UK

Ian Brown (ian/at/fipr.org) and Nicholas Bohm (nbohm/at/ernest.net)

Implementation of the Directive

The UK Government is implementing the Directive as a Statutory Instrument amending the Copyright, Designs and Patents Act 1988 under the European Communities Act 1972. This procedure removes the opportunity for Parliament to amend the legislation; it may only accept or reject the S.I.

Given the Government's large majority in the House of Commons, it is extremely unlikely to fall there. It is also rare for the House of Lords to reject secondary legislation, but not unknown; the threat of such rejection forced the Government to withdraw a surveillance-related S.I. in June 2002.

The Patent Office (the responsible government agency) initially planned to have the S.I. passed into law by the Directive's 22 December 2002 deadline. However, it received so many responses to a consultation on its draft implementation (over 300) that it postponed this date to 31 March 2003 to allow further analysis of the responses. On that date, it then postponed the publication of a final S.I. until “late spring.” On 18 June 2003, it was postponed yet again until “as soon as possible.” It remains to be seen how significantly this version will have changed, but it is unlikely to be by much.

Exceptions and limitations

The UK Government’s basic approach during negotiations on the Directive was to seek to maintain existing UK exceptions as far as possible[1]. It now proposes to amend these existing exceptions where required to comply with the Directive, but in general not to introduce new exceptions permitted by the Directive where these are not already part of UK law.

Under the legislative process being used, Statutory Instruments may only cover matters required by European legislation; hence other primary legislation would be needed to introduce optional exceptions into UK law. The Government recently supported a private member’s Bill (i.e. one not introduced by the Government), the Copyright (Visually Impaired Persons) Act 2002, that introduces exceptions to copyright for the benefit of visually impaired people. Other such initiatives remain possible within the limits of the Directive.

Article 5.1, unlike the other provisions of Article 5, is mandatory:  it requires Member States to provide an exception to the reproduction right for the making of temporary copies of works (other than computer programs and databases) which are transient or incidental to the transmission of those works over networks, or to other lawful uses. Existing UK law has no such exception, and it is proposed to include provisions corresponding to Article 5.1 in the relevant part of existing legislation.

Article 5.2 deals with exceptions limited to the exclusive right to make copies of a work; Article 5.3 deals with exceptions to the exclusive right to copy or publish a work.

Paragraphs 5.2 (a) and (b) permit general exceptions for photocopying or for general copying for private and non-commercial use, subject to fair compensation. There will be no UK implementation. There is a private sector licensing scheme covering much published material, which may be thought to meet the need reflected in these exceptions.

Paragraph 5.2 (c) permits specific copying by publicly accessible libraries, educational establishments or museums, or by archives, which are not for direct or indirect economic or commercial advantage. These exceptions already exist in UK law, but will be modified where necessary to comply with the limitation on the scope of use.

Paragraph 5.2(d) permits the making of ephemeral recordings of works by broadcasting organisations for their own broadcasts and the preservation of these recordings in official archives. This reflects existing UK exceptions.

Paragraph 5.2(e) permits reproductions of broadcasts made by social institutions pursuing non‑commercial purposes, such as hospitals or prisons. There will be no UK implementation.

Paragraph 5.3(a) permits use for the sole purpose of illustration for teaching or scientific research. This reflects existing UK exceptions.

Paragraph 5.3(b) permits use for the benefit of people with a disability. There will be no immediate UK implementation, but legislation within the scope of the Directive may follow later.

Paragraph 5.3(c) permits use of published articles or broadcasts on current economic, political or religious topics and use of works or other subject‑matter in connection with the reporting of current events. There is an existing UK exception for fair dealing with a work (other than a photograph) for the purpose of reporting current events, which is probably narrower than what is permitted by the Directive; there is no proposal to extend the exception.

Paragraph 5.3(d) permits use of quotations for purposes such as criticism or review, which corresponds to an existing UK exception.

Paragraph 5.3(e) permits use for the purposes of public security or to ensure the proper performance or reporting of administrative, parliamentary or judicial proceedings.  There are existing UK exceptions for parliamentary and judicial proceedings and for statutory enquiries, and for certain other administrative purposes. There is no general exception for public security.  There are no proposals to extend the UK exceptions.

