© Clearance Issues for Online Video

Ted Shapiro (Senior Vice-President, General Counsel & Deputy MD, EMEA)

Seminar on IP and Creative SMEs in the Seminar on IP and Creative SMEs in the Digital EnvironmentDigital Environment

WIPO – 21 MAY 2008 WIPO – 21 MAY 2008

One important factor relates not only to how copyright protects film but also how it regulates and permits the audio-visual sector to function….

A successful film industry of course depends on a wide range factors.

The Complexity of Rights Clearance• What is rights clearance?

– Securing rights for production and exploitation– Preventing third party claims– Consequences for failure to clear

• Copyright and Related Rights (authors/performers etc)• Underlying works/Pre-Existing Content

– Inclusion in new works or new uses of old works– E.g., books to films, clips on UGCs, old films on VOD

• Personal: Rights of publicity, privacy and/or moral rights• Residuals (Guilds) and Remuneration (Statutory)• Music – particularly for online uses• Trademarks, Business names, Titles, Products, Locations• Orphans, Remakes, Sequels, Prequels,• Scope and nature of licenses particularly for new Internet

services: territoriality, DRMs. (See also IFTA materials)• Related points: E&O insurance, co-production agreements,

completions bonds, financiers, banks• International aspects – laws vary - e.g., exceptions

Focus for Today

• Overview of AV © in the US and EU• Some Rights Clearance Issues for the

Exploitation of Video on the Internet– VOD– Electronic Sell-Thru– New Modes of Retransmission

• DTT• Mobile TV• IPTV• Internet

• FIN

Exploitation of Rights by the Producer

• European approaches (Transfer, Cessio Legis, by contract)– Producer gets exploitation rights– Remuneration and moral rights

• US Work Made for Hire Doctrine (17 USC §§ 101, 201)– Collective bargaining – residuals and some “moral” rights

• Producer may assign copyright to a distributor or license a number of companies (e.g., by territory, by language, by category of rights)

• Producer responsible for securing necessary clearances• Producer aims to position film in best competitive position in order

to cover costs, pay everyone, to secure return on investment and to create new works.

– Film released in different formats in a sequential order (windows) to get maximum return.

– Very few films make money in the theatrical release– Bulk of return has been home video– New Modes/Piracy….are challenging existing practices!!!!

Delivery – 2 emerging models*

1. Electronic Sell-Thru (EST)(aka Digital-To-Own): • On-demand transmission of an AV work in an encoded

file for download via DRM technology• consumer is authorised to retain a permanent copy

(initially on hard drive or similar device and potentially for burning onto an optical disk)

• unlimited use/playback. 2. Video On-demand (VOD):

• On-demand content transmission for limited viewing period via DRM technology

• no permanent copy being retained by the consumer• content received via streaming or self-erasing download*indicative only

• Electronic Sell-Thru (Digital to own) & Video On-Demand–What exclusive rights are involved?

•Making available – WCT Article 8•EUCD Article 3.2•In the US – Registrar of © but cf recent caselaw•Public Performance?•Reproduction?

–New modes of exploitation – do you have the rights?•“for all media now known or hereafter invented”•Bans on the licensing of unknown uses

–German CA §31.4 – REPEALED–New §31a – transitional provisions, right of revocation (not an

issue for AV), mandatory collective admin for old contracts• How do you remunerate for distribution via UGCs? Clips, • Other Issues:

–Exhaustion (Art 3.3 EUCD – First Sale Doctrine in US 17 USC §109)–Exceptions/DRM (Art 6 EUCD – DMCA Section 1201 )–Interoperability

VOD and EST – Some legal issues

• What rights are required for music in film? – Reproduction (exception for temporary copies)??– Communication to the Public – Public Performance???– Making Available -- interactive services

• Who is the owner of those rights? – Pre-existing/specifically created - Composers/Publishers

• Rights Acquisition by Producers – Contract and/or– Statutory (work made for hire, cessio legis or presumption of transfer)

• Which Law Applies? What about mandatory rules? • Buyouts and local collecting societies• US is a single territory (ASCAP, BMI, Harry Fox, contractual

freedom)• Music licensing in the EU is undergoing a lot of change…

VOD and EST – Clearing the music?

