Reconstructing European Copyright Law for the Digital Single Market (eBook)

Cover 1
Introduction 31
A. Copyright Old and New 32
B. A historical perspective: Copyright before digitization 37
C. Outline and Structure 45
I. Four factors to rule copyright 45
1. Efficiency and certainty 45
2. Balance 46
3. System 46
II. Structure 47
Chapter 1. Copyright in a Digital EU – Problems & Policy
A. The Modern Copyright Dilemma 51
I. Specificities of digital reproduction 52
1. New reproductions 53
2. New uses 54
3. Different authorization-markets 54
II. Aggravating factors 57
1. Problems with moral rights 57
2. Fragmentation and effects of harmonization 58
III. The poles of the copyright balance 60
1. Rightsholder interests 63
2. (Private) User interests 64
3. Interests of businesses (and the Commission) 65
B. The Digital Agenda of the European Union 66
I. Single Market Act 67
II. A Single Market for Intellectual Property Rights 68
III. Green Paper on the online distribution of audiovisual works 72
IV. Continued efforts and external input 75
1. Stakeholder dialogue “Licenses for Europe” 76
2. The Public Consultation on the review of EU copyright 77
V. The new “Digital Single Market Strategy” 79
1. A leaked White Paper 81
2. The Commission 2015 Work Programme 84
3. The “Reda Report” 85
4. The Digital Single Market Strategy 90
C. Elements of a European Copyright Framework for the Digital Single Market 94
Chapter 2. Copyright (Regulation) in the Single Market 99
A. International Copyright Legislation with EU Relevance 100
I. Berne Convention for the Protection of Literary and Artistic Works (1886) 105
II. Trade-Related Aspects of Intellectual Property Rights (TRIPS, 1994) 108
III. WIPO Internet Treaties 110
B. EU Copyright Legislation 111
I. The centerpiece of EU copyright – the InfoSoc Directive (2001/29/EC) 112
II. Vertical harmonization – extending rightsholder protection 113
III. Purposeful copyright management – orphans and online music 115
IV. Interim conclusion: restrictive trends in EU copyright harmonization 116
C. The CJEU’s Jurisprudence in Relation to Copyright 118
I. The (early) copyright case-law 118
II. The recent case-law 120
D. The status quo 122
Chapter 3. Elements of a European Copyright Framework for the Digital Single Market 125
