Article 17 stakeholder dialogue (day 5): It all depends

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Last week Thursday saw the 5th meeting of the Commission’s stakeholder dialogue on Article 17 of the copyright directive. On paper this meeting was the first meeting where the stakeholders had the opportunity to discuss the actual provisions contained in Article 17 of the directive in order for the Commission “to gather evidence, views and suggestions that the services of the Commission can take into account” when preparing its guidelines on the application of Article 17. 

Contractual freedom über alles

In reality (recording available here), the 5th meeting was the meeting where it became clear that the vast majority of represented stakeholders is not interested in constructively contributing to the process and is instead participating in order to actively undermine the stakeholder process. Interventions made by commercial rights holders from the Music and AV sectors, as well as by platforms, focused on demanding maximum contractual freedom and arguing that the Commission’s guidelines should not contain any binding requirements. When asked to provide input for defining core concepts of the directive (such as “best efforts to obtain authorisation” and “best efforts to prevent availability”), most stakeholders limited their contribution to countless variations of “it depends” or theorising about “dynamic concepts”.

While there were some notable exceptions (apart from users organisations, collective management organisations and journalists’ organisations provided substantive input), it can hardly be surprising that both rightholders and big platforms have no interest in substantive guidelines that would offer meaningful safeguards for user rights. Continue reading →

Article 17 stakeholder dialogue: What have we learned so far

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This analysis was previously published in two instalments on the Kluver Copyright Blog (part 1, part 2).

As 2020 unfolds, the European Commission’s stakeholder dialogue pursuant to Article 17 of the Directive on Copyright in the Digital Single Market (CDSM directive) enters its third (and likely final) phase. After four meetings that focussed on gathering “an overview of the current market situation as regards licensing practices, tools used for online content management […] and related issues and concerns”, the next two (or more) meetings will finally deal with issues raised by the provisions in Article 17 of the CDSM directive. According to the Commission’s discussion paper for the meetings of 16 January and 10 February 2020, the objective of the third phase “is to gather evidence, views and suggestions that the services of the Commission can take into account in preparing the guidance pursuant to Article 17(10)”. 

In other words, after four meetings that have set the scene, the stakeholder dialogue will now address some of the thorny issues raised by Article 17. These include the key concepts like the best effort obligations to obtain authorisation and to prevent the availability of content (Article 17(4)), as well as the safeguards for legitimate uses of content (Article 17(7)) and the complaint and redress mechanisms available to users (Article 17(9)). In preparation for these forthcoming discussions, it is worth recapitulating what we have learned since the stakeholder dialogue kicked off in October of last year. 

Three takeaways from the stakeholder dialogue so far

After more than 25 hours of discussion (recordings of the four meetings can be found here: 1, 2, 3 and 4), there are three main insights that will likely have a substantial impact on the overall outcome of the stakeholder dialogue. These are the different motivations of different types of rightholders; the technical limitations of Automated Content Recognition (ACR) technologies; and the general lack of transparency with regards to current rights management practices. The first two of these are discussed in this post and the third will be covered in part 2 which will be published shortly. Continue reading →

Article 17 stakeholder dialogue (day 4): it’s all about transparency

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The fourth meeting of the Article 17 stakeholder dialogue took place in the last week before the holiday break. Just like the third meeting, this meeting was dedicated to (more or less) technical presentations on content management technologies and existing licensing practices. In total there were 12 presentations from platforms (Facebook, Seznam, Wattpad), providers of content management tools (Audible Magic, Ardito, Fifthfreedom, Smart protection), rightholders (GESAC, Universal Music Publishing, Bundesliga) as well as by BEUC and the Lumen database.

Filters are context-blind

The day’s presentations largely repeated the lines of arguments different stakeholders had presented during the previous meetings (a recording of the full meeting can be found here). Most notably all providers of content recognition technology confirmed that their technology does not go beyond simple matching of files and cannot understand the context in which a use takes place. Audible Magic summarised this in their opening statement:

Copyright exceptions require a high degree of intellectual judgement and an understanding and appreciation of context. We do not represent that any technology can solve this problem in an automated fashion. Ultimately these types of determinations must be handled by human judgement […]

As we have argued after the third meeting of the stakeholder dialogue, this is an unsurprising but significant insight as it means that current technology cannot be used to automatically block or remove content uploaded by users. 

