EU Copyright Directive Text Is Approved And Goes Towards Final Vote

The European Union’s Article 13 Copyright Directive which holds platforms like YouTube accountable for the infringement of user uploaded content is finally moving towards a final vote after some revision of text that now seems to appease all voting parties. YouTube has been lobbying heavily for the text to not contain user generated content (UGC) language, but it looks like that provision is still included.

We’re still not exactly sure what’s in the final text though, as that hasn’t yet been released, but its intention is to hold companies hosting user-generated content liable for any copyright infringement of uploaded content by their users.

The idea behind this provision is for content creators like artists and songwriters get paid more from YouTube and similar platforms. According to IFPI estimates, Spotify paid record companies $20 per user for every $1 that YouTube paid out in 2017, and that “value gap” continues to grow.

Should the legislation become law, if a user uploads a video with an unauthorized piece of music attached, the platform is obligated to either take it down immediately or prevent it from being uploaded in the first place, or it will be held liable for the violation.

There are many unintended consequences that might occur as a result of Article 13’s passage however. For one, it would be much more difficult for a video or song to go viral, since it would no longer be possible for users to upload their versions of the song.

It also might mean even less revenue from YouTube for an artist and label, since UGC videos are usually monetized by the copyright holder and turn into separate revenue streams that are sometimes higher than the official video itself.

That’s all speculation though, as we really don’t know what the final language is yet (although some of it was leaked by Politico here), nor do we know exactly what will be required of YouTube and how they will respond.

Of course, this is all only for European countries in the EU, and doesn’t affect the U.S., although it could set a precedent for future legislation here.

Stay tuned as it’s about to get interesting.