Fair Remuneration
Fair Remuneration
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The proposed Directive aims to strengthen the negotiation position of creators and performers by ensuring that creators and performers get remunerated fairly.

Many authors and performers are not able to negotiate with publishers and producers for a fair share of the revenues generated by the exploitation of their works and performances. Some authors and performers transfer all their rights for all types of exploitation of their creations and receive only a one-off or symbolic fee. Only a minority of (successful) creators and performers manage to negotiate the payment of additional royalties for the online exploitation of their creations.

Creators and performers should receive an adequate remuneration for the exploitation of their creations and performances. The right to receive adequate payment should be granted by law in order to significantly improve the bargaining position of creators and performers to prevent situations where they sign away their rights in return for inadequate compensation. However, that right should be waivable, otherwise it will interfere with the operation of open licensing and impose unjustified limitations to the ways creators can exercise their rights.

To protect creators and performers, the European Parliament proposed adding a new article "minus 14" to the text of the proposed Directive that would ensure “that authors and performers receive fair and proportionate remuneration for the exploitation of their works and other subject matter, including for their online exploitation.” The exact formulation of this article remains one of the open issues in the ongoing trilogue negotiations, where both the Commission and the Council are attempting to weaken the language proposed by the Parliament.

History

Status Quo

Currently, there is no provision in the EU law granting authors and performers the right to receive a fair compensation for all uses of their copyrighted materials.

Commission

Under the title “Measures to achieve a well-functioning marketplace for copyright,” the Commission proposed a number of measures aimed at strengthening the position of creators in contractual relationships with intermediaries. Specifically, Article 14 introduces a transparency obligation for intermediaries towards rights holders, and Article 15 contains a contract adjustment mechanism intended to give creators some recourse if, after they sign their rights away, their works end up being much more successful than originally envisioned. These measures were criticised by organisations representing performers as not strong enough to adequately improve the negotiation position of creators.

Parliament and Council

The negotiation mandate adopted by the Member States did not contain any amendments dealing with the remuneration rights of authors and performers. In its report, the European Parliament proposed to add a new article "minus 14" that intends to ensure “that authors and performers receive fair and proportionate remuneration for the exploitation of their works and other subject matter, including for their online exploitation.” This addition enjoyed broad support across the political spectrum and was regarded by many members of the EP as an important addition to balance out some of the more problematic aspects of the proposed directive, such as Articles 13 and 11.

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