european union

MEPs urge EC to close creative ‘value gap’

Fifty-eight MEPs have called on the European Commission (EC) to close the value gap between digital content platforms and creators by clarifying the status of those services operating under safe harbour laws.

Anita Awbi
  • By Anita Awbi
  • 22 Jun 2016
  • min read
Fifty-eight MEPs have called on the European Commission (EC) to close the value gap between digital content platforms and creators by clarifying the status of those services operating under safe harbour laws.

In a signed letter addressed to EC President Juncker, they said that despite more creative content being consumed today than ever before, creators and rightsholders have not seen a comparable increase in revenues.

They blame a transfer of value from creators to digital service providers, aided by a lack of clarity around their current status under European copyright and e-commerce law.

Existing ‘safe harbour’ provisions within the e-commerce directive allow user generated content platforms and content aggregators to claim they are passive and neutral hosting services entitled to benefit from exemptions to copyright law.

But MEPs are urging the EC to create legal certainty in this area by presenting solutions that will benefit creators, rightsholders and consumers. The call comes as the commission is formulating its Digital Single Market strategy.

The MEPs continued: ‘We believe that there will not be a Digital Single Market without content. Therefore the upcoming copyright reform should make clear the liability exemptions can only apply to genuinely neutral and passive online service providers, and not to services that play an active role in distributing, promoting and monetising content at the expense of creators.’

The letter comes as the International Artist Organisation, the umbrella body that includes the UK's Featured Artist Coalition, this morning published a letter it has sent to the EC outlining a similar position on safe harbour provisions and lending its support to the wider music industry's campaign on the value gap. Read the full letter on CMU.

Last month, the EC outlined proposals for its Digital Single Market strategy. In the associated Communication on Online Platforms paper, it was suggested there may still be 'broad' support for maintaining the existing principles of the e-commerce directive, first published in 2000.

However, the provision has been widely criticised by the music industry including PRS for Musicin addition to this latest move by 58 MEPs.

Related content:
European Digital Single Market edges closer
PRS CEO: We cannot live in a broken digital market
What is safe harbour?