New EU Copyright Law Brings Compliance Challenges for Tech Company Counsel
The European Union's controversial copyright directive, which holds platforms accountable for copyright-infringing posts on their site, passed a final vote Tuesday. U.S. tech companies can start eyeing compliance efforts as EU nations finalize their versions of the directive.
March 27, 2019 at 05:57 PM
3 minute read
The European Parliament passed a controversial new directive Tuesday that increased online publishing platforms' accountability for copyrighted material posted on their sites without owner consent.
Many U.S.-based tech companies, including Google, Reddit and Twitter, have spoken out against the directive, especially Articles 11 and 13, which would impact online publishers and require platforms to filter out or block copyrighted content, potentially including remixed material. Critics said the directive could hamper online creativity, lead to over-censorship and force companies to drastically change parts of their sites in Europe.
“It's a fairly large break from U.S. law on this topic,” said Jesse Saivar, the chair of Greenberg Glusker Fields Claman & Machtinger's intellectual property and digital media and technology groups.
He and Ron Moscona, a partner at Dorsey & Whitney's London office, said the law could bring serious change to online platforms. But, they noted, it's difficult for legal departments to start building compliance strategies as each EU country gets two years to adapt the directive into their own, individualized national law. It's ”not clear at all” if the U.K. will adopt the directive, Moscona said, while Brexit negotiations are underway.
Still, Saivar said there are some steps in-house counsel can start to take, with a broad view of what is currently, lawyers said, a relatively vague directive. He recommended in-house counsel “start looking into content filters” and engage with EU-based attorneys to get “boots on the ground.”
Companies should create or build on procedures that allow creators to file takedown notices, users to petition their post be restored and to obtain consent from creators to include their material in platform posts, Moscona said.
“[Counsel] need to ascertain the risks for them and to what extent the legislation puts them at risk,” Moscona said.
New platforms in the EU market could face fewer restrictions as they start up, he noted. The directive applies to companies based outside of the EU, Moscona said, “it doesn't matter if they're headquarters are in California or Brazil or Paris.”
U.S.-based companies will have to consider whether they'll be able to distinguish between the European and American parts of their platform. Some smaller companies may not be able to afford technology that would enable them to filter out third-party content in Europe, Saivar said.
“One question will be whether it's even worth it to operate in Europe,” Saivar said. “That's something [in-house counsel] should be discussing with outside copyright counsel immediately.”
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