Implementation of the Directive 2011/77/EU: Copyright Term of Protection
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STUDY Requested by the JURI committee Implementation of the Directive 2011/77/EU: copyright term of protection LEGAL AFFAIRS Policy Department for Citizens' Rights and Constitutional Affairs Directorate General for Internal Policies of the Union PE 604.957 - April 2018 EN Implementation of the Directive 2011/77/EU: copyright term of protection STUDY Abstract The objective of this study, commissioned by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs at the request of the JURI Committee, is to examine the current status quo of implementation of the Directive, and to carry out an in-depth review of the practices in selected Member States. The study provides a brief overview of the international framework concerning the term of protection for performers and phonogram producers, and analyses the main objectives and provisions of the Term Extension Directive. It explores in-depth the implementation and practices in seven selected Member States, and identifies best practices that can serve as a model for other EU Member States. In addition, the long term effects of the Directive are considered, both within the EU (in relation to relevant EU policies) and outside the EU (in relation to its main trading partners). ABOUT THE PUBLICATION This research paper was requested by the European Parliament's Committee on Legal Affairs and commissioned, overseen and published by the Policy Department for Citizens’ Rights and Constitutional Affairs. Policy Departments provide independent expertise, both in-house and externally, to support European Parliament committees and other parliamentary bodies in shaping legislation and exercising democratic scrutiny over EU external and internal policies. To contact the Policy Department for Citizens’ Rights and Constitutional Affairs or to subscribe to its newsletter please write to: [email protected] RESPONSIBLE RESEARCH ADMINISTRATOR Giorgio MUSSA Policy Department for Citizens' Rights and Constitutional Affairs European Parliament B-1047 Brussels E-mail: [email protected] AUTHORS Dr. Ana RAMALHO, Assistant Professor of Intellectual Property Law at Maastricht University (Netherlands), Dr. Aurelio LOPEZ-TARRUELLA, is Senior Lecturer of Private International Law at University of Alicante (Spain), coordinated by ARCA Consortium, S.A. LINGUISTIC VERSION(S) Original: EN Manuscript completed in March 2018 © European Union, 2018 This document is available on the internet at: http://www.europarl.europa.eu/supporting-analyses DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy. Implementation of the Directive 2011/77/EU: copyright term of protection ____________________________________________________________________________________________ CONTENTS LIST OF ABBREVIATIONS 5 EXECUTIVE SUMMARY 6 1. INTRODUCTION 10 2. CHAPTER BACKGROUND: INTERNATIONAL FRAMEWORK, OBJECTIVES AND CONTENT OF THE DIRECTIVE 12 2.1. International framework 12 2.2. Objectives of the Directive 13 2.3. Content of the Directive 14 2.3.1. The Term Extension 14 2.3.2. Accompanying Measures 17 2.3.3. The “Use it or Lose it” Clause 18 2.3.4. Annual Supplementary Remuneration 19 2.3.5. The “Clean Slate” Provision 20 2.3.6. Right to renegotiate the contract following the 50th year 21 3. STATUS QUO OF NATIONAL IMPLEMENTATIONS 22 3.1. Term Extension 22 3.2. Use it or lose it clause 23 3.3. Annual Supplementary Remuneration 26 3.4. “Clean Slate” Provision 29 3.5. Right to renegotiate the contract following the 50th year 30 4. BEST PRACTICES 33 4.1. Term extension 33 4.2. “Use it or lose it” clause 33 4.3. Annual Supplementary Remuneration 35 4.4. “Clean Slate” provision 36 4.5. Right to renegotiate the contract following the 50th year 37 5. POTENTIAL LONG TERM EFFECTS OF TERM EXTENSION 38 5.1. Effects in the EU 38 5.1.1. The Cultural and Creative Sectors 38 5.1.2. Other EU Policy Areas 39 5.2. Effects on competitiveness vis-à-vis third countries 42 3 Policy Department C: Citizens' Rights and Constitutional Affairs ____________________________________________________________________________________________ 6. CONCLUSIONS AND RECOMMENDATIONS 47 7. REFERENCES 52 ANNEX 1 – NATIONAL REGULATIONS IMPLEMENTING THE DIRECTIVE 54 ANNEX 2 – LIST OF STAKEHOLDERS CONTACTED BY THE AUTHORS 67 ANNEX 3 – NATIONAL REPORTS 68 4 Implementation of the Directive 2011/77/EU: copyright term of protection ____________________________________________________________________________________________ LIST OF ABBREVIATIONS Berne Berne Convention for the Protection of Literary