Europe delivers copyright blow for Napster

Members of the European Parliament (MEPs) have voted to accept proposals, which ban Napster-like copying systems, just days after a US court rejected Napster's appeal in its fight against US music giants.

The amended European Union (EU) copyright directive, now five years in development, is designed to extend copyright protection for artists to the internet, next-generation mobile phones and digital television.

At stake is an estimated Eu20bn worth of copyrighted material a year that is duplicated on the internet without prior permission, according to a 1998 Forrester Research report.

Last week, the European Parliament's Legal Affairs Committee approved only a handful of 197 proposed amendments to copyright law suggested by EU bureaucrats.

The Committee's position, in principle, gives artists and producers exclusive rights to their work, with certain exceptions, including copying by "natural persons for private use for ends that are neither directly or indirectly commercial."

A statement on today's ratification by Parliament said member countries will be able to widen these exceptions when they draw up legislation based on the directive in the next 18-24 months.

It said: "In addition, member states will have the option of introducing exceptions or limitations to artists' rights to take account of the interests of the public, the industry and certain specific categories (e.g. persons with disabilities) or for certain purposes (reproduction by the press, religious purposes) or of the need to promote scientific research and artistic works."

Although more favourable to users than previous drafts, the directive has been criticised by those on both sides of the debate.

The music industry, itself the subject of a European Commission investigation into price fixing of CDs, wanted MEPs to expressly forbid people to make copies of songs downloaded from the internet without paying royalties, which is how Napster currently works.

Artists believe the provisions for royalty payments may mean they receive a bare minimum fee from broadcasters while consumer groups fear that the tighter rules may hinder consumer choice and technological progress.

However, internet service providers are happy. Proposed exceptions to artists' rights ensure technologies such as caching, which allow the internet to work efficiently, are not affected, ending two years of doubt.

"Under one such exception, the only one applicable compulsorily in all member states, temporary acts of reproduction will be allowed where these are transient or incidental and form an integral and essential part of a technological process," the draft statement said.

Joe McNamee, a spokesman for the European Association of Internet Service Providers commented: "The ratified text is not perfect, but it certainly doesn't impose the limitations on service providers that the original text voted on two years ago definitely would have done."

The directive will now be discussed between the European Parliament and the Council of Ministers, many of whose amendments have been rejected, before a final version is drawn up in the summer. From that point, each country will have 18 months to introduce national legislation based on the EU directive.

Legislative Timeline: five years in the making

Apr 1996: Original proposal: Copyright and Related Rights in the Information Society. Green Paper.

Oct 1996: Receives first reading in European Parliament, and is scrapped.

Nov 1996: Revived as Copyright and Related Rights in the Information Society. Follow-up to the Green Paper.

Nov 1997: Receives first reading in European Parliament, and is scrapped.

Dec 1997: Revived as Information Society: Copyright and Related Rights.

Feb 1999: Receives first reading in European Parliament, and is passed.

May 1999: Amendment to February text passed by European Parliament.

June 1999: Modified proposal goes to the Council of the EU to form a common position.

May 2000: Hoped-for Council decision delayed at least until June.

June 2000: Draft agreed.

July 2000: Ministers approve final draft, administrative process to prepare for second reading before Parliament begins.

Autumn 2000: Procedures to give bill second reading begin.

Feb 2001: EU parliament ratifies amended directive.

Spring 2001: Reconciliation between EU Parliament and EU Council of ministers.

Summer 2001: Final directive agreed, member states have 18 months (approx. December 2002) to introduce legislation.