Digital Rights Management Systems (DRMS), private copying and levies

In the digital environment of the Information Society and more particularly with the advent of the Digital Rights Management (DRM) systems, there is an ongoing debate about the continued existence of levies - which are in fact the right of equitable remuneration for the benefit of the rightholders for private copying -.

DRM systems are digital solutions to license rights and administer payments of royalty on an individual scale. Some seem to think that the potential of DRM systems could offer an alternative to the application of levy schemes.

The Directive 2001/29/EC of 22 May 2001 on the Harmonization of Copyright and Related Rights in the Information Society (=> Download PDF file) provides for the legislative framework to deal with the relation between private copying levies and DRMs (more particularly the recitals 35, 38 and 39 and Articles 5 (2) (b) and 6).

Information Society Directorate General (DG Infso) of the European Commission has been actively promoting the development of Digital Rights Management Systems through research projects and dialogue with all stakeholders concerned by this issue.

The promotion of open, flexible and interoperable DRMS was the subject of the first workshop organized by the European Commission in Brussels on 28 February 2002. As a follow-up four thematic Working Groups respectively open to end users, technology manufacturers, rightholders and collective management societies were organized by DG Infso. The purpose of those working groups was to facilitate dialogue between the different stakeholders on the DRM.

The second workshop took place on 25 March 2003 bringing together representatives of Member States and of the main stakeholders to present the results of the working groups and to gather views on what should be the future role of the Commission on this issue.

The minutes of these working groups can be consulted on the web site of the European Union under the activities of DG Infso.

In its Communication “Connecting Europe at high speed: recent developments in the sector of electronic communications” adopted on 3 February 2004, the Commission announced the establishment of a High Level Group to address current issues arising from Digital Rights Management.
The Group brings together representatives of interested parties ranging from right holders, collecting societies, content providers and the ICT sector to research and consumers organisations.
A first meeting of the High Level Group on DRM with Commissioner Liikanen took place on 31 March 2004 and was followed by another meeting on 5 July 2004. The Group has drafted a Final Report (=> Download PDF file) with its positions on the appropriate response to the policy challenges posed by DRMs.

On 6 April 2005, the Commission organised a workshop to further explore ways to reach consensus on DRM, and presented a summary of the consultation on the High Level Group final report on DRM (=> Download PDF file).

See also "Private Copying, Levies and DRMs against the Background of the EU Copyright Framework",  Speech of Mr. Reinbothe at the DRM and Levies Conference, 8 of September 2003
=> Download PDF file ...