DRAFT European Group Minutes Brussels, May 30th, 2016 Attendees: Ismayil Mammadkarimov, AAS Owen Atkinson, ALCS Richard Combes, ALCS Barbara Hayes, ALCS Wolfgang Mattiasch, BILDRECHT Magdalena Vinent, CEDRO Javier Díaz de Olarte, CEDRO Sandra Chastanet, CFC Philippe Masseron, CFC Madeleine Pow, CLA Mat Pfleger, CLA Martin Kyst, CopyDan Susanne Munk Knudsen, CopyDan Anders Kristian Rasch, CopyDan (Vice-Chair) Mats Lindberg, Bildupphovsratt Christer Johansson, Bonus Copyright Access Malin Hertzell, Bonus Copyright Access Mathias Willdal, Bonus Copyright Access Aleksandra Burba, Copyright Polska Barbara Jozwiack, Copyright Polska Jedrzej Maciejewski, Copyright Polska Christian Zimmerman, DACS Lutz Franke, DJU Carola Streul, EVA Myriam Diocaretz, EWC Anne Bergman-Tahon, FEP Andrea Buticchi, FEP Małgorzata Szczodrowska, FEP Giga Kobaladze, GCA Georgina Bentliff, ICLA Conor Kostick, ICLA Samantha Holman, ICLA (Vice-Chair) Yngve Slettholm, KOPINOR Hege Døssland, KOPINOR Jukka-Pekka Timonen, Kopiosto Kirsi Salmela, Kopiosto Anna Bleszynska-Drewicz, KOPIPOL Juris Balodis-Boluzs, LATREPRO Tereze Tretjakova, LATREPRO Sandra Csillag, Literar-Mechana Michael Kavouras, Literar-Mechana Hanneke Vercshuur, LIRA Zuzana Semanova, LITA Timea Viragova, LITA Jennifer Crewe, NLA George Andrew Zannos, OSDEL Sarah Faulder, PLS Vincent van den Eijnde, Pictoright Philip Kubler, ProLitteris Benoit Proot, Reprobel (Chair) Kurt Van Damme, Reprobel Rudi Zaman, SAZOR Marc Hofkens, SEMU Florence-Marie Piriou, SOFIA Christian Roblin, SOFIA Martèl Bakker Schut, Stichting Reprorecht Hans Van den Hout, Stichting Reprorecht Marije van der Jagt, Stichting Reprorecht Hein Van Leeuwen, Stichting Reprorecht Carlo Scollo-Lavizzari, STM/IPA Eefke Smit, STM/IPRO Anke Shierholz, VG Bild-Kunst Christian Beyer, VG WORT Rainer Just, VG WORT Sabine Richly, VG WORT Muhammet Ciftci, TBYM/BASYAYBIR Ihsan Sonmez, TBYM/BASYAYBIR Zeynep Atiker, YAYBIR Observers: Dorien Kelly, ACA Michael Sullivan, ACA Tracey Armstrong, CCC Antje Sörensen, CCC Victoriano Colodrón, CCC Michael Healy, CCC Jim Alexander, Copyright Agency/Viscopy Tim Denny, Viscopy Caroline Morgan, Copyright Agency/Viscopy Lazarus Serobe, DALRO Maïa Bensimon, SGDL IFRRO Secretariat: Olav Stokkmo Manuela Francesia Pierre-Olivier Lesburguères (Taking minutes) Veraliah Bueno 1 DRAFT 1. Approval of agenda Benoît Proot (Chair) opened the European Group meeting and welcomed the participants. The agenda was approved. 2. Minutes of last meeting in Mexico City The minutes of the European Group meeting on 12 November 2015 in Mexico City were approved. 3. Implementation of the CRM Directive; short overview of latest evolutions Olav Stokkmo presented the matrix on the implementation of the EU CRM Directive in the 28 EU Member States, which had been circulated and made available to IFRRO members on the Members Only section of the IFRRO website; so far, five countries have implemented the CRM Directive. He invited members to continue updating the matrix via the Secretariat, and announced that a conference call would be organised in autumn for further exchange of information on the issue. 4. Implementation of the Orphan Works Directive and the MoU on Out of Commerce Works; short overview of latest evolutions Olav Stokkmo referred to the matrix mentioned under item 3, which also documents the implementation of the EU Orphan Works Directive and the Out-of-Commerce Works MoU. Poland has implemented the MoU in its legislation, and the Czech Republic bill to implement the EU CRM Directive also proposes the implementation of the Out-of-Commerce Works MoU. In France, the Court case against ReLIRE has resulted in certain issues having been referred to the Court of Justice of the European Union (CJEU); the Attorney General’s opinion is scheduled for 7 July 2016, whilst the publication of the decision is expected for October 2016. It is unfortunate that the European Commission (EC) has not expressed a clear support for the out-of-commerce MoU in relation to the case; IFRRO, EWC, FEP and STM consider a joint letter to the EC President, JeanClaude Juncker, which also the library organisations signatories to the MoU would be invited to sign, asking for the Commission to reiterate its express support to the MoU. Carlo Scollo-Lavizzari (STM) recalled that, in conjunction with the MoU discussions, at least on two occasions, the EC asked the Legal Service for its opinion, which they also offered. 