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Reports on collective management and extended licensing

The Commission has published today two reports reports in the field of copyright, as required by Directives 2014/26/EU and 2019/790. They are supported by two studies.

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The first report assesses the application of Directive 2014/26/EU on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market. The publication of the report is an obligation under Article 40 of that Directive. Second, the Commission has issued a report on the use of collective licensing mechanisms with an extended effect in the Union. The publication of this second report is an obligation under Article 12(6) of Directive (EU) 2019/790 on copyright and related rights in the Digital Single Market.   

The 2 reports are supported by a study on emerging issues on collective licensing practices in the digital environment (SMART 2018/0069) and a study on selected issues relating to the application of Directive 2014/26/EU (SMART 2019/0024).

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Commission Staff Working Document: Report on the application of Directive 2014/26/EU on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market

The Directive on collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market (Directive 2014/26/EU) aimed to improve the functioning of collective management organisations (‘CMOs’) across the EU and to facilitate the multi-territorial licensing of rights in musical works for online use, with the ultimate objective to promote a well-functioning internal market.

It harmonises the governance, financial management and transparency rules of collective management organisations. It also  includes provisions to help develop online music cross-border services.

This Staff Working Document reports on the application of the Directive. As required by Article 40, this includes the impact of the Directive on the development of cross-border services, cultural diversity, relations between collective management organisations and users, the operation in the Union of collective management organisations established outside the Union, and, if necessary, on the need for a review. The assessment made in the Staff Working Document relies notably on the findings of two studies conducted for the Commission.

This Staff Working Document has been submitted to the European Parliament and to the Council.

Commission Staff Working Document: Report on the use of collective licensing mechanisms with an extended effect as required under Article 12(6) of Directive 2019/790/EU on copyright and related rights in the Digital Single Market

The Directive on copyright and related rights in the Digital Single Market (Directive 2019/790/EU) harmonises for the first time the use of collective licensing mechanisms with an extended effect (‘CLEE’) in the EU. Under Article 12(6) of the Directive 2019/790/EU on copyright and related rights in the Digital Single Market (‘DSM Directive’) the Commission is obliged to report on the use of CLEE in the EU including the impact these mechanisms may have on licensing and rightholders, their effectiveness in facilitating the dissemination of cultural content and their impact on the internal market.

The Report concerns the use of CLEE in Member States as provided in national laws before the transposition of the DSM Directive. Therefore, this Report serves a general and preliminary overview of CLEE mechanisms, based on available information.

This Staff Working Document has been submitted to the European Parliament and to the Council.

The Commission has also published information provided by Member States on national provisions providing for collective licensing with an extended effect as required under Article 12(5) of the Directive.

SMART 2018/0069: Study on emerging issues on collective licensing practices in the digital environment

This study deals with 2 separate issues linked to the collective management of copyright-protected works. The first part focuses on various mechanisms of collective licensing with an extended effect, used in the Member States. The second part concerns the application of Directive 2014/26/EU ("the CRM Directive"), with a specific emphasis on the development of multi-territorial licensing of rights in musical works for online use in the internal market.

Collective licences with extended effects have existed in several Member States for a long time, but their conditions were only harmonised very recently under EU law, through Article 12 of the 2019 Directive on copyright in the digital single market.

Collective licensing with an extended effect often has different characteristics and legal forms depending on the Member State’s legal traditions, such as extended collective licensing, presumption of representation, statutory or legal mandate. The main feature of these mechanisms is that they are based on an extension of the licence concluded by the CMO to include the rights of rightholders which are not members of the relevant collective rights management organisation.

The study supports the above Commission Reports. It has been carried out in parallel to the study SMART 2019/0024, which focused on selected issues of the CRM Directive. It provides the Commission with elements to support the ongoing analysis of collective licensing with an extended effect (CLEE) in the various markets by illustrating the use of CLEE mechanisms in different Member States.

SMART 2019/0024: Study on selected issues relating to the application of the CRM Directive

The study focuses on the application of the Directive and their effect in 6 areas:

  1. governance and transparency of collective management organisations (CMOs) and their relationships with rightholders;
  2. relations between CMOs and users;
  3. CRM entities established outside the EU, but operating in the Union (non-EU CRM entities);
  4. independent management entities (IMEs);
  5. entities that are active on the rights management market but do not fall within the definition of either CMO or IME;
  6. collaboration and exchange of information between competent national authorities.

The study supports the above Commission report on the application of the CRM Directive. It has been carried out in parallel to the study SMART 2018/0069, which addressed specifically, among other things, issues related to the CRM Directive rules on multi-territorial licensing in the music sector.

Documents

Information provided by the Member States on collective licensing mechanisms with an extended effect

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