1. Future development of copyright in Europe Burak Özgen GESAC – European Grouping of Societies of Authors and Composers 11.11.2014 European Parliament, Brussels – JURI Hearing

2. GESAC – European Grouping of Societies of Authors and Composers  Collective Management Organisations representing authors and composers – Authors’ societies  More than 1 million creators and rightholders: authors of music, AV, visual and literary arts and music publishers  34 members from across Europe  61% of revenues received through collective management globally

3. If you ask a creator how important copyright has been …

4. To ensure that creators are adequately remunerated To make sure cultural and creative sectors can continue to grow sustainably Copyright – Author’s Right

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

8. how to do that ?

9. Main priorities for sustainable digital market for CCI #1:Securing a strong framework for author’s rights allows for cultural diversity and development of a sustainable economy

10. Statement A: - Consumers want to access to creative works from anywhere at anytime

11. Multi-territory licensing Cross-border availability Portability

12. Multi-territory licensing (MTL) CRM Dir: A new Dir. entered into force in April 2004 to: “encourage and facilitate multi-territorial and multi-repertoire licensing of author’s rights in musical works for online uses in the EU/EEA” It follows the market trend to aggregate for MTL “Licences for Europe Music Sub-group” was stopped by EC after the mid-term plenary (July 2013) because there are enough solutions in the market Nearly 300 online music services in Europe, over 30 million tracks are licensed

13. Multi-territory licensing (MTL) OnLine Arts (OLA): long standing success story in the MTL market for many years MTL also delivered for AV when requested by operators willing to invest cross-border but demand is limited Yet, nearly 3000 VOD services in the EU with different business models or genres

14. Cross-border availability What we currently do and try: A number of European services: iTunes, Spotify, Deezer, Beatport, eMusic, etc. Cloud-based services: iCloud, AmazonCloud, X-Box, etc. Recommendation on licensing online cross-border broadcast- like services of public service broadcasters Dialogue with commercial radios association to cover cross-border access to local radios in their existing licences But also the market reality shows: Demand for pan-European music licensing depends on the repertoire: from around 30 to 0 demand Although growing, the pan- European services have still not maturely captured the market Services prefer targeting their different audiences in different ways

15. Collective licensing of voluntarily aggregated repertoire is the recipe for wider access to widest repertoire!

16. Portability You can access your Spotify/Deezer/iTunes/etc accounts where ever you have internet. Those services clear rights for pan-European if not for world-wide Same for visual arts, for e-books, magazines and newspapers Cross-border portability of subscription services: joint statement by the audio-visual industry (L4E)

17. … build on continuous developments, rather than starting over each time…

18. … have a closer look at what effects services to roll-out pan-European … Business choices based on language, local marketing strategies focused on local interests, local advertising markets, return on investment, etc.; Problems related to cross-border internet/broadband connection and roaming when abroad; Lack of efficient cross-border electronic payment structures, especially for young people, combined with a lack of consumer trust in cross-border e-commerce. Labour law or tax-related problems for start-ups willing to extend cross-border

19. Statement B: People want easier access to cultural and creative works for any type of use they want

20. demand is created by: Businesses, start-ups, services Appropriate licensing that fits the purpose using the available rights to adapt Individuals, non-profits, small- scale user Specific licensing schemes according to need: – Student parties – Background music on website – Community projects – Small businesses Specific licensing schemes for institutional uses – Cultural heritage – Museums – Schools and libraries – Europeana sounds

21. … you don’t need to weaken rights of creators to address the needs of market and society … What matters is inclusive and convenient access Collective licensing for an easy & streamlined access with legal certainty Through cooperation, existing rules are flexible enough to address what the market and the society needs

22. “Creative destruction” is to change the channels to access but NOT to destroy the creation of works “take and deliver” approach without ensuring consent and remuneration is not an efficient economic model, as it would destroy creation (supplier), as well as tax-paying and job-creating legitimate businesses

23. Consent and remuneration of creators therefore IS NOT “chilling effect” For creative destruction to create an efficient market, it needs to be beneficial both for developers of tech and creators of works … so that, the society can be better off, as they’ll have wider and sustainable choice for quality at affordable cost …

24. Collective management is key for access to creative works, as it - facilitates consent with legal certainty - according to actual need of the users and - by remunerating creators

25. What are the challanges for a fair and balanced digital economy for creative works?

26. we asked the creators…

27. #2: Maintain & promote fair remuneration for creators, in particular from new sources for private copying… A virtuous cycle worth preserving as stated by the European Parliament Report in 2014 (Castex Report) - it is indeed !

28. #3: Re-balancing the transfer of value in digital economy

29. “Lead the debate on re-balancing value transfer from online intermediaries”* * taken from “Creators and their authors’ societies call for a European Creative Agenda for growth and jobs” to EU politicians

30. Any question, further info? www.authorsocieties.eu www.meettheauthors.eu secretariatgeneral@gesac.org