Paragraph 5.3(f) permits use of political speeches as well as extracts of public lectures to the extent justified by the informatory purpose. There is an existing UK exception for the use of a record in any form of spoken words, which may be used for reporting current events or for broadcasting the work spoken, subject to a number of conditions (giving the speaker the right to prohibit in advance the making or use of the record, among other things).  The UK exception is somewhat narrower than that permitted. There is no plan to extend it.

Paragraph 5.3(g) permits use during religious celebrations or official celebrations organised by a public authority. There will be no UK implementation.

Paragraph 5.3(h) permits use of works, such as works of architecture or sculpture, made to be located permanently in public places. There is a corresponding UK exception, more specifically expressed as permitting the drawing, photographing, or filming of such works, and broadcasting images of them.

Paragraph 5.3(i) permits incidental inclusion of a work or other subject‑matter in other material. There is a more limited UK exception that permits incidental inclusion of a work in an artistic work, sound recording, film, broadcast or cable programme, but this does not permit the deliberate inclusion of a musical work or of words spoken or sung with music. There is no proposal to make the exception more general.

Paragraph 5.3(j) permits use for the purpose of advertising the public exhibition or sale of artistic works, to the extent necessary to promote the event, excluding any other commercial use. There is a more limited UK exception permitting the copying of a work and the issuing of copies to the public for the purpose of advertising the sale of the work, but this does not extend to exhibitions.  There is no proposal to extend the exception.

Paragraph 5.3(k) permits use for the purpose of caricature, parody or pastiche. There will be no UK implementation, but note that not all such works will infringe the original to which they relate. There may be no taking of a substantial part of the original, for example, or the caricature may amount to fair dealing for the purpose of criticism.

Paragraph 5.3(l) permits use in connection with the demonstration or repair of equipment. This exception reflects a small part of an existing UK exception which currently provides that, where broadcasts are seen or heard in public by non‑paying audiences, there is no liability to pay royalties to broadcasters or producers of sound recordings or films contained in broadcasts. The UK accepts that it must modify its exception for the purposes of implementing the Directive, but appears to intend to maintain it at least to the extent of its overlap with what is permitted by this paragraph.

Paragraph 5.3(m) permits use of an artistic work in the form of a building or a drawing or plan of a building for the purposes of reconstructing the building. This corresponds to an existing UK exception.

Paragraph 5.3(n) permits use by communication or making available, for the purpose of research or private study, to individual members of the public by dedicated terminals on the premises of publicly accessible libraries, educational establishments or museums of works and other subject‑matter not subject to purchase or licensing terms which are contained in their collections. The UK exception for fair dealing with a literary, dramatic, musical or artistic work for the purposes of research or private study (which is to be revised slightly to limit research to non-commercial purposes) covers most of this exception, although the Directive is not limited to the specific works mentioned in the UK provisions. There is no proposal to extend the UK exception.

Article 5.5 provides that the exceptions and limitations of Article 5 are only be applied in certain special cases which do not conflict with a normal exploitation of the work or other subject‑matter and do not unreasonably prejudice the legitimate interests of the rightholder. This reflects the “three step test” found in Article 13 of the Agreement on Trade‑Related Aspects of Intellectual Property Rights (1994) WTO and in Article 10 of the WIPO Copyright Treaty. The UK will apply this test in deciding what exceptions to implement, and will not introduce exceptions which it considers do not satisfy it, but will not incorporate the test itself into UK law.

Technological protection measures

Under section 296 of the Copyright, Designs and Patents Act 1988 the UK has had restrictions in place on circumvention technologies for the last 15 years.  That Act goes even further than the Copyright Directive, providing a right of action against anyone who “publishes information intended to enable or assist persons to circumvent that form of copy-protection”.

However, Articles 1 and 9 of the Directive provide that protection for software must be provided under the Software Directive. The draft legislation would therefore retain these restrictions on devices designed to circumvent copy-protection applied to software. It would not restrict the act of circumventing technology, in order to allow reverse-engineering for interoperability purposes as required by the Software Directive.

