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Britain's implementation of the Copyright Directive

This article was last updated in April 2005.

The Copyright Directive – properly called Directive 2001/29/EC on the harmonisation of copyright and related rights in the information society – was due to be implemented by all EU Member States by 22nd December 2002. Few Member States met the deadline. In the UK, the Patent Office conducted a wide-ranging consultation before finalising the implementing Regulations, which came into force on 31st October 2003, amending the Copyright, Designs and Patents Act 1988.

A progress report published after the consultation admitted that "a few controversial aspects are continuing to generate debate," which explains the delay in implementation. FAST contributed to the consultation, saying it welcomed the implementation of the Directive and "the greater clarity this will bring to lawful use of software."

This article outlines the main provisions of the Directive, and identifies areas that caused the biggest difficulties for the legislators. It also seeks to highlight some of the practical consequences of the Directive, and areas that might be exploited in the future by copyright owners.

Technological Protection Measures (TPMs)

The Government admitted that TPMs "prompted more comment than any other aspect of the Directive." The Directive says Member States are to provide adequate legal protection against the circumvention of any effective technological measures. TPMs include those designed "to prevent or restrict acts ... which are not authorised by the rightholder"; the Regulations state that technological measures include "any device, design or component which is designed ... to protect a copyright work." One example of a TPM is the use of encryption; another is the production of CDs that cannot be copied (or even played) on PCs.

Responses to the consultation on TPMs came from both rightholders concerned that the Regulations did not go far enough, and individuals concerned that the protection of TPMs could lead to anti-competitive practices and affect data privacy.

The Directive does not include computer programs among those works able to benefit from the legislation covering TPMs. FAST commented in its response that the Government should make it clear that "products are not deprived of protection ... merely because they include computer programs". As it is, the Government has retained an old provision of the Copyright, Designs and Patents Act which already gave some protection for TPMs in relation to computer programs.

The new provisions give an incentive to rightholders to employ and design new methods for protecting their rights against copying and other uses, in the knowledge that there are statutory penalties for those attempting to circumvent them. Rightholders will be able to sue individuals bypassing TPMs and, importantly, those making and distributing equipment used to circumvent TPMs. Additionally, the latter category of infringer may be criminally liable.

Electronic Rights Management Information (RMI)

Perhaps surprisingly, RMI caused less controversy. Rightholders have begun to protect their works by using unique codes to identify, track and assist with the use of works, so that anyone attempting to breach copyright can be traced. For instance, a piece of software may be sold to a customer. If that customer then makes the software available over a peer-to-peer file sharing network, the rightholder can identify the customer potentially in breach of copyright.

The Regulations provide for rightholders to be given a civil remedy against anyone who "knowingly and without authority removes or alters electronic rights management information." Some organisations called for criminal sanctions to be added to the protection of RMI, but the Government has decided not to introduce these at this stage.

Reproduction Rights

The Regulations just give a minor tweak to the existing law on reproduction rights to avoid ambiguity. The Directive provides for the reproduction rights of performers to include transient and incidental copying, so the Copyright, Designs and Patents Act has been extended to cover this, to avoid the implication that performers' rights, by contrast with those of authors, do not extend to such copying.

Communication Rights

The changes in this area again reflect the development of new technologies, which make the old rights covering 'broadcasting' and 'inclusion in a cable programme service' out of date. Under the Directive, authors must be granted an exclusive right to control electronic communication of a copyrighted work to the public. The Regulations introduce such a right, though the Government has been careful to exclude 'static' web pages from the definition of a broadcast. The changes are designed to prevent unauthorised exploitation of copyrighted works using, for instance, internet services; and to provide industries with the opportunity to exploit the possibilities of legitimate distribution made available by the internet.

Exceptions – the 'internet' exception

This brings about a limited exception to the restriction on reproducing a copyrighted work to allow works to be transmitted over the internet (where reproduction by intermediaries, such as ISPs, is necessary to allow transmission). This has already been provided for in the UK under the E-Commerce Regulations. These allow for copying where the ISP is acting as a mere conduit, and where the ISP is merely caching or hosting.

Exceptions - research

Previously, the defence of fair dealing for research and private study was available to anyone otherwise in breach of copyright. Under the Directive (and the Regulations), this must be restricted to research carried out for a non-commercial purpose provided that it is accompanied by a sufficient acknowledgement. In addition, the Directive states that "rightholders should receive fair compensation to compensate them adequately for the use made of their protected works or other subject-matter". It is likely that this fair compensation will be collected through organisations such as the Copyright Licensing Agency.

Conclusion

The majority of the provisions are aimed at giving protection to embattled copyright holders, who are striving to find new ways to protect their assets. They provide the legal support for the practical measures that industries have had to find to protect their copyrighted assets, and open up certain new avenues for exploitation by right holders.

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