and Artistic Works, adopted in 1886 Convention CDPA Copyright, Designs and Patent Act 1988 (United Kingdom) CJEU Court of Justice of the European Union CMO Collective Management Organisation CMO Directive 2014/26/EU of the European Parliament and of the Council of 26 February Directive 2014 on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market (OJ L 84, 20.3.2014) CPI Code de la propriété intellectuelle (France) Impact Commission Staff Working Document accompanying the Proposal for a Council Assessment Directive amending Council Directive 2006/116 as regards the term of protection of copyright and related rights – Impact Assessment on the legal and economic situation of performers and record producers in the European Union, Doc. SEC(2008) 2287, 16.07.2008 Phonograms Convention for the Protection of Producers of Phonograms Against Unauthorized Convention Duplication of Their Phonograms, adopted in Geneva in 1971 PMA Post Mortem Auctoris (after the death of the author) Proposal for Proposal for a Directive of the European Parliament and of the Council on copyright a DSM in the Digital Single Market - COM(2016)593 Directive Rome International Convention for the Protection of Performers, Producers of Phonograms Convention and Broadcasting Organizations, adopted in Rome, 1961 Term of Directive 2006/116/EC of the European Parliament and of the Council of 12 Protection December 2006 on the term of protection of copyright and certain related rights (OJ Directive L 372, 27.12.2006) Term of Directive 2011/77/EU of the European Parliament and of the Council of 27 Protection September 2011 amending Directive 2006/116/EC on the term of protection of Directive copyright and certain related rights (OJ L 265, 11.10.2011) 2011 TEU Treaty on European Union (OJ C 326, 26.10.2012) TFEU Treaty on the Functioning of the European Union (OJ C 326, 26.10.2012) TRIPS Agreement on the Trade-Related Aspects of Intellectual Property Rights, 1994 Agreement US Copyright Title 17 United States Code Law WCT WIPO Copyright Treaty adopted in Geneva, December 20, 1996 WPPT WIPO Performances and Phonograms Treaty adopted in Geneva, December 20, 1996 5 Policy Department C: Citizens' Rights and Constitutional Affairs ____________________________________________________________________________________________ EXECUTIVE SUMMARY The objective of this Study is to evaluate the status quo of implementation of the Term of Protection Directive 2011, to identify best practices in the Member States, and to consider the potential long- term effects of the term extension of protection, both within and outside the EU. For that purpose, the Study provides a brief overview of the background of the term extension. At the international level, several legal instruments regulate the duration of protection for performers and/or phonogram producers, including the Rome Convention, the Phonograms Convention, the WIPO Performances and Phonograms Treaty (WPPT) and the TRIPS Agreement. The protection term set forth in these treaties varies between 20 and 50 years (counting from the performance, fixation or publication, depending on the instrument). These treaties only apply to performances fixed in phonograms, and do not address audio-visual performances. At the EU level, the Impact Assessment accompanying the Proposal for a Term of Protection Directive clarifies that the specific policy objectives underpinning EU intervention must contribute to enhancing the welfare of performers and the competitiveness of the EU music industry, and to increase the available music repertoire. Regarding performers, the Commission considered that they needed extended protection to secure income at the end of their lifetimes, and that certain mechanisms were required to strengthen their position in contracts with phonogram producers. In what concerns producers, the Commission noted their decreasing revenues and their disadvantage vis-à-vis their US counterparts. The different provisions in the Term of Protection Directive 2011 were adopted with the aim of addressing these concerns. The central measure of the Directive is the extension of the protection term for performers and phonogram producers. For the former, if the performance is fixed in a phonogram lawfully published or lawfully communicated to the public within 50 years, the rights shall expire 70 years from the date on which such event took place (whichever is the earliest). For the latter, if the phonogram is lawfully published within 50 years, their rights shall expire 70 years from the date of such event. If no lawful publication was made but the phonogram was lawfully