4 colonnes.pdfCouncil of the European Union
Brussels, 10 December 2018 (OR. en) 15248/18 LIMITE AUDIO 118 COMPET 855 CULT 162 PI 178 RECH 525 TELECOM 456 CODEC 2245 DIGIT 245
Interinstitutional File: 2016/0280(COD)
To: Permanent Representatives Committee
No. prev. doc.: 15057/18, WK 13585/2018, WK 14640/2018, WK 15197/2018, WK 15203/2018, WK 15316/2018, WK 15350/2018
No. Cion doc.: 12254/16
Subject: Proposal for a Directive of the European Parliament and of the Council on Copyright in the Digital Single Market
- Update of negotiating mandate
I. INTRODUCTION
On 25 May 2018, COREPER granted the Presidency a mandate (9134/18) to start negotiations with
the European Parliament (EP) on the above mentioned proposal with a view to reaching a first
reading agreement. The EP adopted its negotiating mandate on 12 September 2018 (11520/18).
Trilogue negotiations started on 2 October 2018. Meanwhile three more trilogues (on 25 October,
26 November, and 3 December 2018), as well was a number of technical meetings were held. The
5th trilogue is scheduled to take place on 13 December 2018 with the aim of achieving an overall
compromise on the proposed Directive.
15248/18 BM/rcg 2
ECOMP 3.B. LIMITE EN
In the negotiations held so far, substantial progress was achieved, in particular on the chapter on
exceptions and limitations, the chapter on out of commerce works (including the Council's
Article 9a), and also on major parts of those provisions of the chapter on remuneration that were
part of the initial Commission proposal. Most parts of those three chapters have been provisionally
agreed between the co-legislators, or are very close to such provisional agreement, on the basis of
the text set out in the 4th column of the 4-column table attached to this note. As always, this
provisional agreement is based on the understanding that "nothing is agreed until everything is
agreed".
Major outstanding issues in the negotiations relate to the following points (listed in the order as they
appear in the text of the proposal, not in an order of importance or priority):
• remaining open issues in Article 11 (non-substantial parts ("snippets"), term of protection,
authors to receive a share of press publishers' remuneration),
• structure and wording of Article 13 (taking as a basis the building blocks tentatively agreed
at the 4th trilogue),
• Article minus 14 of the EP text (principle of fair and proportionate remuneration),
• Article 16a of the EP text (revocation right), and
• Article 14(3) and related provisions on the treatment of in-significant contributions.
All those issues will be addressed at the trilogue on 13 December 2018, and will be essential for an
overall compromise on the draft Directive.
With a view to allowing for progress in the negotiations at this trilogue towards such overall
compromise, the Presidency seeks a mandate as flexible as possible on those remaining issues.
In the light of the above, the Presidency invites COREPER to support a mandate along the lines
suggested in point II of this note to be read in conjunction with the 4-column table attached to this
note.
II. PRESIDENCY SUGGESTIONS
1. Confirmation of the provisionally agreed parts of the text (in GREEN) and further
Presidency compromise suggestions (in WHITE) set out in the 4th column of the 4
column table
The Presidency invites COREPER to confirm those parts of the text on which compromises have
already been provisionally agreed, see the rows indicated in "GREEN" in the fourth column of the
table set out in the ANNEX to this note, and to support the texts proposals still in "WHITE" (which
include the compromise texts suggested and further explained in points 2(a) and (b) of this note -
see next point).
2. Presidency text proposals on Article 16a (mechanism for the revocation of rights) and
Article minus 14 (principle of fair and proportionate remuneration)
It has become clear from the negotiations that Articles minus 14 and Article 16a are crucial for the
EP and will therefore play an essential role in finding compromises with the EP on other issues.
From the views expressed by Member States in the preparation of the negotiations, it is equally
clear that any concession on any of these provisions will be a huge step of concession of the
Council towards the EP and will require getting in return from the EP concessions of equal
importance, for instance on Articles 11 and 13.
(a) Article 16a (Mechanism for the revocation of rights)
Conscious of the importance that Article 16a has for the EP, Member States at COREPER on
23 November 2018 demonstrated some openness for a revocation right in situations of absence of
exploitation, but continued to oppose a right of revocation in the case of continuous lack of
reporting required by Article 14. Member States also emphasised the importance that any such
provision would need to leave sufficient flexibility for Member States in the implementation of any
such provision into national law so that the revocation mechanism can work in practice.
Building on the views expressed by delegations at COREPER on 23 November, the Presidency asks
COREPER for flexibility for negotiating a text along the following lines for a revocation
mechanism for lack of exploitation (evidently, the Presidency will continue to oppose a revocation
right for lack of reporting (text in square brackets in paragraph 1). Please note, this text proposal
has already been communicated to delegations by way of WK 15316/2018:
15248/18 BM/rcg 4
"Article 16a – Mechanism for the revocation of rights
1. Member States shall ensure that where an author or a performer has licensed or
transferred her or his rights concerning a work or other protected subject-matter
on an exclusive basis, the author or performer may revoke [in whole or in part]
the licence or the transfer of rights where there is a lack of exploitation of the
work or other protected subject-matter [EP: or where there is a continuous lack
of regular reporting in accordance with Article 14].
2. Specific provisions for the mechanism for revocation shall be provided for in
national law taking into account
(a) the specificities of the different sectors and the different types of works and
performances; and
(b) where a work or other subject-matter contains the contribution of more than
one author or performer, the relative importance of the individual
contributions and the legitimate interests of all authors and performers
affected by the exercise of the revocation mechanism by an individual
author or performer.