For other copyright works, Article 6(1) of the Copyright Directive would be implemented by a new section 296ZA, which equates circumvention of “effective technological measures” by a person “knowing, or having reason to believe, that is the effect of what he is doing” to infringement of copyright.  No intent to infringe is required. It would provide the same civil rights of action to the party that had issued a protected work and the copyright owner as the latter would have against an infringing party. These rights would also be available to the owners of performance, publication and database rights. 

A new section 296ZB transposes Article 6(2). This would create a criminal offence when a person commits one of the following acts:

(a) makes for sale or hire, or
(b) imports otherwise than for his private and domestic use, or
(c) in the course of a business--
    (i) sells or lets for hire, or
    (ii) offers or exposes for sale or hire, or
    (iii) advertises for sale or hire, or
    (iv) possesses, or
    (v) distributes, or
(d) distributes otherwise than in the course of a business to such an extent as to affect prejudicially the copyright owner

any device, product or component which is primarily designed, produced, or adapted for the purpose of enabling or facilitating the circumvention of effective technological measures.

This new section would also create an offence if a person “promotes, advertises or markets a service in the course of a business, or otherwise than in the course of a business to such an extent as to affect prejudicially the copyright owner, the purpose of which is to enable or facilitate the circumvention of effective technological measures.”

It would be a defence under this section for a person to show that “he did not know, and had no reasonable ground for believing” that products or services “enabled or facilitated the circumvention of effective technological measures.” Note also that non-commercial creation and import for private and domestic use of circumvention devices would be permitted. Non-commercial distribution would be allowed on a small scale if it would not prejudicially affect the copyright owner.

S.296ZC also provides the same civil rights of action against a person committing the acts in s.296ZB to the issuers and owners of protected copyright works as the latter has in the case of infringement.

The definitions of Article 6(3) are included in s.296ZD. A technological measure is defined as “any technology, device or component which is intended, in the normal course of its operation, to protect a copyright work”. A measure is deemed “effective” when use of the work is protected through:

(a) an access control or protection process such as encryption, scrambling or other transformation of the work, or

(b) a copy control mechanism, which achieves the intended protection.

The draft mechanism to implement Article 6.4 (allowing beneficiaries of specific exceptions to exercise them with a legally-acquired work protected using a technical measure) was one of the most contentious aspects of the government’s proposals. Under section XXX, a beneficiary must first wait an undefined period for voluntary agreements to be concluded by rightsholders. If those are not forthcoming, they may complain to the Secretary of State. She may then issue a direction to the rightsholder that they provide the beneficiary with such a mechanism. If these directions are ignored, the beneficiary has a right of action against the rightsholder for breach of statutory duty.

Beyond this procedure, there are no specific protections for free speech or privacy rights against technological protection measures. However, the UK Human Rights Act 1998 (implementing the European Convention on the Protection of Human Rights and Fundamental Freedoms) will allow courts to read the provisions of the copyright legislation in a way that is consistent with rights of free speech and privacy. If this cannot be done, the court may notify Parliament that the legislation should be changed to provide these rights. The Data Protection Act 1998, which implements the EU Data Protection Directive, will also apply.

There was no specific protection for research activities in the first draft of the legislation. However, the government has indicated that it will look at this issue carefully and may provide such a mechanism in the second draft, which is due “as soon as possible”[2].

Subsection XXX(9) transposes Article 6 subsection (4)(4) by excluding “copyright works made available by an on-demand service” from this procedure. Performance, publication and database rights are also covered. An “on-demand service” is defined very widely in section 20 as “an interactive service for making a work available to the public by electronic transmission in such a way that members of the public may access the work from a place and at a time individually chosen by them.” But it is not clear that this definition (from Part I of the modified Act) would apply to this subsection (intended to be located in Part VII of the Act).

Enforcement and penalties

Copyright infringement is actionable in the civil courts by rightsholders, whose remedies consist of damages for loss caused by an infringement or alternatively recovery of the profit made by the infringer. Infringers may also be restrained by injunction from further infringement, and ordered to destroy or deliver to rightsholders any infringing copies or materials.  Disobedience of court orders may be punished by unlimited fines or imprisonment.  Those who knowingly circumvent copy protection technology or remove digital rights management information from copyright works are liable as infringers.