5. National copyright legislation amendment initiatives and other national initiatives 5.1 Belgium Benoît Proot informed of initiatives in Belgium following the CJEU ruling in the HP Belgium v Reprobel case. Reprobel has met regularly with federal Government representatives, including with the Minister in charge. A legislative proposal addressing reprography and the right of publishers to continue to receive remuneration for reprographic reproduction administered by Reprobel on the basis of an exception in the Belgian copyright law, is under preparation. It is expected that the equipment levy on reproduction devices will be limited to strictly private copying, and that reprographic reproduction for professional/internal uses will be on the basis of an operator fee. Further, a ‘catch all’ exception for illustration for teaching in education (including reproductions on paper) is on the table. Reprobel’s revenue collection is likely to decrease, and the equal share of authors and publishers is under pressure. It also seems that proposed changes to the reprography legislation will be limited to copying on paper, thus excluding print-outs. Publishers would, as stated, continue to benefit from the reprography scheme but no longer from private copying and the (broad) educational exception. The government’s amendment bill is scheduled to be submitted to the 2 DRAFT Parliament in autumn this year. The Brussels Court of Appeal is expected to rule on the HP Belgium – Reprobel case towards the end of this year, following pleadings scheduled in October. On a question from Florence-Marie Piriou (SOFIA), Kurt Van Damme (Reprobel) explained that the legal basis for the remuneration to publishers would be a sui generis right on the basis of national law, rather on the basis of the EUCD. A new chapter in the legislation would separate author’s rights from the publisher’s right, and a provision would be added clarifying that “the publisher’s share of the remuneration will not affect the fair compensation to be paid to authors under the EUCD article 5.2a”. On a question from Olav Stokkmo, all RROs present reconfirmed that print-outs are included in their reprography schemes. Carlo Scollo-Lavizzari (STM) added that, in the CJEU ruling in the VG Wort v Kyocera and others (2013) case, the Court did not rule on whether print-outs can be covered, therefore it remains an open question. 5.2 Germany Rainer Just (VG Wort) updated on the German Federal Court decision in the Vogel case. Only authors and creators are considered as rightholders, and publishers may, at the outset, not receive a share of the fair compensation paid for reprographic reproduction under the relevant exceptions in the German Copyright Act. VG Wort may only pay a share of the remuneration to publishers if the author has transferred rights to the publisher. This may apply to authors who have not transferred their reprographic reproduction rights to VG Wort; authors with a representation contract with VG Wort may not be in a position to transfer rights to the publishers as they have already been transferred to VG Wort. As the situation currently stands, substantial amounts may have to be reclaimed from publishers. VG Wort is lobbying in parallel for a national German and a European solution. Answering a question from Benoît Proot, Rainer Just confirmed that collection of revenues under the current legislation is continuing, and the equipment industry and other debtors continue paying. Anke Schierholz (VG Bild-Kunst) commented that visual artists have transferred their reprographic reproduction rights to VG Bild-Kunst, which would therefore not be in a position to pay remuneration to publishers on the basis of a transfer of rights to them. Sarah Faulder (PLS) noted that the German Federal Court decision causes concern also in countries without levy schemes, as it affects the core of collective management. 5.3 Ireland Samantha Holman (ICLA) informed of a ministerial briefing document, which includes proposed amendments to the Irish copyright legislation to introduce fair use and the broadening of exceptions and limitations. She also advised that the CRM Directive has been implemented in Ireland. 