Facilitate Authors’ Rights Access for Audiovisual Media in Europe

The will of the Commission “The challenge we face today is to allow the remuneration of creation while ensuring its broadest accessibility and spread” Commissioner Michel Barnier, Intellectual Property Summit, Brussels, 2 December 2010 “… the objectives of the Commission are clear: (…) on the other hand, facilitate the granting of multi-territorial licences to promote the rise of cross-border services” Commissioner Michel Barnier, LetsGoConnected, 10 May 2012 “In Europe, the online audiovisual sector is handicapped by fragmentation, primarily along state boundaries and language borders, but also depending on technological advancement and wealth.” Commissioner Neelie Kroes, CISAC World Copyright Summit, Brussels, 7 June 2011 “We can offer creators a way to make a decent living from their art. We can offer consumers a seamless service, the widest possible choice, the ability to lawfully access whatever they want, however they want, wherever they are in Europe.” Commissioner Neelie Kroes, European Parliament Intellectual Property Forum, European Parliament, Brussels, 24 January 2012

The European Background European Commission has expressed its wishes for CMOsto grant multi territorial licences in its Green Paper on the online distribution of AV works in the European Union ( ) AV CMOs want the works of their members (writers and directors) to be widely accessible on European online VOD services and are working on finding their own solution to multi-territorial online Agreements

The European Background Title III on multi-territorial licensing of the proposal for a Directive on collective management applies only to musical CMOs because musical CMOs hold online rights of their members when this is not the case for all AV CMOs The European AV CMOs holding the online rights of their members have grouped together in order to clear rights collectively at European level

Initiative of European AV CMOs - To create a common platform Managing the rights in the repertoires of several European AV CMOs Offering Digital Service Providers multi- territorial agreements for the use of the aggregated repertoires Efficiently and accurately claiming and distributing the AV remuneration for on-line exploitation

The aims of the project To clear with Digital Service Providers (DSPs) active in more than 1 European country the rights of authors and directors of the works they are making available on their services To ensure remuneration for screenwriters and directors for the use of their works by DSPs Important: DSPs must acquire the exploitation rights from the producers before making any protected AV works available on their services.

Interested Societies 15 European AV CMOs cooperate in the project: ALCS (UK), BILD KUNST (Germany), DAMA (Spain), Directors UK (UK), KOPIOSTO (Finland), LIRA (Netherlands), SABAM (Belgium), SACD (France and Belgium), SCAM (France and Belgium), SGAE (Spain), SIAE (Italy), SSA (Switzerland), SUISSIMAGE (Switzerland), WORT (Germany), ZAPA (Poland) Other interested European AV societies are welcome

The remuneration right in the EU Online rights can be cleared in European territories where exclusive rights and remuneration rights exist and are managed collectively by AV CMOs on behalf of AV authors for online exploitation of AV works. When AV CMOs manage online rights, their common denominator is at least the remuneration right. Concerned territories: France, Belgium, Spain, Italy, The Netherlands and Switzerland No remuneration right exists for online exploitations of AV works in the territories of the other interested societies Concerned FRAME societies who can clear online rights: SACD and SCAM (France), SABAM, SACD Belgium, SCAM Belgium (Belgium), SGAE and DAMA (Spain), SIAE (Italy), LIRA (The Netherlands), SSA and SUISSIMAGE (Switzerland)

Collection and distribution of remuneration

Decentralized approach After having obtained all necessary authorisations of exploitation from the AV producers, the DSP chooses one Frame Society to sign the agreement FRAME member societies are the various entry points for DSP, free to choose any FRAME society to sign the agreement for the payment of the remuneration Appointed society signs a pan-European agreement on behalf of FRAME member societies DSP delivers usage reports on a country by country basis to the signatory society Signatory society sends country reports to the respective FRAME member societies for processing and calculating fees based on Country of Destination (COD) principle Invoices are made according to the tax regulations in force in each country; per-repertoire invoices may be needed to avoid double taxation. Consultation with tax lawyer to clarify this issue.

Next steps Work on tax issues Elaborate distribution rules Build back office solutions Present the project to DG Competition

The way forward to the pan-European management of online rights remuneration Fairness for European AV Writers and Directors calls for the harmonisation of the remuneration right for online exploitation of AV works in Europe European Writers and Directors wish their AV work to be widely accessible on all AV platforms Authors and their respective Societies are committed to facilitate the management of the harmonised remuneration for audiovisual on-line rights