Criminal penalties are imposed for commercial or large-scale dealings with infringing copies. The more serious offences can attract sentences of up to ten years’ imprisonment and unlimited fines. The penalties for lesser offences are up to six months’ imprisonment and limited fines.

Criminal penalties are also imposed for commercial or large-scale dealings in devices for circumventing copy-protection technology or the provision of circumvention services: sentences can be up to two years’ imprisonment and unlimited fines.

The national debate

The government consultation over the implementation of the Directive received over 300 responses. We have summarized the responses of a range of groups on different sides of the argument below.

The Foundation for Information Policy Research is an independent body that studies the interaction between information technology and society.

FIPR's consultation response[3] was based around six different areas. It emphasised the relevance of competition policy, and that the implementation should not protect technology protection measures used in non-copyright systems (such as forcing the use of particular ink cartridges or mobile phone batteries). The implementation should fully respect the reverse engineering provisions in the EU Software Directive for both software and file formats. Users should be allowed to restrict the use of their personal information in DRM systems. Open source software must be included in exceptions for “commercially significant” purposes. A clear and broad exemption for security research should be included, and any prosecutions made under anti-circumvention powers should require the approval of the Attorney General, to ensure that wider public policy interests are considered. The definition of "on-demand" service was very wide, and any material available from such a service was exempt from all of the Article 5 exceptions (check incidental/transient copies). Finally, beneficiaries prevented from exercising exceptions by technological protection measures (whether disabled users, libraries or any other group) should have a direct right of action against the rightholder, rather than first have to appeal to the Secretary of State. 

The Campaign for Digital Rights “campaigns for fair and balanced laws for the information society” and has been the main body campaigning on behalf of the general public.  CDR's analysis of the draft UK implementation[4] makes five main points:

·         Cryptography research must be protected, as recital 48 of the Directive states. Research into the effectiveness of security algorithms and systems should not be prevented merely because they might be used in a technological protection mechanism. The Government’s draft implementation would have created civil and criminal penalties for circumventing those mechanisms.

·         Music studios, broadcasters and other media organisations routinely need to copy media as part of their business functions (e.g. making copies of songs to create a playlist for a radio station). They should be exempted from anti-circumvention rules, as should the manufacturers or tools they need to perform those circumventing acts.

·         The draft implementation forces beneficiaries of exceptions to appeal to the Secretary of State of technological protection measures prevent their use of those exceptions. The Secretary of State may then choose to instruct the rightholder to provide some means of doing so. This Secretary of State could be deluged with such appeals. Instead, frustrated beneficiaries should immediately be able to seek a remedy through the courts.

·         Software developers could be put in a precarious position. Developers may need to circumvent technological protection measures in order to reverse-engineer a piece of software or its file formats, which is explicitly allowed by under current UK and European law for interoperability purposes. The implementation must not make such circumvention, or the tools necessary to perform it, illegal.

·         Copyright is a limited monopoly; works eventually re-enter the public domain. This will not automatically be the case when a work is protected using technological measures, unless those measures are circumvented. While this may be legal once a work is out of copyright, it may not be possible – particularly if the rightholder has long since gone out of business. Works should therefore be provided in unprotected form to archivists who will be able to make them available to the public once the copyright has expired.

The Libraries and Archives Copyright Alliance is a grouping of professional bodies working in these fields, along with visually impaired and educational users. It includes such well-known institutions as the British Library.

LACA feels[5], since the Directive took the wrong approach in protecting technical measures even against the exercise of fair dealing rights, that a good implementation of Article 6(4) is critical. They argue that “creators in every field of endeavour are also users of copyrighted materials. A lack of access to them, where the original author suffers no significant damage, will in turn impede or even obstruct research and the making of further works. It is important therefore that the beneficiaries of the exceptions are not injured by legislation intended to prevent infringement.”

