© Clearance Issues for Online Video Ted Shapiro (Senior Vice-President, General Counsel & Deputy MD, EMEA) Seminar on IP and Creative SMEs in the Digital Environment WIPO – 21 MAY 2008

One important factor relates not only to how copyright protects film but also how it regulates and permits the audio-visual sector to function…. A successful film industry of course depends on a wide range factors.

The Complexity of Rights Clearance What is rights clearance? –Securing rights for production and exploitation –Preventing third party claims –Consequences for failure to clear Copyright and Related Rights (authors/performers etc) Underlying works/Pre-Existing Content –Inclusion in new works or new uses of old works –E.g., books to films, clips on UGCs, old films on VOD Personal: Rights of publicity, privacy and/or moral rights Residuals (Guilds) and Remuneration (Statutory) Music – particularly for online uses Trademarks, Business names, Titles, Products, Locations Orphans, Remakes, Sequels, Prequels, Scope and nature of licenses particularly for new Internet services: territoriality, DRMs. (See also IFTA materials) Related points: E&O insurance, co-production agreements, completions bonds, financiers, banks International aspects – laws vary - e.g., exceptions

Focus for Today Overview of AV © in the US and EU Some Rights Clearance Issues for the Exploitation of Video on the Internet –VOD –Electronic Sell-Thru –New Modes of Retransmission DTT Mobile TV IPTV Internet FIN

Exploitation of Rights by the Producer European approaches (Transfer, Cessio Legis, by contract) –Producer gets exploitation rights –Remuneration and moral rights US Work Made for Hire Doctrine (17 USC §§ 101, 201) –Collective bargaining – residuals and some “moral” rights Producer may assign copyright to a distributor or license a number of companies (e.g., by territory, by language, by category of rights) Producer responsible for securing necessary clearances Producer aims to position film in best competitive position in order to cover costs, pay everyone, to secure return on investment and to create new works. –Film released in different formats in a sequential order (windows) to get maximum return. –Very few films make money in the theatrical release –Bulk of return has been home video –New Modes/Piracy….are challenging existing practices!!!!

Delivery – 2 emerging models* 1.Electronic Sell-Thru (EST)(aka Digital-To-Own): On-demand transmission of an AV work in an encoded file for download via DRM technology consumer is authorised to retain a permanent copy (initially on hard drive or similar device and potentially for burning onto an optical disk) unlimited use/playback. 2.Video On-demand (VOD): On-demand content transmission for limited viewing period via DRM technology no permanent copy being retained by the consumer content received via streaming or self-erasing download *indicative only

Electronic Sell-Thru (Digital to own) & Video On-Demand –What exclusive rights are involved? Making available – WCT Article 8 EUCD Article 3.2 In the US – Registrar of © but cf recent caselaw Public Performance? Reproduction? –New modes of exploitation – do you have the rights? “for all media now known or hereafter invented” Bans on the licensing of unknown uses –German CA §31.4 – REPEALED –New §31a – transitional provisions, right of revocation (not an issue for AV), mandatory collective admin for old contracts How do you remunerate for distribution via UGCs? Clips, Other Issues: –Exhaustion (Art 3.3 EUCD – First Sale Doctrine in US 17 USC §109) –Exceptions/DRM (Art 6 EUCD – DMCA Section 1201 ) –Interoperability VOD and EST – Some legal issues

What rights are required for music in film? –Reproduction (exception for temporary copies)?? –Communication to the Public – Public Performance??? –Making Available -- interactive services Who is the owner of those rights? –Pre-existing/specifically created - Composers/Publishers Rights Acquisition by Producers –Contract and/or –Statutory (work made for hire, cessio legis or presumption of transfer) Which Law Applies? What about mandatory rules? Buyouts and local collecting societies US is a single territory (ASCAP, BMI, Harry Fox, contractual freedom) Music licensing in the EU is undergoing a lot of change… VOD and EST – Clearing the music?

Cable retransmission (and Satellite) –Mandatory collective exercise of rights –Role of initial broadcasters –EC Cable & Satellite Directive (Art 9/10) –US Compulsory License (17 USC §§ 111, 119 and 122) –Berne Convention Article 11bis(2) New modes of Retransmission –IPTV –Digital Terrestrial TV –Mobile TV –Internet TV –Exclusive rights or mandatory collective exercise or compulsory license –Territorial scope? –Simulcast issues New Modes of Retransmission ©

Continual process Start Early Document Research –lots of sources online Document Monitor Document Legal advice Risk Assessment Consequences/Cost Some Tips

Liam Neeson.... Qui-Gon Jinn Ewan McGregor.... Obi-Wan Kenobi Natalie Portman.... Queen Padmé Amidala Jake Lloyd.... Anakin Skywalker Pernilla August.... Shmi Skywalker Frank Oz.... Yoda (voice) Ian McDiarmid.... Senator Palpatine Oliver Ford Davies.... Gov. Sio Bibble Ray Park.... Darth Maul Hugh Quarshie.... Capt. Panaka Ahmed Best.... Jar Jar Binks (voice) Anthony Daniels.... C-3PO Kenny Baker.... R2-D2 Terence Stamp.... Supreme Chancellor Valorum Brian Blessed.... Boss Nass (voice) Andrew Secombe.... Watto Lewis Macleod.... Sebulba (voice) Steven Spiers.... Capt. Tarpals Silas Carson.... Viceroy Nute Gunray/Ki-Adi-Mundi Ralph Brown.... Ric Olié Celia Imrie.... Fighter Pilot Bravo 5 Benedict Taylor.... Fighter Pilot Bravo 2 Karol Cristina da Silva.... Rabé Clarence Smith.... Fighter Pilot Bravo 3 Samuel L. Jackson.... Mace Windu Dominic West.... Palace guard Liz Wilson.... Eirtaé (as Friday 'Liz' Wilson) Candice Orwell.... Yané Sofia Coppola.... Saché Keira Knightley.... Sabé Bronagh Gallagher.... Radiant VII captain John Fensom.... TC-14 Greg Proops.... Beed (voice) Scott Capurro.... Fode (voice) Margaret Towner.... Jira Dhruv Chanchani.... Kitster Oliver Walpole.... Seek Katie Lucas.... Amee (as Jenna Green) Megan Udall.... Melee Hassani Shapi.... Eeth Koth Gin Clarke.... Adi Gallia (as Gin) Khan Bonfils.... Saesee Tiin Michelle Taylor.... Yarael Poof Michaela Cottrell.... Even Piell Dipika O'Neill Joti.... Depa Billaba Phil Eason.... Yaddle Mark Coulier.... Aks Moe Lindsay Duncan.... TC-14 (voice) Peter Serafinowicz.... Darth Maul (voice) James Taylor.... Rune Haako (voice) Chris Sanders.... Daultay Dofine (voice) Toby Longworth.... Sen. Lott Dodd/Gragra (voice) Marc Silk.... Aks Moe (voice) Amanda Lucas.... Tey How/Diva Funquita (voice) (as Tyger) Produced by George Lucas.... executive producer Rick McCallum.... producer Original Music by John Williams Cinematography by David Tattersall Film Editing by Ben Burtt Paul Martin Smith Casting by Robin Gurland Production Design by Gavin Bocquet Art Direction by Phil Harvey Fred Hole John King Rod McLean Set Decoration by Peter Walpole Costume Design by Trisha Biggar