Select Committee on European Scrutiny Twentieth Report


HARMONISATION OF COPYRIGHT

(21211)
— 
Unofficial Presidency text of the draft Directive on the harmonisation of
certain aspects of copyright and related rights in the information society.


Legal base: Articles 47(2), 55 and 95 EC; co-decision; qualified majority voting
Department: Trade and Industry
Basis of consideration: Minister's letter of 22 May 2000
Previous Committee Report: HC 23-xviii (1999-2000), paragraph 17 (17 May 2000)
Discussed in Council: 25 May 2000
Committee's assessment: Politically important
Committee's decision: Cleared (decision reported on 17 May 2000)

    Aim of the proposed Directive

15.1  The draft Directive seeks to harmonise copyright and related rights, primarily to deal with the impact of digital technology. The main rights affected are the reproduction right, the right of communication to the public, which covers electronic transmission, including digital broadcasting and "on-demand" services, and the distribution right. It includes extensive exceptions to these rights covering, for instance, copies made for private purposes, or temporary copies made as part of an electronic process. It also provides protection for technological measures used to safeguard rights or to identify material such as copy protection systems or digital watermarks.

    Scrutiny

15.2  The draft of the Directive amended after the European Parliament's First Reading[14], was debated in European Standing Committee C on 27 October 1999[15], together with the draft Directive on certain legal aspects of electronic commerce in the internal market.[16] On 17 May, we considered an unofficial Presidency text which the Minister for Competition and Consumer Affairs at the Department of Trade and Industry (Dr Howells) described as redressing a shift in favour of right holders, made when the text was amended after the European Parliament's First Reading. We cleared the document but asked the Minister whether the compromises which he said that the Government had succeeded in brokering commanded the support of groups such as British Music Rights, or whether significant interest groups remained discontented with the balance.

    The Minister's reply

15.3  The Minister comments that the questions posed by the Committee are highly relevant to the continuing negotiations on the draft Directive, concerning as they do the most controversial issue of harmonisation of exceptions to rights. He says:

    "Right from the outset, it has been clear that the Commission's decision to seek to harmonise exceptions to rights would provide the main obstacle to agreement on the proposal. Positions of interested parties rapidly polarised and Member States' views differed sharply on this issue, not least because of the widely differing ways in which exceptions to rights are treated in the countries of the Community. Protection for right holders in the UK is robust with narrowly drafted exceptions to exclusive rights only where considered necessary. However, in certain other Member States, some exceptions such as for private copying are considerably broader, usually in return for remuneration for right holders. Given this disparate situation across Europe, it was hardly surprising that the Commission's intention to harmonise exceptions sparked a controversial debate."

15.4  Whilst sympathising with concerns of right holders in the UK about broader exceptions in continental Europe, the Minister says that the Government has been pressing to maintain the present balance in the UK. It has not encountered any significant dissatisfaction with current UK copyright law and its limited exceptions régime. The damaging effects of a more restrictive exceptions régime for the UK have been made evident by user groups in the consumer, educational, library and research fields. They have lobbied continuously against the requirement proposed in the Directive to link all exceptions in these areas, no matter how minor, to payment to right holders.

15.5  Just as some right holders are not wholly supportive of the compromise solutions currently being developed, so too user groups, service providers and the consumer electronics industry still have concerns about certain aspects of the developing package, the Minister says. At the end of the day, however, the Government must ensure that the final outcome on the Directive will be, as far as possible, the best deal for UK interests as a whole. The Government, meanwhile, has been fostering dialogue between UK interests to try to build confidence and eliminate misunderstandings, and thereby obtain some movement from less defensible positions. It was also essential to get the message of a need for compromise to the parties concerned.

15.6  The Minister explains that he has sought to reassure the different interest groups, pointing out to right holders, in particular, that the list of exceptions remains exhaustive and that the latest draft of the mandatory exception for temporary copies significantly improves the position for right holders. He says that he has also emphasised that the Government believes that the Directive is now coming closer to a fairer balance on the private copying issue, which should generally allow right holders to control this through the use of technological measures, but permit Member States to take action in cases where the legitimate expectations of users are frustrated.

15.7  Summing up, the Minister says that the Government remains fully committed to ensuring both that right holders continue to have appropriate control over the use of their works, and that a fair and reasonable balance with the interests of other groups in society can be maintained:

    "We certainly cannot have a situation in the UK where, for example, the public's ability to continue to time-shift broadcasts[17] must be curtailed because of unduly broad exceptions in other Member States. We believe we have the makings of a workable compromise in the latest text from the Presidency, and will continue to consult closely with British Music Rights and other groups in pursuit of an outcome acceptable to the broadest possible range of interests."

    Conclusion

15.8  The Minister has provided us with a reassuring account of the Government's handling of this complex proposal, in which it makes it clear how conscious it is of the different interests involved and how it is seeking to achieve a compromise which provides a fair balance between them.

15.9  We cleared the document when we last considered it on 17 May. We now thank the Minister for his full response to the concerns we put to him.


14  (20191) 8723/99; see HC 34-xxiii, paragraph 2 (23 June 1999). Back

15  Official Report; European Standing Committee C, 27 October 1999. Back

16  (20423) 10644/99; see HC 34-xxviii, paragraph 2 (20 October 1999). Back

17  Making for private and domestic use a recording of a broadcast or cable programme solely for the purpose of enabling it to be viewed or listened to at a more convenient time. Back


 
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