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EWC Position Paper on Contractual Practices in the European Book Sector
Transparency is the needed commitment to fairness
On the 3rd anniversary of the entry into force of the the Directive on Copyright and Related Rights in the Digital Single Market (2019/790 (EU)), the EWC publishes its 45 pages in-depth report on the impact of Articles 18-23 on the contractual situation of writers in the European sector.
Conclusion: There is still a long way to go from theory to good practice. Transparency and proportionate remuneration are key drivers for a sustainable future of the sources of the whole book value chain.
Reality shows that contractual practices in the European Book sector are diverse and, in many cases, still far from ideal. The European Writers’ Council’s latest report on contract clauses and remuneration of fiction writers, published on 7th of June 2024 on the occasion of the 3rd Anniversary of the Directive on Copyright and Related Rights in the Digital Single Market (2019/790 (EU)) (hereafter: CDSM Directive), shows the lack of reversion rights, the absence of updated clauses for electronic usages, a growing lack of transparency, especially in digital distributions by EU and non-EU monopolies, and a rising use of books by state and public interest institutions, lacking proportionate remuneration and transparency as well.
While most contractual principles as well as royalty shares have been untouched in place for over ten decades in some cases, the global publishing landscape has evolved dramatically since the late 1990s and 2010s.
Still, there are many needs for adaptation in contracts, particularly on audio and e-book subscriptions and streaming transparency as well as proportionate and appropriate remuneration, which needs to make transparent all the discounts in the elements of the book chain, as well as streaming intermediaries demand; on artificial intelligence (AI) related to Text and Data Mining and algorithm programming for generative AI systems; and to enforce EU legislation onto non-European monopolies, when acting on EU territory and distributing European intellectual goods. However, it is equally important to document the increasing use of books and texts within European institutions in a much more transparent way, such as the use of material in analogue and digital public libraries, in university semester intranets, or for use in archives and museums, as well as schools and other digital learning resources.
The EWC therefore states its position and encourages Member States:
- To define appropriate and proportionate remuneration concretely and make sure theory becomes practice.
- To improve the transparency of every use of a book work two times annually, including figures of print copies and sales figures, especially in the digital environment, and therefore clarify in the legal provisions that third-party licensees are obligated to submit full transparency of usage, which includes state and public interest institutions and their intermediaries / aggregators as well as national and international streaming providers, and B2B licensees.
- To improve the enforcement of national obligations and EU law on transparency obligations and proportionate remuneration towards national as well as non-EU companies of streaming providers and digital distribution intermediaries.
- To implement and clarify within legal provisions and laws an applicable “use it or lose it” reversion right.
- To have out-of-court protocols and mediation bodies to accompany common remuneration rules, collective bargaining, negotiation of standard contracts and help writers enforcing their rights.
- To significantly increase the budget for PLR, for e-lending under voluntary licensing conditions in Public Libraries, for educational and teaching materials under licensing agreements – and to avoid additional limitations or exceptions.
The EWC calls on the European Commission,the Members of the European Parliament and the representatives of Member States:
- To adjust competition law to allow professional writers’ associations to make a model contract or best clauses publicly available for writers, including to be allowed to recommended fees, e.g., for readings or figures for contract clauses.
- To speed up the full implementation of the CDSM Directive where it is still missing, and to put sanctions on those EU Member States of Bulgaria, Portugal, and Romania, who haven’t yet got the PLR Directive (1992 / 2006) in function.
- To not create more exceptions and limitations onto the writers’ burden to fulfil states’ mandates, especially not for remote education and digital access. IP law restrictions are not the solution, but rather enhancing the budgets.
- To evaluate the positive effects of the fixed book price (FBP) on writers’ income and the whole sectoral environment – and book lovers, too.
No book sector can exist without its true originators, the authors. However, in order that the authors can exist, enforceable and ethical legislation is necessary for the protection of their creations. We truly believe in human creation, in human responsibility, in interconnective communication. Culture is the essence of interaction and understanding between individuals, groups, and nations.
To the report and summary https://europeanwriterscouncil.eu/writers-contracts-ewcsurvey-2024/
To the pdf (45 p., 9 MB) EWC CONTRACT REPORT FICTION 2024
To the press release https://europeanwriterscouncil.eu/media-information-3rd-anniversary-of-the-copyright-directive
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