### 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 a licence 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 each case 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 . ### many contracts for the exploitation of rights harmonised at union level are long - term in nature , 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 an author or performer can demonstrate that the remuneration originally agreed under a licence or a transfer of rights is disproportionately low compared to the relevant revenues and the benefits , such as subsidies or equity shares , derived from the exploitation of the work or the fixation of the performance , taking into account the transparency ensured by this directive . the assessment of the situation should take account of the specific circumstances of each case , of any expenditure genuinely incurred in the production of the work or performance , as well as of the specificities and practices of the different content sectors . it should be possible for member states to decide not to apply the adjustment mechanism when the contribution of the authors or performers is not significant , having regard to the overall work or performance . 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 .


### an act of preservation may require a reproduction of a work or other subject - matter in the collection of a cultural heritage institution and consequently the authorisation of the relevant rightholders . cultural heritage institutions are engaged in the preservation of their collections for future generations . digital technologies offer new ways to preserve the heritage contained in those collections but they also create new challenges . 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 to allow those acts of preservation . ### an act of preservation may require a reproduction of a work or other subject - matter in the collection of a cultural heritage institution and consequently the authorisation of the relevant rightholders . cultural heritage institutions , research organisations and educational establishments are engaged in the preservation of their collections for future generations . digital technologies offer new ways to preserve the heritage contained in those collections but they also create new challenges . cultural heritage institutions , research organisations and educational establishments are also engaged in the reproduction of works externally for various purposes including insurance , rights - related arrangements and lending . 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 .


### 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 in a number of member states in order to facilitate educational uses of works and other subject - matter . such arrangements have usually been developed taking account of the needs of educational establishments and different levels of education . whereas it is essential 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 not hamper the effective application of the exception or limitation or cross - border uses . this should allow member states to build on the existing arrangements concluded at national 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 are primarily 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 that licensing 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 . ### 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 in a number of member states in order to facilitate educational uses of works and other subject - matter . such arrangements have usually been developed taking account of the needs of educational establishments and different levels of education . whereas it is essential 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 not hamper the effective application of the exception or limitation or cross - border uses . this should allow member states to build on the existing arrangements concluded at national 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 are primarily intended for the educational market , for which licences are easily available . in order to avoid such a mechanism resulting in legal uncertainty or administrative burden for educational establishments , member states adopting this approach should take concrete measures to ensure that licensing schemes allowing digital uses of works or other subject - matter for the purpose of illustration for teaching are easily available and that educational establishments and entities certified to carry out a teaching activity are aware of the existence of such licensing schemes . in order to ensure the availability and accessibility of such licences for beneficiaries , member states should use or develop appropriate tools , such as a single portal or database .


### 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 a licence 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 each case 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 . ### 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 , they could institute a remuneration adjustment mechanism for cases where the remuneration originally agreed under a licence 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 . it is essential that the contractual position of authors and performers be strengthened so that they can enjoy fair , non - assignable remuneration and so as to avoid power imbalances between the parties . such a provision would apply only to the parties directly linked contractually . 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 or to terminate his or her contract .


### over the last years , the functioning of the online content marketplace has gained in complexity . online services providing access to copyright protected content uploaded by their users without the involvement of right holders have flourished and have become main sources of access to content online . this affects rightholders ' possibilities to determine whether , and under which conditions , their work and other subject - matter are used as well as their possibilities to get an appropriate remuneration for it . ### evolution of digital technologies has led to the emergence of new business models and reinforced the role of the internet as the main marketplace for the distribution of and access to copyright - protected content . over the last years , the functioning of the online content marketplace has gained in complexity . online services providing access to copyright protected content uploaded by their users without the involvement of right holders have flourished and have become main sources of access to content online . this affects rightholders ' possibilities to determine whether , and under which conditions , their work and other subject - matter are used as well as their possibilities to get an appropriate remuneration for it . the creative sector contributes significantly both economically and culturally to the strength of the union , and the importance of the sector has long been recognised by union law including directive 2001 / 29 / ec , which aims to guarantee a framework wherein the exploitation of works and other protected subject - matter can take place . difficulties faced by rightholders when seeking to license their rights to certain online services and be remunerated for the online distribution of their works and subject matter risks undermining that aim . to uphold a high level of protection that enables the creative sectors to continue to contribute culturally and economically to the union it is necessary to ensure that legal certainty is provided both for rightholders and users of protected works and subject - matter and that rightholders are able to negotiate copyright licenses with user – uploaded content services that distribute their content .


### article 5 and the first , third and fifth subparagraphs of article 6 of directive 2001 / 29 / ec shall apply to the exceptions and the limitation provided for under this title . ### access to content permitted by an exception or limitation shall not give the beneficiary of the exception or limitation the right to use the content concerned in the context provided for by another exception or limitation . article 5 and the first , third , fourth and fifth subparagraphs of article 6 of directive 2001 / 29 / ec shall apply to the exceptions and limitations provided for under this title .


### in order to ensure the functioning of any licensing agreement , information society service providers storing and providing access to the public to large amounts of copyright protected works or other subject - matter uploaded by their users should take appropriate and proportionate measures to ensure protection of works or other subject - matter , 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 . ### in order to ensure the functioning of any licensing agreement or to prevent the availability on their services of content not covered by such agreements , information society service providers storing and providing access to the public to large amounts of copyright protected works or other subject - matter uploaded by their users should take appropriate and proportionate measures to ensure protection of works or other subject - matter , such as implementing effective technologies consistent with prevailing technologies and industry best practices , and provided such technology exists . 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 .


### 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 the administrative burden resulting from the obligation would be disproportionate in view 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 . ### the obligation in paragraph 1 shall be proportionate and effective and shall ensure a high level of transparency in every sector , as well as a right of authors to audit . however , in those cases where the administrative burden resulting from the obligation would be disproportionate in view 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 a high level of transparency .


### 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 face difficulties relating to the licensing of rights , they may rely on the assistance of an impartial body with relevant experience . that body shall provide assistance with negotiation and help reach agreements . ### member states shall ensure that where the relevant parties wishing to conclude an agreement for the purpose of making available audiovisual works on video - on - demand platforms face difficulties relating to the licensing of rights , they may rely on the assistance of an impartial body with relevant experience . that body shall provide assistance to facilitate the negotiations .


### the exceptions and the limitation set out in this directive seek to achieve a fair balance 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 cases which do not conflict with the normal exploitation of the works or other subject - matter and do not unreasonably prejudice the legitimate interests of the rightholders . ### the exceptions and the limitations set out in this directive seek to achieve a fair balance 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 cases which do not conflict with the normal exploitation of the works or other subject - matter and do not unreasonably prejudice the legitimate interests of the rightholders . exceptions also contain conditions that ensure the preservation of functioning markets and rightholders ' interests and incentives to create and invest .


