MEPs adopt new Copyright Directive for the internet

European Parliament adopted in Strasbourg the new Copyright Directive on modernized rules for the internet, fit for digital age. MEPs adopted new directive in plenary on Tuesday, 26 March 2019, by 348 votes in favor, 274 against and 36 abstentions, and this marks the end of legislative process for European Parliament that began in 2016. Directive aims to ensure that the longstanding rights and obligations of copyright law also apply to the internet. YouTube, Facebook and Google News are some of the internet household names that will be most directly affected by this legislation.Directive also strives to ensure that the internet remains a space for freedom of expression.

Tech giants to share revenue with artists and journalists

Directive aims to enhance rights holders’ chances, notably musicians, performers and script authors, (creatives) as well as news publishers, to negotiate better remuneration deals for the use of their works when these feature on internet platforms. It does this by making internet platforms directly liable for content uploaded to their site and by automatically giving the right to news publishers to negotiate deals on behalf of its journalists for news stories used by news aggregators.

Locking in freedom of expression

Numerous provisions are specifically designed to ensure the internet remains a space for freedom of expression. As sharing snippets of news articles is specifically excluded from the scope of the directive, it can continue exactly as before. However, Directive also contains provisions to avoid news aggregators abusing this. The ‘snippet’ can therefore continue to appear in a Google News newsfeeds, for example, or when an article is shared on Facebook, provided it is “very short”. Uploading protected works for quotation, criticism, review, caricature, parody or pastiche has been protected even more than it was before, ensuring that memes and Gifs will continue to be available and shareable on online platforms.

Many online platforms will not be affected

Text also specifies that uploading works to online encyclopedias in a non-commercial way, such as Wikipedia, or open source software platforms, such as GitHub, will automatically be excluded from the scope of this directive. Start-up platforms will be subject to lighter obligations than more established ones.

Stronger negotiating rights for authors and performers

Authors and performers will be able to claim additional remuneration from the distributor exploiting their rights when the remuneration originally agreed is disproportionately low when compared to the benefits derived by the distributer.

Helping cutting edge research and preserving heritage

Directive aims to make it easier for copyrighted material to be used freely through text and data mining, thereby removing a significant competitive disadvantage that European researchers currently face. It also stipulates that copyright restrictions will not apply to content used for teaching or illustration. Finally, Directive also allows copyrighted material to be used free-of-charge to preserve cultural heritage. Out-of-commerce works can be used where no collective management organisation exists that can issue a license.

How this Directive changes the status quo

Currently, internet companies have little incentive to sign fair licensing agreements with rights holders, because they are not considered liable for the content that their users upload. They are only obliged to remove infringing content when a rights holder asks them to do so. However, this is cumbersome for rights holders and does not guarantee them fair revenue. Making internet companies liable will enhance rights holders’ chances (notably musicians, performers and script authors, as well as news publishers and journalists) to secure fair licensing agreements, thereby obtaining fairer remuneration for the use of their works exploited digitally.

Rapporteur Axel Voss (EPP, DE): “This directive is an important step towards correcting a situation which has allowed a few companies to earn huge sums of money without properly remunerating the thousands of creatives and journalists whose work they depend on. At the same time, the adopted text contains numerous provisions that will guarantee that the internet remains a space for free expression. These provisions were not in themselves necessary, because the directive will not be creating any new rights for rights holders. Yet we listened to the concerns raised and chose to doubly guarantee the freedom of expression. The ‘meme’, the ‘gif’, the ‘snippet’ are now protected more than ever before. I am also glad that the text agreed today shelters start-ups in particular. Tomorrow’s leading companies are the start-ups of today and diversity depends on a deep pool of innovative, dynamic, young companies. This is a directive which protects people’s living, safeguards democracy by defending a diverse media landscape, entrenches freedom of expression, and encourages start-ups and technological development. It helps make the internet ready for the future, a space which benefits everyone, not only a powerful few.”

It will now be down to EU Member States to approve Parliament’s decision in the coming weeks. If Member States accept the text adopted by the European Parliament, it will take effect after publication in the Official Journal and then Member States will have two years to implement it.

Source:European Parliament Press Service