Member States may exclude works or other subject matter from the application
of the mechanism if such works or subject matter usually contain contributions
of a plurality of authors or performers.
Member States may provide that the revocation mechanism shall be exercised
only within a specific time frame, where this is duly justified by the specificities
of the concerned sector, type of work or protected subject matter.
Member States may provide that that authors or performers may terminate the
exclusivity of the contract instead of revoking the rights.
3. Member States may provide that the revocation provided for in paragraph 1 may
be exercised only after a reasonable time after the conclusion of the licence or
transfer agreement. The author or performer shall notify the person to whom the
rights have been licensed or transferred and set an appropriate deadline by which
the exploitation of the licensed or transferred rights is to take place. After the
expiration of that deadline, the author or performer may choose to terminate the
exclusivity of the contract instead of revoking the license or the transfer.
[EP: 4. Paragraph 1 shall not apply if the non-exercise of the rights is predominantly
due to circumstances which the author or the performer can be reasonably
expected to remedy.]
[EP: 5. Member States may provide that any contractual provision derogating from
the revocation mechanism shall be enforceable only if it is based on a collective
bargaining agreement.]
(b) Article minus 14 (Principles of remuneration)
As regards the EP's proposal on Article minus 14, many Member States raised great concerns,
however, not against the principle of appropriate remuneration for authors and performers as such,
as this is a generally shared aim and also one of the major objectives of the draft Directive.
The major concerns of Member States were that Article minus 14, as drafted by the EP, used legally
unclear terms that could not be implemented in law, and that the provision would risk to cause
disproportionate administrative burden. Moreover, Member States were concerned that the
provision could/would undermine the equally important general principle of contractual freedom
and called for a more balanced approach in that regard.
Several Member States, therefore suggested to express this principle in a recital, rather than in the
operative part of the Directive. Other Member States indicated openness vis a vis a contractual right
to appropriate remuneration in the text of the Articles, but emphasised that flexibility would be
needed for Member States in the way how they implement such a right.
Given that Article minus 14 is extremely important for the EP, the Presidency asks COREPER for a
mandate to introduce in the text of the Articles a contractual right to appropriate remuneration, but
leaving the further specification of this principle to national law. Such a provision could be worded
along the following lines:
“Article minus 14 - Principle of fair remuneration
1. Member States shall ensure that when authors and performers license or transfer
their exclusive rights for the exploitation of their works or other subject matter
they are entitled to receive appropriate remuneration.
2. In the implementation of this principle into national law, Member States shall
take into account the principle of contractual freedom and a fair balance of rights
and interests.”
It is suggested to clarify, in this Article or in the recitals, that the principle of fair remuneration does
not prevent authors or performers from granting a licence/transferring their rights for free, nor from
concluding licensing agreements for a lump sum remuneration.
15248/18 BM/rcg 6
ECOMP 3.B. LIMITE EN
3. Other open issues:
As regards those parts of the text/rows of the 4-column table that do not yet contain any text in the
fourth column, the Presidency will continue to defend the Council's position on the basis of the
mandate of COREPER of May 2018 as set out in the third column.
This includes, in particular, most parts of the highly sensitive provision of Article 13, and the
remaining open issues of Article 11, as well as Article 14(3).
As regards Article 13, the Commission has offered to contribute a compromise text proposal as a
basis for discussions at the 5th trilogue. This text proposal will be available, presumably, not before
Monday, 10 December 2018 (pm), and will be circulated to delegations as soon as available. The
Presidency intends to take into account this text proposal in the negotiations and use any elements
as are compatible with the overall Council's mandate on this provision.
Finally, as any negotiation exercise requires a give and take from each side, the Presidency asks
COREPER to grant it with some flexibility where minor concessions turn out to be necessary for
achieving an overall desired final outcome in the negotiations.
III. CONCLUSION
COREPER is thus invited to grant the Presidency with a broad and flexible mandate for the
remaining open issues as addressed in part II of this note, and to, more specifically
• approve the compromise suggestions in the 4th column of the 4 column table, including the
compromise wording for
(a) an Article 16a (Mechanism for the revocation of rights), and
(b) an Article minus 14 (Principle of fair remuneration).
____________________
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to
n ly
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8
B
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b e co
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8
B
n s
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9 /E
C , in
th e
o se
9 /E
C in
n s
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9 /E
C , in
9 /E
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9 /E
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8
B
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8
B
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8
B
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B
b lish
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8
B
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8
B
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8
B
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B
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B
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B
sh o u
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8
B
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9 /E
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8
B
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B
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8
B
1 /E
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8
B
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B
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8
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8
B
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8
B
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8 /E
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8
B
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8
B
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8
B
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B
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8
B
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B
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B
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8
B
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8
B
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B
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B
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B
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B
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B
in g
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9 /E
C , 2
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1 /E
9 /E
C , 2
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C , 2
1 /E
9 /E
C , 2
4 /E
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B
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B
9 /E
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B
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B
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C sh
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B
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B
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6 /1
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f p u
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B
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9 /E
C fo
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C so
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1 5 2 4 8 /1
8
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3 /1
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to p
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9 /E
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3 /1
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9 /E
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9 /E
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o f each
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B
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8
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o rk
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B
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all fo rth
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8
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th e
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B
u b licatio