### the exception or limitation should cover digital uses of works and other subject - matter such as the use of parts or extracts of works to support , enrich or complement the teaching , including the related learning activities . the use of the works or other subject - matter under the exception or limitation should be only in the context of teaching and learning activities carried out under the responsibility of educational establishments , including during examinations , and be limited to what is necessary for the 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 be understood as covering the specific accessibility needs of persons with a disability in the context of illustration for teaching . ### the exception or limitation should cover digital uses of works and other subject - matter such as the use of parts or extracts of works to support , enrich or complement the teaching , including the related learning activities . the use of the works or other subject - matter under the exception or limitation should be only in the context of teaching and learning activities carried out under the responsibility of educational establishments , including during examinations , and be limited to what is necessary for the purpose of such activities . the exception or limitation should cover both uses through digital means where the teaching activity is physically provided , including where it takes place outside the premises of the educational establishment 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 be understood as covering the specific accessibility needs of persons with a disability in the context of illustration for teaching .


### 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 . ### 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 . member states shall ensure that authors and performers can submit the dispute anonymously through an authorized person or organization .


### 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 a licence 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 each case 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 . ### most contracts for the exploitation of rights harmonised at union level are of long duration , offering very 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 of unexpected success where the remuneration originally agreed under a licence or a transfer of rights is disproportionately low compared to the relevant net direct and indirect 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 each case as well as of the specificities and practices of the different content sectors . when assessing the disproportionality , the appropriate circumstances of each case , including the nature and significance of the contribution of the author or performer to the overall work or performance , should be taken into account . 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 .


### 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 internal market ; 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 of the treaty on the functioning of the european union requires the union to take cultural aspects into account in its action . ### the directives which have been adopted in the area of copyright and related rights contribute to the functioning of the internal market , provide for a high level of protection for rightholders , facilitate the clearance of rights 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 internal market ; it stimulates innovation , creativity , investment and production of new content , also in the digital environment , with a view to avoiding fragmentation of the internal market . 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 of the treaty on the functioning of the european union requires the union to take cultural aspects into account in its action .


### where information society service providers store and provide access to the public to copyright protected works or other subject - matter uploaded by their users , thereby going beyond the mere provision of physical facilities and performing an act of communication to the public , they are obliged to conclude licensing agreements with rightholders , 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 an active role , including by optimising the presentation of the uploaded works or subject - matter or promoting them , irrespective of the nature of the means used therefore . in order to ensure the functioning of any licensing agreement , information society service providers storing and providing access to the public to large amounts of copyright protected works or other subject - matter uploaded by their users should take appropriate and proportionate measures to ensure protection of works or other subject - matter , 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 . __________________ 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 . ### where information society service providers store and / or provide access to the public to copyright protected works or other subject - matter uploaded by their users , thereby going beyond the mere provision of physical facilities and performing both an act of communication to the public and an act of reproduction , they should be obliged to conclude fair and balanced licensing agreements with rightholders that request such an agreement , in order to ensure the protection of rightholders’ legitimate interests and their fair remuneration , 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 of directive 2000 / 31 / ec and eligibility for the liability exemption provided therein , it is necessary to verify the extent of the role played by the information society service provider . where the provider plays an active role , including by optimising the presentation of the uploaded works or subject - matter , promoting them or commercially exploiting them , irrespective of the nature of the means used therefor , the provider should no longer be considered to be merely hosting such content and should therefore be considered ineligible for the liability exemption . in order to ensure the functioning of any licensing agreement , or , in the absence of such an agreement , to prevent the unauthorised making available on their service of works or other - subject matter identified by their rightholders , information society service providers storing and / or providing access to the public to significant amounts of copyright protected works or other subject - matter uploaded by their users should take , in cooperation with rightholders , appropriate and proportionate measures to ensure protection of works or other subject - matter , such as implementing effective technologies , and facilitate effective and transparent reporting to rightholders . 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 . this obligation should not apply to online marketplaces . __________________ 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 .


### in the fields of research , education and preservation of cultural heritage , digital technologies 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 and 2009 / 24 / ec in these fields may negatively impact the functioning of the internal market . 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 and preservation 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 and for preservation of cultural heritage should be introduced . for uses not covered by the exceptions or the limitation provided for in this directive , the exceptions and limitations existing in union law should continue to apply . directives 96 / 9 / ec and 2001 / 29 / ec should be adapted . ### in the fields of research , innovation , education and preservation of cultural heritage , digital technologies 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 and 2009 / 24 / ec in these fields may negatively impact the functioning of the internal market . 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 innovation , scientific research , teaching and preservation 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 and for preservation of cultural heritage should be introduced . for uses not covered by the exceptions or the limitation provided for in this directive , the exceptions and limitations existing in union law should continue to apply . therefore , existing well - functioning exceptions in these fields may continue to be available in member states , as long as they do not restrict the scope of the exceptions or limitations provided for in this directive . directives 96 / 9 / ec and 2001 / 29 / ec should be adapted .


### 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 ; ### takes place on the premises of an educational establishment or a cultural heritage institution through a secure electronic network accessible only by the educational establishment ' s pupils or students and teaching staff or registered members of a cultural heritage institution who are enrolled into the non - formal education activities provided by a cultural heritage institution ;


### over the last years , the functioning of the online content marketplace has gained in complexity . online services providing access to copyright protected content uploaded by their users without the involvement of right holders have flourished and have become main sources of access to content online . this affects rightholders ' possibilities to determine whether , and under which conditions , their work and other subject - matter are used as well as their possibilities to get an appropriate remuneration for it . ### especially over the last years , the functioning of the online content marketplace has gained in complexity . online services providing access to copyright protected content uploaded by their users without the involvement of right holders have flourished and have become important sources of easy access to content online , also causing challenges when copyright protected content is uploaded without prior authorization from rightholders .


### member states should , within the framework provided for in this directive , have flexibility in choosing the specific type of mechanism allowing for licences for out - of - commerce works to extend to the rights of rightholders that are not represented by the collective management organisation , in accordance to their legal traditions , practices or circumstances . such mechanisms can include extended collective licensing and presumptions of representation . ### member states should , within the framework provided for in this directive , have flexibility in choosing the specific type of mechanism allowing for licences for out - of - commerce works to extend to the rights of rightholders that are not represented by the relevant collective management organisation , in accordance with their legal traditions , practices or circumstances . such mechanisms can include extended collective licensing and presumptions of representation .


### 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 a licence 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 each case 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 . ### 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 a licence or a transfer of rights have become disproportionately low compared to the relevant net 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 each case as well as of the economic specificities or other features and practices of the different content sectors , as well as the nature and importance of the contribution of the author , performer or executant of the work or the performance or rendering as a whole . 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 .


### 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 technological obsolescence or the degradation of original supports . such an exception should allow for the making of copies by the appropriate preservation tool , means or technology , in the required number and at any point in the life of a work or other subject - matter to the extent required in order to produce a copy for preservation purposes only . ### 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 technological obsolescence or the degradation of original supports or for the purpose of digitisation . such an exception should allow for the making of copies in any format or medium by the appropriate preservation tool , means or technology , in the required number and at any point in the life of a work or other subject - matter to the extent required in order to produce a copy for preservation purposes only . such an exception should cover both cultural heritage institutions holding the works or other subject - matter and third parties mandated by such cultural heritage institutions to reproduce the works or other subject - matter within the scope of the exception .