Platforms don’t trust rightholders

The presentation given by Facebook about Facebook Rights Manager, its in-house content recognition tool, highlighted another problem that such tools are facing: One of the “main challenges” that Facebook is facing with its Facebook Rights Manager tool is that rightholders abuse the tool by claiming rights in works that they do not own. As a result Facebook only makes the most sensitive functionalities (such as automated blocking of uploaded content) available to a small group of carefully vetted trusted rightholders. Continue reading →

Article 17 stakeholder dialogue (day 3): Filters do not meet the requirements of the directive

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Last week’s third meeting of the Article 17 Stakeholder dialogue was the first one of what the Commission had referred to as the 2nd phase of the dialogue. After two meetings of introductory statements by various stakeholders (see our reports here and here), the third meeting consisted of a number of more in depth technical presentations on content recognition technologies and on existing licensing models (Video recording available here). 

The morning session saw presentations from three technology providers. YouTube presented its own Content ID system, PEX presented its platform independent attribution engine and finally Videntifier showed off its video and image matching technology. 

The biggest part of the discussion in the morning was centered around understanding the way YouTube’s content ID system works and how it relates to copyright (hint: it’s complicated). The overall impression that arose from the discussion is that very few participants actually understand how content ID works (and those who do, like the big record labels, don’t seem to be interested in talking about it). The fact that the Commission was among those asking questions to get a better understanding of the inner working of content ID is rather striking in the context that evidence based lawmaking was supposed to be one of the priorities of the Junker commission. So far the stakeholder dialogue seems more like an exercise in legislation based fact finding. 

While many aspects of Content ID remained opaque, one thing became clear though-out the three presentations: none of the presented technologies can do more than matching content in user uploads. None of the technologies presented can understand the context in which a use takes place and as a result they are incapable of detecting if a use is covered by an exception or not. In the words of the technology providers (lightly edited for clarity): Continue reading →

Article 17 stakeholder dialogue (day 2): Filters, not licenses!

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On Tuesday this week the participants of the stakeholder dialogue on Article 17 of the EU copyright directive convened in Brussels for the second meeting. After a first meeting that focussed on practices in the music, games and software sectors (see our report here), this week’s meeting focussed on the current situation in the audiovisual (AV) and publishing sectors. 

Hollywood: Article 17 is about filtering after all

The meeting kicked off with a long series of statements from the many different rightholders in the AV sector (see the video recording here). The assembled sector representatives made it clear that from their perspective Article 17 is welcome (as it clarifies that online platforms need to obtain licenses for the works uploaded by their users) but that they are not interested in widely licensing AV works to UGC platforms and would instead focus on the blocking and removing of unlicensed content via the upload filtering mechanisms introduced by Article 17. 

This approach is the logical consequence of the predominant business model in the AV sector which relies on exclusive licensing to selected outlets (Cinema, TV, VOD platforms). It directly contradicts the music industries’ narrative from the first meeting that Article 17 is about licensing and not about blocking access – as in the case of music general availability is crucial. Representatives of the AV industry made it very clear that they would fight any attempts at non-voluntary licensing and that they would also fight against effective protection for user rights under exceptions and licensing (see for example the statement issued by the Motion Picture Association starting at 10:41:44 of the video recording). These initial statements make it clear that the AV industry does indeed look at Article 17 as an instrument to limit freedom of expression and reuse and will likely use the stakeholder dialogue to bend the article further in this direction. Continue reading →

Article 17 stakeholder dialogue (day 1): Same old, same old

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Article 17(10) of the Copyright in the Digital Single Market directive requires the Commission to “organise stakeholder dialogues to discuss best practices for cooperation between online content-sharing service providers and rightholders”.  Last week Tuesday we took part in the first meeting of the stakeholder dialogue. The dialogue (which will consist of a series of meetings) is supposed to provide the Commission with input for producing guidelines can “balance fundamental rights and the use of exceptions and limitations” with the upload filtering obligations introduced by Article 17 of the directive.

The meeting, which was attended by 80 stakeholders (plus representatives from the 28 Member States), was supposed to focus on “current practices with regard to the cooperation between rightholders and online content sharing service providers” in the music, software and gaming sectors. The day  was kicked off by a short welcome address by Commissioner Maria Gabriel in which she praised the outcome of the copyright reform as an example of Europe taking the lead in developing rules for the digital environment (translation from the original French): 

The new Copyright Directive in the Digital Single Market demonstrates the ability of the European Union to collectively reflect on today’s challenges and to bring about just, innovative and concerted responses. It is another example of a Europe that opens the way and sets an example to the rest of the world.

[…] The new Directive, and in particular Article 17, opens a new era in the regulation of the relationship between copyright and digital services. And this, without touching the fundamentals. It does not challenge the traditional rules of copyright while introducing a new framework that provides essential guarantees to ensure a proper balance between fundamental rights, in the first place freedom of expression on the Internet.

