Digital Economy Bill [HL]

House of Commons

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Digital Economy Bill [HL]

Digital Economy Bill [HL]
60

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Short title
(1)
This Act may be cited as the Digital Economy Act 2010.
(2)
Nothing in this Act shall impose any charge on the people or on public
funds, or vary the amount or incidence of or otherwise alter any such charge
in any manner, or affect the assessment, levying, administration or
5
application of any money raised by any such charge.

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Digital Economy Bill [HL]
Schedule 1 — Classification of video games etc: supplementary provision

Schedules
Schedule 1
Section 42

Classification of video games etc: supplementary provision
1
The Video Recordings Act 1984 is amended as follows.
2     (1)
Section 4 (authority to determine suitability of video works for classification)
5
is amended as follows.
      (2)
In subsection (1)(b)—
(a)
in sub-paragraph (i), after “issue” insert “or revocation”, and
(b)
in sub-paragraph (ii), after “issuing” insert “and revoking”.
      (3)
After subsection (1B) insert—
10
“(1C)
The arrangements made under this section may require a person
requesting a classification certificate for a video work to agree to
comply with a code of practice, which may, in particular, include
provision relating to the labelling of video recordings.”
      (4)
After subsection (3) insert—
15
“(3A)
The Secretary of State must not make a designation under this
section unless satisfied that adequate arrangements will be made for
taking account of public opinion in the United Kingdom.”
      (5)
For subsection (5) substitute—
“(5)
No fee is recoverable by, or in accordance with arrangements made
20
by, the designated authority in connection with a determination in
respect of a video work or the issue of a classification certificate
unless the designated authority has consulted the Secretary of State
about such fees.”
      (6)
Omit subsection (6).
25
      (7)
After that subsection insert—
“(6A)
When making arrangements under this section, the designated
authority must have regard to any guidance issued by the Secretary
of State.
(6B)
The Secretary of State may not issue guidance about the matters to be
30
taken into account when determining the suitability of a video work
for the issue of a classification certificate or a classification certificate
of a particular description.”
      (8)
In subsection (8)—

Digital Economy Bill [HL]
Schedule 1 — Classification of video games etc: supplementary provision
62

(a)
after “Act” insert—
“(a)
”, and
(b)
at the end insert “, and
(b)
references to the designated authority, in relation to a
classification certificate, are references to the person
5
or persons designated under this section when the
certificate is issued,

(but see also section 4ZA(2)).”
3
In section 7 (classification certificates), at the end insert—
“(3)
For the purposes of this Act, a video work is not a video work in
10
respect of which a classification certificate has been issued if every
classification certificate issued in respect of the video work has been
revoked.”
4
After that section insert—
“7A
Classification certificates for particular video recordings
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(1)
A classification certificate issued in respect of a video work may be
issued so as to have effect only for the purposes of a video recording
that is described in the certificate (whether by reference to its
contents, to the manner in which it is, or is to be, supplied or
otherwise).
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(2)
For the purposes of this Act, a video recording contains a video work
in respect of which a classification certificate has been issued if (and
only if) a classification certificate that has been issued in respect of
the video work has effect for the purposes of the video recording.”
5
In section 8 (requirements as to labelling etc), omit subsections (2) and (3).
25
6     (1)
Section 11 (supplying video recording of classified work in breach of
classification) is amended as follows.
      (2)
In subsection (1)—
(a)
for “containing” substitute “, or no video recording described in the
certificate, that contains”,
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(b)
for “a video recording containing that work” substitute “such a video
recording”, and
(c)
after “unless” insert—
“(a)
the video work is an exempted work, or
(b)
”.
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      (3)
In subsection (2), after paragraph (b) (but before “or”) insert—
“(ba)
that the accused believed on reasonable grounds that the
video work concerned or, if the video recording contained
more than one work to which the charge relates, each of those
works was an exempted work,”.
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7     (1)
Section 12 (certain video recordings only to be supplied in licensed sex
shops) is amended as follows.
      (2)
In subsections (1) and (3)—
(a)
for “containing” substitute “, or no video recording described in the
certificate, that contains”, and
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Digital Economy Bill [HL]
Schedule 1 — Classification of video games etc: supplementary provision
63

(b)
for “a video recording containing the work” substitute “such a video
recording”.
      (3)
In subsection (6)—
(a)
for “containing” substitute “, or no video recording described in the
certificate, that contains”, and
5
(b)
for “a video recording containing that work” substitute “such a video
recording”.
8     (1)
Section 13 (supplying video recording not complying with requirements as
to labels etc) is amended as follows.
      (2)
In subsection (1), after “unless” insert—
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“(a)
the video work is an exempted work, or
(b)
”.
      (3)
In subsection (2), before paragraph (a) insert—
“(za)
believed on reasonable grounds that the video work
concerned or, if the video recording contained more than one
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work to which the charge relates, each of those works was an
exempted work,”.
9     (1)
Section 14 (supplying video recording containing false indication as to
classification) is amended as follows.
      (2)
In subsection (1), after “unless” insert—
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“(a)
the video work is an exempted work, or
(b)
”.
      (3)
In subsection (2)(a), after sub-paragraph (i) (but before “or”) insert—
“(ia)
that the video work concerned or, if the video
recording contained more than one work to which the
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charge relates, each of those works was an exempted
work,”.
      (4)
In subsection (3)—
(a)
after “unless” insert—
“(a)
the video work is an exempted work, or
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(b)
”.
      (5)
In subsection (4)(a), before sub-paragraph (i) insert—
“(ai)
that the video work concerned or, if the video
recording contained more than one work to which the
charge relates, each of those works was an exempted
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work,”.
10    (1)
Section 22 (other interpretation) is amended as follows.
      (2)
In subsection (1), at the end insert—
““video games authority” and “video works authority” have the
meaning given in section 4ZA.”
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      (3)
In subsection (2), after “Act” insert “(and subject to regulations under
subsection (2A))”.

