Copyright challenges today

AmCham's breakfast seminar with Peter Danowsky pulled in a wide variety of people – and their legal counsel – together for a fact-filled review of the copyright issues facing us today. When the verdict was handed down in the Pirate Bay case on 17 April 2009, it was clear that the world was watching, “ says Danowsky. “Over 600 newspapers carried the news on the front page. This almost brings it in line with other celebrated court proceedings, such as the O.J. Simpson trial or the Nurnberg trials.”

“But the real surprise was that there were so many people who were surprised by the verdict,” adds Danowsky. “It was as if they didn’t know that copyright violations carry severe penalties. The “gang of four” was sentenced to one year in prison and 30 MSEK in fines, but the case is now under appeal. Reactions have been measurable – illegal file sharing is down, while CD sales enjoyed an upswing.



Danowsky would claim that the digitalization of content has not much affected how copyright law is to be applied. “The creation process has not changed,” he says. “The concept of a work is the same, and the uses are basically the same. And the need for restrictions in the exclusivity for relevant societal purposes are the same. No one has ever argued for broader exceptions.”

Industry response to infringements has been slow in some cases but effective. “The TV, recording and film industries have developed much better services over the last two years,” claims Danowsky. “Spotify and other legal actors are making headway in their markets because delivering services legally outweighs the risks of copyright infringement.”

 
Ivor Viljoen, Universal Pictures Nordic

Musicians have pretty much kept a low key in order not to risk popularity with their fans, according to Danowsky. Those who have spoken out against copyright infringement have been publicly ridiculed, and have paid a high price
for it. And the organizations designed to organize copyright royalties for composers, artists and writers have shown themselves to be weak proponents in the face of organized infringement.

According to Danowsky, there are four fundamental principles of copyright that cannot be swept away.

• Creators, performers, producers and investors must have an economic incentive and a possibility to get paid
• Consumption must cost
• Rights must be respected
• Efficiency in the judicial system is essential

Because of this, there are two other things follow. One is that copyright infringements are driving a slow but steady evolution of new forms of financing that take into account digitalization and increased access. The second is that the final resolution of the Pirate Bay case will be followed by everyone, and everyone will expect it to set boundaries. But will they be respected? Stay tuned.

Background

Fighting copyright infringement has been a top priority for the US Embassy in Stockholm for years. The content industry – and other industries that are dominated by intellectual property, such as pharmaceuticals and software – are the backbone of the US economy now and one of its top exports. Given this, the US enacted the implementing legislation of the WIPO (World Intellectual Property) treaty in 1998. The EU Directive – Infosoc Directive – which implemented the treaty did come until 2001 and Sweden lagged behind implementing it in Swedish law until 2005.

 



Peter Danowsky, Danowsky & Partners, Cecilia Versteegh, Gerard Versteegh, Bonver Videodata AB, Magnus Sjöqvist, Accenture AB, Berit Salheim, AmCham Sweden AB.

Photos by Rob Nelson

Written exclusively by Robbin Battison, Battison & Partners

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