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Sylvie Forbin, Vice-President, Public and European Affairs June 2010 Internet Piracy : Key Issues and Solutions.

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Presentation on theme: "Sylvie Forbin, Vice-President, Public and European Affairs June 2010 Internet Piracy : Key Issues and Solutions."— Presentation transcript:

1 Sylvie Forbin, Vice-President, Public and European Affairs June 2010 Internet Piracy : Key Issues and Solutions

2 Vivendi, a major player in contents and networks Every year, with all of those businesses combined, Vivendi invests over €5 billion (distributed equally) in content creation and acquisition and network technologies. 2 N° 1 Video Games Worldwide N° 1 Music Worldwide N° 2 Telecoms in France N° 1 Telecoms in Morocco N° 1 Alternative Telecoms in Brazil N° 1 Pay-TV in France

3 Digital contents distribution has strongly developped over the past years Focus on Several Initiatives 3

4 The market of legal offers has increased significantly A strong diversification of the market, which echoes new uses Broader available catalogues See diagram for Apple / iTunes Active partnership policy with the new intermediaries Streaming offers ad-financed : MySpace, Deezer, Dailymotion,, … Unlimited offers based on subscription: Neufbox music, Orange Music Max, SFR Illimythics… Price decrease on the back-catalog Decrease in the price of download, to 0.69€ in Europe for over 5 000 UMG tracks available on iTunes Transition to mp3 format Because DRMs were pointed out for their lack of interoperability, and following the “Mission Olivennes” recommendations, the French music catalog is now available online without any DRMs. 4 X 3

5 Music : Important efforts have been made to meet consumers’ expectations Launch of streaming platforms, which allows direct monetization of contents through partnerships with advertisers VEVO, a YouTube/UMG common platform, launched in the United States in december, and soon in Europe. Alloclips, a similar initiative launched in 2008 by Universal Music, France. 5

6 Music : Important efforts have been made to meet consumers’ expectations Launch of Spotify, an unlimited music offer in streaming available in 3 versions : 1- free offer, ad-financed 2- a short term paying offer, with no advertisement 3- a « premium » offer meaning a monthly susbscription with an iPhone application and no advertisement Bundled ADSL/mobile and music subscription offers Neufbox Music : a common offer SFR/Universal Music (see below), available in 2 versions for Neuf customers: An « initial » version: download 1 musical type for free among 9 different types An « optimal » version: for 4,99€ monthly, unlimited access to the whole catalog 6

7 Audiovisual : Non-linear services have been launched to meet consumers’ demand Canal+ on demand: Cach-up TV offer was launched in 2008 For all Canal + customers, through their PC or TV (ADSL box or cable) Over 200 programs available The content offer is daily updated 7 Available in France only

8 Online piracy is still hampering the development of the legal market What Solutions? 8

9 What is the « French Approach » about ? A step-by-step approach A two-years process: Olivennes Mission, Legislative Debate, Constitutionnal Council Case Law … Leading to the creation of a new independent administrative authority : the HADOPI

10 Four missions to promote legal offers and deter illegal practices 10 Sending warning messages Trustmarking the means of monitoring access to internet Granting trustmarks to lawful online communication services Evaluation of filtering technologies

11 Legal basis of actions to deter online piracy, as set by the new law The law « Création et Internet », passed in 2009 in France, provides two types of actions for copyright holders Through the HADOPI When illegal online practices are identified, copyrights holders are entitled to make a referral to the HADOPI, which sends emails to infringers via the ISPs, and in case of reiteration, can refer the case to the judge. Legal basis for HADOPI action : the subscriber’s duty of care - Reasons for sending notices is the subscriber’s lack in his duty of care (article L.336-3, Intellectual Property Code) - To help consumers comply with this obligation, ISPs shall make available software solutions approved by HADOPI to prevent the use of their internet access subscription for Copyright infringement purposes

