertising to user-submitted video clips and shares all ad revenue 50/50 with the creators. Distinction between UGC websites YouTube containing open content enabling other users to re-use and remix the video or other content (i.e. YouTube)

13. Which subjects? Management of rights Copyright management organisations (CMOs) or collecting societies may play an important role in the granting of rights for the Internet music stores. CMOs control use of protected content by granting licenses, negotiating with users, collecting remuneration and redistributing it to the individual rights holders.

14. regulation of CMOs varies The degree of public regulation of CMOs varies significantly across different jurisdictions, and covers matters such as the functioning of the societies, control of tariffs (including their determination in cases of conflict) and licensing conditions.. collecting societies have a key position in the licensing of certain rights in so far as they provide access to a global catalogue of rights. (one-stop-shop of licensing) Collective management also allows particular right holders, within a less lucrative or niche market, or who do not dispose of sufficient bargaining power, to manage their rights efficiently. From the users’ viewpointFrom the right holders viewpoint Which subjects? Management of rights

15. Major issues: Crossborder management of copyright and related rights The European Commission has adopted the 2005/737/EC Recommendation on the management of online rights in musical works putting forward measures for improving the EU-wide licensing of copyright for online services. Managing IP rights globally continues to be a major challenge for content providers and distributors. Transactional costs Territoriality

16. Step no. 3 How to secure the rights? DRMs help enforcing legal tools DRMs help enforcing legal tools including license agreement, copyright notices, registration, and EU and international copyright laws (artt. 11-12 WCT, 18-19 WPPT) accessusage Technologies used by publishers or copyright owners to control access to and usage of hardware digital data (i.e. software, music, movies) Digital Rights Management (DRM)

17. Step no. 4: How to remunerate the right holder and the content provider? Remuneration can be: on a forfeit basis on a percentage on revenues basis

18. How to remunerate the platform? Subscription services very wide choice of music for a monthly fee, allowing users to access all the music they want with the option to purchase selected tracks. Tracks are transferable to portable players for as long as the consumer remains a subscriber (2.8 million users worldwide) A-la-carte download tracks can be selected and downloaded on the spot Tracks are transferable to portable devices and can be burned onto disk

19. Case study: Digital Music Market New business models emerged, portable subscription, legitimate P2P, converged on-line and mobile services, advertising supported ondemand entertainment Digital Music Market in 2005 = $1.1bn 300% - 300% growth since 2004 - Over 330 digital music stores in over 25 countries world wide

20. New models of business / retail interfaces online music stores of the Phonogram Producers, intermediary online music stores (i.e. iTunes, Napster), ISPs and content portals, mobile content suppliers, direct sale of music from the artist to consumers (disintermediation from artist to user)

21. Upload of a file on a server (reproduction) Put the content on the internet ( right of making available to the public ) DOWNLOADING (reproduction right)STREAMING (temporary reproduction) ACCESSIBILITY) Asking for acceptance of access condition (ACCESSIBILITY) Use of technological measures and/or DRM

22. Streaming Technology WEBCASTING: exclusive broadcasting through the web SIMULCASTING: Simultaneous retransmission via the WEB As far as Streaming Technology is concerned: What is the major issue compared to broadcasting? TERRITORY

23. Mobile contents Content-based data services: Television Programmes Entertainment-based educational contents (“edutainment”) News Transport information Adult entertainment Music Wallpapers Games Dedications Stream videos Avantages to the end user? - Purchase on the go in any location - Choose the content on a on-demand basis - One device for playing and purchasing - Payment via mobile bill

24. Right holders Old style ringtones: MELODY (authors) -Miniature and compression technology -highest quality - TRACK perfectly reproduced (phonogram producers/ performers) Right holders Right holders: author and owners of neighbouring rights New ringtones (so called “true tones”): Ringback tones

25. New legal Framework country of origin The new directive will extend the “country of origin” principle to non- linear (on-demand) audiovisual services (in particular video on demand). From the Television without Frontieres Directive to the European Audiovisual Media Service Directive the audiovisual media service providers to offer audiovisual content complying with the laws of their own Member State for reception in other Member States, without having to vary this content to comply with the laws of each Member State concerned. A minimum set of common rules across Europe (i.e. on television advertising, production of audiovisual programmes, protection of minors...)

26. Avv. Daniela De Pasquale d.depasquale@lascalaw.com La Scala & Associati Corso Magenta 42 20123 Milano Contact: