EUROPEAN
COMMISSION

Brussels, 14.9.2016
COM(2016) 593 final
2016/0280 (COD)

Proposal for a
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on copyright in the Digital Single Market(Text with EEA relevance){SWD(2016) 301 final}{SWD(2016) 302 final}

EN

EN

EXPLANATORY MEMORANDUM
1.

CONTEXT OF THE PROPOSAL•

Reasons for and objectives of the proposal

The evolution of digital technologies has changed the way works and other protected subjectmatter are created, produced, distributed and exploited. New uses have emerged as well as
new actors and new business models. In the digital environment, cross-border uses have also
intensified and new opportunities for consumers to access copyright-protected content havematerialised. Even though the objectives and principles laid down by the EU copyrightframework remain sound, there is a need to adapt it to these new realities. Intervention at EU
level is also needed to avoid fragmentation in the internal market. Against this background,the Digital Single Market Strategy1 adopted in May 2015 identified the need “to reduce thedifferences between national copyright regimes and allow for wider online access to works byusers across the EU”. This Communication highlighted the importance to enhance crossborder access to copyright-protected content services, facilitate new uses in the fields ofresearch and education, and clarify the role of online services in the distribution of works andother subject-matter. In December 2015, the Commission issued a Communication ‘Towards
a modern, more European copyright framework’2. This Communication outlined targeted
actions and a long-term vision to modernise EU copyright rules. This proposal is one of themeasures aiming at addressing specific issues identified in that Communication.
Exceptions and limitations to copyright and neighbouring rights are harmonised at EU level.
Some of these exceptions aim at achieving public policy objectives, such as research or
education. However, as new types of uses have recently emerged, it remains uncertain
whether these exceptions are still adapted to achieve a fair balance between the rights andinterests of authors and other rightholders on the one hand, and of users on the other. In
addition, these exceptions remain national and legal certainty around cross-border uses is notguaranteed. In this context, the Commission has identified three areas of intervention: digitaland cross-border uses in the field of education, text and data mining in the field of scientificresearch, and preservation of cultural heritage. The objective is to guarantee the legality ofcertain types of uses in these fields, including across borders. As a result of a modernised
framework of exceptions and limitations, researchers will benefit from a clearer legal space to
use innovative text and data mining research tools, teachers and students will be able to takefull advantage of digital technologies at all levels of education and cultural heritage
institutions (i.e. publicly accessible libraries or museums, archives or film or audio heritage
institutions) will be supported in their efforts to preserve the cultural heritage, to the ultimate
advantage of EU citizens.
Despite the fact that digital technologies should facilitate cross-border access to works andother subject-matter, obstacles remain, in particular for uses and works where clearance ofrights is complex. This is the case for cultural heritage institutions wanting to provide online
access, including across borders, to out-of-commerce works contained in their catalogues. As
a consequence of these obstacles European citizens miss opportunities to access cultural
heritage. The proposal addresses these problems by introducing a specific mechanism tofacilitate the conclusion of licences for the dissemination of out-of-commerce works bycultural heritage institutions. As regards audiovisual works, despite the growing importance ofvideo-on-demand platforms, EU audiovisual works only constitute one third of works
1
2

EN

COM(2015) 192 final.
COM(2015) 626 final.

2ENavailable to consumers on those platforms. Again, this lack of availability partly derives froma complex clearance process. This proposal provides for measures aiming at facilitating thelicensing and clearance of rights process. This would ultimately facilitate consumers' crossborder access to copyright-protected content.
Evolution of digital technologies has led to the emergence of new business models andreinforced the role of the Internet as the main marketplace for the distribution and access tocopyright-protected content. In this new framework, rightholders face difficulties whenseeking to license their rights and be remunerated for the online distribution of their works.
This could put at risk the development of European creativity and production of creative
content. It is therefore necessary to guarantee that authors and rightholders receive a fair shareof the value that is generated by the use of their works and other subject-matter. Against thisbackground, this proposal provides for measures aiming at improving the position ofrightholders to negotiate and be remunerated for the exploitation of their content by online
services giving access to user-uploaded content. A fair sharing of value is also necessary toensure the sustainability of the press publications sector. Press publishers are facing
difficulties in licensing their publications online and obtaining a fair share of the value theygenerate. This could ultimately affect citizens' access to information. This proposal provides
for a new right for press publishers aiming at facilitating online licensing of their publications,the recoupment of their investment and the enforcement of their rights. It also addresses
existing legal uncertainty as regards the possibility for all publishers to receive a share in thecompensation for uses of works under an exception. Finally, authors and performers often
have a weak bargaining position in their contractual relationships, when licensing their rights.
In addition, transparency on the revenues generated by the use of their works or performances
often remains limited. This ultimately affects the remuneration of the authors and performers.
This proposal includes measures to improve transparency and better balanced contractual
relationships between authors and performers and those to whom they assign their rights.
Overall, the measures proposed in title IV of the proposal aiming at achieving a wellfunctioning market place for copyright are expected to have in the medium term a positive
impact on the production and availability of content and on media pluralism, to the ultimate
benefit of consumers.
•

Consistency with existing policy provisions in the policy area

The Digital Single Market Strategy puts forward a range of initiatives with the objective ofcreating an internal market for digital content and services. In December 2015, a first step has
been undertaken by the adoption by the Commission of a proposal for a Regulation of theEuropean Parliament and of the Council on ensuring the cross-border portability of online
content services in the internal market3.
The present proposal aims at addressing several of the targeted actions identified in theCommunication ‘Towards a modern, more European copyright framework’. Other actions
identified in this Communication are covered by the ‘Proposal for a Regulation of theEuropean Parliament and of the Council laying down rules on the exercise of copyright andrelated rights applicable to certain online transmissions of broadcasting organisations andretransmissions of television and radio programmes’4, the ‘Proposal for a Regulation of theEuropean Parliament and of the Council on the cross-border exchange between the Union andthird countries of accessible format copies of certain works and other subject-matter protectedby copyright and related rights for the benefit of persons who are blind, visually impaired or3
4

EN

COM(2015) 627 final.
COM(2016) 594 final.

3ENotherwise print disabled’5 and the ‘Proposal for a Directive of the European Parliament and of
the Council on certain permitted uses of works and other subject-matter protected bycopyright and related rights for the benefit of persons who are blind, visually impaired orotherwise print disabled and amending Directive 2001/29/EC on the harmonisation of certain
aspects of copyright and related rights in the information society’6, adopted on the same dateof this proposal for a Directive.
This proposal is consistent with the existing EU copyright legal framework. This proposal isbased upon, and complements the rules laid down in Directive 96/9/EC7, Directive
2001/29/EC8, Directive 2006/115/EC9, Directive 2009/24/EC10, Directive 2012/28/EU11 andDirective 2014/26/EU12. Those Directives, as well as this proposal, contribute to thefunctioning of the internal market, ensure a high level of protection for right holders andfacilitate the clearance of rights.
This proposal complements Directive 2010/13/EU13 and the proposal14 amending it.
•

Consistency with other Union policies

This proposal would facilitate education and research, improve dissemination of European
cultures and positively impact cultural diversity. This Directive is therefore consistent with
Articles 165, 167 and 179 of the Treaty on the Functioning of the European Union (TFEU).
Furthermore, this proposal contributes to promoting the interests of consumers, in accordancewith the EU policies in the field of consumer protection and Article 169 TFEU, by allowing awider access to and use of copyright-protected content.
2.

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY•

Legal basis

The proposal is based on Article 114 TFEU. This Article confers on the EU the power toadopt measures which have as their object the establishment and functioning of the internalmarket.

5
6
7

8

9

10

11

12

13

14

EN

COM(2016) 595 final.
COM(2016) 596 final.
Directive 96/9/EC of the European Parliament and of the Council of 11 March 1996 on the legal
protection of databases (OJ L 077, 27.03.1996, p. 20-28).
Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on theharmonisation of certain aspects of copyright and related rights in the information society (OJ L 167,
22.6.2001, p. 10–19).
Directive 2006/115/EC of the European Parliament and of the Council of 12 December 2006 on rental
right and lending right and on certain rights related to copyright in the field of intellectual property (OJ
L 376, 27.12.2006, p. 28–35).
Directive 2009/24/EC of the European Parliament and of the Council of 23 April 2009 on the legal
protection of computer programs (OJ L 111, 5.5.2009, p. 16–22).
Directive 2012/28/EU of the European Parliament and of the Council of 25 October 2012 on certain
permitted uses of orphan works (OJ L 299, 27.10.2012, p. 5–12).
Directive 2014/26/EU of the European Parliament and of the Council of 26 February 2014 on collective
management of copyright and related rights and multi-territorial licensing of rights in musical works foronline use in the internal market (OJ L 84, 20.3.2014, p. 72–98).
Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on thecoordination of certain provisions laid down by law, regulation or administrative action in Member
States concerning the provision of audiovisual media services (Audiovisual Media Services Directive)(OJ L 95, 15.4.2010, p. 1–24).
COM(2016) 287 final.

4

EN

•

Subsidiarity (for non-exclusive competence)

Since exceptions and limitations to copyright and related rights are harmonised at EU level,
the margin of manoeuver of Member States in creating or adapting them is limited. In
addition, intervention at national level would not be sufficient in view of the cross-bordernature of the identified issues. EU intervention is therefore needed to achieve full legal
certainty as regards cross-border uses in the fields of research, education and cultural heritage.
Some national initiatives have already been developed to facilitate dissemination of andaccess to out-of-commerce works. However, these initiatives only exist in some Member
States and are only applicable on the national territory. EU intervention is therefore necessary
to ensure that licensing mechanisms for the access and dissemination of out-of-commerce
works are in place in all Member States and to ensure their cross-border effect. As regards
online exploitation of audiovisual works, to foster the availability of European works onvideo-on-demand platforms across the EU, there is a need to facilitate negotiations oflicensing agreements in all Member States.
Online distribution of copyright-protected content is by essence cross-border. Only
mechanisms decided at European level could ensure a well-functioning marketplace for the
distribution of works and other subject-matter and to ensure the sustainability of the
publishing sector in the face of the challenges of the digital environment. Finally, authors andperformers should enjoy in all Member States the high level of protection established by EU
legislation. In order to do so and to prevent discrepancies across Member States, it isnecessary to set an EU common approach to transparency requirements and mechanisms
allowing for the adjustment of contracts in certain cases as well as for the resolution of
disputes.
•

Proportionality

The proposal provides for mandatory exceptions for Member States to implement. These
exceptions target key public policy objectives and uses with a cross-border dimension.
Exceptions also contain conditions that ensure the preservation of functioning markets andrightholders' interests and incentives to create and invest. When relevant, and while ensuringthat the objectives of the Directive are met, room for national decision has been preserved.
The proposal requires Member States to establish mechanisms aiming at facilitating theclearance of copyright and related rights in the fields of out-of-commerce works and online
exploitation of audiovisual works. Whereas the proposal aims at ensuring a wider access anddissemination of content, it does so while preserving the rights of authors and otherrightholders. Several safeguards are put in place to that effect (e.g. opt-out possibilities,
preservation of licensing possibilities, participation in the negotiation forum on a voluntarybasis). The proposal does not go further than what is necessary to achieve the intended aim
while leaving sufficient room for Member States to make decisions as regards the specifics ofthese mechanisms and does not impose disproportionate costs.
The proposal imposes obligations on some information society services. However, theseobligations remain reasonable in view of the nature of the services covered, the significant
impact of these services on the online content market and the large amounts of copyrightprotected content stored by these services. The introduction of a related right for press
publishers would improve legal certainty and their bargaining position, which is the pursued
objective. The proposal is proportionate as it only covers press publications and digital uses.
Furthermore, the proposal will not affect retroactively any acts undertaken or rights acquired
before the date of transposition. The transparency obligation contained in the proposal only

EN

5

EN

aims at rebalancing contractual relationships between creators and their contractual
counterparts while respecting contractual freedom.
•

Choice of the instrument

The proposal relates to, and in some instances modifies, existing Directives. It also leaves,when appropriate and taking into account the aim to be achieved, margin of manoeuver for
Member States while ensuring that the objective of a functioning internal market is met. The
choice of a Directive is therefore adequate.
3.

RESULTSOF
EX-POSTEVALUATIONS,CONSULTATIONS AND IMPACT ASSESSMENTS•

Ex-post evaluations/fitness checks of existing legislation

STAKEHOLDER

The Commission carried out a review of the existing copyright rules between 2013 and 2016
with the objective to “ensure that copyright and copyright-related practices stay fit for purposein the new digital context”15. Even if it started before the adoption of the Commission's Better
Regulation Agenda in May 201516, this review process was carried out in the spirit of the
Better Regulation guidelines. The review process highlighted, in particular, problems with theimplementation of certain exceptions and their lack of cross-border effect17 and pointed out todifficulties in the use of copyright-protected content, notably in the digital and cross-bordercontext that have emerged in recent years.
•

Stakeholder consultations

Several public consultations were held by the Commission. The consultation on the review of
the EU copyright rules carried out between 5 December 2013 and 5 March 201418 provided
the Commission with an overview of stakeholders' views on the review of the EU copyrightrules, including on exceptions and limitations and on the remuneration of authors andperformers. The public consultation carried out between 24 September 2015 and 6 January
2016 on the regulatory environment for platforms, online intermediaries, data and cloudcomputing and the collaborative economy19 provided evidence and views from all
stakeholders on the role of intermediaries in the online distribution of works and othersubject-matter. Finally, a public consultation was held between the 23 March 2016 and 15
June 2016 on the role of publishers in the copyright value chain and on the 'panorama
exception'. This consultation allowed collecting views notably on the possible introduction in
EU law of a new related right for publishers.
In addition, between 2014 and 2016, the Commission had discussions with the relevant
stakeholders on the different topics addressed by the proposal.

15
16
17

18

19

EN

COM(2012) 789 final.
COM(2015) 215 final.
Covering, respectively, the exception on illustration for teaching and research (as it relates to text anddata mining) and on specific acts of reproduction (as it relates to preservation).
Reports on the responses to the consultation available on:
http://ec.europa.eu/internal_market/consultations/2013/copyright-rules/docs/contributions/consultationreport_en.pdf
First results available on https://ec.europa.eu/digital-single-market/news/first-brief-results-publicconsultation-regulatory-environment-platforms-online-intermediaries

6

EN

•

Collection and use of expertise

Legal20 and economic21 studies have been conducted on the application of Directive
2001/29/EC, on the economic impacts of adapting some exceptions and limitations, on thelegal framework of text and data mining and on the remuneration of authors and performers.
•

Impact assessment

An impact assessment was carried out for this proposal22. On 22 July 2016, the Regulatory
Scrutiny Board gave a positive opinion on the understanding that the impact assessment will
be further improved.23 The final Impact Assessment takes into account comments contained inthat opinion.
The Impact Assessment examines the baseline scenarios, policy options and their impacts foreight topics regrouped under three chapters, namely (i) ensuring wider access to content, (ii)adapting exceptions to digital and cross-border environment and (iii) achieving a wellfunctioning marketplace for copyright. The impact on the different stakeholders was analysedfor each policy option; taking in particular into account the predominance of SMEs in thecreative industries the analysis concludes that introducing a special regime would not beappropriate as it would defeat the purpose of the intervention. The policy options of each
topic are shortly presented below.
Access and availability of audiovisual works on video-on-demand platforms: A nonlegislative option (Option 1), consisting in the organisation of a stakeholder dialogue on
licensing issues, was not retained as it was deemed insufficient to address individual cases ofblockages. The chosen option (Option 2) combines the organisation of a stakeholder dialogue
with the obligation for Member States to set up a negotiation mechanism.
Out-of-commerce works: Option 1 required Member States to put in place legal mechanisms,with cross-border effect, to facilitate licensing agreements for out-of-commerce books andlearned journals and to organise a stakeholder dialogue at national level to facilitate theimplementation of that mechanism. Option 2 went further since it applied to all types of outof-commerce works. This extension was deemed necessary to address the licensing of out-ofcommerce works in all sectors. Option 2 was therefore chosen.

20

21

22
23

EN

Study on the application of Directive 2001/29/EC on copyright and related rights in the informationsociety: http://ec.europa.eu/internal_market/copyright/studies/index_en.htm; Study on the legal
framework
of
text
and
data
mining:http://ec.europa.eu/internal_market/copyright/docs/studies/1403_study2_en.pdf; Study on the making
available right and its relationship with the reproduction right in cross-border digital transmissions:
http://ec.europa.eu/internal_market/copyright/docs/studies/141219-study_en.pdf;
Study
on
the
remuneration of authors and performers for the use of their works and the fixation of theirperformances:https://ec.europa.eu/digital-single-market/en/news/commission-gathers-evidenceremuneration-authors-and-performers-use-their-works-and-fixations; Study on the remuneration of
authors of books and scientific journals, translators, journalists and visual artists for the use of theirworks: [hyperlink to be included – publication pending]
Study “Assessing the economic impacts of adapting certain limitations and exceptions to copyright andrelated rights in the EU” : http://ec.europa.eu/internal_market/copyright/docs/studies/131001study_en.pdf and “Assessing the economic impacts of adapting certain limitations and exceptions tocopyright and related rights in the EU – Analysis of specific policy options”:
http://ec.europa.eu/internal_market/copyright/docs/studies/140623-limitations-economic-impactsstudy_en.pdf
Add link to IA and Executive Summary.
Add link to RSB opinion.

7

ENUse of works and other subject-matter in digital and cross-border teaching activities: Option 1
consisted in providing guidance to Member States on the application of the existing teaching
exception in the digital environment and the organisation of a stakeholder dialogue. This wasconsidered not sufficient to ensure legal certainty, in particular as regards cross-border uses.
Option 2 required the introduction of a mandatory exception with a cross-border effectcovering digital uses. Option 3 is similar to Option 2 but leaves some flexibility to Member
States that can decide to apply the exception depending on the availability of licences. This
option was deemed to be the most proportionate one.
Text and data mining: Option 1 consisted in self-regulation initiatives from the industry.
Other options consisted in the introduction of a mandatory exception covering text and data
mining. In Option 2, the exception only covered uses pursuing a non-commercial scientificresearch purpose. Option 3 allowed uses for commercial scientific research purpose but
limited the benefit of the exception to some beneficiaries. Option 4 went further as it did not
restrict beneficiaries. Option 3 was deemed to be the most proportionate one.
Preservation of cultural heritage: Option 1 consisted in the provision of guidance to Member
States on the implementation of the exception on specific acts of reproduction for preservation
purposes. This Option was rejected as it was deemed insufficient to achieve legal certainty inthe field. Option 2, consisting in a mandatory exception for preservation purposes by cultural
heritage institutions, was chosen.
Use of copyright-protected content by information society services storing and giving accessto large amounts of works and other subject-matter uploaded by their users: Option 1
consisted in the organisation of a stakeholder dialogue. This approach was rejected as it would
have a limited impact on the possibility for rightholders to determine the conditions of use of
their works and other subject-matter. The chosen option (Option 2) goes further and provides
for an obligation for certain service providers to put in place appropriate technologies andfosters the conclusion of agreements with rightholders.
Rights in publications: Option 1 consisted in the organisation of a stakeholder dialogue to findsolutions for the dissemination of press publishers' content. This option was deemed
insufficient to ensure legal certainty across the EU. Option 2 consisted in the introduction of a
related right covering digital uses of press publications. In addition to this, Option 3 leaves theoption for Member States to enable publishers, to which rights have been transferred or
licensed by an author, to claim a share in the compensation for uses under an exception. This
last option was the one retained as it addressed all relevant problems.
Fair remuneration in contracts of authors and performers: Option 1 consisted in providing a
recommendation to Member States and organising a stakeholder dialogue. This option was
rejected since it would not be efficient enough. Option 2 foresaw the introduction oftransparency obligations on the contractual counterparts of creators. On top of that, Option 3
proposed the introduction of a remuneration adjustment mechanism and a dispute resolution
mechanism. This option was the one retained since Option 2 would not have provided
enforcement means to creators to support the transparency obligation.
•

Regulatory fitness and simplification

For the uses covered by the exceptions, the proposal will allow educational establishments,
public-interest research institutions and cultural heritage institutions to reduce transaction
costs. This reduction of transaction costs does not necessarily mean that rightholders would
suffer a loss of income or licensing revenues: the scope and conditions of the exceptions

EN

8

EN

ensure that rightholders would suffer minimal harm. The impact on SMEs in these fields (inparticular scientific and educational publishers) and on their business models should therefore
be limited.
Mechanisms aiming to improve licensing practices are likely to reduce transaction costs andincrease licensing revenues for rightholders. SMEs in the fields (producers, distributors,
publishers, etc.) would be positively affected. Other stakeholders, such as VoD platforms,
would also be positively affected. The proposal also includes several measures (transparency
obligation on rightholders' counterparts, introduction of a new right for press publishers andobligation on some online services) that would improve the bargaining position ofrightholders and the control they have on the use of their works and other subject-matter. It is
expected to have a positive impact on rightholders' revenues.
The proposal includes new obligations on some online services and on those to which authors
and performers transfer their rights. These obligations may impose additional costs. However,the proposal ensures that the costs will remain proportionate and that, when necessary, someactors would not be subject to the obligation. For instance, the transparency obligation will
not apply when the administrative costs it implies are disproportionate in view of thegenerated revenues. As for the obligation on online services, it only applies to informationsociety services storing and giving access to large amounts of copyright-protected content
uploaded by their users.
The proposal foresees the obligation for Member States to implement negotiation and dispute
resolution mechanisms. This implies compliance costs for Member States. However, they
could rely in most cases on existing structures, which would limit the costs. The teaching
exception can also entail some costs for Member States linked to the measures ensuring theavailability and visibility of licences for educational establishments.
New technological developments have been carefully examined. The proposal includes
several exceptions that aim at facilitating the use of copyright-protected content via newtechnologies. This proposal also includes measures to facilitate access to content, including
via digital networks. Finally, it ensures a balanced bargaining position between all actors in
the digital environment.
•

Fundamental rights

By improving the bargaining position of authors and performers and the control rightholders
have on the use of their copyright-protected content, the proposal will have a positive impact
on copyright as a property right, protected under Article 17 of the Charter of Fundamental
Rights of the European Union (‘the Charter’). This positive impact will be reinforced by themeasures to improve licensing practices, and ultimately rightholders' revenues. New
exceptions that reduce to some extent the rightholders' monopoly are justified by other public
interest objectives. These exceptions are likely to have a positive impact on the right toeducation and on cultural diversity. Finally, the Directive has a limited impact on the freedom
to conduct a business and on the freedom of expression and information, as recognised
respectively by Articles 16 and 11 of the Charter, due to the mitigation measures put in place
and a balanced approach to the obligations set on the relevant stakeholders.
4.

BUDGETARY IMPLICATIONS

The proposal has no impact on the European Union budget.

EN

9

EN

5.

OTHER ELEMENTS•

Implementation plans and monitoring, evaluation and reporting arrangements

In accordance with Article 22 the Commission shall carry out a review of the Directive nosooner than [five] years after the date of [transposition].
•

Explanatory documents

In compliance with recital 48 of the proposal, Member States will notify the Commission of
their transposition measures with explanatory documents. This is necessary given thecomplexity of rules laid down by the proposal and the importance to keep a harmonised
approach of rules applicable to the digital and cross-border environment.
•

Detailed explanation of the specific provisions of the proposal

The first title contains general provisions which (i) specify the subject-matter and the scope of
the Directive and (ii) provide definitions that will need to be interpreted in a uniform mannerin the Union.
The second title concerns measures to adapt exceptions and limitations to the digital andcross-border environment. This title includes three articles which require Member States toprovide for mandatory exceptions or a limitation allowing (i) text and data mining carried out
by research organisations for the purposes of scientific research (Article 3); (ii) digital uses ofworks and other subject-matter for the sole purpose of illustration for teaching (Article 4) and(iii) cultural heritage institutions to make copies of works and other subject-matter that arepermanently in their collections to the extent necessary for their preservation (Article 5).
Article 6 provides for common provisions to the title on exceptions and limitations.
The third title concerns measures to improve licensing practices and ensure wider access tocontent. Article 7 requires Member States to put in place a legal mechanism to facilitate
licensing agreements of out-of-commerce works and other subject-matter. Article 8
guarantees the cross-border effect of such licensing agreements. Article 9 requires Member
States to put in place a stakeholder dialogue on issues relating to Articles 7 and 8. Article 10
creates an obligation for Member States to put in place a negotiation mechanism to facilitate
negotiations on the online exploitation of audiovisual works.
The fourth title concerns measures to achieve a well-functioning marketplace for copyright.
Articles 11 and 12 (i) extend the rights provided for in Articles 2 and 3(2) of Directive
2001/29/EC to publishers of press publications for the digital use of their publications and (ii)provide for the option for Member States to provide all publishers with the possibility to claim
a share in the compensation for uses made under an exception. Article 13 creates anobligation on information society service providers storing and giving access to large amounts
of works and other subject-matter uploaded by their users to take appropriate andproportionate measures to ensure the functioning of agreements concluded with rightholders
and to prevent the availability on their services of content identified by rightholders incooperation with the service providers. Article 14 requires Member States to include
transparency obligations to the benefit of authors and performers. Article 15 requires Member
States to establish a contract adjustment mechanism, in support of the obligation provided forin Article 14. Article 16 requires Member States to set up a dispute resolution mechanism for
issues arising from the application of Articles 14 and 15.

EN

10

EN

The fifth title contains final provisions on amendments to other directives, the application intime, transitional provisions, the protection of personal data, the transposition, the review andthe entry into force.

EN

11

EN

2016/0280 (COD)
Proposal for a
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on copyright in the Digital Single Market(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee24,
Having regard to the opinion of the Committee of the Regions25,
Acting in accordance with the ordinary legislative procedure,
Whereas:(1)

The Treaty provides for the establishment of an internal market and the institution of asystem ensuring that competition in the internal market is not distorted. Harmonisationof the laws of the Member States on copyright and related rights should contribute
further to the achievement of those objectives.

(2)

The directives which have been adopted in the area of copyright and related rights
provide for a high level of protection for rightholders and create a framework wherein
the exploitation of works and other protected subject-matter can take place. This
harmonised legal framework contributes to the good functioning of the internalmarket; it stimulates innovation, creativity, investment and production of new content,also in the digital environment. The protection provided by this legal framework also
contributes to the Union's objective of respecting and promoting cultural diversity
while at the same time bringing the European common cultural heritage to the fore.
Article 167(4) of the Treaty on the Functioning of the European Union requires theUnion to take cultural aspects into account in its action.

(3)

Rapid technological developments continue to transform the way works and othersubject-matter are created, produced, distributed and exploited. New business models
and new actors continue to emerge. The objectives and the principles laid down by theUnion copyright framework remain sound. However, legal uncertainty remains, forboth rightholders and users, as regards certain uses, including cross-border uses, ofworks and other subject-matter in the digital environment. As set out in theCommunication of the Commission entitled ‘Towards a modern, more European

24

OJ C , , p. .
OJ C , , p. .

25

EN

12

EN

copyright framework’26, in some areas it is necessary to adapt and supplement thecurrent Union copyright framework. This Directive provides for rules to adapt certain
exceptions and limitations to digital and cross-border environments, as well as
measures to facilitate certain licensing practices as regards the dissemination of out-ofcommerce works and the online availability of audiovisual works on video-on-demand
platforms with a view to ensuring wider access to content. In order to achieve a wellfunctioning marketplace for copyright, there should also be rules on rights inpublications, on the use of works and other subject-matter by online service providers
storing and giving access to user uploaded content and on the transparency of authors'and performers' contracts.
(4)This Directive is based upon, and complements, the rules laid down in the Directives
currently in force in this area, in particular Directive 96/9/EC of the European
Parliament and of the Council27, Directive 2001/29/EC of the European Parliamentand of the Council28, Directive 2006/115/EC of the European Parliament and of theCouncil29, Directive 2009/24/EC of the European Parliament and of the Council30,
Directive 2012/28/EU of the European Parliament and of the Council31 and Directive
2014/26/EU of the European Parliament and of the Council32.

(5)

In the fields of research, education and preservation of cultural heritage, digitaltechnologies permit new types of uses that are not clearly covered by the current
Union rules on exceptions and limitations. In addition, the optional nature of
exceptions and limitations provided for in Directives 2001/29/EC, 96/9/EC and2009/24/EC in these fields may negatively impact the functioning of the internalmarket. This is particularly relevant as regards cross-border uses, which are becoming
increasingly important in the digital environment. Therefore, the existing exceptions
and limitations in Union law that are relevant for scientific research, teaching andpreservation of cultural heritage should be reassessed in the light of those new uses.
Mandatory exceptions or limitations for uses of text and data mining technologies in
the field of scientific research, illustration for teaching in the digital environment andfor preservation of cultural heritage should be introduced. For uses not covered by the
exceptions or the limitation provided for in this Directive, the exceptions andlimitations existing in Union law should continue to apply. Directives 96/9/EC and2001/29/EC should be adapted.

(6)

The exceptions and the limitation set out in this Directive seek to achieve a fairbalance between the rights and interests of authors and other rightholders on the one
hand, and of users on the other. They can be applied only in certain special cases26

COM(2015) 626 final.
Directive 96/9/EC of the European Parliament and of the Council of 11 March 1996 on the legal
protection of databases (OJ L 77, 27.3.1996, p. 20–28).
Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on theharmonisation of certain aspects of copyright and related rights in the information society (OJ L 167,
22.6.2001, p. 10–19).
Directive 2006/115/EC of the European Parliament and of the Council of 12 December 2006 on rental
right and lending right and on certain rights related to copyright in the field of intellectual property (OJ
L 376, 27.12.2006, p. 28–35).
Directive 2009/24/EC of the European Parliament and of the Council of 23 April 2009 on the legal
protection of computer programs (OJ L 111, 5.5.2009, p. 16–22).
Directive 2012/28/EU of the European Parliament and of the Council of 25 October 2012 on certain
permitted uses of orphan works (OJ L 299, 27.10.2012, p. 5–12).
Directive 2014/26/EU of the European Parliament and of the Council of 26 February 2014 on collective
management of copyright and related rights and multi-territorial licensing of rights in musical works foronline use in the internal market (OJ L 84, 20.3.2014, p. 72–98).

27

28

29

30

31

32

EN

13

EN

which do not conflict with the normal exploitation of the works or other subject-matterand do not unreasonably prejudice the legitimate interests of the rightholders.

EN

(7)

The protection of technological measures established in Directive 2001/29/EC remains
essential to ensure the protection and the effective exercise of the rights granted toauthors and to other rightholders under Union law. This protection should bemaintained while ensuring that the use of technological measures does not prevent theenjoyment of the exceptions and the limitation established in this Directive, which areparticularly relevant in the online environment. Rightholders should have theopportunity to ensure this through voluntary measures. They should remain free tochoose the format and the modalities to provide the beneficiaries of the exceptions andthe limitation established in this Directive with the means to benefit from themprovided that such means are appropriate. In the absence of voluntary measures,
Member States should take appropriate measures in accordance with the firstsubparagraph of Article 6(4) of Directive 2001/29/EC.

(8)

New technologies enable the automated computational analysis of information indigital form, such as text, sounds, images or data, generally known as text and data
mining. Those technologies allow researchers to process large amounts of information
to gain new knowledge and discover new trends. Whilst text and data mining
technologies are prevalent across the digital economy, there is widespreadacknowledgment that text and data mining can in particular benefit the researchcommunity and in so doing encourage innovation. However, in the Union, researchorganisations such as universities and research institutes are confronted with legal
uncertainty as to the extent to which they can perform text and data mining of content.
In certain instances, text and data mining may involve acts protected by copyrightand/or by the sui generis database right, notably the reproduction of works or othersubject-matter and/or the extraction of contents from a database. Where there is no
exception or limitation which applies, an authorisation to undertake such acts would
be required from rightholders. Text and data mining may also be carried out in relation
to mere facts or data which are not protected by copyright and in such instances noauthorisation would be required.

(9)

Union law already provides certain exceptions and limitations covering uses forscientific research purposes which may apply to acts of text and data mining.
However, those exceptions and limitations are optional and not fully adapted to the useof technologies in scientific research. Moreover, where researchers have lawful accessto content, for example through subscriptions to publications or open access licences,
the terms of the licences may exclude text and data mining. As research is increasingly
carried out with the assistance of digital technology, there is a risk that the Union's
competitive position as a research area will suffer unless steps are taken to address thelegal uncertainty for text and data mining.

(10)

This legal uncertainty should be addressed by providing for a mandatory exception to
the right of reproduction and also to the right to prevent extraction from a database.
The new exception should be without prejudice to the existing mandatory exception on
temporary acts of reproduction laid down in Article 5(1) of Directive 2001/29, whichshould continue to apply to text and data mining techniques which do not involve themaking of copies going beyond the scope of that exception. Research organisations
should also benefit from the exception when they engage into public-private
partnerships.

14

EN

EN

(11)

Research organisations across the Union encompass a wide variety of entities theprimary goal of which is to conduct scientific research or to do so together with theprovision of educational services. Due to the diversity of such entities, it is importantto have a common understanding of the beneficiaries of the exception. Despite
different legal forms and structures, research organisations across Member States
generally have in common that they act either on a not for profit basis or in the context
of a public-interest mission recognised by the State. Such a public-interest mission
may, for example, be reflected through public funding or through provisions in
national laws or public contracts. At the same time, organisations upon which
commercial undertakings have a decisive influence allowing them to exercise control
because of structural situations such as their quality of shareholders or members,
which may result in preferential access to the results of the research, should not be
considered research organisations for the purposes of this Directive.

(12)

In view of a potentially high number of access requests to and downloads of theirworks or other subject-matter, rightholders should be allowed to apply measures where
there is risk that the security and integrity of the system or databases where the works
or other subject-matter are hosted would be jeopardised. Those measures should notexceed what is necessary to pursue the objective of ensuring the security and integrityof the system and should not undermine the effective application of the exception.

(13)

There is no need to provide for compensation for rightholders as regards uses under
the text and data mining exception introduced by this Directive given that in view of
the nature and scope of the exception the harm should be minimal.

(14)

Article 5(3)(a) of Directive 2001/29/EC allows Member States to introduce an
exception or limitation to the rights of reproduction, communication to the public andmaking available to the public for the sole purpose of, among others, illustration forteaching. In addition, Articles 6(2)(b) and 9(b) of Directive 96/9/EC permit the use ofa database and the extraction or re-utilization of a substantial part of its contents forthe purpose of illustration for teaching. The scope of those exceptions or limitations as
they apply to digital uses is unclear. In addition, there is a lack of clarity as to whether
those exceptions or limitations would apply where teaching is provided online andthereby at a distance. Moreover, the existing framework does not provide for a crossborder effect. This situation may hamper the development of digitally-supported
teaching activities and distance learning. Therefore, the introduction of a new
mandatory exception or limitation is necessary to ensure that educational
establishments benefit from full legal certainty when using works or other subjectmatter in digital teaching activities, including online and across borders.

(15)

While distance learning and cross-border education programmes are mostly developed
at higher education level, digital tools and resources are increasingly used at all
education levels, in particular to improve and enrich the learning experience. The
exception or limitation provided for in this Directive should therefore benefit all
educational establishments in primary, secondary, vocational and higher education to
the extent they pursue their educational activity for a non-commercial purpose. The
organisational structure and the means of funding of an educational establishment are
not the decisive factors to determine the non-commercial nature of the activity.

(16)

The exception or limitation should cover digital uses of works and other subject-mattersuch as the use of parts or extracts of works to support, enrich or complement theteaching, including the related learning activities. The use of the works or othersubject-matter under the exception or limitation should be only in the context of15ENteaching and learning activities carried out under the responsibility of educational
establishments, including during examinations, and be limited to what is necessary forthe purpose of such activities. The exception or limitation should cover both uses
through digital means in the classroom and online uses through the educational
establishment's secure electronic network, the access to which should be protected,
notably by authentication procedures. The exception or limitation should beunderstood as covering the specific accessibility needs of persons with a disability inthe context of illustration for teaching.

EN

(17)

Different arrangements, based on the implementation of the exception provided for in
Directive 2001/29/EC or on licensing agreements covering further uses, are in place ina number of Member States in order to facilitate educational uses of works and othersubject-matter. Such arrangements have usually been developed taking account of theneeds of educational establishments and different levels of education. Whereas it isessential to harmonise the scope of the new mandatory exception or limitation in
relation to digital uses and cross-border teaching activities, the modalities of
implementation may differ from a Member State to another, to the extent they do nothamper the effective application of the exception or limitation or cross-border uses.
This should allow Member States to build on the existing arrangements concluded atnational level. In particular, Member States could decide to subject the application of
the exception or limitation, fully or partially, to the availability of adequate licences,
covering at least the same uses as those allowed under the exception. This mechanism
would, for example, allow giving precedence to licences for materials which areprimarily intended for the educational market. In order to avoid that such mechanism
results in legal uncertainty or administrative burden for educational establishments,
Member States adopting this approach should take concrete measures to ensure thatlicensing schemes allowing digital uses of works or other subject-matter for the
purpose of illustration for teaching are easily available and that educational
establishments are aware of the existence of such licensing schemes.

(18)

An act of preservation may require a reproduction of a work or other subject-matter inthe collection of a cultural heritage institution and consequently the authorisation of
the relevant rightholders. Cultural heritage institutions are engaged in the preservationof their collections for future generations. Digital technologies offer new ways topreserve the heritage contained in those collections but they also create newchallenges. In view of these new challenges, it is necessary to adapt the current legal
framework by providing a mandatory exception to the right of reproduction in order toallow those acts of preservation.

(19)

Different approaches in the Member States for acts of preservation by cultural heritage
institutions hamper cross-border cooperation and the sharing of means of preservation
by cultural heritage institutions in the internal market, leading to an inefficient use ofresources.

(20)

Member States should therefore be required to provide for an exception to permit
cultural heritage institutions to reproduce works and other subject-matter permanently
in their collections for preservation purposes, for example to address technologicalobsolescence or the degradation of original supports. Such an exception should allow
for the making of copies by the appropriate preservation tool, means or technology, inthe required number and at any point in the life of a work or other subject-matter to theextent required in order to produce a copy for preservation purposes only.

16

EN

EN

(21)

For the purposes of this Directive, works and other subject-matter should beconsidered to be permanently in the collection of a cultural heritage institution whencopies are owned or permanently held by the cultural heritage institution, for example
as a result of a transfer of ownership or licence agreements.

(22)

Cultural heritage institutions should benefit from a clear framework for the digitisationand dissemination, including across borders, of out-of-commerce works or othersubject-matter. However, the particular characteristics of the collections of out-ofcommerce works mean that obtaining the prior consent of the individual rightholders
may be very difficult. This can be due, for example, to the age of the works or othersubject-matter, their limited commercial value or the fact that they were neverintended for commercial use. It is therefore necessary to provide for measures tofacilitate the licensing of rights in out-of-commerce works that are in the collections ofcultural heritage institutions and thereby to allow the conclusion of agreements withcross-border effect in the internal market.

(23)

Member States should, within the framework provided for in this Directive, haveflexibility in choosing the specific type of mechanism allowing for licences for out-ofcommerce works to extend to the rights of rightholders that are not represented by thecollective management organisation, in accordance to their legal traditions, practices
or circumstances. Such mechanisms can include extended collective licensing andpresumptions of representation.

(24)

For the purpose of those licensing mechanisms, a rigorous and well-functioning
collective management system is important. That system includes in particular rules ofgood governance, transparency and reporting, as well as the regular, diligent andaccurate distribution and payment of amounts due to individual rightholders, as
provided for by Directive 2014/26/EU. Additional appropriate safeguards should beavailable for all rightholders, who should be given the opportunity to exclude theapplication of such mechanisms to their works or other subject-matter. Conditions
attached to those mechanisms should not affect their practical relevance for cultural
heritage institutions.

(25)

Considering the variety of works and other subject-matter in the collections of cultural
heritage institutions, it is important that the licensing mechanisms introduced by thisDirective are available and can be used in practice for different types of works andother subject-matter, including photographs, sound recordings and audiovisual works.
In order to reflect the specificities of different categories of works and other subjectmatter as regards modes of publication and distribution and to facilitate the usability of
those mechanisms, specific requirements and procedures may have to be establishedby Member States for the practical application of those licensing mechanisms. It isappropriate that Member States consult rightholders, users and collective management
organisations when doing so.

(26)

For reasons of international comity, the licensing mechanisms for the digitisation anddissemination of out-of-commerce works provided for in this Directive should not
apply to works or other subject-matter that are first published or, in the absence of
publication, first broadcast in a third country or, in the case of cinematographic oraudiovisual works, to works the producer of which has his headquarters or habitualresidence in a third country. Those mechanisms should also not apply to works orother subject-matter of third country nationals except when they are first published or,in the absence of publication, first broadcast in the territory of a Member State or, in

17ENthe case of cinematographic or audiovisual works, to works of which the producer's
headquarters or habitual residence is in a Member State.

EN

(27)

As mass digitisation projects can entail significant investments by cultural heritage
institutions, any licences granted under the mechanisms provided for in this Directive
should not prevent them from generating reasonable revenues in order to cover thecosts of the licence and the costs of digitising and disseminating the works and othersubject-matter covered by the licence.

(28)

Information regarding the future and ongoing use of out-of-commerce works and othersubject-matter by cultural heritage institutions on the basis of the licensing
mechanisms provided for in this Directive and the arrangements in place for all
rightholders to exclude the application of licences to their works or other subjectmatter should be adequately publicised. This is particularly important when uses takeplace across borders in the internal market. It is therefore appropriate to makeprovision for the creation of a single publicly accessible online portal for the Union to
make such information available to the public for a reasonable period of time before
the cross-border use takes place. Under Regulation (EU) No 386/2012 of the European
Parliament and of the Council33, the European Union Intellectual Property Office isentrusted with certain tasks and activities, financed by making use of its own
budgetary measures, aiming at facilitating and supporting the activities of national
authorities, the private sector and Union institutions in the fight against, including theprevention of, infringement of intellectual property rights. It is therefore appropriate torely on that Office to establish and manage the European portal making suchinformation available.

(29)

On-demand services have the potential to play a decisive role in the dissemination ofEuropean works across the European Union. However, agreements on the online
exploitation of such works may face difficulties related to the licensing of rights. Suchissues may, for instance, appear when the holder of the rights for a given territory is
not interested in the online exploitation of the work or where there are issues linked to
the windows of exploitation.

(30)

To facilitate the licensing of rights in audiovisual works to video-on-demand
platforms, this Directive requires Member States to set up a negotiation mechanism
allowing parties willing to conclude an agreement to rely on the assistance of an
impartial body. The body should meet with the parties and help with the negotiations
by providing professional and external advice. Against that background, Member
States should decide on the conditions of the functioning of the negotiation
mechanism, including the timing and duration of the assistance to negotiations and thebearing of the costs. Member States should ensure that administrative and financial
burdens remain proportionate to guarantee the efficiency of the negotiation forum.

(31)

A free and pluralist press is essential to ensure quality journalism and citizens' accessto information. It provides a fundamental contribution to public debate and the proper
functioning of a democratic society. In the transition from print to digital, publishersof press publications are facing problems in licensing the online use of their
publications and recouping their investments. In the absence of recognition of33

Regulation (EU) No 386/2012 of the European Parliament and of the Council of 19 April 2012 on
entrusting the Office for Harmonization in the Internal Market (Trade Marks and Designs) with tasks
related to the enforcement of intellectual property rights, including the assembling of public andprivate-sector representatives as a European Observatory on Infringements of Intellectual Property
Rights (OJ L 129, 16.5.2012, p. 1–6).

18

EN

publishers of press publications as rightholders, licensing and enforcement in thedigital environment is often complex and inefficient.

EN

(32)

The organisational and financial contribution of publishers in producing press
publications needs to be recognised and further encouraged to ensure the sustainabilityof the publishing industry. It is therefore necessary to provide at Union level aharmonised legal protection for press publications in respect of digital uses. Suchprotection should be effectively guaranteed through the introduction, in Union law, ofrights related to copyright for the reproduction and making available to the public ofpress publications in respect of digital uses.

(33)

For the purposes of this Directive, it is necessary to define the concept of press
publication in a way that embraces only journalistic publications, published by aservice provider, periodically or regularly updated in any media, for the purpose of
informing or entertaining. Such publications would include, for instance, daily
newspapers, weekly or monthly magazines of general or special interest and news
websites. Periodical publications which are published for scientific or academic
purposes, such as scientific journals, should not be covered by the protection granted
to press publications under this Directive. This protection does not extend to acts ofhyperlinking which do not constitute communication to the public.

(34)

The rights granted to the publishers of press publications under this Directive shouldhave the same scope as the rights of reproduction and making available to the public
provided for in Directive 2001/29/EC, insofar as digital uses are concerned. They
should also be subject to the same provisions on exceptions and limitations as those
applicable to the rights provided for in Directive 2001/29/EC including the exception
on quotation for purposes such as criticism or review laid down in Article 5(3)(d) ofthat Directive.

(35)

The protection granted to publishers of press publications under this Directive should
not affect the rights of the authors and other rightholders in the works and othersubject-matter incorporated therein, including as regards the extent to which authorsand other rightholders can exploit their works or other subject-matter independently
from the press publication in which they are incorporated. Therefore, publishers ofpress publications should not be able to invoke the protection granted to them against
authors and other rightholders. This is without prejudice to contractual arrangements
concluded between the publishers of press publications, on the one side, and authorsand other rightholders, on the other side.

(36)

Publishers, including those of press publications, books or scientific publications,
often operate on the basis of the transfer of authors' rights by means of contractual
agreements or statutory provisions. In this context, publishers make an investment
with a view to the exploitation of the works contained in their publications and may insome instances be deprived of revenues where such works are used under exceptions
or limitations such as the ones for private copying and reprography. In a number ofMember States compensation for uses under those exceptions is shared between
authors and publishers. In order to take account of this situation and improve legal
certainty for all concerned parties, Member States should be allowed to determine that,when an author has transferred or licensed his rights to a publisher or otherwise
contributes with his works to a publication and there are systems in place tocompensate for the harm caused by an exception or limitation, publishers are entitled
to claim a share of such compensation, whereas the burden on the publisher tosubstantiate his claim should not exceed what is required under the system in place.

19

EN

(37)

Over the last years, the functioning of the online content marketplace has gained incomplexity. Online services providing access to copyright protected content uploadedby their users without the involvement of right holders have flourished and havebecome main sources of access to content online. This affects rightholders'possibilities to determine whether, and under which conditions, their work and othersubject-matter are used as well as their possibilities to get an appropriate remuneration
for it.

(38)

Where information society service providers store and provide access to the public tocopyright protected works or other subject-matter uploaded by their users, thereby
going beyond the mere provision of physical facilities and performing an act ofcommunication to the public, they are obliged to conclude licensing agreements withrightholders, unless they are eligible for the liability exemption provided in Article 14
of Directive 2000/31/EC of the European Parliament and of the Council34.
In respect of Article 14, it is necessary to verify whether the service provider plays anactive role, including by optimising the presentation of the uploaded works or subjectmatter or promoting them, irrespective of the nature of the means used therefor.
In order to ensure the functioning of any licensing agreement, information society
service providers storing and providing access to the public to large amounts ofcopyright protected works or other subject-matter uploaded by their users should takeappropriate and proportionate measures to ensure protection of works or other subjectmatter, such as implementing effective technologies. This obligation should also apply
when the information society service providers are eligible for the liability exemption
provided in Article 14 of Directive 2000/31/EC.

EN

(39)

Collaboration between information society service providers storing and providing
access to the public to large amounts of copyright protected works or other subjectmatter uploaded by their users and rightholders is essential for the functioning oftechnologies, such as content recognition technologies. In such cases, rightholders
should provide the necessary data to allow the services to identify their content and theservices should be transparent towards rightholders with regard to the deployedtechnologies, to allow the assessment of their appropriateness. The services should inparticular provide rightholders with information on the type of technologies used, theway they are operated and their success rate for the recognition of rightholders'content. Those technologies should also allow rightholders to get information from theinformation society service providers on the use of their content covered by anagreement.

(40)

Certain rightholders such as authors and performers need information to assess the
economic value of their rights which are harmonised under Union law. This isespecially the case where such rightholders grant a licence or a transfer of rights inreturn for remuneration. As authors and performers tend to be in a weaker contractual
position when they grant licences or transfer their rights, they need information toassess the continued economic value of their rights, compared to the remuneration
received for their licence or transfer, but they often face a lack of transparency.
Therefore, the sharing of adequate information by their contractual counterparts ortheir successors in title is important for the transparency and balance in the system thatgoverns the remuneration of authors and performers.

34

Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal
aspects of information society services, in particular electronic commerce, in the Internal Market (OJ L
178, 17.7.2000, p. 1–16).

20

EN

EN

(41)

When implementing transparency obligations, the specificities of different content
sectors and of the rights of the authors and performers in each sector should beconsidered. Member States should consult all relevant stakeholders as that should help
determine sector-specific requirements. Collective bargaining should be considered as
an option to reach an agreement between the relevant stakeholders regardingtransparency. To enable the adaptation of current reporting practices to thetransparency obligations, a transitional period should be provided for. The
transparency obligations do not need to apply to agreements concluded with collective
management organisations as those are already subject to transparency obligations
under Directive 2014/26/EU.

(42)

Certain contracts for the exploitation of rights harmonised at Union level are of long
duration, offering few possibilities for authors and performers to renegotiate them with
their contractual counterparts or their successors in title. Therefore, without prejudice
to the law applicable to contracts in Member States, there should be a remuneration
adjustment mechanism for cases where the remuneration originally agreed under alicence or a transfer of rights is disproportionately low compared to the relevant
revenues and the benefits derived from the exploitation of the work or the fixation of
the performance, including in light of the transparency ensured by this Directive. The
assessment of the situation should take account of the specific circumstances of eachcase as well as of the specificities and practices of the different content sectors. Where
the parties do not agree on the adjustment of the remuneration, the author or performer
should be entitled to bring a claim before a court or other competent authority.

(43)

Authors and performers are often reluctant to enforce their rights against theircontractual partners before a court or tribunal. Member States should therefore provide
for an alternative dispute resolution procedure that addresses claims related to
obligations of transparency and the contract adjustment mechanism.

(44)

The objectives of this Directive, namely the modernisation of certain aspects of theUnion copyright framework to take account of technological developments and newchannels of distribution of protected content in the internal market, cannot be
sufficiently achieved by Member States but can rather, by reason of their scale, effects
and cross-border dimension, be better achieved at Union level. Therefore, the Union
may adopt measures in accordance with the principle of subsidiarity as set out in
Article 5 of the Treaty on European Union. In accordance with the principle ofproportionality, as set out in that Article, this Directive does not go beyond what isnecessary in order to achieve those objectives.

(45)

This Directive respects the fundamental rights and observes the principles recognisedin particular by the Charter of Fundamental Rights of the European Union.
Accordingly, this Directive should be interpreted and applied in accordance with thoserights and principles.

(46)

Any processing of personal data under this Directive should respect fundamental
rights, including the right to respect for private and family life and the right toprotection of personal data under Articles 7 and 8 of the Charter of Fundamental
Rights of the European Union and must be in compliance with Directive 95/46/EC of
the European Parliament and of the Council35 and Directive 2002/58/EC of theEuropean Parliament and of the Council36.

35

Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on theprotection of individuals with regard to the processing of personal data and on the free movement of

21

EN

(47)

In accordance with the Joint Political Declaration of 28 September 2011 of Member
States and the Commission on explanatory documents37, Member States haveundertaken to accompany, in justified cases, the notification of their transposition
measures with one or more documents explaining the relationship between thecomponents of a directive and the corresponding parts of national transposition
instruments. With regard to this Directive, the legislator considers the transmission ofsuch documents to be justified,

HAVE ADOPTED THIS DIRECTIVE:

36

37

EN

such data (OJ L 281, 23.11.1995, p. 31–50). This Directive is repealed with effect from 25 May 2018
and shall be replaced by Regulation (EU) 2016/679 of the European Parliament and of the Council of
27 April 2016 on the protection of natural persons with regard to the processing of personal data and on
the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation)(OJ L 119, 4.5.2016, p. 1–88).
Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning theprocessing of personal data and the protection of privacy in the electronic communications sector(Directive on privacy and electronic communications) (OJ L 201, 31.7.2002, p. 37–47), called, as
amended by Directives 2006/24/EC and 2009/136/EC, the “e-Privacy Directive”.
OJ C 369, 17.12.2011, p. 14.

22

EN

TITLE I
GENERAL PROVISIONS
Article 1
Subject matter and scope
1.

This Directive lays down rules which aim at further harmonising the Union law
applicable to copyright and related rights in the framework of the internal market,
taking into account in particular digital and cross-border uses of protected content. It
also lays down rules on exceptions and limitations, on the facilitation of licences aswell as rules aiming at ensuring a well-functioning marketplace for the exploitationof works and other subject-matter.

2.

Except in the cases referred to in Article 6, this Directive shall leave intact and shallin no way affect existing rules laid down in the Directives currently in force in thisarea, in particular Directives 96/9/EC, 2001/29/EC, 2006/115/EC, 2009/24/EC,
2012/28/EU and 2014/26/EU.
Article 2
Definitions

For the purposes of this Directive, the following definitions shall apply:(1)‘research organisation’ means a university, a research institute or any otherorganisation the primary goal of which is to conduct scientific research or to conduct
scientific research and provide educational services:(a)on a non-for-profit basis or by reinvesting all the profits in its scientificresearch; or(b)pursuant to a public interest mission recognised by a Member State;in such a way that the access to the results generated by the scientific research cannot
be enjoyed on a preferential basis by an undertaking exercising a decisive influence
upon such organisation;

EN

(2)

‘text and data mining’ means any automated analytical technique aiming to analyse
text and data in digital form in order to generate information such as patterns, trends
and correlations;(3)‘cultural heritage institution’ means a publicly accessible library or museum, anarchive or a film or audio heritage institution;(4)‘press publication’ means a fixation of a collection of literary works of a journalistic
nature, which may also comprise other works or subject-matter and constitutes anindividual item within a periodical or regularly-updated publication under a single
title, such as a newspaper or a general or special interest magazine, having the
purpose of providing information related to news or other topics and published in any
media under the initiative, editorial responsibility and control of a service provider.

23

EN

TITLE II
MEASURES TO ADAPT EXCEPTIONS AND LIMITATIONS TO THE
DIGITAL AND CROSS-BORDER ENVIRONMENT
Article 3
Text and data mining
1.

Member States shall provide for an exception to the rights provided for in Article 2
of Directive 2001/29/EC, Articles 5(a) and 7(1) of Directive 96/9/EC and Article
11(1) of this Directive for reproductions and extractions made by researchorganisations in order to carry out text and data mining of works or other subjectmatter to which they have lawful access for the purposes of scientific research.

2.

Any contractual provision contrary to the exception provided for in paragraph 1 shallbe unenforceable.

3.

Rightholders shall be allowed to apply measures to ensure the security and integrityof the networks and databases where the works or other subject-matter are hosted.
Such measures shall not go beyond what is necessary to achieve that objective.

4.

Member States shall encourage rightholders and research organisations to define
commonly-agreed best practices concerning the application of the measures referred
to in paragraph 3.
Article 4
Use of works and other subject-matter in digital and cross-border teaching activities

1.

2.

Member States shall provide for an exception or limitation to the rights provided forin Articles 2 and 3 of Directive 2001/29/EC, Articles 5(a) and 7(1) of Directive
96/9/EC, Article 4(1) of Directive 2009/24/EC and Article 11(1) of this Directive inorder to allow for the digital use of works and other subject-matter for the sole
purpose of illustration for teaching, to the extent justified by the non-commercial
purpose to be achieved, provided that the use:(a)takes place on the premises of an educational establishment or through a secure
electronic network accessible only by the educational establishment's pupils or
students and teaching staff;(b)is accompanied by the indication of the source, including the author's name,unless this turns out to be impossible.

Member States may provide that the exception adopted pursuant to paragraph 1 does
not apply generally or as regards specific types of works or other subject-matter, tothe extent that adequate licences authorising the acts described in paragraph 1 areeasily available in the market.
Member States availing themselves of the provision of the first subparagraph shalltake the necessary measures to ensure appropriate availability and visibility of thelicences authorising the acts described in paragraph 1 for educational establishments.

3.

EN

The use of works and other subject-matter for the sole purpose of illustration forteaching through secure electronic networks undertaken in compliance with theprovisions of national law adopted pursuant to this Article shall be deemed to occur
solely in the Member State where the educational establishment is established.

24

EN

4.

Member States may provide for fair compensation for the harm incurred by therightholders due to the use of their works or other subject-matter pursuant toparagraph 1.
Article 5
Preservation of cultural heritage

Member States shall provide for an exception to the rights provided for in Article 2 ofDirective 2001/29/EC, Articles 5(a) and 7(1) of Directive 96/9/EC, Article 4(1)(a) of
Directive 2009/24/EC and Article 11(1) of this Directive, permitting cultural heritage
institutions, to make copies of any works or other subject-matter that are permanently in theircollections, in any format or medium, for the sole purpose of the preservation of such works
or other subject-matter and to the extent necessary for such preservation.
Article 6
Common provisions
Article 5(5) and the first, third and fifth subparagraphs of Article 6(4) of Directive
2001/29/EC shall apply to the exceptions and the limitation provided for under this Title.

EN

25

EN

TITLE III
MEASURES TO IMPROVE LICENSING PRACTICES AND ENSUREWIDER ACCESS TO CONTENT
CHAPTER 1
Out-of-commerce works
Article 7
Use of out-of-commerce works by cultural heritage institutions
1.

2.

Member States shall provide that when a collective management organisation, on
behalf of its members, concludes a non-exclusive licence for non-commercial
purposes with a cultural heritage institution for the digitisation, distribution,communication to the public or making available of out-of-commerce works or othersubject-matter permanently in the collection of the institution, such a non-exclusive
licence may be extended or presumed to apply to rightholders of the same category
as those covered by the licence who are not represented by the collective
management organisation, provided that:(a)the collective management organisation is, on the basis of mandates fromrightholders, broadly representative of rightholders in the category of works orother subject-matter and of the rights which are the subject of the licence;(b)equal treatment is guaranteed to all rightholders in relation to the terms of thelicence;(c)

all rightholders may at any time object to their works or other subject-matterbeing deemed to be out of commerce and exclude the application of the licenceto their works or other subject-matter.

A work or other subject-matter shall be deemed to be out of commerce when thewhole work or other subject-matter, in all its translations, versions andmanifestations, is not available to the public through customary channels ofcommerce and cannot be reasonably expected to become so.
Member States shall, in consultation with rightholders, collective management
organisations and cultural heritage institutions, ensure that the requirements used todetermine whether works and other subject-matter can be licensed in accordancewith paragraph 1 do not extend beyond what is necessary and reasonable and do notpreclude the possibility to determine the out-of-commerce status of a collection as awhole, when it is reasonable to presume that all works or other subject-matter in thecollection are out of commerce.

3.

Member States shall provide that appropriate publicity measures are taken regarding:(a)the deeming of works or other subject-matter as out of commerce;(b)

the licence, and in particular its application to unrepresented rightholders;(c)the possibility of rightholders to object, referred to in point (c) of paragraph 1;

including during a reasonable period of time before the works or other subject-matterare digitised, distributed, communicated to the public or made available.

EN

26

EN

4.

5.

Member States shall ensure that the licences referred to in paragraph 1 are soughtfrom a collective management organisation that is representative for the Member
State where:(a)the works or phonograms were first published or, in the absence of publication,
where they were first broadcast, except for cinematographic and audiovisual
works;(b)

the producers of the works have their headquarters or habitual residence, forcinematographic and audiovisual works; or(c)the cultural heritage institution is established, when a Member State or a third
country could not be determined, after reasonable efforts, according to points(a) and (b).

Paragraphs 1, 2 and 3 shall not apply to the works or other subject-matter of third
country nationals except where points (a) and (b) of paragraph 4 apply.
Article 8
Cross-border uses

1.

Works or other subject-matter covered by a licence granted in accordance with
Article 7 may be used by the cultural heritage institution in accordance with theterms of the licence in all Member States.

2.

Member States shall ensure that information that allows the identification of theworks or other subject-matter covered by a licence granted in accordance with
Article 7 and information about the possibility of rightholders to object referred to in
Article 7(1)(c) are made publicly accessible in a single online portal for at least six
months before the works or other subject-matter are digitised, distributed,
communicated to the public or made available in Member States other than the one
where the licence is granted, and for the whole duration of the licence.

3.

