WRITTEN QUESTION E-2036/96 by Cristiana Muscardini (NI) to the Commission (19 July 1996)

Subject: Television - Commercial piracy

The Commission is undoubtedly aware that many European countries do not have rules to govern coded broadcasts. Even in countries which have had specific laws since the 1980s, there are very substantial differences in the manner of dealing with coded piracy and the penalties enforced for it.

A growing number of television stations in Europe are offering coded services, and there is an expanding market for decoders affording access to such services while bypassing the encrypting bodies.

Will the Commission therefore take immediate steps to harmonize the various national laws on the subject and make the Member States adopt penalties constituting an appropriate deterrent so as to ensure that code piracy will be punishable by imprisonment and hence that future video services will be protected more effectively on a Europe-wide basis?

Answer given by Mr Monti on behalf of the Commission (23 September 1996)

On 6 March the Commission adopted, in accordance with its action plan on the information society, (('Europe's way to the information society: an action plan' (doc. COM(94) 347). )) a Green Paper on legal protection for encrypted services. (('Legal protection for encrypted services in the internal market - Consultation on the need for Community action' (doc. COM(96) 76). )) The Green Paper discusses (a) the ways in which national legislators tackle the problem of the pirating (receiving without payment) of encrypted services and (b) the need for action at Community level. Alongside the manufacture and sale of official decoding devices (decoders, smart cards, etc.), a flourishing trade has developed in devices manufactured unlawfully by unauthorized producers which make it possible to receive services without paying a subscription fee.

To remedy the situation, some Member States began in the late 1980s to adopt specific provisions designed to afford protection against the illicit reception of encrypted services. Others are in the process of placing similar laws on the statute books. A few have as yet no specific rules on the subject.

After analysing the various national regulatory approaches, the Green Paper concludes that the lack of an equivalent level of legal protection in all the Member States is damaging the efficient operation of the single market by placing obstacles in the way of the free movement of encrypted services and decoding devices and by distorting competition between operators from different Member States. The currently fragmented nature of the regulatory approaches adopted is viewed by media professionals as a major impediment to the development of a European market in the new encrypted services.

The Green Paper accordingly suggests that the Commission might propose a measure aimed at harmonizing national laws on the subject. This could prohibit the manufacture, sale, importation from third countries, possession for commercial or private purposes, installation and marketing of decoding devices intended to afford access to encrypted services without the encryptor's authorization. The unauthorized decoding of encrypted services would also be prohibited. Member States would be required both to adopt effective, proportionate and dissuasive penalties for breaches and to enable any injured party to bring an action for damages.

The Green Paper is currently the subject of a wide-ranging consultation process involving all the sectors of business and industry concerned. Once this exercise is completed, the Commission should be able to take a final decision by the end of the year on the need for, and form to be taken by, any Community action.