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Directive on Copyright in the Digital Single Market

2019 EU copyright reform directive

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The directive was introduced in the European Parliament Committee on Legal Affairs on 20 June 2018, and a revised proposal was approved by the parliament on 12 September 2018. The final version, which resulted from negotiations during formal trilogue meetings, was presented to the parliament on 13 February 2019. It was approved by the European Parliament on 26 March 2019 and by the Council of the European Union on 15 April 2019. Member states have two years to pass appropriate legislation to meet the Directive's requirements.

The directive has generally been opposed by major tech companies and a vocal number of Internet users, as well as human rights advocates, but supported by media groups and conglomerates, including newspapers and publishers. Two of the Directive's articles have drawn significant discussion. Draft Article 11 (Article 15 of the directive), known as the "link tax", gives newspapers more direct control and re-use of their work, which may impact some Internet services like news aggregators. Draft Article 13 (Article 17 of the directive) tasks service providers that host user-generated content to employ "effective and proportionate" measures to prevent users from violating copyright. Tech companies expressed concern that this would necessitate the need for upload filters. A broad concern with the Directive is on the use of fair dealing through the directive, and that it could quell freedom of speech.

Provisions

Article numbers refer to the draft version of this copyright directive up through around 20 March 2019; the approved directive reorders several of the articles, such as draft Article 13 becoming the Directive's Article 17.

Article 3 and 4

Article 3 introduces a copyright exception for text and data mining (TDM) for the purposes of scientific research and article 4 for any TDM. The original COREPER version had both a mandatory and an optional extension.

These exceptions predate the rise of generative AI and the copyright questions associated with it. But the fact that the EU's 2024 AI Act explicitly refers to the commercial TDM exception in article 4 "is widely seen as a clear indication of the EU legislator’s intention that the exception covers AI data collection", a view that was also endorsed in a 2024 German court decision. Unlike the TDM exception for scientific research in article 3, the more general exception in article 4 only applies if the copyright holder has not opted out.

Depending on whether it acknowledges the public domain status of facts and information, the TDM exception could increase or decrease restrictions compared to the status quo.

Article 5

Article 5 introduces a mandatory exception for the use of copyrighted works as part of "digital and cross-border teaching activities". This article clarifies that educational establishments can make non-commercial use of copyrighted works for illustrative purposes.

There have been worries from the educational sector that the exception proposed in article 5 is too limiting. For example, the sector proposes to broaden the scope of "educational establishments" to include cultural heritage institutions. The most debated part of the article is 5(2), under which the exception would not be available if there are "adequate licenses" available in the market.

Article 14

Article 14 states that reproductions of works of visual art that are in the public domain cannot be subject to copyright or related rights, unless the reproduction is an original creative work.

Draft Article 11 (Article 15 of the directive)

Draft Article 11 (Article 15 of the directive) extends the 2001 Information Society Directive to grant publishers direct copyright over "online use of their press publications by information society service providers". Under current EU law, publishers instead rely on authors assigning copyright to them and must prove rights ownership for each individual work. The version of the directive voted on by the European Parliament Committee on Legal Affairs contained explicit exemptions for the act of hyperlinking and "legitimate private and non-commercial use of press publications by individual users".

The proposal attaches several new conditions to the right, including expiry after two years and exemptions for either copying an "insubstantial" part of a work or for copying it in the course of academic or scientific research. It is derived from the ancillary copyright for press publishers which was introduced in Germany in 2013. Press publishing, "whose purpose is to inform the general public and which are periodically or regularly updated", is distinguished from academic and scientific publishing (Recital 33).

Article 11 was moved to Article 15 in the final draft from the trilogue negotiations issued 26 March 2019 and approved by the Parliament and Council.

Draft Article 13 (Directive Article 17)

Draft Article 13 of the draft replaces the "mere conduit" exemption from copyright infringement from for-profit "online content sharing service providers" with a new, conditional exemption to liability. These conditions are an implementation of "effective and proportionate measures", as claimed by service providers, to "prevent the availability of specific [unlicensed] works identified by rightsholders", acting "expeditiously" to remove them, and demonstrating that "best efforts" have been made to prevent their future availability. The article also extends any licenses granted to content hosts to their users, as long as those users are not acting "on a commercial basis".

The article directs member states to consider the size of the provider, the amount of content uploaded, and the effectiveness of the measures imposed "in light of technological developments". It also mandates an appeals process, and requires content hosts to share "information on the use of content" with the content's owner, the lack of which has been a point of contention in the past.

Draft Article 13's provisions target commercial web hosts which "store and give the public access to a large number of works or other subject-matter uploaded by its users which [they] organise and promote for profit-making purposes". The proposal makes explicit that this does not include private cloud storage services, non-profit encyclopedias (such as Wikipedia), nor non-profit educational or scientific repositories.

Draft Article 13b requires websites which "automatically reproduce or refer to significant amounts of copyright-protected visual works" to "conclude fair and balanced licensing agreements with any requesting rightholders [sic]".

Draft Article 13 was named Article 17 in the final trilogue draft issued in February 2019 and approved by the European Parliament and Council.

Draft Articles 14 through 16 (Directive articles 18 through 20)

As a whole, draft articles 14-16 (Directive Articles 18–20) in the working version of the Directive, improve the bargaining position of authors and performers, even though it set out systems that were weaker than some existing ones in member states. Draft article 15 (Directive article 19) aims to allow authors to increase their remuneration in some cases where it is disproportionately low.

Associations of authors had proposed a "rights reversion mechanism" which would allow cancelling a copyright transfer agreement proven to be disadvantageous.

Other passages of the proposal attempt to clarify the legal status of orphan works and certain common activities by libraries.

Prior to the Trilogue negotiations, Article 12a proposed granting sports event organisers copyright over recordings of their events. The March 2019 version only says, on the last page, that the commission in the future will assess the challenges of illegal online transmissions of sports broadcasts.

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