### 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 of directive 2001 / 29 , which should continue to apply to text and data mining techniques which do not involve the making of copies going beyond the scope of that exception . research organisations should also benefit from the exception when they engage into public - private partnerships . ### 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 . an additional mandatory exception should give research organisations access to information in a format that enables it to be text and data mined . research organisations should also benefit from the exception when they engage in public - private partnerships , provided that they reinvest their profits in research . the new exceptions should be without prejudice to the existing mandatory exception on temporary acts of reproduction laid down in article 5 of directive 2001 / 29 , which should continue to apply to text and data mining techniques which do not involve the making of copies going beyond the scope of that exception .


### for the purposes of this directive , works and other subject - matter should be considered to be permanently in the collection of a cultural heritage institution when copies are owned or permanently held by the cultural heritage institution , for example as a result of a transfer of ownership or licence agreements . ### for the purposes of this directive , works and other subject - matter should be considered to be permanently in the collection of a cultural heritage institution when copies are owned or permanently held by the cultural heritage institution , research organisation or educational establishment , for example as a result of a transfer of ownership , licence agreements or a compulsory deposit .


### over the last years , the functioning of the online content marketplace has gained in complexity . online services providing access to copyright protected content uploaded by their users without the involvement of right holders have flourished and have become main sources of access to content online . this affects rightholders ' possibilities to determine whether , and under which conditions , their work and other subject - matter are used as well as their possibilities to get an appropriate remuneration for it . ### over recent years , the functioning of the online content marketplace has gained in complexity . online services providing access to copyright protected content uploaded by their users , without the involvement or agreement of rightholders , have flourished and have become primary sources of access to content online . in so doing , such services unfairly compete with services whose content is licensed directly by rightholders , since they make profits from content that they do not create and do not always share those profits fairly with the creators concerned . consequently , online services providing access to copyright - protected content uploaded by their users , without the involvement or agreement of right holders drive down the overall value of creative content online . while allowing easy access to diverse content , this affects rightholders ' ability to determine whether , and under which conditions , their work and other subject - matter are being used , as well as their scope for obtaining appropriate remuneration for it , since some user - uploaded content services do not enter into licensing agreements on the basis that they are covered by the ‘ safe harbour’ exemption of directive 2000 / 31 / ec .


### 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 a licence 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 each case 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 . ### certain contracts for the exploitation of rights harmonised at union level are for the entire duration of copyright , offering no 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 a licence or a transfer of rights is disproportionately low compared to the 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 . collective bargaining should be considered as an option to reach an agreement . the assessment of the situation should take account of the specific circumstances of each case and of the specificities of the different 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 .


### member states shall ensure that authors and performers receive on a regular basis and taking into account the specificities of each sector , timely , adequate and sufficient information on the exploitation of their works and performances from those to whom they have licensed or transferred their rights , notably as regards modes of exploitation , revenues generated and remuneration due . ### member states shall ensure that authors and performers receive on a regular basis and no less than once a year and taking into account the specificities of each sector , in an open readable format , accurate , timely , adequate and sufficient comprehensive information on the exploitation and promotion of their works and performances from those to whom they have licensed or transferred their rights , including subsequent transferees or licensees , notably as regards modes of promotion , exploitation , revenues generated and remuneration due .


### 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 the bearing of the costs . member states should ensure that administrative and financial burdens remain proportionate to guarantee the efficiency of the negotiation forum . ### to facilitate the licensing of rights in audiovisual works , relevant rights are consolidated with the producer by law or by contract . in order to promote cultural diversity and the availability of works on video - on - demand platforms , this directive requires member states to set up a facilitation mechanism , managed by an existing or newly - established national body , allowing relevant parties willing to conclude an agreement for the licensing of audiovisual works to video - on - demand platforms to rely on the assistance of an impartial body . where a negotiation involves parties from different member states , they should agree beforehand on which member state is to be competent in the event that the facilitation mechanism is required . the body should meet with the parties and facilitate the negotiations by providing professional and external advice . against that background , member states should decide on the conditions of the functioning of the facilitation mechanism , including the timing and duration of the assistance to negotiations and the division of any costs arising . member states should ensure that administrative and financial burdens remain proportionate to guarantee the efficiency of the facilitation forum . in order to encourage the continuous exploitation of audiovisual works on video - on - demand platforms , member states should foster dialogue between representative organisations of authors , producers , video - on - demand platforms and other relevant stakeholders .


### 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 . ### without prejudice to other judicial remedies , member states shall provide that disputes concerning the transparency obligation under article 14 , the contract adjustment mechanism under article 15 and the unwaivable right to remuneration under article 14a may be submitted to a voluntary , alternative dispute resolution procedure .


### 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 . ### member states shall ensure that authors and performers are entitled to additional equitable remuneration derived from the exploitation of their works . the additional remuneration shall be adjusted for the party with whom a contract for the exploitation of the rights was entered into , when the remuneration originally agreed is disproportionately lower than the net revenues and benefits received and provided for at the start of such exploitation .


### the commission may adjust the cap with effect from 2025 onwards . those adjustments shall be performed by means of delegated acts in accordance with article 16 . ### the commission shall adjust the cap with effect from 2021 onwards , in order to reflect wltp calculation . those adjustments shall be performed by means of delegated acts in accordance with article 16 .


### it should be avoided that the union fleet - wide targets are altered due to changes in the average mass of the fleet . changes in the average mass should therefore be reflected without delay in the specific emission target calculations , and the adjustments of the average mass value that is used to this end should therefore take place every two years with effect from 2025 . ### it should be avoided that the union fleet - wide targets are altered due to changes in the average mass of the fleet . changes in the average mass should therefore be reflected without delay in the specific emission target calculations , and the adjustments of the average mass value that is used to this end should therefore take place every two years with effect from 2030 .


### y is the share of zero - and low - emission vehicles in the manufacturer ' s fleet of newly registered passenger cars calculated as the total number of zero - and low - emission vehicles , where each of them is counted as zlevspecific in accordance with the formula below , divided by the total number of passenger cars registered in the relevant calendar year ### y is the share of zero - and low - emission vehicles in the manufacturer ' s fleet of newly registered passenger cars calculated as the total number of zero - and low - emission vehicles , where each of them is counted as zlevspecific in accordance with the formula below , divided by the total number of passenger cars registered in the relevant calendar year zlev specific = 1 - [ / 50 ]


### y is the share of zero - and low - emission vehicles in the manufacturer ' s fleet of newly registered light commercial vehicles calculated as the total number of zero - and low - emission vehicles , where each of them is counted as zlevspecific in accordance with the formula below , divided by the total number of light commercial vehicles registered in the relevant calendar year ### y is the share of zero - and low - emission vehicles in the manufacturer ' s fleet of newly registered light commercial vehicles calculated as the total number of zero - and low - emission vehicles , where each of them is counted as zlevspecific in accordance with the formula below , divided by the total number of light commercial vehicles registered in the relevant calendar year zlev specific = 1 - [ / 50 ]