5.4 Norway Yngve Slettholm (Kopinor) reported on the draft revision of the Norwegian Copyright Act, which is not expected to have a major impact on Kopinor’s work. 5.5 Greece George Zannos (OSDEL) informed that draft legislation to implement the EU CRM Directive was shortly to be presented to the Greek Parliament; it is not expected to include extension of devices to be levied to include, for instance, PCs. 6. CJEU decision in the HP Belgium - Reprobel case; possible consequences on RROs 3 DRAFT Olav Stokkmo noted that the CJEU ruling in the HP Belgium case is arguably the most important challenge to collective rights management in the text and image sector since the establishment of RROs. Regular conference calls have been and will continue to be organised by the IFRRO Secretariat for the purpose of monitoring the situation and exchange of information; any IFRRO member with interest in the issue can participate in these calls. A smaller task force to assist in relation to the situation in Belgium had also been set up to examine short and medium term consequences, including possible remedies. Sarah Faulder suggested that the IFRO Board considers establishing a task force to examine potential mid and long term consequences of the CJEU decision on RRO activities across various models of operation. The meeting agreed that it is important to push for solutions both at EU and national level. IFRRO also encourages authors and publishers associations nationally to continue dialogues on how to address challenges, which arise to the current rights administration by RROs. Rainer Just supported the proposal, although authors and publishers associations are autonomous and it may therefore be challenging for RROs to facilitate joint meetings, whilst Conor Kostick (ICLA) emphasised that it would be short sighted to think that authors will benefit from this ruling; only big companies will, and this argument should be won with the authors. 7. European Development Committee Update Samantha Holman referred to the recent meeting of the IFRRO European Development Committee (EDC) in Sofia, Bulgaria, in May 2016, which was followed by a successful sub-regional seminar. The Director of the Bulgarian Copyright Directorate had promised to set up a working party and to support amendments to the Bulgarian law that would make administration of reprography easier in the country. The next EDC meeting is scheduled to take place in Serbia, during the Belgrade book fair at the end of October, to support the local RRO OORP, which has been admitted as an IFRRO member, and enhance contact with authors and publishers in the region. The RRO in Estonia will be invited as an observer to the meeting. Olav Stokkmo noted that LATREPRO had successfully signed its first licencing agreement. 8. Keynote speech on the Review of EU copyright rules by Maria Martin-Prat, Head of the Copyright Unit at the European Commission María Martin-Prat, Head of the EC Copyright Unit, noted that, by the deadline 10 April 2016, five Member States only had implemented the CRM Directive, and that the European Commission was preparing proceedings against those, which had not implemented it. She then reminded of the four key aspects of the EC Communication of 9th December 2015 on copyright: territoriality; exceptions and limitations; a publisher’s right, and the CJEU ruling in HP Belgium; and facilitating the making available of out-of-commerce works through some form of extension of voluntary collective licensing agreements. The Commission holds that exceptions and limitations may require enhanced harmonisation. The EU Copyright Directive (EUCD) makes 20 of them optional, and this has led to differences in their implementation in national legislation. The Copyright Unit is, nonetheless, mindful of the principle of subsidiarity and that collective rights administration, for instance in the text and image sector, is through different models of operation in the various Member States. Harmonisation may be required mainly when there is a cross-border effect of the licensed use of works. María Martin-Prat did not envisage a new educational exception; it seemed, however, necessary to clarify the current scope and concept of Article 5.3.a of the EUCD on ‘Illustration for teaching’. She realised that it would represent a challenge to offer a positive definition; rather the Commission would aim at clarifying what is not covered under that exception, and also ensure the possibility of the use of works in education and research through secure networks, including across borders, leaving the practical implementation to the Member States. 