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Extended Collective License
   – what, when, where?
          Jan Rosén
    Professor of Private Law
     Stockholm University
ECL incitement
§ Licensing for mass uses
§ Individual licenses fail
§ Representative organizations – though recognizing
   that no collective organization is able to represent
   all relevant rightholders
§ High efficiency accomplished – triggered by whom/
   what?
§ Users’ availability to full repertoires
§ Fair terms negotiated among stakeholders
§ Opting out possible - but not attractive
Mass uses mess
§ Mass uses comprise works of third parties,
   non-organized, non-traceable, non-
   identifiable rightholders & embedded works
§ Constant in-flow of new works
§ Ever growing bulk of out-of-print material
§ Internationalization of media content
§ The imminent question: What to do with
   rightholders being ”outsiders”?
ECL features
§ Users and representative collective rights
   management organizations conclude agreements
   upon free negotiations
§ The terms of the agreement are by law made
   applicable to non-represented rightholders – a true
   extension effect of the agreement
§ User may dispose over all material of the kind set
   out in the agreement
§ Non-represented rightholders are (i) guaranteed
   equal treatment, (ii) have a right to individual
   remuneration and may, in most cases, (iii) prohibit
   the use (opt out)
EU approaches to ECL:s
§ Sat/Cab Directive (93/83/EEC) Art. 3.2:
   A collective agreement may be extended to non-
   represented rightholders (under certain conditions
   – simulcast with terrestrial broadcast + opt out)
§ Paragraph 28: ”… to ensure the smooth operation
   of contractual arrangements…”
§ An ”exclusive collective exercise of the
   authorisation right”
§ ”the authorisation right as such remains intact and
   only the exercise of this right is regulated to some
   extent”.
EU approaches…
§ Copyright Directive (2001/29/EC)
§ Paragraph 18: ”This Directive is without prejudice
   to the arrangements in the member States
   concerning the management of rights such as
   extended collective licenses.”
§ Conclusion: ECLs are not considered as
   limitations or exceptions in the meaning of the
   Directive, hence no need to be enumerated in
   Article 5.
Different Nordic approaches?
            Representative organization
Finland: organization representing, in a given field, a large
   number of authors of works used in the country
Denmark/Norway: Organization must represent a substantial
   part of authors in a certain category, whose works are used
   in the country. ”Substantial” - majority not required
Sweden: proposed – representing a large number of works
   used in Sweden
Conclusion: No international coverage formally or
 explicitly required – though broad (also
 international) representativeness assumed (Fi/Sw)
Approval of organization
§ Denmark, Finland, Norway: Organization
   concluding ECL agreement is subject to the
   approval of a public authority.
§ A list of qualitative criteria must be met,
   such as representativeness
§ Sweden: proposed – The organization that
   is most representative and best represents
   the authors of the works in the area
   exploited in Sweden
One or several organizations?
§ Denmark: Only one organization may get approval
   in a given area
§ Norway: Possibility of a joint organization of
   several copyright management organizations – but
   mainly approval of a single organization
§ Finland: CA provides for approval of joint
   organizations in a given field, if representativeness
   is accomplished hereby
Exclusivity of an organization?
§ Swedish proposal : Merely the organization
   that is most representative and best
   represents the authors in a certain category
   of works, used in the country, is competent
   to conclude an agreement with ECL effect
Conflict resolution
§ The Nordic countries employ different
   models for resolution of conflicts as regards
   terms and conditions of an ECL agreement,
   such as mediation, arbitration and court
   proceedures
§ Generally; explicit legislative provisions on a
   resolution order – specific authorities
   employed in all Nordic countries
SWEDEN - Law on mediation in
  certain copyright disputes
§ Disputes concerning the conclusion of ECL
   agreements on (i) reproduction in educational
   activities, (ii) informational copying, (iii) libraries
   communication of works to borrowers and
   distribution of digital copies and (iv) retransmission
   of broadcasts – for authors’ works, performances,
   sound recordings and photographic pictures.
§ If proposed mediation fails – the Government shall
   be notified, if parties have not agreed to submit the
   dispute to arbitration
Areas of ECL use in the Nordic
          countries
§ All ECLs, offering an extension effect, are
   provided in sectorial provisions, defining
   specific use areas
§ Denmark: 8 specific ECLs
§ Finland: 9 specific ECLs
§ Norway: 7 specific ECLs
§ Sweden: 6 specific ECLs (4 more proposed)
Special ECL
§ Sweden: proposed special ECL – modelled by
   Danish law - in an area defined ad hoc by the
   contracting parties if
§ (i) applied to a well-defined area
§ (ii) organizations are most representative and best
   represents the authors
§ (iii) use of the ECL model is necessary (no
   alternate licensing model available)
§ (iv) agreement must be in writing and demonstrate
   the intention to bring about extended effect
Benefits of the ECL
§ Maximising effective administration – minimising
   costs of (individual) transactions
§ One-stop-shop
§ Legal certainty
§ Benefits rightholders, users and public interest
§ Adapted to prevailing circumstances and
   conditions
§ Differentiating remunerations
§ No need for a prior search
Deficits of ECLs

§ None!



§ Well, who’s paying for communication to the
   public in cross-border online access?
§ (An ECL application can provide solutions
   also for trans-frontier arrangements!)
Don’ts in ECL policies
§ No EU regulation hampering the elastic
   scope of ECLs or the future development of
   ECLs
§ Don’t make Member States invariably
   having to relate to ”first publication” or like
   prerequisites – the raison d’être and quality
   of an ECL is to embrace ”all”; repertoires,
   areas of works and performances
An OW Directive?
§ If at all OW would be regulated in a EU
   Directive, it should contain the following
   recital:

”This Directive should be without prejudice to
  arrangements in the Member States
  concerning the management of rights such
  as collective licenses”

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Extended Collective License 
– what, when, where?