### for the calendar years 2021 to 2024 , the specific emissions target for a manufacturer shall be calculated as follows : ### for the calendar years 2021 to 2029 , the specific emissions target for a manufacturer shall be calculated as follows :


### 3 . specific emissions targets from 2025 onwards ### 3 . specific emissions targets from 2030 onwards


### the commission shall in 2024 submit a report to the european parliament and the council on the effectiveness of this regulation , where appropriate , accompanied by a proposal for amending the regulation . this report will consider , inter alia , the real world representativeness of the co2 emission and energy consumption values determined in accordance with regulation 2017 / 1151 , the deployment on the union market of zero - and low - emission vehicles and the roll - out of recharging and refuelling infrastructure reported under directive 2014 / 94 / eu of the european parliament and of the council29 . _________________ 29 directive 2014 / 94 / eu of the european parliament and of the council of 22 october 2014 on the deployment of alternative fuels infrastructure ### the commission shall in 2022 submit a report to the european parliament and the council on the effectiveness of this regulation , where appropriate , accompanied by a proposal for amending the regulation to confirm the union fleet - wide co2 emissions target for 2030 and the zero emission benchmark . this report will consider , inter alia , the real world representativeness of the co2 emission and energy consumption values determined in accordance with regulation 2017 / 1151 , the deployment on the union market of zero - and low - emission vehicles and the roll - out of recharging and refuelling infrastructure reported under directive 2014 / 94 / eu of the european parliament and of the council29 . _________________ 29 directive 2014 / 94 / eu of the european parliament and of the council of 22 october 2014 on the deployment of alternative fuels infrastructure


### the specific emissions target = ) · zlev factor ### the specific emissions target = specific emissions reference target · zlev factor


### the 2025 and 2030 eu fleet - wide targets referred to in article 1 and calculated by the commission in accordance with points 6 . 1 . 1 and 6 . 1 . 2 of parts a and b of annex i ; ### the 2030 eu fleet - wide targets referred to in article 1 calculated by the commission in accordance with points 6 . 1 . of parts a and b of annex i ;


### for each calendar year , starting from 2025 , the specific emissions targets determined in accordance with point 6 . 3 of parts a or b of annex i . ### for each calendar year , starting from 2030 , the specific emissions targets determined in accordance with point 6 . 3 of parts a or b of annex i .


### reduction levels for the union - wide fleets of new passenger cars and light commercial vehicles should therefore be set for 2025 and for 2030 , taking into account the vehicle fleet renewal time and the need for the road transport sector to contribute to the 2030 climate and energy targets . this stepwise approach also provides a clear and early signal for the automotive industry not to delay the market introduction of energy efficient technologies and zero - and low - emission vehicles . ### reduction levels for the union - wide fleets of new passenger cars and light commercial vehicles should therefore be set for 2030 , taking into account the vehicle fleet renewal time and the need for the road transport sector to contribute to the 2030 climate and energy targets . this stepwise approach also provides a clear and early signal for the automotive industry not to delay the market introduction of energy efficient technologies and zero - and low - emission vehicles .


### for each calendar year from 2021 until 2024 , the specific emissions target determined in accordance with points 3 and 4 of parts a or b of annex i as appropriate or , where a manufacturer is granted a derogation under article 10 , in accordance with that derogation and point 5 of parts a or b of annex i ; ### for each calendar year from 2021 until 2029 , the specific emissions target determined in accordance with points 3 and 4 of parts a or b of annex i as appropriate or , where a manufacturer is granted a derogation under article 10 , in accordance with that derogation and point 5 of parts a or b of annex i ;


### x is 15% in the years 2025 to 2029 and 30% in 2030 onwards . ### x is 20% in 2030 onwards .


### in order to maintain the diversity of the market for passenger cars and light commercial vehicles and its ability to cater for different consumer needs , co2 targets should be defined according to the utility of the vehicles on a linear basis . maintaining mass as the utility parameter is considered coherent with the existing regime . in order to better reflect the mass of vehicles used on the road , the parameter should be changed from mass in running order to the vehicle ' s test mass as specified in regulation 2017 / 1151 of 1 june 2017 with effect from 2025 . ### in order to maintain the diversity of the market for passenger cars and light commercial vehicles and its ability to cater for different consumer needs , co2 targets should be defined according to the utility of the vehicles on a linear basis . maintaining mass as the utility parameter is considered coherent with the existing regime . in order to better reflect the mass of vehicles used on the road , the parameter should be changed from mass in running order to the vehicle ' s test mass as specified in regulation 2017 / 1151 of 1 june 2017 with effect from 2030 .


### the specific emissions target from 2025 onwards ### the specific emissions target from 2030 onwards


### x is 30% ### x is 15%


### in order to maintain the diversity of the market for passenger cars and light commercial vehicles and its ability to cater for different consumer needs , co2 targets can be specific for each car manufacturer . maintaining mass as the utility parameter is considered coherent with the existing regime . in order to better reflect the mass of vehicles used on the road , the parameter should be changed from mass in running order to the vehicle ' s test mass as specified in regulation 2017 / 1151 of 1 june 2017 with effect from 2025 . ### in order to maintain the diversity of the market for passenger cars and light commercial vehicles and its ability to cater for different consumer needs , co2 targets can be specific for each car manufacturer . maintaining mass as the utility parameter is considered coherent with the existing regime . in order to better reflect the mass of vehicles used on the road , the parameter should be changed from mass in running order to the vehicle ' s test mass as specified in regulation 2017 / 1151 of 1 june 2017 with effect from 2030 .


### in order to distribute the emission reduction effort in a competitively neutral and fair way that reflects the diversity of the market for passenger cars and light commercial vehicles , and in view of the change in 2021 to wltp - based specific emission targets , it is appropriate to determine the slope of the limit value curve on the basis of the specific emissions of all newly registered vehicles in that year , and to take into account the change in the eu fleet - wide targets between 2021 , 2025 and 2030 with a view to ensuring an equal reduction effort of all manufacturers . with regard to light commercial vehicles , the same approach as that for car manufacturers should apply to manufacturers of lighter , car derived , vans , while for manufacturers of vehicles falling within the heavier segments , a higher and fixed slope should be set for the whole target period . ### in order to distribute the emission reduction effort in a competitively neutral and fair way that reflects the diversity of the market for passenger cars and light commercial vehicles , and in view of the change in 2021 to wltp - based specific emission targets , it is appropriate to determine the slope of the limit value curve on the basis of the specific emissions of all newly registered vehicles in that year , and to take into account the change in the eu fleet - wide targets between 2021 and 2030 with a view to ensuring an equal reduction effort of all manufacturers . with regard to light commercial vehicles , the same approach as that for car manufacturers should apply to manufacturers of lighter , car derived , vans , while for manufacturers of vehicles falling within the heavier segments , a higher and fixed slope should be set for the whole target period .


