Following a recommendation in the Hargreaves review of intellectual property, on 6 April 2014, the Copyright (Regulation of Relevant Licensing Bodies) Regulations 2014 ("the Regulations") came into
Following a recommendation in the Hargreaves review of intellectual property, on 6 April 2014, the Copyright (Regulation of Relevant Licensing Bodies) Regulations 2014 ("the Regulations") came into force. According to Intellectual Property Minister, Lord Younger, the Regulations seek to ensure that standards are maintained by collecting societies so that businesses get 'the certainty and clarity that they need'. They are also form part of a wider package of UK copyright reforms that aim to make a clearer and more accessible copyright framework for users and rights-holders.
The Regulations set out a framework of minimum regulatory standards for collecting societies, under which the Secretary of State may act if a collecting society does not have a self-regulatory code of practice in place, or where it does not comply with the criteria set out in the Regulations.
Meanwhile, the Council of the European Union has also recently adopted the Collective Rights Management Directive (2014/26/EU) ("the Directive") which seeks to facilitate online usage of music throughout the EU by making it easier to obtain licences and to protect artists. The Directive must be transposed into national law by 10 April 2016 and the Regulations may then have to be modified in order to comply with the Directive. The specified criteria set out in the schedule to the Regulations with which a collecting society's code of practice must comply include:
Where the Secretary of State decides that a collecting society has no system of self-regulation or has not been compliant with the Regulations, the Regulations set out a procedure to follow: the Secretary of State must give notice to a collecting society that its system is non-compliant. The Regulations then allow the collecting society 49 days in which to amend their code and if the collecting society fails to adopt a suitable code, then the Secretary of State may impose one. A financial penalty of up to £50,000 may also be imposed for rule-breaking and will be effective so long as reasonable notice and time is given for payment of the fine. The Regulations will not apply to a "micro-business" i.e. a business with fewer than 10 employees.
The extent to which the Regulations will affect collecting societies is not absolutely clear but it is generally hoped that they will offer greater clarity for people using copyright works in their business. Many collecting societies, however, have already adopted a regulatory code of practice under their trade body, the British Copyright Council (BCC). What the Regulations will now add, however, is an avenue for the Secretary of State to intervene if any code in place fails to meet the minimum standard.
We can expect to see further guidance on these Regulations once the EU Directive has been transposed into UK law.
This commentary was co-authored by Amelia Thomson
The Regulations set out a framework of minimum regulatory standards for collecting societies, under which the Secretary of State may act if a collecting society does not have a self-regulatory code of practice in place, or where it does not comply with the criteria set out in the Regulations.
Meanwhile, the Council of the European Union has also recently adopted the Collective Rights Management Directive (2014/26/EU) ("the Directive") which seeks to facilitate online usage of music throughout the EU by making it easier to obtain licences and to protect artists. The Directive must be transposed into national law by 10 April 2016 and the Regulations may then have to be modified in order to comply with the Directive. The specified criteria set out in the schedule to the Regulations with which a collecting society's code of practice must comply include:
- obligations to rights–holders, members and licensees, including consulting and negotiating reasonably with licenses over new licensing schemes
- Information and transparency and monitoring and reporting requirements e.g. informing members/licensees about remuneration and deductions and posting tariff details on its website
- Dealing with complaints and disputes
Where the Secretary of State decides that a collecting society has no system of self-regulation or has not been compliant with the Regulations, the Regulations set out a procedure to follow: the Secretary of State must give notice to a collecting society that its system is non-compliant. The Regulations then allow the collecting society 49 days in which to amend their code and if the collecting society fails to adopt a suitable code, then the Secretary of State may impose one. A financial penalty of up to £50,000 may also be imposed for rule-breaking and will be effective so long as reasonable notice and time is given for payment of the fine. The Regulations will not apply to a "micro-business" i.e. a business with fewer than 10 employees.
The extent to which the Regulations will affect collecting societies is not absolutely clear but it is generally hoped that they will offer greater clarity for people using copyright works in their business. Many collecting societies, however, have already adopted a regulatory code of practice under their trade body, the British Copyright Council (BCC). What the Regulations will now add, however, is an avenue for the Secretary of State to intervene if any code in place fails to meet the minimum standard.
We can expect to see further guidance on these Regulations once the EU Directive has been transposed into UK law.
This commentary was co-authored by Amelia Thomson