  • 1. Extended Collective License – what, when, where? Jan Rosén Professor of Private Law Stockholm University
  • 2. ECL incitement § Licensing for mass uses § Individual licenses fail § Representative organizations – though recognizing that no collective organization is able to represent all relevant rightholders § High efficiency accomplished – triggered by whom/ what? § Users’ availability to full repertoires § Fair terms negotiated among stakeholders § Opting out possible - but not attractive
  • 3. Mass uses mess § Mass uses comprise works of third parties, non-organized, non-traceable, non- identifiable rightholders & embedded works § Constant in-flow of new works § Ever growing bulk of out-of-print material § Internationalization of media content § The imminent question: What to do with rightholders being ”outsiders”?
  • 4. ECL features § Users and representative collective rights management organizations conclude agreements upon free negotiations § The terms of the agreement are by law made applicable to non-represented rightholders – a true extension effect of the agreement § User may dispose over all material of the kind set out in the agreement § Non-represented rightholders are (i) guaranteed equal treatment, (ii) have a right to individual remuneration and may, in most cases, (iii) prohibit the use (opt out)
  • 5. EU approaches to ECL:s § Sat/Cab Directive (93/83/EEC) Art. 3.2: A collective agreement may be extended to non- represented rightholders (under certain conditions – simulcast with terrestrial broadcast + opt out) § Paragraph 28: ”… to ensure the smooth operation of contractual arrangements…” § An ”exclusive collective exercise of the authorisation right” § ”the authorisation right as such remains intact and only the exercise of this right is regulated to some extent”.
  • 6. EU approaches… § Copyright Directive (2001/29/EC) § Paragraph 18: ”This Directive is without prejudice to the arrangements in the member States concerning the management of rights such as extended collective licenses.” § Conclusion: ECLs are not considered as limitations or exceptions in the meaning of the Directive, hence no need to be enumerated in Article 5.
  • 7. Different Nordic approaches? Representative organization Finland: organization representing, in a given field, a large number of authors of works used in the country Denmark/Norway: Organization must represent a substantial part of authors in a certain category, whose works are used in the country. ”Substantial” - majority not required Sweden: proposed – representing a large number of works used in Sweden Conclusion: No international coverage formally or explicitly required – though broad (also international) representativeness assumed (Fi/Sw)
  • 8. Approval of organization § Denmark, Finland, Norway: Organization concluding ECL agreement is subject to the approval of a public authority. § A list of qualitative criteria must be met, such as representativeness § Sweden: proposed – The organization that is most representative and best represents the authors of the works in the area exploited in Sweden
  • 9. One or several organizations? § Denmark: Only one organization may get approval in a given area § Norway: Possibility of a joint organization of several copyright management organizations – but mainly approval of a single organization § Finland: CA provides for approval of joint organizations in a given field, if representativeness is accomplished hereby
  • 10. Exclusivity of an organization? § Swedish proposal : Merely the organization that is most representative and best represents the authors in a certain category of works, used in the country, is competent to conclude an agreement with ECL effect
  • 11. Conflict resolution § The Nordic countries employ different models for resolution of conflicts as regards terms and conditions of an ECL agreement, such as mediation, arbitration and court proceedures § Generally; explicit legislative provisions on a resolution order – specific authorities employed in all Nordic countries
  • 12. SWEDEN - Law on mediation in certain copyright disputes § Disputes concerning the conclusion of ECL agreements on (i) reproduction in educational activities, (ii) informational copying, (iii) libraries communication of works to borrowers and distribution of digital copies and (iv) retransmission of broadcasts – for authors’ works, performances, sound recordings and photographic pictures. § If proposed mediation fails – the Government shall be notified, if parties have not agreed to submit the dispute to arbitration
  • 13. Areas of ECL use in the Nordic countries § All ECLs, offering an extension effect, are provided in sectorial provisions, defining specific use areas § Denmark: 8 specific ECLs § Finland: 9 specific ECLs § Norway: 7 specific ECLs § Sweden: 6 specific ECLs (4 more proposed)
  • 14. Special ECL § Sweden: proposed special ECL – modelled by Danish law - in an area defined ad hoc by the contracting parties if § (i) applied to a well-defined area § (ii) organizations are most representative and best represents the authors § (iii) use of the ECL model is necessary (no alternate licensing model available) § (iv) agreement must be in writing and demonstrate the intention to bring about extended effect
  • 15. Benefits of the ECL § Maximising effective administration – minimising costs of (individual) transactions § One-stop-shop § Legal certainty § Benefits rightholders, users and public interest § Adapted to prevailing circumstances and conditions § Differentiating remunerations § No need for a prior search
  • 16. Deficits of ECLs § None! § Well, who’s paying for communication to the public in cross-border online access? § (An ECL application can provide solutions also for trans-frontier arrangements!)
  • 17. Don’ts in ECL policies § No EU regulation hampering the elastic scope of ECLs or the future development of ECLs § Don’t make Member States invariably having to relate to ”first publication” or like prerequisites – the raison d’être and quality of an ECL is to embrace ”all”; repertoires, areas of works and performances
  • 18. An OW Directive? § If at all OW would be regulated in a EU Directive, it should contain the following recital: ”This Directive should be without prejudice to arrangements in the Member States concerning the management of rights such as collective licenses”