kiskis em last jd workshop nov 2013 legal framework for digital content
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Legal Framework for Digital Content
Prof. dr. Mindaugas Kiškis Mykolas Romeris
university
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Three dimensions of the Digital Content
Legal – legal framework
Economic – business models
Technological – delivery
plaEorms and formats
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TradiFonal Content
• TV & Radio • Print media • Audio/Video on physical media (CDs, DVDs, etc.) • SoOware ?
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Main features of the tradiFonal content
• Local – geographically limited distribuFon • Physically fixed – TV can be seen only on TV box; • Single-‐plaEorm – CD can be played on a CD player, but not on smartphone. • TradiFonal business models (hardcover à paperback; cinema à DVD àTV)
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Ways in which tradiFonal content is regulated
• BroadcasFng and spectrum regulaFons • Intellectual property regulaFons (licensing, collecFve administraFon...)
• Media regulaFons and media licenses • Cultural/ethical regulaFons (naFonal content requirements, explicit content)
• AdverFsing regulaFons • Consumer protecFon (pay TV and pay-‐per-‐view, and other added value services)
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Technological development
• Technology enabled: – Add-‐on digital (cable and telecom content services) – New models (internet/cloud based digital content)
• Hardware in many ways ahead of the content availability
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Digital content
• Inherently global, inherently mulFplaEorm, inherently fluid • EnFrely new forms of content creaFon and distribuFon • New ways of consumpFon (ad free, binge viewing, over the air TV streaming to the internet) • Fully two way interacFve
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Trends of the digital content
• App stores – digital supermarkets for all kinds of content (soOware, music, ebooks, video) • NeElix, Hulu, SpoFfy, Xbox Live, etc. – digital bouFques for some types of content
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Original content is increasingly being produced by the plaEorms
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Subsidised hardware
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Simultaneous mulF-‐plaEorm consumpFon
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Bespoke content for individual consumer
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TradiFonal vs. digital content • Digital content is overtaking the tradiFonal content faster
than ever, but not evenly in all areas • Lack of compeFFon for the tradiFonal content – higher prices
and lesser quality • Consumers are finding ways to access and consume digital
content • Cyberspace whether we want it or not is the instant global
marketplace -‐ if no legal sources are available, illegal sources take over instantly
• Unexpected compeFFon (all content competes for our Fme – thus, ads on the internet compete with TV ads)
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Novel risks of digital content
• Intellectual property infringement • DRM – Unjust restricFons on consumers – New ways to restrict compeFFon
• Privacy
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Legal framework for content
• Based on the tradiFonal rules of the copyright law, contract law, product law, advertsing law and consumer law
• NaFonal jurisdicFon based • Strictly naFonal language • NaFonal collecFng socieFes for licensing • High compliance and market entry costs • 28 different regimes in the EU alone
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This leads to digital content delays/absence in smaller markets
• Itunes in LT only in 2011 • SpoFfy in LT only in 2013 and limited • NeElix, etc. – never ?
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Consequences of delays/absence • New content is late (late culture = late innovaFon) • Consumers are finding ways to access and consume digital content (giO cards, proxy servers, illegal sources, etc.)
• LegiFmate sources enter grey area (serving cross border, although not licensed, not complying with local adverFsing, language and consumer regulaFons)
• Limited compeFFon for the tradiFonal content, resulFng in higher prices and lesser quality
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Can we correct for this through regulaFon?
• We parFally can • Full correcFon only possible only through combinaFon with new economic models and enabing technologies
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Designing the legal regime for the digital content
InternaFonal level
SupranaFonal level – the EU
NaFonal level
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InternaFonal level
• AddiFonal protocol of the Cybercrime ConvenFon • Movement towards unified principles of the freedom of speech/expression
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SupranaFonal level • Single EU Market for the digital content shall be the
underlying principle – currently content industries are in many way exempt from Single Market
• Single market needs single jurisdicFon and single compliance mechanism
• The EU jurisdicFon may be an opFon, but it will take too long • Instead we shall adopt reciprocal compliance principle • If legal compliance is achieved in one EU country, it shall be
accepted as sufficient in the other countries (US model ?) • The providers shall be disallowed to distribute content based
on country exclusivity
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Current EU inFFaFves
• EU rights management direcFve – DraO presented in 2012 – Vastly inadequate
• Personal data regulaFon – Ignoring digital content needs
• No comprehensive regulaFon
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NaFonal level
• We have to recognize the limits of naFonal regulaFon (not possible to control technology and cross-‐border access) • OverregulaFon results in expatriaFon • The law shall no unjustly protect incumbents
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NaFonal level • We have to rely more on the freedom of agreement is some areas, but limit the freedom in other areas
• ProacFvely addressing the compliance/bureaucracy Fme and expense
• PrevenFng anFcompeFFve behavior (country exclusivity in the Single market)
• Consumers shall have the freedom to accept content in the foreign language (not the language of the content, but the legal language)
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Why proacFve regulaFon on digital content is necessary and urgent
• Lost (pirate) generaFon in smaller countries/markets • Lost investment/advantage in broadband/fiber • Cultural diversity • More compeFFon – bejer value and quality • New opportuniFes for naFonal content