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Media Concentration and the Authors’ Contractual Position
International Authors Forum
Oslo, 20 October 2009
P. Bernt Hugenholtz
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Outline
• Media concentration: how it affects author's contracts
• Some related factors
• Law of copyright contracts
• Other author-protective legal measures
• Strategic measures
• Flanking measures
• A bit of advice
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How Media Concentration Affects Author's Contracts
• 'Traditional' (horizontal) media concentration:– Media company has dominance in specific media
sector (e.g. press, TV, sci publishing)• Effect on pricing (remuneration)
• Cross-media (vertical) concentration:– Media company controls different
media/platforms (e.g. press + TV)• Effect on rights transfers
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Related Factors
• Globalization of media companies– U.S. legal (lawyer's) becomes culture dominant
• Media convergence– Traditionally distinct media (e.g. press,
broadcasting, online) become integrated
• Death of the 'gentleman publisher'– Media companies become 'profit centres', author's
rights reduced to 'assets' on balance sheet
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Typical ‘All rights’ Clause
• ‘The Author transfers to the Publisher all rights in respect of all uses in any media now known or later to be developed, for the entire universe (including Puerto Rico).’
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Related Factors (2)
• Divestiture of non-essential publishing functions (editing, typesetting, printing, distribution)– 'We're in the right business now' (cf. music
publishing)
• Expansion of remit (mandate) of public broadcasters: more channels, web, etc.– But no extra public funding
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Impact on Authors' Contracts
• Standard-form contracts– No/little room for negotioation
• Broad/total tranfers of rights (buy-outs)– 'For all media now known or later to be
developed'– Including derivative uses, repackaging,
intra-company uses, etc.
• Unfair remuneration
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Law of copyright contracts (1)Scope of transfer
• Purpose of transfer rule (Ger, NL)
• Specification of grant (Fr, Bel)
• Unknown/new uses excluded (Bel, It, Sp)
• Termination of transfers (USA)
• Termination in case of non-use (Sp)• Sector-specific rules:
– Publishing, advertising, film, broadcasting
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Law of copyright contracts (2)Remuneration
• ‘Proportional’ remuneration (Fr, Sp)
• ‘Adequate’ remuneration (Ger)– rates presumed adequate if collective
agreement exists
• ‘Best-seller’ provision (Bel, Ger)– revise contract if lump-sum proves
disproportional
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European Copyright Directive
• Recital 30: ‘rights referred to in this Directive may be transferred, assigned or subject to the granting of contractual licenses, without prejudice to the relevant national legislation on copyright and related rights’.
• Art. 9: ‘This Directive shall be without prejudice to […] the law of contract’.
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Other Legal Remedies
• Civil law: – Unreasonable standards terms (but not
core provisions of contract)• Sanoma case (NL)
– Unconscionability– Unforeseen circumstances
• Competition law:– Abuse of dominant position
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Strategic Measures
• Model contracts– ‘normative’, evidence of fair practice, but not
binding
• Collective bargaining agreements– employed authors in film industry (USA)
• ‘residuals’, credits
– freelance authors need antitrust exemption
• Collective administration of rights– online, other secondary uses (cable)
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Flanking Measures
• Exempt model contracts and collective bargaining from anti-trust (cartel) provisions
• Control/restrict media concentration– Competition authorities– Media authorities– Regulatory oversight of public broadcasting
should include 'fair contracting' with authors
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A Bit of Advice
• Unite!
• Make noise
• Do not sign
• Don't (always) run with the 'right holders'– Social legitimacy of © depends on
authors– Fair contracts can be a quid pro quo
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IViR Study on Copyright Contract LawMain Findings & Recommendations
• Disparities in EU Law• Too early for harmonisation
– Copyright ownership not harmonised– Moral rights not harmonised– General contract law not harmonised
• Promote model contracts at EU level• Special author-protective conflicts rule in
Rome Convention 1980