The portal referred to in paragraph 2 shall be established and managed by theEuropean Union Intellectual Property Office in accordance with Regulation (EU) No
386/2012.
Article 9
Stakeholder dialogue

Member States shall ensure a regular dialogue between representative users' and rightholders'organisations, and any other relevant stakeholder organisations, to, on a sector-specific basis,
foster the relevance and usability of the licensing mechanisms referred to in Article 7(1),ensure the effectiveness of the safeguards for rightholders referred to in this Chapter, notably
as regards publicity measures, and, where applicable, assist in the establishment of therequirements referred to in the second subparagraph of Article 7(2).

CHAPTER 2
Access to and availability of audiovisual works on video-on-demand
platforms
Article 10
Negotiation mechanism
Member States shall ensure that where parties wishing to conclude an agreement for the
purpose of making available audiovisual works on video-on-demand platforms facedifficulties relating to the licensing of rights, they may rely on the assistance of an impartial

EN

27

EN

body with relevant experience. That body shall provide assistance with negotiation and help
reach agreements.
No later than [date mentioned in Article 21(1)] Member States shall notify to the Commission
the body referred to in paragraph 1.

EN

28

EN

TITLE IV
MEASURES TO ACHIEVE A WELL-FUNCTIONING MARKETPLACE
FOR COPYRIGHT
CHAPTER 1
Rights in publications
Article 11
Protection of press publications concerning digital uses
1.

Member States shall provide publishers of press publications with the rights provided
for in Article 2 and Article 3(2) of Directive 2001/29/EC for the digital use of theirpress publications.

2.

The rights referred to in paragraph 1 shall leave intact and shall in no way affect any
rights provided for in Union law to authors and other rightholders, in respect of theworks and other subject-matter incorporated in a press publication. Such rights may
not be invoked against those authors and other rightholders and, in particular, may
not deprive them of their right to exploit their works and other subject-matter
independently from the press publication in which they are incorporated.

3.

Articles 5 to 8 of Directive 2001/29/EC and Directive 2012/28/EU shall apply
mutatis mutandis in respect of the rights referred to in paragraph 1.

4.

The rights referred to in paragraph 1 shall expire 20 years after the publication of thepress publication. This term shall be calculated from the first day of January of theyear following the date of publication.
Article 12
Claims to fair compensation

Member States may provide that where an author has transferred or licensed a right to a
publisher, such a transfer or a licence constitutes a sufficient legal basis for the publisher toclaim a share of the compensation for the uses of the work made under an exception orlimitation to the transferred or licensed right.

CHAPTER 2
Certain uses of protected content by online services
Article 13
Use of protected content by information society service providers storing and giving access tolarge amounts of works and other subject-matter uploaded by their users
1.

EN

Information society service providers that store and provide to the public access tolarge amounts of works or other subject-matter uploaded by their users shall, in
cooperation with rightholders, take measures to ensure the functioning of agreements
concluded with rightholders for the use of their works or other subject-matter or toprevent the availability on their services of works or other subject-matter identified
by rightholders through the cooperation with the service providers. Those measures,such as the use of effective content recognition technologies, shall be appropriate andproportionate. The service providers shall provide rightholders with adequate
information on the functioning and the deployment of the measures, as well as, when29

EN

relevant, adequate reporting on the recognition and use of the works and othersubject-matter.
2.

Member States shall ensure that the service providers referred to in paragraph 1 put
in place complaints and redress mechanisms that are available to users in case of
disputes over the application of the measures referred to in paragraph 1.

3.

Member States shall facilitate, where appropriate, the cooperation between theinformation society service providers and rightholders through stakeholder dialogues
to define best practices, such as appropriate and proportionate content recognition
technologies, taking into account, among others, the nature of the services, theavailability of the technologies and their effectiveness in light of technologicaldevelopments.

CHAPTER 3
Fair remuneration in contracts of authors and performers
Article 14
Transparency obligation
1.

Member States shall ensure that authors and performers receive on a regular basis
and taking into account the specificities of each sector, timely, adequate andsufficient information on the exploitation of their works and performances fromthose to whom they have licensed or transferred their rights, notably as regards
modes of exploitation, revenues generated and remuneration due.

2.

The obligation in paragraph 1 shall be proportionate and effective and shall ensure an
appropriate level of transparency in every sector. However, in those cases where theadministrative burden resulting from the obligation would be disproportionate inview of the revenues generated by the exploitation of the work or performance,
Member States may adjust the obligation in paragraph 1, provided that the obligation
remains effective and ensures an appropriate level of transparency.

3.

Member States may decide that the obligation in paragraph 1 does not apply when
the contribution of the author or performer is not significant having regard to theoverall work or performance.

4.

Paragraph 1 shall not be applicable to entities subject to the transparency obligations
established by Directive 2014/26/EU.
Article 15
Contract adjustment mechanism

Member States shall ensure that authors and performers are entitled to request additional,
appropriate remuneration from the party with whom they entered into a contract for the
exploitation of the rights when the remuneration originally agreed is disproportionately low
compared to the subsequent relevant revenues and benefits derived from the exploitation of
the works or performances.
Article 16
Dispute resolution mechanism
Member States shall provide that disputes concerning the transparency obligation under
Article 14 and the contract adjustment mechanism under Article 15 may be submitted to a
voluntary, alternative dispute resolution procedure.

EN

30

EN

TITLE V
FINAL PROVISIONS
Article 17
Amendments to other directives
1.

Directive 96/9/EC is amended as follows:(a)

In Article 6(2), point (b) is replaced by the following:"(b) where there is use for the sole purpose of illustration for teaching or
scientific research, as long as the source is indicated and to the extent justified
by the non-commercial purpose to be achieved, without prejudice to the
exceptions and the limitation provided for in Directive [this Directive];"(b)

In Article 9, point (b) is replaced by the following:"(b) in the case of extraction for the purposes of illustration for teaching or
scientific research, as long as the source is indicated and to the extent justified
by the non-commercial purpose to be achieved, without prejudice to the
exceptions and the limitation provided for in Directive [this Directive];"2.

Directive 2001/29/EC is amended as follows:(a)

In Article 5(2), point (c) is replaced by the following:"(c) in respect of specific acts of reproduction made by publicly accessible
libraries, educational establishments or museums, or by archives, which are notfor direct or indirect economic or commercial advantage, without prejudice tothe exceptions and the limitation provided for in Directive [this Directive];"(b)

In Article 5(3), point (a) is replaced by the following:"(a) use for the sole purpose of illustration for teaching or scientific research, aslong as the source, including the author's name, is indicated, unless this turns
out to be impossible and to the extent justified by the non-commercial purposeto be achieved, without prejudice to the exceptions and the limitation provided
for in Directive [this Directive];"(c)

In Article 12(4), the following points are added:"(e) to examine the impact of the transposition of Directive [this Directive] on
the functioning of the internal market and to highlight any transpositiondifficulties;(f) to facilitate the exchange of information on the relevant developments inlegislation and case law as well as on the practical application of the measurestaken by Member States to implement Directive [this Directive];(g) to discuss any other questions arising from the application of Directive [thisDirective]."
Article 18
Application in time

1.

EN

This Directive shall apply in respect of all works and other subject-matter which areprotected by the Member States' legislation in the field of copyright on or after [thedate mentioned in Article 21(1)].

31

EN

2.

The provisions of Article 11 shall also apply to press publications published before[the date mentioned in Article 21(1)].

3.

This Directive shall apply without prejudice to any acts concluded and rights
acquired before [the date mentioned in Article 21(1)].
Article 19
Transitional provision

Agreements for the licence or transfer of rights of authors and performers shall be subject tothe transparency obligation in Article 14 as from [one year after the date mentioned in Article
21(1)].
Article 20
Protection of personal data
The processing of personal data carried out within the framework of this Directive shall be
carried out in compliance with Directives 95/46/EC and 2002/58/EC.
Article 21
Transposition
1.

Member States shall bring into force the laws, regulations and administrative
provisions necessary to comply with this Directive by [12 months after entry into
force] at the latest. They shall forthwith communicate to the Commission the text of
those provisions.
When Member States adopt those provisions, they shall contain a reference to thisDirective or be accompanied by such a reference on the occasion of their official
publication. Member States shall determine how such reference is to be made.

2.

Member States shall communicate to the Commission the text of the main provisionsof national law which they adopt in the field covered by this Directive.
Article 22
Review

1.

No sooner than [five years after the date mentioned in Article 21(1)], theCommission shall carry out a review of this Directive and present a report on themain findings to the European Parliament, the Council and the European Economic
and Social Committee.

2.

Member States shall provide the Commission with the necessary information for the
preparation of the report referred to in paragraph 1.
Article 23
Entry into force

This Directive shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.

EN

32

EN

Article 24
Addressees
This Directive is addressed to the Member States.
Done at Brussels,

For the European Parliament
The President

EN

For the Council
The President

33

EN