4 DRAFT The Commission is considering an exception to allow individuals who can legally access the content to perform Text and Data Mining (TDM), provided defined standards of security and fairness towards rightholders are met. María Martin-Prat, whilst acknowledging the challenges created by the CJEU ruling in the HP Belgium – Reprobel case, pointed out the time required if the issue were to be resolved on the EU level alone. There seems to be gaps left by the CJEU decision, which could create a scope for solutions also at national level. On a question from Benoît Proot, she added that, as the Commission is prevented from making statements on CJEU rulings, it was difficult to see how the Commission could issue an official position on the matter. A possible long-term solution could be to establish a specialised EU IP court, as submitted also by IFRRO. On the specific publishers neighbouring right issue, María Martin-Prat referred to the ongoing EC consultation. Sarah Faulder noted the difficulty in resolving the problems caused by the CJEU decision in the HP Belgium – Reprobel case at national level as the root of the problem lies in the wording of the EUCD; she also pointed out the inconsistency in the EU legal framework with the CRM Directive recognising publishers as rightholders. Carlo Scollo-Lavizzari advised that a solution should be sought at EU and national level so that both can move together. Maria Martin-Prat commented that she was not convinced that the problem related to the EUCD, and although the CRM Directive does recognise publishers as members of a CMO, she disagreed that it recognises them as rightholders, the same way as authors and producers. One possible solution to the problem might be through the transfer of rights, or the creation of a publisher’s neighbouring right. On a question from Anne Bergman (FEP) regarding education and library exceptions, and an enquiry from Anke Schierholz on hyperlinking, Maria Martin-Prat emphasised that the ‘Illustration for teaching’ exception refers to illustration only, and not for instance multiple copying. The library exceptions regard three main issues: for preservation purposes, which is a clearly defined concept; the production, making available and cross-border transfer of accessible format copies for persons with print disabilities on the basis of the Marrakech Treaty; and e-lending. Maria Martin-Prat did not expect that the communication to the public concept will be redefined anytime soon. Addressing hyperlinking requires initiatives claiming that it is not acceptable to hyperlink to anything available. At the invitation of Christian Roblin (SOFIA), Maria Martin-Prat emphasised that she did not find it appropriate to comment on the Soulier and Doke case, which was pending in the CJEU. Olav Stokkmo commented that the problem with the out-of-commerce MoU is that the Commission initiated and facilitated it, and now fails to actively support it in conjunction with ongoing CJEU cases. He then suggested, given the seriousness of the problem created by the CJEU ruling in HP Belgium, to consider an IFRRO - European Commission ad hoc working party to examine possible solutions to preserve collective management in the text and image sector, to which Maria MartinPrat confirmed that the Copyright Unit would remain open, although, as there is no harmonisation at EU level on the right of publishers, the main issue seems to be the space left in the CJEU ruling for national laws to allow the current systems to continue. On a question from Rainer Just, Maria Martin-Prat noted that the situation in Germany is distinct from that of the other Member States. There are also differences in views among the Member States on how to address the issue of a right for publishers to receive remuneration for reprography alongside that of the author. 9. Review of the EU copyright rules Three key issues to the IFRRO constituencies are exceptions in favour of education, libraries, and Text & Data Mining (TDM). Various matrices on rights administration in relation to those issues, based on information provided by the membership, are readily available on the Members Only 5 DRAFT section of the IFRRO website; they have also been shared with the EC Copyright Unit. In the further work, until the Commission’s proposal on the review of the EU Copyright rules is published, scheduled for 21 September, the Secretariat will continue to have a main focus on the European Commission. In parallel, it will start sensitising selected Members of the European Parliament (MEP) and government representatives / Copyright offices on IFRRO’s position on the issues of most relevance to the IFRRO membership. IFRRO members were encouraged to engage with their national governments and Council IP Working Party representatives, and selected MEPs. Carlo Scollo-Lavizzari advised that STM argues that TDM should be enabled through contracts and not through an exception. On an enquiry whether the proposed EC initiative on geo-blocking was an issue of concern for the IFRRO community, Olav Stokkmo responded that it is still to be studied at the Secretariat. Anne Bergman reminded that book-publishing is excluded from the proposed Regulations on geo-blocking until 2022. She welcomed Maria Martin-Prat’s stance on illustration for teaching, encouraging IFRRO to work on a further specification of the concept, and warned that library exceptions may prove to cause more of a challenge. In this respect she advised that awareness raising activities in relation to the European Parliament be focused more on the Socialists and Democrats political group. 10. EC Consultation on publishers’ neighbouring rights and on freedom of Panorama At the suggestion of Olav Stokkmo, the meeting agreed that, on the freedom of panorama exception, IFRRO should take advice and follow the position of EVA. Olav Stokkmo further noted that, regarding the publishers neighbouring right issue, there is not a consensus among IFRRO’s members either to support or reject such a right, at this stage. There is, however, full agreement that the current system of administration of reprographic rights by RROs must be allowed to continue, and that this includes the right of both authors and publishers to be remunerated under reprography schemes administered by RROs. The meeting noted EMMA’s and ENPA’s proposed changes to the draft IFRRO submission on the EC Consultation, and other comments made at the meeting, which would be considered in a revised draft submission to be circulated to the European Group members for comments. Florence-Marie Piriou suggested that, at some point, it might be necessary to consider, in the light of TRIPS, the impact on bilateral agreements of publishers not being recognised as rightholders. 11. Other EU issues Anne Bergman mentioned the current proceedings in case C-174/15 (Vereniging Openbare Bibliotheken v Stichting Leenrecht) relevant to e-lending, which has been referred to the CJEU, with the Opinion of the Advocate General to be published on the 16 th of June. Furthermore, referring to the recently adopted EC Regulation on accessibility, which includes obligations on publishers, she encouraged IFRRO members to lobby their governments for the transformation and making available of published works for print disabled persons under an exception in the legislation to be made subject to works not being commercially available. 12. Elections of the European Group’s Executive Committee at the meeting in Amsterdam At the proposal of Benoit Proot, Anna Bleszynska-Drewicz (KOPIPOL), Sandra Chastanet (CFC) and Hege Døssland (Kopinor) were elected as the European Group Nominating Committee to prepare for the election of the EG Executive Committee at the next EG meeting. 13. AOB 6 DRAFT Olav Stokkmo presented changes to the IFRRO Statutes and Guidelines, which the Board proposes to be voted at the AGM 2016 in Amsterdam: (i) proxies to be used for any type of voting, not only elections; (ii) extension of the election period for Board members and the Presidency from the current two to three years; (iii) enabling the President to be re-elected twice, which would then also make the current President eligible to serve another period; (iv) modification of the membership fee tiers and corresponding votes; (v) inclusion of the collection for PLR in the basis for the calculation of membership fees to IFRRO. The latter is a result of a request from PLR International for enhanced IFRRO involvement in the PLR work. Anne Bergman (FEP) advised against IFRRO supporting the extension of PLR schemes to e-lending, which should not be covered by an exception in EU or national copyright legislation. 14. Date and place of next meeting: Thursday 3rd of November, Novotel Hotel, Amsterdam Benoît Proot announced the date and time for the next European Group meeting and, there being no other business, he closed the meeting. Ref. Pierre-Olivier Lesburguères, 21 June 2016 -END- 7
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