[…] With the adoption of the Copyright Directive, the European Union is leading a global movement to develop a fairer economic model for the production, access and distribution of content in the digital environment. Europe is now a more attractive place to invest in creation and digital.

It should be evident that we do not share this positive assessment of the directive. If the directive was indeed such a balanced piece of legislation as the commissioner claims, then there would not be a need to organize stakeholder dialogue to patch up its worst inconsistencies. Continue reading →

Article 17 Stakeholder Dialogue: We’ll Continue to Advocate for Safeguarding User Rights

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Yesterday the European Commission invited COMMUNIA to participate in the “Stakeholder dialogue under Article 17 of the Directive on Copyright in the Digital Single Market” that will kick off in Brussels next week. This invitation comes after we had expressed our interest to participate in response to a call issued by the Commission in September. It is our understanding that COMMUNIA will be one of a small number of civil society participants in the dialogue (the Commission has yet to publish a list of participating organisations). 

Stakeholder dialogue to the rescue!

Article 17(10) of the Copyright in the Digital Single Market directive requires the Commission to “organise stakeholder dialogues to discuss best practices for cooperation between online content-sharing service providers and rightholders”. Based on the outcome of these dialogues with “content-sharing service providers, rightholders, users’ organisations and other relevant stakeholders” the Commission is expected to “issue guidance on the application of Article 17” that is supposed to “balance fundamental rights and the use of exceptions and limitations” with the upload filtering obligations introduced by Article 17. 

Given that two and a half years of legislative wrangling have failed to produce a balanced (or at least coherent) outcome, it seems rather unlikely that this stakeholder dialogue will be able to achieve such a balance. Still the stakeholder dialogue provides an opportunity to minimise the harm to the freedom of creative expression and the ability for smaller platforms to strive under Article 17. Such an optimistic view of the stakeholder dialogue has been put forward by the German government, which has stated that it

… therefore assumes that this dialogue is based on a spirit of guaranteeing appropriate remuneration for creatives, preventing ‘upload filters’ wherever possible, ensuring freedom of expression and safeguarding user rights. The German Federal Government assumes that uniform implementation throughout the Union will be agreed on in this dialogue, because fragmentary implementation with 27 national variants would not be compatible with the principles of a European Digital Single Market.

Five measures to minimize the harm caused by upload filters

While we have strongly criticised Article 1, mainly because of the filtering obligations it introduces, there are also positive elements in the article. These include mandatory exceptions for quotation and parody, and a number of procedural safeguards intended to ensure that users can exercise the rights they have under these exceptions and limitations.

As part of our contribution to the stakeholder dialogue we will strive to ensure an outcome that minimises the impact and scope of the filtering provisions and that maximises the scope of exceptions and limitations that guarantees meaningful safeguards for users to exercise the rights they have under these exceptions. From our perspective, the following five measures will guide our contribution to the stakeholder dialogue: Continue reading →

Open Letter: Implementation Guidance on Article 17 Must Include Public Interest Stakeholders

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On Friday the Directive on Copyright in the Digital Single Market was published in the Official Journal of the European Union, formally kicking off the implementation phase in which the Directive will be transposed into the national laws of the EU Member States. EU Member States will have until 7 June 2021 to adopt the provisions laid down in the directive into their respective copyright laws.

Today Communia and over 40 organisations sent an open letter to the European Commission calling for an inclusive stakeholder dialogue that incorporates the views of human rights, digital rights, and access to knowledge organisations. The letter was organised by the Civil Liberties Union for Europe (Liberties). It focuses on Article 17 (formerly Article 13), the sweeping provision that alters the liability regime for online platforms by requiring licenses for all user generated uploads, and would lead to platforms having to install content filters lest they become liable for copyright infringement for works that aren’t able to be licensed. The adoption of Article 17 will put fundamental freedoms at risk and set a dangerous precedent for user rights, so it’s absolutely critical that in the implementation the article is transposed with care to protect freedom of expression. From our open letter:

Broad and inclusive participation is crucial for ensuring that the national implementations of Article 17 and the day-to-day cooperation between online content-sharing service providers and rightholders respects the Charter of Fundamental Rights by safeguarding citizens’ and creators’ freedom of expression and information, whilst also protecting their privacy. These should be the guiding principles for a harmonized implementation of Article 17 throughout the Digital Single Market.

Over the entirety of the 30-month reform process, Communia has been advocating for changes to improve the situation for users rights and produce a more balanced copyright system. Article 17 sets platforms up for failure because it is impossible to meet the obligations they have under the mitigation measures and to safeguard user rights at the same time. That’s why it’s important that the stakeholder dialogue and consultations on implementation listen closely to the input from human rights, digital rights, and knowledge communities in order to protect user rights and freedom of expression.