### the innovative technologies must not be covered by mandatory provisions due to complementary additional measures complying with the 10 g co2 / km reduction referred to in article 1 or be mandatory under other provisions of union law . with effect from 1 january 2025 , this criterion shall not apply with regard to efficiency improvements for air conditioning systems . ### the innovative technologies must not be covered by mandatory provisions due to complementary additional measures complying with the 10 g co2 / km reduction referred to in article 1 or be mandatory under other provisions of union law . this criterion shall not apply with regard to efficiency improvements for air conditioning systems .


### the values for a2021 , a2025 and a2030 calculated by the commission in accordance with point 6 . 2 of parts a and b of annex i . ### the values for a2021 and a2030 calculated by the commission in accordance with point 6 . 2 of parts a and b of annex i .


### the category of vehicles registered as m1 or n1 , for which the pool shall apply . ### the category of vehicles registered as m1 and n1 , for which the pool shall apply .


### the commission shall automatically decommit any portion of a budget commitment for rural development interventions in a cap strategic plan that has not been used for the purposes of prefinancing or for making interim payments or for which no declaration of expenditure fulfilling the requirements laid down in article 30 has been presented to it in relation to expenditure effected by 31 december of the second year following that of the budget commitment . ### the commission shall automatically decommit any portion of a budget commitment for rural development interventions in a cap strategic plan that has not been used for the purposes of prefinancing or for making interim payments or for which no declaration of expenditure fulfilling the requirements laid down in article 30 has been presented to it in relation to expenditure effected by 31 december of the third year following that of the budget commitment .


### in their control system referred to in paragraph 1 member states : ### in order to comply with their control obligations laid down in paragraph 1 , member states :


### member states may set up an early warning system that applies to individual cases of non - compliance occurring for the first time and which , given their minor severity , extent and permanence , shall not lead to a reduction or exclusion . where a subsequent check within three consecutive calendar years establishes that the non - compliance has not been remedied , the reduction pursuant to the first subparagraph shall be applied retroactively . ### member states may use the early warning system referred to in article 84 that applies to individual cases of non - compliance occurring for the first time and which , given their minor severity , extent and permanence , shall not lead to a reduction or exclusion . where a member state decides to take this option , the competent authority shall send an early warning to the beneficiary informing them of the finding and any corrective measures to be taken in order to resolve their personal situation . where a subsequent check within three consecutive calendar years establishes that the non - compliance has not been remedied , the reduction pursuant to the first subparagraph shall be applied retroactively .


### no additional prefinancing shall be paid or recovered where a transfer to or from the eafrd has taken place in accordance with article 90 of regulation … / … [ cap strategic plan regulation ] . ### additional prefinancing shall be paid or recovered where a transfer to or from the eafrd has taken place in accordance with article 90 of regulation … / … [ cap strategic plan regulation ] .


### a reserve intended to provide additional support for the agricultural sector for the purpose of market management or stabilisation or in the case of crises affecting the agricultural production or distribution shall be established at the beginning of each year in the eagf . ### a reserve intended to provide additional support for the agricultural sector in the case of crises affecting the agricultural production or distribution shall be established at the beginning of each year outside the ceilings of the multiannual financial framework . this reserve has to have more clear and adapted activation mechanisms , specially regarding the outermost regions .


### the amount of the agricultural reserve shall be at least eur 400 million in current prices at the beginning of each year of the period 2021 - 2027 . the commission may adjust the amount of the agricultural reserve during the year when appropriate in view of market developments or perspectives in the current or following year and taking into account available appropriations under the eagf . ### the amount of the crisis reserve shall be at least eur 400 million in current prices at the beginning of each year of the period 2021 - 2027 . the commission may adjust the amount of the crisis reserve during the year when appropriate in view of crisis developments taking into account available appropriations .


### the amount of the agricultural reserve shall be at least eur 400 million in current prices at the beginning of each year of the period 2021 - 2027 . the commission may adjust the amount of the agricultural reserve during the year when appropriate in view of market developments or perspectives in the current or following year and taking into account available appropriations under the eagf . ### the amount of the agricultural reserve shall be at least eur 500 million in current prices at the beginning of each year of the period 2021 - 2027 . the commission may adjust the amount of the agricultural reserve during the year when appropriate in view of market developments or perspectives in the current or following year and taking into account available appropriations under the heading 2 of the eu budget .


### carrying out the tasks assigned to the competent authority under this chapter . ### carrying out the tasks assigned to the competent authority under this article , taking into account the principle of proportionality .


### in the event of legal proceedings or of an administrative appeal having suspensory effect , the period for automatic decommitment referred to in paragraph 1 or 2 shall , in respect of the amount relating to the operations concerned , be interrupted for the duration of those proceedings or that administrative appeal , provided that the commission receives a substantiated notification from the member state by 31 january of year n + 3 . ### in the event of legal proceedings or of an administrative appeal having suspensory effect , the period for automatic decommitment referred to in paragraph 1 or 2 shall , in respect of the amount relating to the operations concerned , be interrupted for the duration of those proceedings or that administrative appeal , provided that the commission receives a substantiated notification from the member state by 31 january of year n + 4 .


### in case of reoccurrence , the percentage reduction shall be higher than the one to be applied in case of non - compliance due to negligence and sanctioned for the first time . ### in the case of repeated non - compliance due to negligence , the percentage of reduction shall be 5% of the total amount of the payments referred to in paragraph 1 of this article .


### the suspension shall be applied in accordance with the principle of proportionality to the relevant expenditure effected by the member state where the deficiencies exist , for a period to be determined in the implementing acts referred to in the first subparagraph , which shall not exceed 12 months . if the conditions for the suspension continue to be met , the commission may adopt implementing acts prolonging that period for further periods not exceeding 12 months in total . the amounts suspended shall be taken into account when adopting the implementing acts referred to in article 53 . ### the suspension shall be applied in accordance with the principle of proportionality to the relevant expenditure effected by the member state where the serious deficiencies exist , and not to the entire funding package , for a period which shall not exceed 12 months . if the conditions for the suspension continue to be met , the commission may adopt implementing acts prolonging that period for further periods not exceeding 12 months in total . the amounts suspended shall be taken into account when adopting the implementing acts referred to in article 53 .


### the amount of the agricultural reserve shall be at least eur 400 million in current prices at the beginning of each year of the period 2021 - 2027 . the commission may adjust the amount of the agricultural reserve during the year when appropriate in view of market developments or perspectives in the current or following year and taking into account available appropriations under the eagf . ### the amount of the agricultural reserve shall be at least eur 400 million in current prices at the beginning of each year of the next cap period . the commission may adjust the amount of the agricultural reserve during the year when appropriate in view of market developments or perspectives in the current or following year , as well as the nature and urgency of the crises concerned , so as to meet farmers ' needs as effectively as possible . the appropriations available under the budget of the european union for the current year shall be taken into account as part of this reassessment .


