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Ceps task force on copyright in the eu digital single market 14 nov 2012
1.
Solving the market supply failure
of lawful digital content TASK FORCE ON COPYRIGHT IN THE EU DIGITAL SINGLE MARKET
2.
Agenda ›EVIDENCE OF MARKET
SUPPLY FAILURE ›PUBLIC POLICY ISSUES ›CONCLUSIONS DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 2
3.
The PROSPECT OF
DSM? Source: http://www.guardian.co.uk/film/2010/feb/17/european-cinemas-boycott-alice-in-wonderland DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 3
4.
The prospect of
DSM? Downloaded movie prices are about 30% to 50% higher than buying an actual DVD. That's if you can find the film online … more than half of the UK top 50 films of all time were NOT available as downloads Source: http://www.guardian.co.uk/technology/2011/nov /22/movie-fans-piracy-online DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 4
5.
SWEDEN: Spotify covers
85% of all released recorded music, Netflix (5%) and Via-PLAY (12%) of Film released a Year ago Theatrical DVD Netflix Via Play Theatrical DVD Netflix Via Play Release Release Release Release DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 5 Source: http://blogg.kritiker.se/sa-bra-utbud-har-netflix-och-viaplay-svart-pa-vitt/
6.
The market supply
failure of lawful digital content Source PWC Global Entertainment Outlook 2012 DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 6
7.
Drivers: On-demand content
MORE LAWFUL DIGITAL CHOICE BASE: Core 7 markets (US, UK, Sweden, Germany, Spain, China and Taiwan) (Showing those who consider the service worth paying for) Source: Ericsson ConsumerLab TV Video Consumer trends 2011, 2012 DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 7
8.
Barriers: On-demand Content Source:
Ericsson ConsumerLab TV Video Consumer trends 2012 DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 8
9.
Displace “free” with
lawful digital services – address the root cause of the problem! DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 9
10.
economists have researched and
most would agree* “copyright has a moral hazard effect on incumbent firms by encouraging them to rely on enforcement of the law rather than adopt new technologies and business models to deal with new technologies" * Source: Ruth Towse, “what we know, what we don’t know and what policy makers would like us to know about the economics of copyright” Review of Economic Research on Copyright Issues, 2011, vol. 8(2), pp.101-120. DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 10
11.
Agenda ›EVIDENCE OF MARKET
SUPPLY FAILURE ›PUBLIC POLICY ISSUES ›CONCLUSIONS DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 11
12.
Content ACCESS BARRIERS
– copyright a barrier › Access barriers are barriers to unhindered consumption of content, the presence of which often results in the personal consumption needs of consumers being unmet. › WIPO identified following access barriers: – Consumer barriers (affordability) – Content exclusivity and limited competition – Deliberate non-availability of content (windowing, territoriality) – Policy and regulatory barriers: › Content regulation World Intellectual Property Organization, Twentieth Session, Geneva June 21 to 24 2011, or DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 12 access: http://www.wipo.int/edocs/mdocs/copyright/en/sccr_20/sccr_20_2_rev.pdf
13.
But there are
other barriers too - Film State AID Rules – how about other Member States ? › The theatrical release requirement removed in Swedish Film State Aid Funding Rules DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 13 Source: http://www.regeringen.se/content/1/c6/20/16/74/111b3287.pdf
14.
Copyright: root causes
to market supply failure 1. Deliberate limited availability of digital content, facilitated by copyright 2. Technology specificity of copyright 3. Unreasonable transaction costs DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 14
15.
Increase Availability DIGITAL CONTENT
PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 15
16.
FIRST RELEASE WINDOW
MUST TOO GO DIGITAL CLOSING THE ANALOGUE CULUTRAL EXCLUSION DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 16
17.
DIMENSIONS OF availability ›
Territoriality > Timed availability across nations › Territoriality and place shifting > Follow me › Territoriality and long tail – regional/global niches › Time and Timing > windowing and exclusive licensing › Time, place and format shifting – at home and on the go › Range of choice > depth and width of catalogue › A’ la carte > Freedom to choose (my content) and timing (my time) and screen (my screen) HOW ABOUT AN “AWATAD” RIGHT ? DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 17
18.
Technology
Neutral Copyright DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 18
19.
Any screen –
remuneration in digital world › Remuneration based on actual, identifiable consumption based on ; – Download to Own – On-demand (time limited) – One time view › Irrespective of technology – Transmission Technologies – Delivery Networks – Devices – Screens It is unreasonable to potentially triple the cost of identical content, over multiple screens for same user DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 19
20.
The Overlap between reproduction
right and right of communication to public › A technology specific approach inevitably leads to inconsistencies and uncertainties as formerly distinct classes of works, rights or media types converge. › The consequences of fragmentation of rights are disturbing in the digital age, as digital technology produces a breakdown and conflation of technology specific works/rights that were meaningful in the analogue era. › The transmission of audiovisual content on the Internet now involves making reproductions and communications to the public › These rights are strictly separated in most contracting situations and, add to the complexity of the system which leads to a gridlock of control that hinders development and frustrates business. DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 20
21.
Ultimately we end
up with the question of exhaustion › Exhaustion principle applying only to physical media – "original of a work or copies") incorporating the protected work. Recitals 28 and 29 further explain that "the first sale principle of the original of a work or copies thereof by the right-holder or with his consent in the Community, exhausts the right to control the release in the Community of a work incorporated in a tangible tool". › This wording limits the principle of exhaustion to tangible goods only, excluding on-line services and intangible goods that incorporate digital content › The paradox of “tangible” exhaustions ; in a legislative measure such as the EU INFOSOC DIRECTIVE which was devoted to the online context, the only purpose of market integration was confined to the offline context.* * Source: EU Study, Legal Analysis of a Single Market for the Information Society October 2009 DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 21
22.
Agenda ›EVIDENCE OF MARKET
SUPPLY FAILURE ›PUBLIC POLICY ISSUES ›CONCLUSIONS DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 22
23.
We think: Key
Copyright reform objectives Promote open and competitive markets in licensed digital content that promote service innovation. With the aim to increase availability of more legitimate digital content at prices which appeal to consumers. Decrease technology specificity of copyright, e.g. exhaustion, exceptions, safe harbor*. Increase efficiency in licensing by decreasing transaction costs e.g. administrative complexity. DIGITAL CONTENT PROMOTION | Public | © Ericsson AB 2012 | 2012-11-12 | Page 23 * Not an issue in the EU and the US
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