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European Regulatory Framework for Thè Media and Related Creative Sectors

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European Regulatory Framework for Thè Media and Related Creative Sectors EUROPEAN MONOGRAPHS Regulating Content - European Regulatory Framework for thè Media and Related Creative Sectors Michael Holoubek/Dragana Damjanovic/ Matthias Traimer KLUWER LAW INTERNATIONAL Contents List of Contributors v Foreword vii PART ONE THE LEGAL ASPECTS OF EUROPEAN CONTENT REGULATION - PURPOSE AND SCOPE OF THE STUDY Chapter 1 Objective of thè Book: A Horizontal Approach to European Content Regulation 3 I. The Background Content as Part of Europe"s Culture 3 II. A Systematic Review and Analysis of European Content Regulation on a Horizontal Basis 4 Chapter 2 Structure and Methods 7 I. Definition of thè Subject Under Investigation 7 II. Analysis of thè Individuai Regulatory Areas of European Community Law Governing thè Content Industry 7 III. Conclusion and Evaluation 13 x Content s Chapter 3 The European Content Industry - Categorization and Definitions 15 I. The Subject under Investigation 15 II. Categorization of thè Content Industry 16 III. Legai Definitions Relating to thè Content Industry 18 Figure 1 Focus of thè Study 16 Figure 2 Branches of thè Content Industry Broken down According to Content Category and Distribution System 17 Figure 3 Legai Definitions Related to thè Content Industry 20 PART TWO THE INDIVIDUAL REGULATORY FIELDS - AN ANALYSIS OF THE DIFFERENT EUROPEAN PROVISIONS FOR THE CONTENT INDUSTRY 23 Chapter 1 Fundamentals of Community Law and Policies (Including Funding Programmes) Governing thè Content Industry 25 I. Preliminary Remarks 25 II. Fundamentals of Primary Law 26 A. The Fundamental Freedoms - Treaty Establishing thè European Community and Case-law of thè European Court of Justice 26 1. Free Movement of Goods 28 2. Freedom to Provide Services 32 B. The Relevance of Fundamental Rights in Community Law 37 C. The Amsterdam Protocol on Public Broadcasting and thè Exemption Clause for State Aid Aimed at Promoting Culture and Cultural Heritage 39 D. The Division of Competences Between thè EC and thè Member States in Cultural Affairs 41 1. Preliminary Remarks on thè Concept of Culture Enshrined in thè EC Treaty 41 2. The Concept of Division of Competences Between thè EC and thè Member States 41 3. The Cultural Policy of thè Community Pursuant to Artide 151 EC 42 4. European Cultural Policy in an International Context 44 Content s xi III. Secondary Legislation of thè EU for Promoting thè Content Industry 45 A. The Lisbon Strategy - a New Impetus for Promoting thè European Content Industry 45 B. General Information on thè Funding Programmes of thè Content Industry 46 C. Cultural Programmes 48 D. MEDIA Programmes 49 E. Special Funding Action in thè Fields of Information and Communication Technologies (ICT) 52 1. The 'eContentplus' Funding Programme 53 2. The 'Safer Internet Plus' Funding Programme 54 IV. Community Projects Relevant to thè Content Industry 54 A. Communication from thè Commission 'Ì2010 - A European Information Society for Growth and Employment' 54 B. Proposai for a Directive on Services in thè Internai Market and its Implications for thè Content Industry 55 1. General Information 55 2. The Scope of Application of thè Services Directive 56 3. Open Questions Regarding thè Service Directive 57 V. Content as a European Cross-cutting Subject - Conclusions and Evaluation 58 Chapter 2 The Content Industry and General Competition Law 61 I. Ensuring Functioning Market Structures 61 A. General Applicability of thè Competition Rules to thè Content Industry 62 1. Specific Relevance of Competition Rules 62 2. Personal Scope 63 B. Market Definitions for Media Content 64 C. Competition Rules Concerning thè Production Level (Upstream) 66 1. General Cartel Prohibition - Artide 81 EC 67 2. Prohibition to Abuse a Dominant Position - Artide 82 EC 69 3. Contrai of Concentrations 70 D. Competition Rules Relating to Distribution ('Downstream') 72 1. General Ban on Cartels - Artide 81 EC 72 2. Prohibition of thè Abuse of a Dominant Position - Artide 82 EC 76 xii Contents 3. Contrai of Concentrations 77 IL Protecting Third Parties and Safeguarding General Interests 78 A. Protecting thè Final Consumer 78 B. Protecting Competitors? 79 C. Protecting Trading Partners 79 HI. Preserving thè Single Market 80 IV. Interactions Between thè Intended Aims 81 V. Direct Aids for Producing and Broadcasting Content 82 A. Artide 81(3) EC-Exemptions General Ban on Cartels 82 B. Objective Justification According to Artide 82 EC 83 VI. Safeguarding Undistorted Competition from Intervention by thè Member States 83 A. Resale Price Maintenance for Books 83 B. Artide 87 EC - Framework for State Aid in thè Content Industry 84 VII. Summary and Conclusion 88 Chapter 3 Sector-specific Regulation at Infrastructure Level 91 I. Preliminary Remarks: Sector-specific Regulation at Infrastructure and Content Level 91 II. Market Entry and Access Regulation in thè Electronic Communication Markets - Ensuring Functioning Market Structures in thè Content Industry 92 A. Infrastructure Regulation as Market Regulation 92 B. Regulation of Market Entry in thè Electronic Communications