### a severe natural disaster gravely affecting the holding ; ### a natural disaster gravely affecting the holding ;


### shall provide that no administrative penalty be imposed where the non - compliance is due to force majeure . ### shall provide that no administrative penalty be imposed in the following cases : where the non - compliance is due to force majeure . ii ) where the non - compliance is due to an error of the competent authority or another authority , and where the error could not reasonably have been detected by the person concerned by the administrative penalty . iii ) where the person concerned can demonstrate to the satisfaction of the competent authority that he or she is not at fault for the non - compliance with the obligations referred to in paragraph 1 or if the competent authority is otherwise satisfied that the person concerned is not at fault .


### member states should send the annual accounts and an annual performance report on the implementation of the cap strategic plan to the commission by 15 february n + 1 . where these documents are not sent , thus preventing the commission from clearing the accounts for the concerned paying agency or checking the eligibility of the expenditure against reported outputs , the commission should be empowered to suspend the monthly payments and to interrupt the quarterly reimbursement until the outstanding documents are received . ### member states should send the annual accounts and a triennial performance report on the implementation of the cap strategic plan to the commission by 15 february n + 1 . where these documents are not sent , thus preventing the commission from clearing the accounts for the concerned paying agency or checking the eligibility of the expenditure against reported outputs , the commission should be empowered to suspend the monthly payments and to interrupt the quarterly reimbursement until the outstanding documents are received .


### the proper functioning of the governance systems put in place , which give the necessary guarantees concerning the outputs reported in the annual performance report , as provided for in points and of article 63 of the financial regulation , ### the proper functioning of the governance systems put in place , which give the necessary guarantees concerning the outputs reported in the triennial performance report , as provided for in points and of article 63 of the financial regulation ,


### a reserve intended to provide additional support for the agricultural sector for the purpose of market management or stabilisation or in the case of crises affecting the agricultural production or distribution shall be established at the beginning of each year in the eagf . ### a european agricultural crisis management reserve intended to provide additional support for the agricultural sector for the purpose of market management or stabilisation , and to be deployed to enable the union to react swiftly and effectively in the event of crises affecting agricultural production , processing or distribution shall be established at the beginning of each year in the eagf .


### amounts of the union financing under the eafrd which are cancelled and amounts recovered , and the interest thereon , shall be reallocated to other rural development interventions in the cap strategic plan . however , the cancelled or recovered union funds may be reused by member states only for a rural development operation under the national cap strategic plan and provided the funds are not reallocated to rural development operations which have been the subject of a financial adjustment . ### amounts of the union financing under the eafrd which are cancelled and amounts recovered , and the interest thereon , which member states shall calculate as from the day following the expiry date of the period granted to the beneficiary for payment , shall be reallocated to other rural development interventions in the cap strategic plan . however , the cancelled or recovered union funds may be reused by member states only for a rural development operation under the national cap strategic plan and provided the funds are not reallocated to rural development operations which have been the subject of a financial adjustment . member states may decide the minimum amount applicable to this section , in accordance with the terms for minimum reimbursement to beneficiaries .


### the performance reporting on output indicators for the purposes of the annual performance clearance referred to in article 52 and the performance reporting on result indicators for the multiannual performance monitoring referred to in article 115 of regulation … / … [ cap strategic plan regulation ] , demonstrating that article 35 of this regulation is complied with , is correct ### the performance reporting on output indicators for the purposes of the performance clearance referred to in article 52 ;


### a new form of payment suspension should be introduced for situations of abnormally low outputs . where the outputs reported are at an abnormally low level in comparison with the declared expenditure , and where member states cannot provide good and comprehensible reasons for this situation , the commission should be empowered to , in addition to reducing the expenditure for the financial year n - 1 suspend future expenditure related to the intervention for which the output was abnormally low . such suspensions should be subject to confirmation in the annual performance clearance decision . ### a new form of payment suspension should be introduced for situations of abnormally low outputs . where the outputs reported are at an abnormally low level in comparison with the declared expenditure , and where member states cannot provide good and comprehensible reasons for this situation , the commission should be empowered , in addition to reducing the expenditure for the financial year n - 1 , and following prior warning , to suspend future expenditure related to the intervention for which the output was abnormally low . such suspensions should be subject to confirmation in the annual performance clearance decision .


### after receiving the last annual performance report on the implementation of a cap strategic plan , the commission shall pay the balance , subject to the availability of resources , on the basis of the financial plan in force at the level of the types of eafrd interventions , the annual accounts for the last execution year for the relevant cap strategic plan and of the corresponding clearance decisions . those accounts shall be presented to the commission no later than six months after the final eligibility date of expenditure provided for in article 80 of regulation no&#8230 ; / &#8230 ; [ cap strategic plan regulation ] and shall cover the expenditure effected by the paying agency up to the last eligibility date of expenditure . ### after receiving the last annual performance report on the implementation of a cap strategic plan , the commission shall pay the balance , subject to the availability of resources , on the basis of the financial plan in force at the level of the types of eafrd interventions , the annual accounts for the last execution year for the relevant cap strategic plan or where appropriate , regional intervention program and of the corresponding clearance decisions . those accounts shall be presented to the commission no later than six months after the final eligibility date of expenditure provided for in article 80 of regulation no&#8230 ; / &#8230 ; [ cap strategic plan regulation ] and shall cover the expenditure effected by the paying agency up to the last eligibility date of expenditure .


### for the purposes of article 63 and of regulation 2018 / … [ the new financial regulation ] , the person in charge of the accredited paying agency shall , by 15 february of the year following the financial year concerned , draw up and provide the commission with the following : ### for the purposes of article 63 and of regulation 2018 / … [ the new financial regulation ] , the person in charge of the accredited paying agency shall , by 15 april of the year following the financial year concerned , draw up and provide the commission with the following :


### member states shall ensure a level of checks needed for an effective management of the risks . ### member states shall ensure a level of checks which is financially and administratively proportionate to an effective management of the risks .


### establish the control sample for the checks referred to in point to be carried out each year on the basis of a risk analysis and shall include a random component and shall provide the control sample to cover at least 1% of beneficiaries receiving the aid provided for in section 2 of chapter 1 of title iii of regulation … / … [ cap strategic plan regulation ] . ### establish the control sample for the checks referred to in point to be carried out each year on the basis of a risk analysis and shall include a random component , which may be dispensed with if action is taken in accordance with point , and shall provide the control sample to cover at least 1% of beneficiaries receiving the aid provided for in section 2 of chapter 1 of title iii of regulation … / … [ cap strategic plan regulation ] .


### the competent authority shall , by way of a formal act , decide on the issuing or , following a review , the withdrawal of the accreditation of the paying agency and the coordinating body on the basis of an examination of the accreditation criteria to be adopted by the commission in accordance with point of article 10 . the competent authority shall inform the commission of accreditations and withdrawals of accreditations without delay . ### the competent authority shall , by way of a formal act , decide on the issuing or , following a review , the withdrawal of the accreditation of the paying agency and the coordinating body on the basis of an examination of the accreditation criteria to be adopted by the commission in accordance with point of article 10 , taking into account the principle of proportionality . the competent authority shall inform the commission of accreditations and withdrawals of accreditations without delay .


