EWC welcomes the adopted report Policy implications of the development of virtual worlds – civil, company, commercial and intellectual property law issues (2023/2062(INI))
In the shadow of the AI Act, equally relevant reports and political decisions are being negotiated in the final months of the expiring legislative period of the European Parliament that will have an impact on the medium-term future of writers and their working and income environment. One of these concerns the reports on so-called virtual worlds and the “metaverse” that were voted on by the European Parliament last week in Strasbourg.
The EWC’s welcomes the report Policy implications of the development of virtual worlds – civil, company, commercial and intellectual property law issues (2023/2062(INI)) to be an essential landmark and appreciates the decisive acknowledgement of the importance of protecting the book sector’s sources, the writers and their authors’ rights to be an essential landmark and appreciates the decisive acknowledgement of the importance of protecting the book sector’s sources, the writers and their authors’ rights.
The resolution translated into all official EU languages is available at the following link:
Background
The Metaverse, and enhanced 3D-version of the internet, is a playing field of Microsoft, Alphabet, Amazon, Nvidia and several other monopolies. In these virtual worlds, that “copy” the reality, it shall be possible to trade books or offer translations, buy and sell intellectual property rights, use written works, listen or record audio book performances. Text works can be made accessible, book characters transformed with the use of generative AI, digital books and audio books may be lent out or be (illegally) (re)sold. All these activities can happen beyond territorially borders and ignore applied national legal frameworks.
All these possible new uses of cultural, literary and other text or performative works pose burning legal questions about licensing, remuneration, contract design and handling of individual licensing, collective licensing via collective managements organisations, consent mechanisms as well as clarification responsibilities in the case of copy right, authors‘ rights or performance rights infringements.
EWC’s activities
Accordingly, the EWC has been involved for 14 months and by the board’s task force on digital developments (Nina George, Maia Bensimon together with Zsuzsánna Dóczy) and intellectual property rights and has contributed through consultations, evidence papers and extensive feedback during the development of the parliamentary reports in order to help shape the future of the coming generations of writers in due time.
Especially the report by the JURI (Legal Affairs) Committee needed the EWC’s full attention to ensure that writers’ needs were implemented,
- Respect for current EU copyright law, in particular on mechanisms of consent, remuneration, and transparency, but also onto lending and renting rights
- Respect of the exclusive rights regime of authors and writers
- Rules for dealing with expected infringements
- Respecting the human nature of cultural works and not granting IP rights to AI-made products and outputs
- Rules for the use of generative AI incl. fake authorship
- Labelling of AI works to avoid false remuneration claims and disinformation
- Rules for the cross-border use of original texts, out-of-commerce works and orphan works
Adopted reports
EWC welcomes that the issue of virtual worlds were analysed from two different aspects by the Members of the European Parliament: the own-initiative report of the Internal Market Committee by Pablo Arias Echeverría (EPP, ES) on the opportunities, risks and policy implications of virtual worlds for the Single Marketwas adopted on 17th of January 2024 with 484 votes for, 45 against and 98 abstentions, examined the metaverse from the Single Market point of view. The own-initiative report of the Legal Affairs Committee by co-rapporteurs Axel Voss (EPP, DE) and Ibán García del Blanco (S&D, ES) on policy implications of virtual worlds in civil, company, commercial and intellectual property law was adopted with 491 votes for, 106 against and 35 abstentions focused on the legal aspects. Both resolutions come as a reaction to the Commission communication from 11 July 2023 on virtual worlds.
While experts presume it may still take 10 to 15 years for the virtual worlds to reach their full impact, their existence will influence the book sector on all levels: authors’ rights, remuneration streams, form of distribution, forms of educational systems, and also new forms of infringement. Once fully developed, virtual worlds are expected to significantly influence the digital, social and economic landscape, bringing both creative opportunities but legal and economic risks for authors and the book sector.
The aim of these reports and next steps on EU policy level
MEPs underline that EU law on the protection of intellectual and industrial property rights fully applies to virtual worlds, including trademarks, patents and trade secrets and the authorisation through licensing is therefore necessary and must be transparent.
MEPs believe that fair remuneration of authors should be ensured. They also mention regulatory challenges caused by AI-generated outputs and call on the Commission to organise in expert discussions on how to address them.
By adopting the reports, Parliament has given the European Commission the mandate, to set up guidelines and best practices clarifying the legal obligations and responsibilities of the various stakeholders involved in virtual worlds, and to develop this together with the impacted stakeholders.
The EWC is committed to continuing to be involved.