Markets 92 1. Relevance for thè Content Industry 92 2. General Versus Individuai Authorization - Media and Culture Related Selection Criteria 94 C. Regulation of Access to Communications Networks and Services 95 1. Relevance for thè Content Industry 95 2. The General Access Regulation Regime for thè Communications Markets 98 3. The Specific Access Regulation Regime for thè Field of Digital Television 100 D. Capability of thè Market Entry and Access Regulation Regime to Ensure Cultural and Democratic Policy Objectives - Problem Analysis 101 E. Summary 102 Contents xiii III. Ensuring a Basic Supply of thè Population with Content - Protection of Third Party and Further General Interests 103 A. The Public Interest in thè Content Markets 103 B. Universal Service Regime 104 C. Must-carry Provisions 105 D. Broadcasting of Major Events 106 E. The Special Importance and Role of Public Broadcasting WithintheEU 107 F. Analysis of thè Public Interest Regulation at Infrastructure Level - Problematic Aspects 108 1. Transition from Analogue to Digital Technologies 108 2. Access to Broadcasting and Programme Rights on a Sector-Specific Basis 109 3. Politicai Consensus Regarding thè Role of thè Public Service Broadcasting Organizations within thè Community? 110 G. Summary 111 IV. Standardization Activities in thè Content Industry - Preservation of thè Single Market 112 A. Standardization in thè Online Content Market - a Primarily Market Led Process 112 B. Specific Standardization Measures for Digital Interactive Television 113 C. Other Standardization Activities in thè Content Industry 115 D. Problematic Aspects with Regard to thè Standardization Processes on thè Content Markets 115 E. Summary 116 V. Direct Promotion of thè Production and Distribution of Content 117 VI. Summarizing Evaluation - Reciprocity and Interconnections between thè Various Regulatory Instruments in Sector-specific Regulation at Infrastructure Level 117 Chapter 4 Sector-specific Regulation at Content Level 119 I. Preliminary Remarks 119 A. Objects and Systemization of Sector-specific Regulation at Content Level 119 B. Development of Sector-Specific Regulation at Content Level 121 IL The Protection of Third Parties and Further Public Interests 123 A. Review of Status Quo 123 xiv Contents 1. Regulation of Content for thè Protection of Human Dignity, as well as thè Protection of Other Fundamental Values of a Democratic Society 123 2. Regulation of Content for thè Protection of Minors 124 3. Regulation of Content for thè Protection of Health 126 4. Regulation of Content for thè Protection of Consumers 128 5. Regulation of Content for thè Protection of Personal Rights 132 B. Analysis of thè Problem 133 C. Summary 135 III. Promoting Production and Dissemination of Content 136 A. Review of Status Quo 136 1. Direct Promotion of Content 136 2. Indirect Promotion of Content 137 a. Promotion through tax breaks for film and television 137 b. Promotion by limiting regulatory possibilities 137 B. Analysis of thè Problem 140 C. Summary 143 IV. Maintaining thè Single Market 143 A. Review of thè Status Quo 143 B. Analysis of thè Problem 145 C. Summary 147 V. Conclusions 147 Chapter 5 Copyright and Related Rights 151 I. Legai Protection of Content Promotion of thè Production and Distribution of Content 151 A. Review of thè Status Quo 151 1. Database Directive 151 2. Information Society Directive 152 a. Reproduction Right 152 b. Communication, Including Making Available, to thè Public 153 e. Limitations and Free Uses of Works 153 d. Legai Protection of Technological Protection Measures 153 e. Sanctions under thè Information Society Directive 154 3. Enforcement Directive 154 4. Country-of-origin and Country-of-transmission Principles and Exceptions 154 Contents xv a. Country-of-transmission Principle 154 b. Country-of-origin Principle 155 5. Rights Management and Collecting Societies 156 6. Resale Rights Directive 156 7. Harmonization of Copyright Contract Law 157 8. Consolidation of thè European Copyright Laws 157 B. Problem Analysis 157 1. Scope of thè Database Protection 157 2. Information Society Directive 159 a. Lack of Clarity Regarding thè Scope of thè 'Making Available' Right 159 b. Allocated Uses 160 e. Sanctions Under thè Information Society Directive 162 3. Enforcement Directive 162 4. Country-of-origin and Country-of-transmission Principles 163 a. Country-of-transmission Principle 163 b. Country-of-origin Principle 164 5. Collective Exploitation of Rights and Collecting Societies 165 6. Resale Rights Directive 167 7. Harmonization of thè Copyright Contract Law 167 8. Consolidation of thè European Copyright Law 168 C. Summary 169 II. The Necessity for Exclusivity - Ensuring Functioning Market Structures on thè Content Markets 170 III. Creating a Balance - Protection of Third Parties and Further General Interests 171 A. Review of thè Status Quo 171 1. Information Society Directive 172 a. Limitations 172 b. Technological protection measures/DRM 172 e. Device and media charges, doublé remuneration 172 2. First Sale Doctrine Online 173 3. Enforcement Directive 173 4. Conditional Access Directive 174 5. Obligations to Provide Information and Transparency in E-commerce 174 B. Problem Analysis 174 1.
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