### sums recovered by the member states following the occurrence of irregularities and other cases of non - compliance by beneficiaries with the conditions of the interventions referred to in the cap strategic plan and the interest thereon shall be made over to the paying agency and booked by it as revenue assigned to the eagf in the month in which the sums are actually received . ### sums recovered by the member states following the occurrence of irregularities and other cases of non - compliance by beneficiaries with the conditions of the interventions referred to in the cap strategic plan and the interest thereon shall be made over to the paying agency and reallocated to interventions addressing climate and environmental objectives .


### where , in the framework of the annual performance clearance referred to in article 52 , the commission establishes that the difference between the expenditure declared and the amount corresponding to the relevant reported output is more than 50% and the member state cannot provide duly justified reasons , the commission may adopt implementing acts suspending the monthly payments referred to in article 19 or the interim payments referred to in article 30 . ### where , in the framework of the annual performance clearance referred to in article 52 , the commission establishes that the difference between the expenditure declared and the amount corresponding to the relevant reported output is more than 50% and the member state cannot provide duly justified reasons , the commission shall immediately start technical discussions with the relevant authority of that member state to find a common solution for the smooth remedy of the situation . if they cannot find a conclusion within 6 months , the commission may adopt implementing acts suspending the monthly payments referred to in article 19 or the interim payments referred to in article 30 .


### in case of reoccurrence , the percentage reduction shall be higher than the one to be applied in case of non - compliance due to negligence and sanctioned for the first time . ### in the case of repeated non - compliance due to negligence , the percentage of reduction shall be 5% of the total amount of the payments referred to in paragraph 1 of this article .


### while member states should be allowed to set out the details on penalties , those penalties should be proportionate , effective and dissuasive and should be without prejudice to other penalties laid down under union or national law . to ensure an effective and coherent approach by member states , it is necessary to provide for a minimum penalty rate at union level for non - compliance occurring for the first time due to negligence , while reoccurrence should lead to a higher percentage and intentionality may result in the total exclusion from the payment . to ensure proportionality of the penalties , where the non - compliance is of a minor nature and occurs for the first time , member states should be allowed to introduce an early warning system . ### while member states should be allowed to set out the details on penalties , those penalties should be proportionate , effective and dissuasive and should be without prejudice to other penalties laid down under union or national law . to ensure an effective and coherent approach by member states , it is necessary to provide for a minimum penalty rate at union level for non - compliance occurring for the first time due to negligence , while reoccurrence should lead to a higher percentage and intentionality may result in the total exclusion from the payment . to ensure proportionality of the penalties , where the non - compliance is of a minor nature and occurs for the first time , member states should be allowed to introduce an early warning system and a right for beneficiaries to regularise their personal situation .


### ' governance systems ' means the governance bodies referred to in chapter ii of title ii of this regulation and the basic union requirements laid down in this regulation and regulation … / … [ cap strategic plan regulation ] , including the reporting system put in place for the purposes of the annual performance report referred to in article 121 of regulation … / … [ cap strategic plan regulation ] ; ### ' governance systems ' means the governance bodies referred to in chapter ii of title ii of this regulation , except the competent authority defined in article 9 and the basic union requirements laid down in this regulation and regulation … / … [ cap strategic plan regulation ] , including the reporting system put in place for the purposes of the annual performance report referred to in article 121 of regulation … / … [ cap strategic plan regulation ] ;


### in 2021 : 1 % of the amount of support from the eafrd for the entire duration of the cap strategic plan ; ### in 2021 : 1 . 5 % of the amount of support from the eafrd for the entire duration of the cap strategic plan ;


### member states shall accredit , as paying agencies , departments or bodies which have an administrative organisation and a system of internal control which provide sufficient guarantees that payments are legal , regular and properly accounted for . to this end , paying agencies shall comply with minimum conditions for the accreditation with regard to the internal environment , control activities , information and communication and monitoring laid down by the commission pursuant to point of article 10 . ### member states shall accredit , as paying agencies , departments or bodies which have an administrative organisation and a system of internal control which provide sufficient guarantees that payments are legal , regular and properly accounted for . to this end , paying agencies shall comply with minimum conditions for the accreditation with regard to the internal environment , control activities , information and communication and monitoring laid down by the commission pursuant to point of article 10 . before the end of 2023 , the commission shall present a report to the european parliament and to the council on the operation of the system of paying agencies in the union accompanied , where appropriate , by legislative proposals .


### an adjustment rate for direct payments interventions referred to in point of article 5 of this regulation and union financial contribution to the specific measures referred to in point of article 5 of this regulation and granted under chapter iv of regulation no 228 / 2013 and chapter iv of regulation no 229 / 2013 , shall be determined by the commission when the forecasts for the financing of the interventions and measures financed under that sub - ceiling for a given financial year indicate that the applicable annual ceilings will be exceeded . ### an adjustment rate for direct payments interventions referred to in point of article 5 of this regulation and union financial contribution to the specific measures referred to in point of article 5 of this regulation and granted under chapter iv of regulation no 228 / 2013 and chapter iv of regulation no 229 / 2013 , shall be determined by the commission for beneficiaries in receipt of aid in excess of eur 2 000 when the forecasts for the financing of the interventions and measures financed under that sub - ceiling for a given financial year indicate that the applicable annual ceilings will be exceeded .


### where a member state accredits more than one paying agency , it should designate a single public coordinating body in order to ensure consistency in the management of funds , to provide for a liaison between the commission and the various accredited paying agencies , and to ensure that the information requested by the commission concerning the operations of several paying agencies is provided promptly . the coordinating body should also take and coordinate actions with a view to resolving any deficiencies of a common nature encountered at national level and should keep the commission informed of any follow - up . ### where a member state accredits more than one paying agency , it should designate a single public coordinating body in order to ensure consistency in the management of funds , to provide for a liaison between the commission and the various accredited paying agencies , and to ensure that the information requested by the commission concerning the operations of several paying agencies is provided promptly . the coordinating body should also take and coordinate actions with a view to resolving any deficiencies of a common nature encountered at national or regional level and should keep the commission informed of any follow - up . in their relations with farmers , payment agencies should strive to simplify procedures .


### member states shall ensure a level of checks needed for an effective management of the risks . ### member states shall ensure a level of checks , which is financially and administratively proportionate to an effective management of the risks , in form they find most suitable .


### in order to provide the commission with , in particular , the means to manage agricultural markets , to facilitate the monitoring of agricultural expenditure and to monitor agricultural resources in the medium and long term , the use of the agro - meteorological system and the acquisition and improvement of satellite data should be provided for . ### in order to provide the commission with , in particular , the means to manage agricultural markets , to facilitate the monitoring of agricultural expenditure , to assess and provide timely aid in the case of natural disasters and to monitor agricultural resources in the medium and long term , the use of the agro - meteorological system and the acquisition and improvement of satellite data should be provided for .