The draft UK implementation did not meet this test. It imposed no duty on the Secretary of State to take timely action or enforce directions given, nor allowed an appeal against their decisions. It also prevented classes of persons affected by a technical measure from taking collective action or benefitting collectively from a Direction. While the Copyright (Visually Impaired Persons) Act provides some exceptions for visually impaired users, a wider exception for other classes of disability is required under Article 5.3(b). LACA suggested that a better implementation would allow users and libraries to circumvent technical measures if the Secretary of State gave directions to a rightsholder that were ignored. This would require the legal availability of tools that allowed this circumvention.

LACA is particularly concerned that the UK's draft implementation excludes fair dealing rights from material delivered through an on-demand service, and feels that “electronic delivery as a medium is assigned undue and undeserved importance.” They consider that the article 6.4.4 exclusion should only apply to the on-demand delivery of films and other such broadcasts. Electronic publication of literary works should not come under this category.

LACA suggests that an important provision to introduce into copyright law in future would nullify contractual provisions removing fair dealing rights. This is already the case in Ireland, and has been recently recommended by Australia's Copyright Law Review Committee.

The Royal National Institute of the Blind is the UK's largest voluntary agency providing services for visually impaired people and challenging barriers to their full participation in society.

The RNIB's view[6] is that "complete and unhindered access to information" is vital to this goal. Its main concern with implementation of the Directive is therefore with article 6.4 – the process by which beneficiaries of exceptions may exercise them when restricted by technical measures.

The RNIB argues that there must be an explicit duty on the Secretary of State to respond to complaints in a fair and considered manner. Directions made in response to complaints should apply to the class of persons affected rather than individuals. There should also be a right of appeal if the Secretary of State does not respond adequately to a complaint.

The Government should actively support the exercise of directions given in response to a complaint. Otherwise the cost of doing so would fall on individual complainants, and encourage rightsholders to ignore the directions. It should also be made clear where actions against noncompliant rightsholders would be taken – the courts, Copyright Tribunal or elsewhere. There should be a deadline set for compliance with directions, as the complainant may need immediate access to a work for study or employment purposes.

The RNIB's greatest concern is with the implementation of the “on-demand service” exemption for exceptions. Such services must be defined narrowly, and should not include materials accessed through the World Wide Web. Disabled persons must have a mechanism by which they can circumvent technical measures impeding equitable access to information on the Web.

The British Phonographic Industry is a trade association body with hundreds of members from the UK recording industry. They have four main aims: the fight against piracy; rights negotiation and legal advice; industry promotion; and the provision of key statistics on the industry.

The BPI's arguments[7] are centred on the contribution of the British music industry to the UK economy, and its concerns that digitisation of the music market could reduce this contribution if new controls are not introduced. They argue that the implementation of the Directive must enable the development of new technology and hence online markets, incentivise the record industry to develop its relationship with consumers, protect artists from theft and develop the cultural diversity of Britain's music.

Most important for these requirements are limits on exceptions under Article 5. The BPI suggest that only the compulsory exceptions in the Directive should be implemented; that the temporary copyright exception (5.1) should be implemented verbatim; that all of the 5.2(b) restrictions on exceptions must be implemented, and that existing private use exemptions must not be extended. They also argue that the Berne “three-step test” repeated as Article 5.5 should be explicitly included in UK law to allow the courts to interpret and restrict exemptions based on specific circumstances of their use.

The BPI states that strong protection of technical measures under Articles 6 and 7 is also vital. These are important “to the growth of new e-business” and “enable record companies to create a wide range of listening or copying options for the consumer.” The implementation should broaden existing controls on the provision of devices that circumvent controls or remove rights management information, and even information on how to do so.

Also necessary would be the introduction of a specific new right of “making available” rather than adaptation of existing broadcasting and cable television rights, which contain exceptions such as “time shifting” which the BPI argues are not appropriate for online music services. It claims that without this right, the music business would leave the UK as it would become an entirely uneconomic market.



[1] http://www.patent.gov.uk/about/consultations/eccopyright/impact.htm

[3] http://www.fipr.org/copyright/FIPR.html

[4] http://ukcdr.org/issues/eucd/ukimpl/

[5] http://www.cilip.org.uk/committees/laca/responses_poc.html

[6] http://www.rnib.org.uk/campaign/eucopyright.htm

[7] http://www.bpi.co.uk/legal/lobbying.html