Stream buyouts are “coercive” and pose “significant risk” to creators, says the European Authors Society

“Unfair and coercive” takeover practices put creators at “significant risk” and laws must be implemented to stop them, a collective of copyright groups said.

The Grouping of European Authors Societies (GESAC) warned that the creative buyouts offered by Netflix and Prime Video require “legal solutions at EU level” to ensure that “appropriate and proportionate” compensation is “implemented effectively”.

GESAC, which represents 32 copyright societies from across the continent, said it would “prevent giant platforms outside the EU from enforcing US rules and jurisdictions in their contracts, as has been the case time and time again.”

Compensation and residual payments have been among the biggest points of contention during the US writers’ strike, while many European countries have negotiated performance-based systems with streamers to ensure their creative talents are paid fairly for their content. The EU introduced the Digital Single Market (DSM) Directive in 2019, which it says protects European companies from adverse trading conditions.

GESAC’s demands follow the publication of an independent study commissioned by the European Parliament. The findings recommend legislation to protect authors and composers from acquisition agreements that transfer all copyright in their works to the buyer.

The study claimed that “widespread” buyouts “affect creators, push them into precarious economic situations and jeopardize the quality of their work,” while reducing their “visibility” about the success of their creations.

The survey noted that views on takeovers “differ” between creative unions, but claimed that “especially those representing professional creatives highlight serious threats” and added that the “cultural aspects of copyright needs” factor would need to be included in the legislation. The research also shows that broadcasters and producers generally take a different view and believe that more time should be spent evaluating the impact of the DSM Directive.

recommendations

Recommendations include the “urgent need for a review of the existing legal framework” around copyright and guidelines to “protect authors and artists by ensuring adequate and fair remuneration, freedom to create and the preservation of cultural diversity”.

The study says more collective agreements could be sought that “could balance bargaining power”, and shows examples in Sweden, Denmark and Germany. The idea of ​​creating a new legal status for authors in the EU was also discussed.

In return, streamers see their investment in European content as a new source of income for creators and provide opportunities for business that would otherwise not exist. Purchase agreements also offer significant upfront compensation, although this is increasingly seen as a negative if there is no residual system in place to reward success.

“The study rightly highlights the catastrophic impact of the growing buyout phenomenon on cultural workers and the cultural sector, which plays a key role in the European economy and innovation,” said Véronique Desbrosses, General Manager of GESAC. “It provides independent evidence and complements recent calls from the European Parliament and Member States for legislative proposals from the European Commission and underlines the urgency of EU action.” The legacy of today’s European co-legislators is clear: it is time for action.

Deadline reached out to Netflix, Amazon, Disney, Warner Bros. Discovery and Paramount for comment.