DSM directive adopted – implementation in Member States can still make a difference

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Two year implementation period starts now
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Earlier this week, after almost exactly 30 months of legislative wrangling, the EU Member States approved the final compromise of the Directive on Copyright in the Digital Single Market. It’s the same text that was approved by the European Parliament at the end of March. This means that the Directive will become law as soon as it is published in the Official Journal of the European Union. Judged against our own ideas about a modern EU copyright framework that facilitates access to cultural and information, strengthens user rights and reduces unnecessary copyright infringement, the outcome of EU copyright reform process is a big disappointment. The directive expands the scope of copyright and instead of harmonising copyright rules across the EU member states, it contains measures that will further fragment and complicate the EU copyright framework. Instead of strengthening public interest exceptions to copyright, the directive relies on voluntary licensing by rightholders, giving them the ability to block users’ access.

As a result the final directive does not live up to the “Digital Single Market” label that it carries in its title. The adopted text does very little to harmonise an already complex set of rules among the Member States. Instead, the directive creates additional rules to the system that have been designed to further the (perceived) interests for specific classes of rightholders—most notably the music industry and press publishers. Once the directive has been implemented in the Member States, the EU copyright system will likely be more complex, and thus more difficult and costly to navigate for users and European businesses.

In this regard the provisions of Article 17 (formerly Article 13) remain the most problematic in the entire directive. The article is a legislative monstrosity that will most likely achieve the opposite of what it was intended to accomplish. Instead of establishing clear rules that require commercial content sharing platforms to adequately remunerate the creators of the works that they distribute, it will impose substantial regulatory burdens and create legal uncertainties for years to come. The most likely benefactors of this outcome will be large rightholders and the incumbent dominant platforms. The existing intermediaries within the creative value chain will have the means to navigate the uncertainties and conclude complex licensing arrangements, but users and independent creators at the edges of these value chains will suffer the consequences: They will be presented with fewer distribution platforms to choose from, and they will have less freedom of creative expression.

Implementation can make a difference

With the directive formally adopted by both the Parliament and Council, the fight for a better EU copyright enters into a new phase. The EU Member States will soon have two years to implement the rules established by the directive into their national copyright laws. While such implementations will have to include all the problematic aspects of the directive, there is some room for meaningful improvements, and some measures can be taken to mitigate the worst provisions of the directive. Continue reading →

After 30 months, EU legislators agree to sell out users and creators to big platforms and big content.

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European users and creators deserve better
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After yesterday’s agreement between the European Parliament, the Council and the European Commission on a compromise text, the EU copyright reform process has entered into its final phase. The good news is that after yesterday’s compromise the text cannot get any worse: it will either be adopted or it will be rejected. The bad news is that the text that was agreed on yesterday is **the worst version that we have seen yet**. After three days of negotiations, the negotiators have agreed on a text that would benefit big corporate rightsholders, Google and other dominant platforms at the expense of users, creators and the rest of the European internet economy.

To understand what has happened during the negotiations, it is illustrative to look at the differences between the final compromise and the text that had been agreed among the EU member states last week (which was the result of horse trading between the French and German governments).

A win for dominant platforms…

Yesterday’s compromise text is largely in line with the French-German deal. This includes a terrible version of Article 13 that will severely limit users ability to express themselves online. It will also further consolidate the power of dominant platforms, as smaller platforms will struggle with implementing expensive filtering technology and supporting the increased costs for dealing with increased liability.

It also introduces a EU-wide neighbouring right for press publishers that will have very similar effects. It benefits dominant platforms who can afford compliance while creating additional costs and risks for smaller players. As a result, users will likely end up with less access to information and the diversity of information available online will likely suffer. Under these conditions it remains to be seen if rightsholders will indeed manage to extract more value from the large intermediaries.    

…at the expense of users and creators

As if this would not be bad enough, the negotiators have introduced last minute changes to the text that further weaken provisions that were intended to protect the rights of users and individual creators. The French/German deal did not (at least not clearly) include a UGC exception for users of every online platform, but it used language that at least applied to  user-generated content uploaded to the platforms covered by Article 13. The final compromise has adopted questionable language that may or may not  provide a meaningful protection for users of platforms covered by Article 13, depending on whether Member States are obliged to fully implement the existing quotation and parody exceptions provided in the InfoSoc Directive, and make them applicable to user-generated content, which is not evident from the text. Continue reading →