### that part of the budget commitments for which a declaration of expenditure has been made but for which reimbursement has been reduced or suspended by the commission at 31 december of year n + 2 ; ### that part of the budget commitments for which a declaration of expenditure has been made but for which reimbursement has been reduced or suspended by the commission at 31 december of year n + 3 ;


### in order to avoid an excessive administrative burden for national administrations and farmers provision should be made that reimbursement of the amounts carried over from the preceding financial year in relation to financial discipline applied , should not take place either where financial discipline is applied for a second subsequent year , or where the overall amount of non - committed appropriations represents less than 0 , 2% of the eagf annual ceiling . ### in order to avoid an excessive administrative burden for national administrations and farmers and to simplify procedures as much as possible and limit the complexity of payment forms , provision should be made that reimbursement of the amounts carried over from the preceding financial year in relation to financial discipline applied should not take place either where financial discipline is applied for a second subsequent year , or where the overall amount of non - committed appropriations represents less than 0 , 2% of the eagf annual ceiling .


### for the purposes of article 127 of the financial regulation , the commission shall take assurance from the work of the certification bodies referred to in article 11 of this regulation , unless it has informed the member state that it cannot rely on the work of the certification body for a given financial year , and it shall take it into account in its risk assessment of the need for commission audits in the member state concerned . ### for the purposes of article 127 of the financial regulation , the commission may take assurance from the work of the certification bodies referred to in article 11 of this regulation , unless it has informed the member state that it cannot rely on the work of the certification body for a given financial year , and it shall take it into account in its risk assessment of the need for commission audits in the member state concerned .


### for the purposes of article 127 of the financial regulation , the commission shall take assurance from the work of the certification bodies referred to in article 11 of this regulation , unless it has informed the member state that it cannot rely on the work of the certification body for a given financial year , and it shall take it into account in its risk assessment of the need for commission audits in the member state concerned . ### for the purposes of article 127 of the financial regulation , the commission shall take assurance from the work of the certification bodies referred to in article 11 of this regulation .


### sums recovered by the member states following the occurrence of irregularities and other cases of non - compliance by beneficiaries with the conditions of the interventions referred to in the cap strategic plan and the interest thereon shall be made over to the paying agency and booked by it as revenue assigned to the eagf in the month in which the sums are actually received . ### sums recovered by the member states following the occurrence of irregularities and other cases of non - compliance by beneficiaries with the conditions of the interventions referred to in the cap strategic plan and the interest thereon , which member states shall calculate as from the day following the expiry date of the period granted to the beneficiary for payment thereof , shall be made over to the paying agency and booked by it as revenue assigned to the eagf in the month in which the sums are actually received . member states shall lay down the minimum amount to be implemented in this section , in accordance with the terms for minimum reimbursement to beneficiaries on account of financial discipline .


### the commission may entrust specialised entities to carry out tasks relating to techniques or working methods in connection with the area monitoring system referred to in point of article 64 . ### the commission may entrust specialised entities to carry out tasks relating to techniques or working methods in connection with the area monitoring and control system referred to in point of article 64 .


### in the case of non - compliance due to negligence , the percentage of reduction shall be as a general rule 3% of the total amount of the payments referred to in paragraph 1 of this article . ### member states may provide for no penalties to be applied in instances of non - compliance that are regarded as minor because they are not serious , are limited in extent and are of short duration . however , penalties shall be provided for in all instances where non - compliance represents a direct risk to human and animal health .


### the amount of the agricultural reserve shall be at least eur 400 million in current prices at the beginning of each year of the period 2021 - 2027 . the commission may adjust the amount of the agricultural reserve during the year when appropriate in view of market developments or perspectives in the current or following year and taking into account available appropriations under the eagf . ### the amount of the crisis reserve shall be at least eur 300 million in current prices at the beginning of each year of the period 2021 - 2027 . the commission may adjust the amount of the crisis reserve during the year when appropriate in view of crisis developments taking into account available appropriations .


### the commission is empowered to adopt delegated acts in accordance with article 100 in order to supplement this regulation concerning the conditions under which certain types of expenditure and revenue under the funds are to be compensated . ### the commission is empowered to adopt delegated acts in accordance with article 100 in order to supplement this regulation concerning the conditions relating to the details of expenditure declarations under which certain types of expenditure and revenue under the funds are to be compensated .


### a reserve intended to provide additional support for the agricultural sector for the purpose of market management or stabilisation or in the case of crises affecting the agricultural production or distribution shall be established at the beginning of each year in the eagf . ### a european agricultural crisis management reserve intended to provide additional support for the agricultural sector for the purpose of market management or stabilisation , and to be deployed to enable the union to react swiftly and effectively in the event of crises affecting agricultural production , processing or distribution shall be established at the beginning of each year in the eagf .


### where , in the framework of the annual performance clearance referred to in article 52 , the commission establishes that the difference between the expenditure declared and the amount corresponding to the relevant reported output is more than 50% and the member state cannot provide duly justified reasons , the commission may adopt implementing acts suspending the monthly payments referred to in article 19 or the interim payments referred to in article 30 . ### where , in the framework of the annual performance clearance referred to in article 52 , the commission establishes that the difference between the expenditure declared and the amount corresponding to the relevant reported output is more than 50% for interventions not covered by article 68 of [ cap strategic plan regulation ] and the member state cannot provide justified reasons , the commission may adopt implementing acts suspending the monthly payments referred to in article 19 or the interim payments referred to in article 30 .


### shall include rules on the application of administrative penalties in cases where the land is transferred during the calendar year concerned or the years concerned . these rules shall be based on a fair and equitable attribution of the liability for non - compliances among transferors and transferees ; ### shall include rules on the application of administrative penalties in cases where agricultural land , an agricultural holding or parts thereof and / or biogas plants are transferred during the calendar year concerned . depending on where responsibility for non - compliance lies , the transferee or the transferor shall be liable .


### while member states should be allowed to set out the details on penalties , those penalties should be proportionate , effective and dissuasive and should be without prejudice to other penalties laid down under union or national law . to ensure an effective and coherent approach by member states , it is necessary to provide for a minimum penalty rate at union level for non - compliance occurring for the first time due to negligence , while reoccurrence should lead to a higher percentage and intentionality may result in the total exclusion from the payment . to ensure proportionality of the penalties , where the non - compliance is of a minor nature and occurs for the first time , member states should be allowed to introduce an early warning system . ### while member states should be allowed to set out the details on penalties , those penalties should be proportionate , effective and dissuasive and should be without prejudice to other penalties laid down under union or national law . to ensure an effective and coherent approach by member states , it is necessary to provide for minimum penalty rates at union level for cases of non - compliance occurring for the first time due to negligence , but where such cases are repeated or intentional , this should potentially result in total exclusion from the payment . to ensure proportionality of the penalties , where the non - compliance is of a minor nature and occurs for the first time , member states should be allowed to introduce an early warning system and a right for beneficiaries to regularise their personal situation .


### in case of serious deficiencies in the functioning of the governance systems , the commission may ask the member state concerned to implement the necessary remedial actions in accordance with an action plan with clear progress indicators , to be established in consultation with the commission . ### in case of serious deficiencies in the functioning of the governance systems , the commission shall , where necessary , ask the member state concerned to implement the necessary remedial actions in accordance with an action plan with clear progress indicators , to be established in consultation with the commission .