WRITTEN QUESTION E-1510/00 by Glyn Ford (PSE) to the Commission. DVD players.
Date: 2000-05-12
Institutions: European Parliament, Provisional data
Subjects: application of EU law, disc drive, producer's liability, restriction on competition, technical standard, video disc

C 53 E/158

Official Journal of the European Communities

EN

20.2.2001

(2001/C 53 E/204)

WRITTEN QUESTION E-1510/00

by Glyn Ford (PSE) to the Commission

(12 May 2000)

Subject: DVD players

Most purchasers of DVD players in the EU object to the deliberate installation of technologies to make
them pay a premium on the price of DVD discs. Accordingly, they arrange to have them (cid:145)chipped(cid:146) at a
cost of around € 150 to remove this anti-competitive technology and to allow them to video-record DVD
discs. The manufacturers then say that the guarantees are rendered void. Does not the Commission feel
that such an approach by manufacturers should be declared illegal?

Joint answer
to Written Questions E-1509/00 and E-1510/00
given by Mr Monti on behalf of the Commission

(14 June 2000)

As the Honourable Member is probably aware, the digital versatile disc (DVD) technology was jointly
developed in the nineties by a consortium of ten companies: Hitachi Ltd, Matsushita Electric Industrial Co.,
Ltd, Mitsubishi Electric Corporation, Time Warner Inc., Toshiba Corporation, Victor Company of Japan,
Ltd (JVC), Philips, Sony, Pioneer and Thomson. The standard specifications for this technology were
established to define the DVD discs as well as the rules, conditions, and mechanisms for players to read the
discs and convert them into images for screen display. The standard specifications implicate the intellectual
property rights of the ten firms mentioned above. DVDs can contain far more information than other
optical discs such as compact discs and can therefore deliver higher quality video, audio and multimedia.

It is true that those companies are supporting a system of regional coding so that DVD producers have the
option of coding new releases according to the region of the world where the DVD should be played. Six
geographical regions have been identified. All the Member States of the European Economic Area (EEA),
together with a number of other countries, are included in a single region.

This coding enables producers of motion pictures to protect their copyrighted intellectual property and the
traditional pattern of releasing their films at different times in different parts of the world. Film producers
and local cinemas would be prejudiced if, for example, a DVD video released initially in the United States
gained widespread distribution prematurely in Europe before theatrical distribution has commenced or
been completed. To release a film at different times and at different prices in different parts of the world is
an exercise by film producers of their rights under copyright law. Using regional coding to enforce these
rights could not therefore be considered illicit per se, particularly if no abuse of dominant position is
established.

The exercise of these rights could also become a competition issue if it were established that two or more
of the firms concerned (DVD producers and DVD player manufacturers) were using the pro-competitive
technological co-operation involved in developing a common open standard for DVD, to engage in
concerted practices consisting in aligning policies on the timing and pricing of the release of their
products. The Commission has already investigated these issues in the past (in an ex-officio proceeding
opened in 1996), has not found any behaviour infringing Article 81 or 82 (ex Articles 85 & 86) of the EC
Treaty. It has no additional information that would enable it to change its view. In addition, some parties
involved in the development of the DVD standard have jointly notified their licensing agreements.
inviting third parties to comment, no
Following the publication of a notice (1) in the Official
answer has been received from any association of consumers.

journal

Concerning the question of recording video discs, the DVD standard includes several forms of copy
protection, in particular a strong encryption of the data stored on the disc to which the Honourable
Member refers. These protections may prevent recording from a DVD. Because of the potential for perfect
digital copies offered by this new technology, this possibility for film owners to protect their data is crucial
for the future of the DVD and film industry. The copy protection schemes are indeed designed to prevent
illegal and abusive copying, which is said to cause billion of dollars in lost revenue to the producers of
films and of electronic data.

20.2.2001

EN

Official Journal of the European Communities

C 53 E/159

Under these circumstances, the refusal by a manufacturer to extend the guarantee of its DVD player that
has been deliberately modified by the user to illegally copy DVDs cannot be seen as an anti-competitive
behaviour.

(1) Notification of a licensing system, Case No IV/C-3/37.506 (cid:129) DVD Patent Licensing Programme (OJ C 242,

27.8.1999).

(2001/C 53 E/205)

WRITTEN QUESTION E-1511/00

by Glyn Ford (PSE) to the Commission

(12 May 2000)

Subject: Domain names

What steps are being taken at European level to prevent the registration of generic names as domain
names, a practice which leads to unfair advantages for certain companies and individuals?

Answer given by Mr Bolkestein on behalf of the Commission

(27 June 2000)

The Commission is fully aware of the difficulties experienced within the Community in combating
speculative and abusive registration of names, thus including (cid:145)generic names(cid:146) as domain names.

As announced in the communication from the Commission on the organisation and management of the
Internet (1), the Commission will
initiate public consultation on the principles against speculative and
abusive registration of names.

(1) COM(2000) 202 final.

(2001/C 53 E/206)

WRITTEN QUESTION E-1513/00

by Imelda Read (PSE) to the Commission

(12 May 2000)

Subject: Data on incidences of dwelling fires

In the light of the 3000 dwelling fires in my constituency (East Midlands, UK)
in 1998, could the
Commission inform me which other Member States keep records of dwelling fires? In the interests of
safety, what steps does the Commission plan to take to ensure that data collection in this field is
harmonised across the EU?

Answer given by Mrs Wallstr(cid:246)m on behalf of the Commission

(26 June 2000)

The Commission is aware of the weaknesses as regards information on dwelling fires. Indeed, the data
collected in this area by the Member States are far from being exhaustive and comparable.

However, safety in the event of major fires is one of
the intended priorities accompanying the
implementation of the Community action programme in the field of civil protection adopted by the
Council on 9 December 1999 via Decision 1999/847/EC (1). Action in this area, together with the work
currently being carried out at professional level and more particularly by the federation of fire-brigade
associations within the Community, should enable the situation to be improved.