12 Through the Judge Already set in a previous law and validated by the Cour of Cassation, the « HADOPI » law gives more flexibility to the judge and thus ensures more effectiveness to: o Blocking access to illegal content o Ceasing hosting of pirate sites o Delisting infringing contents The legal basis is Article L.336-2, Intellectual Property Code : The judge, ruling if needed in summary proceedings, may order at the request of all affected stakeholders the taking of any measure necessary to prevent or put an end to any infringement of copyright or a related right, including the possibility of blocking the functioning of telecommunications infrastructures B-to-B approach to online piracy is a key measure in this new framework 12

13 Some Examples of European Initiatives 13

14 United-Kingdom The Digital Economy Act 2010, establishing a graduated response process leading to possible sanctions including temporary suspension of repeat infringers’ accounts, was passed in early April. Under the new law, ISPs will be obliged to notify subscribers whose accounts have been reported to be infringing, and to keep records of reported subscribers on an anonymous basis. The Secretary of State will have the power to oblige ISPs to implement technical measures to limit internet access for repeat infringers, including suspension of accounts, following 12 months of the initial obligations. The law also empowers the Secretary of State for Business to enact regulations to allow courts to block any site which the court is satisfied is likely to be used in connection with an activity that infringes copyright. 14

15 Spain In March 2010, the Council of Ministers approved the government’s Sustainable Economy Law, which will now go to Parliament for debate. The bill includes provisions requiring the blocking or suspension of infringing websites under a new, expedited procedure. A specialized tribunal is to decide within four days whether infringing content should be removed or access blocked to a site, based on a recommendation from a newly established Intellectual Property Commission. The law could be in operation as early as June. 15

16 Ireland In January 2009, court proceedings between the record companies and a major Irish ISP, Eircom, were settled. The parties agreed on a graduated response process for P2P infringement culminating in account disconnection, if the subscriber does not comply with repeated warnings. The record companies have agreed that they will take steps to put similar agreements in place with all other ISPs in Ireland. The High Court in April confirmed the legality of the Eircom agreement, holding that its implementation is consistent with data protection law. The parties will now proceed to implement the agreement, and all technical systems are already in place to operate the graduated response process. Meanwhile, a court granted an order requiring Eircom to block access to the Pirate Bay as from 1 September 2009. 16

17 Belgium In February, the Court of Appeal referred two questions to the European Court of Justice in the SABAM v/s ISP Scarlet case, about the order that required Scarlet to “make it impossible” for its users to infringe copyright using P2P services and stated that a filtering solution to distinguish legitimate from illegitimate files appeared to be the most effective and proportionate means. A « Graduated Response » bill is currently examined by the Parliament 17

18 Norway Following Parliamentary elections in September 2009, the new government has set up a working group to deal with piracy and to decide on possible measures to limit illegal filesharing and encourage the use of legal services. The working group, which includes both rightholders and ISPs, has already met twice, focusing on the issues of identification of file-sharers and injunctions against intermediaries. The issues of graduated response and data retention will also be discussed by the working group, which aims to finish its work by June. 18

19 Finland In August 2009, a working group of four ministries issued a report stating that the new law implementing the EU Enforcement Directive needed to be reviewed regarding its effectiveness as to means of legal protection and intervention in illicit file-sharing. After public consultations through the end of October 2009, the Ministry of Culture is considering possible follow-up actions that may include elements of graduated response. Regarding litigation, in early 2008 two courts issued injunctions against ISPs, requiring suspension of internet access to individual high-volume P2P uploaders. 19

20 Denmark In June 2009 the Ministry of Culture released a report describing possible approaches to online copyright infringement, including a graduated response system. In December 2009 the Ministry established a committee including representatives of rightholders, ISPs and consumer organisations, to be tasked with the examination of measures to enhance online enforcement. A first meeting took place in January and the committee is supposed to conclude its work by September. Graduated response and ISP cooperation are among the measures under discussion. 20

21 Sylvie Forbin Vice-President, Public and European Affairs 21

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