European Commission proposal for a Directive on collective rights management : initial appraisal of a European Commission impact assessment

Copyright is a factor for growth with significant economic and social importance. On a global scale, the contribution of the creative industries to the GDP and national employment varies significantly in different countries, but reaches 5,4% and 5,9% on average (IA, p. 5). The present proposal should be seen in the context of the Commission's 2010 Communication on the Digital Agenda for Europe and the Europe 2020 Strategy for smart, sustainable and inclusive growth. It is part of a set of measures aimed at facilitating the licensing of rights and the access to digital content, thereby facilitating the development of the legal and cross-border offer of online products and services. The Single Market Act identifies intellectual property rights as one of the key areas in which EU-level action is required. Intellectual property rights are frequently managed collectively by collecting societies ('CSs'), presently mostly established and regulated on a national basis. Commission Recommendation 2005/737/EC on the collective cross-border management of copyright and related rights for legitimate online music services ('2005 Recommendation') invited Member States to regulate the management of copyright and to improve the governance and transparency standards of collecting societies.