• Cable retransmission (and Satellite)– Mandatory collective exercise of rights– Role of initial broadcasters– EC Cable & Satellite Directive (Art 9/10)– US Compulsory License (17 USC §§ 111, 119 and 122)– Berne Convention Article 11bis(2)

• New modes of Retransmission– IPTV– Digital Terrestrial TV– Mobile TV– Internet TV– Exclusive rights or mandatory collective exercise or

compulsory license– Territorial scope?– Simulcast issues

New Modes of Retransmission

©

• Continual process• Start Early• Document• Research

– lots of sources online

• Document• Monitor• Document• Legal advice• Risk Assessment• Consequences/Cost

Some Tips

Liam Neeson .... Qui-Gon JinnEwan McGregor .... Obi-Wan KenobiNatalie Portman .... Queen Padmé AmidalaJake Lloyd .... Anakin SkywalkerPernilla August .... Shmi SkywalkerFrank Oz .... Yoda (voice)Ian McDiarmid .... Senator PalpatineOliver Ford Davies .... Gov. Sio BibbleRay Park .... Darth MaulHugh Quarshie .... Capt. PanakaAhmed Best .... Jar Jar Binks (voice)Anthony Daniels .... C-3POKenny Baker .... R2-D2Terence Stamp .... Supreme Chancellor ValorumBrian Blessed .... Boss Nass (voice)Andrew Secombe .... WattoLewis Macleod .... Sebulba (voice)Steven Spiers .... Capt. TarpalsSilas Carson .... Viceroy Nute Gunray/Ki-Adi-MundiRalph Brown .... Ric OliéCelia Imrie .... Fighter Pilot Bravo 5Benedict Taylor .... Fighter Pilot Bravo 2Karol Cristina da Silva .... RabéClarence Smith .... Fighter Pilot Bravo 3Samuel L. Jackson .... Mace WinduDominic West .... Palace guardLiz Wilson .... Eirtaé (as Friday 'Liz' Wilson)Candice Orwell .... YanéSofia Coppola .... SachéKeira Knightley .... SabéBronagh Gallagher .... Radiant VII captainJohn Fensom .... TC-14Greg Proops .... Beed (voice)Scott Capurro .... Fode (voice)Margaret Towner .... JiraDhruv Chanchani .... KitsterOliver Walpole .... SeekKatie Lucas .... Amee (as Jenna Green)Megan Udall .... MeleeHassani Shapi .... Eeth KothGin Clarke .... Adi Gallia (as Gin)Khan Bonfils .... Saesee TiinMichelle Taylor .... Yarael PoofMichaela Cottrell .... Even PiellDipika O'Neill Joti .... Depa BillabaPhil Eason .... YaddleMark Coulier .... Aks MoeLindsay Duncan .... TC-14 (voice)Peter Serafinowicz .... Darth Maul (voice)James Taylor .... Rune Haako (voice)Chris Sanders .... Daultay Dofine (voice)Toby Longworth .... Sen. Lott Dodd/Gragra (voice)Marc Silk .... Aks Moe (voice)Amanda Lucas .... Tey How/Diva Funquita (voice) (as Tyger)

Produced byGeorge Lucas .... executive producer Rick McCallum .... producer  

Original Music byJohn Williams   Cinematography byDavid Tattersall  Film Editing byBen Burtt  Paul Martin Smith   Casting byRobin Gurland  Production Design byGavin Bocquet   Art Direction byPhil Harvey  Fred Hole  John King  Rod McLean   Set Decoration byPeter Walpole  

Costume Design byTrisha Biggar