Digital Economy Bill [HL]
Schedule 2 — Licensing of copyright and performers’ property rights
Part 1 — Regulation of licensing bodies
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      (4)
After subsection (2) insert—
“(2A)
The Secretary of State may by regulations make provision about the
circumstances in which, for the purposes of this Act, a video
recording does or does not contain a video work.”
11
After section 22 insert—
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“22A
Regulations
(1)
Regulations under this Act are to be made by statutory instrument.
(2)
Every power of the Secretary of State to make regulations under this
Act includes—
(a)
power to make different provision for different purposes,
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and
(b)
power to make transitional or saving provision.
(3)
A statutory instrument containing regulations under section 2, 2A or
3 may not be made unless a draft of the instrument has been laid
before, and approved by a resolution of, each House of Parliament.
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(4)
Any other statutory instrument containing regulations under this
Act is subject to annulment in pursuance of a resolution of either
House of Parliament.”
12
Until such time as section 2A of the Video Recordings Act 1984 comes into
force, section 22A(3) of that Act has effect as if the words “2A or” were
20
omitted.
Schedule 2
Section 43

Licensing of copyright and performers’ property rights
Part 1
Regulation of licensing bodies
25
1
In the Copyright, Designs and Patents Act 1988 before Schedule 1 insert—
“Schedule A1
Section 116E

Regulation of licensing bodies
Code of practice
1     (1)
The Secretary of State—
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(a)
must, in the case of a licensing body or other person
authorised under section 116A or 116B, and
(b)
may, in the case of any licensing body that appears to the
Secretary of State not to have a system of self-regulation
protecting the interests of copyright owners, licensees,
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prospective licensees or the public,

Digital Economy Bill [HL]
Schedule 2 — Licensing of copyright and performers’ property rights
Part 1 — Regulation of licensing bodies
65


by regulations require the licensing body or other person to adopt
a code of practice which complies with requirements set out in the
regulations.
      (2)
The regulations may provide that in the case of a licensing body or
other person that fails to adopt a code of practice in accordance
5
with the regulations, a code of practice approved by the Secretary
of State or by a person designated under the regulations by the
Secretary of State has effect as a code of practice adopted by the
body or other person.
2
The Secretary of State may by regulations make provision as to—
10
(a)
procedures to be followed before provision under
paragraph 1 applies in relation to a licensing body or other
person;
(b)
where such provision applies by virtue of paragraph
1(1)(b), procedures to be followed before such provision
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ceases to apply in relation to a licensing body.
3     (1)
Regulations under paragraph 1 must provide for a code applying
to a licensing body to include provision relating to these matters—
(a)
obligations of the body to its members;
(b)
where the body is authorised under section 116B,
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obligations of the body to owners of copyright in works
subject to the authorisation who are not members;
(c)
accounting arrangements in relation to royalties or other
sums paid in respect of a licence;
(d)
obligations of the body to licensees;
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(e)
control by the body of administration and marketing
carried out by it or on its behalf;
(f)
the handling of complaints against the body, including the
appointment of a person to represent the interests of
complainants;
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(g)
provision of information by the body, and other matters
relating to transparency in relation to activities of the body;
(h)
the making of reports by the body to the Secretary of State.
      (2)
Regulations under paragraph 1 must provide for a code to include,
in relation to works to which an authorisation under section 116A
35
or 116B applies that are registered as orphan works, provision
relating to these matters—
(a)
accounting arrangements in relation to royalties or other
sums paid in respect of a licence;
(b)
calculation of payments to copyright owners;
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(c)
arrangements for holding sums for copyright owners;
(d)
provision of information by the authorised person.
      (3)
In this paragraph “member”, in relation to a licensing body, has
the same meaning as in section 116B.

Digital Economy Bill [HL]
Schedule 2 — Licensing of copyright and performers’ property rights
Part 2 — Performers’ property rights
66

Enforcement
4     (1)
The Secretary of State may by regulations provide for the
consequences of a failure by a licensing body or other person to
comply with—
(a)
a code of practice which has effect under this Schedule in
5
relation to the person,
(b)
an authorisation given to the person under section 116A or
116B,
(c)
any of subsections (4) to (6) of section 116D, or
(d)
a requirement imposed under this Schedule.
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      (2)
The regulations may in particular provide for the imposition of
financial penalties.
      (3)
The regulations may include provision—
(a)
for determining whether there has been a failure to comply
with anything mentioned in sub-paragraph (1);
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(b)
for determining any penalty that may be imposed in
respect of the failure;
(c)
for an appeal to the Copyright Tribunal against the
imposition of any such penalty.
      (4)
A penalty imposed under sub-paragraph (2) must not be greater
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than £50,000.
      (5)
The regulations may provide for a determination within sub-
paragraph (3)(a) or (b) to be made by the Secretary of State or by a
person designated by the Secretary of State under the regulations.
      (6)
The regulations may make provision for requiring a person to give
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the person by whom a determination within sub-paragraph (3)(a)
falls to be made (the “adjudicator”) any information that the
adjudicator reasonably requires for the purpose of making that
determination.
Fees
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5     (1)
The Secretary of State may by regulations require a licensing body
to which regulations under any other provision of this Schedule
apply to pay fees to the Secretary of State.
      (2)
The aggregate amount of fees payable under the regulations must
not be more than the cost to the Secretary of State of administering
35
the operation of regulations under this Schedule.”
Part 2
Performers’ property rights
2
In Schedule 2A to the Copyright, Designs and Patents Act 1988 (licensing of