07/01/2008

The European Commission decided on January 3 to give a new boost to Europe's online content sector. The Commission adopted a Communication on Creative Content Online in Europe's Single Market. This strategic document is the starting point for new EU actions to support development of innovative business models, cross-border services and consumer-friendly offers.

In the Communication, the Commission identifies four main, horizontal challenges which merit further action at EU-level:

Availability of creative content
Owners of creative content are sometimes reluctant to make it available for online distribution. Reasons for this include concerns over illegal downloads and online piracy. In addition, across the EU there exist major difficulties in negotiating and settling terms of trade between the right owners and the online distributors of creative content. The Commission is therefore today strongly encouraging stakeholders to find innovative and collaborative solutions to exploit the market for content online. A first step in this direction was taken in 2006 with the European Film Online Charter, but the Commission notes a lack of ambition and implementation in the follow-up to this initiative.

Multi-territory licensing for creative content
Online environments such as the Internet and mobile services inherently allow content services to be made available across the single European market. However, the lack of multi-territory copyright licences – allowing the use of content in several or all EU Member States – makes it difficult for online services to be deployed across Europe and to benefit from economies of scale. While it is first for rights holders to appreciate the potential commercial benefits of multi-territory licensing, there is an underlying need, also from a consumer perspective, to improve on existing licensing mechanisms.

Interoperability and transparency of Digital Rights Management systems (DRMs)
Technologies that support the management of rights and the fair remuneration of creators in an online environment can be a key enabler for development of innovative business models. Lengthy discussions amongst stakeholders have yet to lead to the deployment of interoperable and user-friendly DRM solutions. The Commission therefore seeks to establish a framework for DRM transparency concerning, amongst other things, the interoperability of different DRMs, and ensuring that consumers are properly informed of any usage restrictions placed on downloaded content, as well as of the interoperability of related online services.

Legal offers and piracy
Piracy, including the unauthorised up- and downloading of copyrighted content, remains a central concern. The Commission intends to instigate co-operation procedures ("codes of conduct") between access/service providers, right holders and consumers to ensure not only the widespread offer of attractive content online, but also adequate protection of copyrighted works, and close cooperation on the fight against piracy and unauthorised file-sharing.

The market for online content is developing at a rapid pace. According to a Commission study (covering EU-25), the retail revenues from content online will more than quadruple from €1.8bn in 2005 to €8.3bn by 2010.

With Creative Content Online in Europe's Single Market, the Commission is launching a public consultation in order to prepare – by mid 2008 – an EU Recommendation on Creative Content Online for adoption by the European Parliament and the Council. Stakeholders are invited to comment on the Communication by 29 February 2008.

In addition, the Commission will set up the "Content Online Platform", a stakeholders' forum, to initiate collaborative work with all stakeholders on issues where further discussions are needed. Consumers will be given a strong voice in this platform.

For further information on the Communication please click here.

For information on the 2006 consultation process please click here.