A. Territoriality and the Demands of the Single Market 127
I. Managing multiple rights 128
II. The principle of territoriality in the EU 130
III. Conflicts with the single market 132
IV. The Principle of territoriality applied to copyright protected works 134
1. Basic EU exhaustion 134
2. Regional and international exhaustion 139
a. Regional exhaustion in the EU – legislative certainty 140
b. International exhaustion in the US – an upset 141
3. Territoriality applied to digital works 142
V. Exhaustion of digital content in the EU 145
1. Classifying digital content 146
2. Distinguishing goods from services 147
3. Exhausting digital content 149
4. FAPL/Murphy – can services be exhausted? 150
a. Exhaustion and services 153
b. Exhaustion and communication to the public 155
5. UsedSoft v. Oracle – software downloads lead to exhaustion 157
a. The Opinion of AG Bot 158
b. The Judgment of the Court 165
c. The post-UsedSoft excitement 167
6. Beyond UsedSoft – exhaustion and other types of digital content? 168
a. Germany – resale denied 169
b. The Netherlands – a waiting game 175
c. German-Dutch disagreements 181
7. The uncertain future of digital exhaustion in the EU 182
a. Application of exhaustion to digital content 183
b. Functional equivalence of tangible and digital works 184
c. Market impact 186
8. Interpretative accommodation of exhaustion under the InfoSoc Directive 188
a. Is exhaustion applicable to services? 188
b. Necessary reproductions 191
c. Preventing piracy 193
VI. Different continent, same problem: the US 194
1. Infringements 195
2. Defenses 196
3. ReDigi’s consequences – in comparison 198
a. Sale v. license (goods v. services?) 199
b. Moving files through time and space 200
c. Flexibilities 202
VII. Coping with territoriality 204
1. Territoriality is there to stay 205
2. Exhaustion off-balance 207
a. Physical goods 207
b. Digital files 208
c. It is services, not sales! 211
3. Coping with territoriality, and (maybe) rebalancing exhaustion 214
4. Is territoriality upsetting the digital common market? 215
a. The ‘secondary’ market 215
b. The ‘primary’ market – establishment and collisions 217
VIII. Striking the balance 218
1. Striking the balance for rightsholders 219
2. Striking the balance for users 220
3. Rebalancing exhaustion 222
a. Value for money 223
b. Distribution of risk 225
c. Ownership permits resale 225
IX. The future of territoriality and exhaustion 227
B. (Digital) Limitations and Exceptions to Copyright 231
I. Limitations and exceptions as part of the copyright system 233
1. The consent barrier 233
2. The different roles of L& Es
3. L& Es in current EU copyright policy
II. L& Es in the EU copyright system
1. The L& Es of the InfoSoc Directive
2. The exhaustive list of Article 5 InfoSoc 244
3. The dominance of exclusive rights 245
4. The narrow scope of L& Es
a. Narrow interpretation of L& Es
b. A turn of the tide 249
III. Categories of L& Es for digital uses – Content and processes
1. Fundamental rights 257
2. Commercial vs. non-commercial uses 260
3. User-generated content 262
4. Copy-reliant technologies 265
5. Technological processes – facilitating the Internet 270
IV. Adapting L& Es for digital uses
1. Extension of L& Es
a. Creating a dangerous precedent 273
b. Expected repetitions 274
c. Continuing inflexibility and uncertainty 274
d. The uncertainties of implementation 275
2. Altered interpretation 276
a. Wide interpretation 277
b. Extension by analogy 279
c. Limits of non-restrictive interpretation 282
3. The three-step test 283
a. Origins of a ‘flexible’ norm 284
b. The three-step test in EU copyright 287
c. The untapped potential of the three-step test – making the test work 293
i. Application by the judiciary 294
ii. Each step revisited 295
iii. Order of interpretation 305
d. Limitations of the three-step test 310
e. Making the test work 312
4. Adopting fair use 315
a. Advantages and disadvantages of fair use 319
b. Is fair use really that flexible? 322
c. Limitations of fair use 325
d. Implanting fair use 326
5. Including an open norm 330
V. Revising L& Es for digital uses
1. The locus of an open norm 334
2. The notion of an open norm 335
3. An inspired open norm 337
a. Fundamental rights and technological developments – shifting standards 341
b. Abandoning restrictive interpretation 342
c. Compatibility with the three-step test 343
4. Introducing technological neutrality 344
5. Addressing rightsholder concerns 346
a. Economic interests 347
b. Non-economic interests 350
c. Limiting contractual freedom 351
6. What future for L& Es?
a. Ideally! 354
b. Realistically? 355
c. Critically 356
C. Technological Protection Measures (TPMs) 360
I. TPMs in modern copyright law 363
1. The ratio of TPMs 364
2. The relevance of TPMS 365
a. Control over content 366
b. Trust and security 367
II. Legal protection of TPMs 369
1. Legislation on TPMs 369
2. Interpretation of Article 6 InfoSoc Directive 372
a. TPMs and fair remuneration 374
b. TPMs and control 376
III. Claiming access – circumventing TPMs 378
1. Mod-chips and consoles 379
2. Breaking files and access-controls 382
3. Excluding ‘lawful circumvention’ 383
a. Digital exception 384
b. Exclusion by contract 388
4. Uncertainties and the territorial dimension 389
IV. Disabling legal uses 390
1. Over-employment 391
2. Technological limits 392
V. Protecting rights – protecting use(r)s 393
1. The ability to enable 394
2. The ability to protect interests 395
a. Property rights 395
b. Fundamental rights 395
c. Rebalanced TPMs 400
VI. Do TPMs need reform? 401
1. TPMs protect business models 403
2. Clarification of the relation between TPMs and L& Es
a. Primacy of L& Es over TPMs
b. Removal of effective obstacles 408
c. Increased efficiency 408
3. Technological measures in the digital market 409
a. Steps in the right direction 410
b. Legislative tasks 411
D. Collective Copyright Management 414
I. Collective management in a nutshell 416
1. Collective rights management in a historical perspective 417
2. Systematic territoriality 418
3. Collective management in the copyright acquis 420
II. Collective copyright management in multi-territorial digital markets 421
1. Legal responses to economic solutions in the EU 423
a. IFPI Simulcasting: exception for concerted practices 423
b. CISAC: a crackdown on segmented markets 425
c. Impetus for anti-territorial legislation 427
2. The early cross-sectoral approach 428
a. The Parliament’s Resolution 428
b. The Commission’s reply 430
3. Shifting licensing landscapes 432
a. Narrowed scope: online music services 434
b. Relations between CMOs, users and rightsholders 435
c. Abandoning territorial licensing 436
d. Split repertoires 437
e. No effective harmonization 439
4. Collective management and multi-territorial licensing 441
a. Control of CMO activities 445
i. Options 445
ii. Policy choice 446
b. Multi-territorial licensing for musical works 447
i. Options 448
ii. Policy choice 449
c. The proposed Directive on Collective Management 450
i. Governance and transparency 451
ii. Multi-territorial licensing 454
d. Critique 457
e. The final Directive 460
i. Definition of CMO 461
ii. Governance and transparency 462
iii. Multi-territorial licensing 465
iv. Individualized exercise of exclusive online-rights 466
III. The future of multi-territoriality and modern digital distribution 468
1. Unadopted solutions and their merits and shortcomings 469
a. Extended collective licensing 470
b. The country-of-origin principle 471
IV. Collective management in a digital environment 472
1. Transversal issues 476
a. CMOs and copyright L& Es
b. CMOs and TPMs, complementing or replacing? 478
2. The future of EU collective management 479
Chapter 4. Efficient and Balanced European Copyright for the Digital Single Market 485
A. Essential Pillars for a European Copyright System 486
I. Efficient copyright management 487
II. Defining the balance in copyright - “Guided Flexibility” 490
1. Terminological injustice 493
2. Defining the actors 494
a. Users 494
b. Intermediaries 496
3. Finding the balance 497
a. The balance must be flexible 498
b. The balance must be based on principles 499
c. The balance must be fair 504
B. The Pieces and the Puzzle 506
C. Legislative options for the “Copyright Dilemma” 508
I. Update of the InfoSoc Directive 510
1. Defining exclusive rights 512
2. The Pandora’s Box of L& Es
3. Complementary additions 515
II. European Copyright Code 515
1. Advantages of coherent and directly applicable legislation 517
2. Territoriality, again! The inefficiency of ‘mere’ harmonization 519
III. Unitary Copyright 520
1. Scope of a unitary copyright title 524
a. Replacing national titles 525
b. Sectoral protection 525
c. Parallel existing titles or replacement of national copyrights 526
2. An ‘elegant’ solution 528
3. The perspective for a unitary copyright title 532
IV. One out of three? 532
1. Urgent problems need quick responses 534
2. A word on competence 535
D. Perspective 537
Summary 549
Table of Legislation and Cases 557
Bibliography 567