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IPPro Issue 002

IPPro is the go-to industry publication for news, views, and opinion on patent practice, law and management. The fortnightly publication and accompanying website - the only free-to-read intellectual property resource around - cover the full spectrum of IP law globally, including prosecution, litigation, licensing, management and technology.

IPPro is the go-to industry publication for news, views, and opinion on patent practice, law and management. The fortnightly publication and accompanying website - the only free-to-read intellectual property resource around - cover the full spectrum of IP law globally, including prosecution, litigation, licensing, management and technology.

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Copyright Reform<br />

the Brussels political circle, given that where this has been attempted<br />

already—namely Germany and Spain —it failed spectacularly. Small<br />

publishers and startups are aware of this reality, and are trying to<br />

raise awareness that rather than help the publishing sector, article 11<br />

will only serve to further consolidate the press publishing sector and<br />

stifle competition.<br />

Is the danger of big companies stepping on the smaller companies<br />

reflected across the copyright directive?<br />

fortunes of the press sector. On the contrary, we have clear evidence<br />

from Germany and Spain that it will actually do serious harm.<br />

For instance, under the trial national laws the only online news<br />

aggregator that paid licensing fees in Spain is Upday, which is<br />

partly owned by Axel Springer, and in Germany, where trials were<br />

implemented in 2013, Google has yet to pay a cent, despite the fact<br />

that the so-called ‘lex Google’ was not-so-subtly targeted directly at<br />

major market players.<br />

Pandora’s Box<br />

As the EU continues to make movements on copyright reform with<br />

its copyright directive, Mozilla remains steadfast in its assertions that<br />

such reform could open the Pandora’s Box for copyright. Raegan<br />

MacDonald explains<br />

What is the latest in terms of article 11 of the EU’s Copyright Directive?<br />

The negotiations have devolved into a battle of attrition, as votes<br />

and substantial dialogue on key issues in the draft directive are<br />

repeatedly pushed back. The Parliament’s rapporteur—German<br />

centre-right MEP Axel Voss—has struggled to secure a compromise<br />

with other MEPs on two key elements, namely articles 11 and 13,<br />

which remain incredibly controversial issues. These elements of the<br />

proposal are most likely to have negative long-term implications for<br />

the health of the online ecosystem, including for free expression,<br />

innovation, and creativity.<br />

With respect to Article 11 in particular—the proposal to extend<br />

copyright protection to snippets and links of text, often referred to<br />

as the ‘link tax’—publishers, companies, libraries, and digital rights<br />

activists in Brussels are continuing to highlight the negative impacts<br />

of the proposal.<br />

A particular emphasis has been placed on dispelling the myth that this<br />

proposal is good for the publishing sector. For instance, at a recent<br />

conference in Brussels, Matteo Renzi, the vice-president of the largest<br />

Italian digital publishers association argued passionately that this is<br />

really being driven by major publishers to stamp out their competition.<br />

Unfortunately, many politicians have been easily convinced by the<br />

narrative that the ‘link tax’ is a means of strengthening publishers’<br />

financial position vis-a-vis large companies like Google and<br />

Facebook. It is extremely frustrating this narrative remains credible in<br />

Yes. It’s the same in article 13, which tries to target YouTube and<br />

Facebook, but casts such a wide net, the entire internet as we know<br />

it could be turned upside-down. This is because it would essentially<br />

make most online platforms liable for the actions of their users, in<br />

addition to requiring licence agreements and upload filters. These big<br />

platforms seem to be the only point of reference for the problem that<br />

article 13 is trying to address, but really, YouTube and Facebook are<br />

the only two companies that are going to be able to comply and<br />

survive if article 13 passes. Of course I think their services would end<br />

up looking very different, especially because, for instance, YouTube’s<br />

Content ID system is more effective for audio recordings, whereas<br />

the directive is clearly aimed at a wider body of copyright-protected<br />

works. It will open the Pandora’s Box of different kinds of rights<br />

claims which will require different kinds of filters.<br />

Small companies would be hit the hardest and, unfortunately, there<br />

doesn’t appear to be a payoff for artists and creators. It has never<br />

been clearly explained by the legacy rights holders —the music<br />

industry— how this article will bring the actual creators fairer treatment,<br />

including fair remuneration. The major rightsholders believe they need<br />

this for better ‘bargaining power’. While there may well be a reason to<br />

discuss the interactions between some large platforms and the content<br />

industries, this directive is not the place to do so. The EU is missing the<br />

opportunity of a generation to update a fragmented and dysfunctional<br />

copyright regime.<br />

In your opinion, are there any positives to article 11?<br />

Legally and practically speaking, no. To this day there has not been<br />

any evidence that such a regulatory intervention would improve the<br />

Our perspective is that article<br />

11 will only add more confusion,<br />

undermine media pluralism and access<br />

to information, without any added value<br />

to publishers and the media<br />

Our perspective, which is shared by small and competitive publishers,<br />

digital rights activists, and libraries, is that article 11 will only add more<br />

confusion, undermine media pluralism and access to information,<br />

without any added value to publishers and the media. It’s perplexing<br />

that this attrotius idea remains on the negotiating table, like some sort<br />

of copyright zombie.<br />

Why do you think that article 11 is being pushed forward despite<br />

its failed trials?<br />

For both article 11 and 13 I think, as with most IP debates, it is<br />

about control. You can read it all in the European Commission’s<br />

impact assessment for the copyright directive: the problem framing<br />

is that people don’t buy newspapers and that now there is a whole<br />

generation of individuals who consume news almost exclusively via<br />

digital sources.<br />

There are two ways of looking at this period of digital transformation:<br />

you can think, there is a shift happening—consumer and consumption<br />

patterns are changing—we’re going to have to figure out new business<br />

models and try to take advantage of new opportunities to reach our<br />

audience via digital means, or you can double down on antiquated<br />

business models and try to use regulation to smother market shifts.<br />

EU lawmakers consider themselves to be global regulatory standardsetters—just<br />

look at the GDPR. Unfortunately, articles 11 and 13 of<br />

the Copyright Reform directive could make the EU a global standardsetter<br />

in a new policy field and for all the wrong reasons. In the coming<br />

months we’ll be working hard to ensure copyright in Europe doesn’t<br />

turn back the clock. <strong>IPPro</strong><br />

Raegan MacDonald, head of EU Public Policy, Mozilla<br />

16 <strong>IPPro</strong> The Internet www.ipprotheinternet.com 17

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