European Union vs. Movie-makers - Who Will Win

Another leak in the Eurodike

For years the cinema industry, led by the Hollywood studios, and the European Union have fought over the issue of a single digital market.  In a nutshell, the issue is that the European Union wants digital content licensed in one E.U. country be available to all E.U. countries.

 Problem: content providers want the ability to license their property on a country-by-country basis. Why? Because it would be very difficult to obtain financing for any project where negotiating distribution rights (particularly with regards to replay of content throughout Europe) would be eliminated.  Additionally, there is the problem of consumers viewing movies and TV shows in a non-production country before it is viewed in the originating country that financed the project.

"At stake is the future ability to finance production, marketing and distribution in Europe by co-production deals and/or pre-selling future distribution rights", says Benoit Ginisty, of the Federation of Film Producers Association of Europe. What is at issue here is the control of intellectual property rights. If the E.U. has its way copyright and IP rights of films and TV shows are rendered void.

The E.U. Council of Ministers is made up of representatives from all 28 member states and the Council makes decisions based not on unanimous vote but by a qualified majority vote. So, although France and Germany have stated their opposition to the E.U. proposal it may still be voted in.

What the opponents to the E.U. proposal want is a re-do, a "fundamental course correction" says Ginisty, "as the proposal on the table is unworkable."

CMG agrees with the content providers.  They should have the right to strike distribution deals in any country they choose.