united states copyright office Orphan Works and Mass Digitization a report of the register of copyrights june 2015 united states copyright office Orphan Works and Mass Digitization a report of the register of copyrights june 2015 U.S. Copyright Office Orphan Works and Mass Digitization ACKNOWLEDGMENTS This Report reflects the dedication and expertise of the Office of Policy and International Affairs at the U.S. Copyright Office. Karyn Temple Claggett, Associate Register of Copyrights and Director of Policy and International Affairs, managed the overall study process, including coordination of the public comments and roundtable hearings, analysis, drafting, and recommendations. I am also extremely grateful to Senior Counsel Kevin Amer and Attorney- Advisor Chris Weston (Office of the General Counsel), who served as the principal authors of the Report and made numerous important contributions throughout the study process. Senior Advisor to the Register Catie Rowland and Attorney-Advisor Frank Muller played a significant role during the early stages of the study, providing research, drafting, and coordination of the public roundtable discussions. In addition, Ms. Rowland and Maria Strong, Deputy Director of Policy and International Affairs, reviewed a draft of the Report and provided important insights. Barbara A. Ringer Fellows Michelle Choe and Donald Stevens provided helpful research and analysis for several sections of the Report. Senior Counsel Kimberley Isbell, Counsels Brad Greenberg and Aurelia Schultz, Attorney-Advisors Katie Alvarez and Aaron Watson, and Law Clerk Konstantia Katsouli contributed valuable research and citation assistance. Finally, I would like to thank the many interested parties who participated in the public roundtables and submitted written comments to the Office. The wide range of perspectives and thoughtful analyses we received during the public comment period were an essential part of the development of our final recommendations. Maria A. Pallante Register of Copyrights and Director U.S. Copyright Office U.S. Copyright Office Orphan Works and Mass Digitization TABLE OF CONTENTS EXECUTIVE SUMMARY ..........................................................................................................1 I. OVERVIEW AND BACKGROUND ..............................................................................8 A. Prior Orphan Works Study and Proposed Legislation .........................................9 1. 2006 Report on Orphan Works ..........................................................................9 2. 2006 and 2008 Proposed Legislation ...............................................................11 B. Subsequent Legal Developments ...........................................................................13 1. Google Books Litigation ...................................................................................13 2. HathiTrust Litigation ........................................................................................17 C. International Experiences .......................................................................................18 1. The Nordic Model: Extended Collective Licensing ......................................18 2. European Union: Two-Pronged Approach ....................................................19 a. Orphan Works Directive ............................................................................19 b. Memorandum of Understanding ..............................................................22 3. Hungary ..............................................................................................................23 4. France ..................................................................................................................25 5. Germany .............................................................................................................27 6. United Kingdom ................................................................................................28 7. Canada ................................................................................................................30 8. Japan ....................................................................................................................31 9. Korea ...................................................................................................................32 D. Updated Copyright Office Review ........................................................................33 1. Mass Digitization Discussion Document .......................................................33 2. Current Study .....................................................................................................34 II. ORPHAN WORKS .........................................................................................................34 A. Consequences of Orphan Works ..........................................................................34 B. Solutions to the Orphan Works Problem ..............................................................39 1. No Legislative Change ......................................................................................40 a. Role of Fair Use ...........................................................................................40 b. Best Practices................................................................................................44 2. Exception-Based Model ....................................................................................47 3. Government License Model and Small Claims .............................................48 4. Extended Collective Licensing .........................................................................49 5. LȷȻȷɂȯɂȷȽȼ Ƚȼ LȷȯȰȷȺȷɂɇ MȽȲȳȺʖ Tȶȳ CȽȾɇɀȷȵȶɂ OȴȴȷȱȳȂɁ Recommendation .............................................................................................50 a. Applicability to All Categories of Works ................................................51 i U.S. Copyright Office Orphan Works and Mass Digitization b. Applicability to All Types of Uses and Users .........................................54 c. Eligibility for Limitations on Remedies ...................................................56 i. Conditions ..........................................................................................56 ii. Good Faith Diligent Search ..............................................................56 1) Qualifying Searches ....................................................................56 2) Judicial Consideration of Qualified Foreign Searches ...........58 3) Recommended Practices ............................................................59 4) Qualifying Third-Party Databases ...........................................60 iii. Notice of Use ......................................................................................60 iv. Notice of Claim of Infringement .....................................................62 d. Limitation on Remedies .............................................................................63 i. MȽȼȳɂȯɀɇ RȳȺȷȳȴʖ ȃRȳȯɁȽȼȯȰȺȳ CȽȻȾȳȼɁȯɂȷȽȼȄ.............................63 ii. ȃSȯȴȳ HȯɀȰȽɀȄ ȴȽɀ Cȳɀɂȯȷȼ NȽȼȾɀȽȴȷɂ IȼɁɂȷɂɃɂȷȽȼɁ and Uses .......64 iii. Effect of Registration on Monetary Damages ...............................66 iv. Injunctive Relief .................................................................................67 v. Injunctive Relief: Limitations Regarding State Actors .................69 e. Relationship to Other Provisions of Title 17 ...........................................70 i. Fair Use Savings Clause ...................................................................70 ii. Preservation of Statutory Licenses ..................................................71 iii. Copyright for Derivative Works and Compilations.....................71 f. Report to Congress ......................................................................................71 III. MASS DIGITIZATION ..................................................................................................72 A. Overview ...................................................................................................................72 B. Non-Legislative Solutions .......................................................................................76 1. Mass Digitization as Fair Use ..........................................................................76 2. Voluntary Agreements .....................................................................................79 C. Extended Collective Licensing ...............................................................................82 1. Types of Works and Publication Status ..........................................................84 a. Literary Works .............................................................................................85 b. Embedded Pictorial or Graphic Works ....................................................87 c. Photographs .................................................................................................88 2. Types of Users and Uses ...................................................................................89 3. CMO Authorization Requirements .................................................................90 4. Opt-Out Provisions ...........................................................................................93 5. Determination of License Terms .....................................................................94 6. Security Measures ..............................................................................................98