Intellectual Property Challenges in the Digital Age : Online Copyright Infringement in the EU

The European Union (EU) continues to grapple with online copyright infringement, a pervasive issue that has evolved in complexity due to rapid technological advancements. The increasing ease of accessing pirated content through sophisticated digital channels presents significant challenges to rightsholders and policymakers. Addressing this issue effectively requires an in-depth understanding of piracy trends, consumer behavior, and the economic and social factors that influence piracy.

The European Union Intellectual Property Office (EUIPO) has been instrumental in monitoring and analyzing online copyright infringement. Its latest findings, spanning from 2017 to 2023, provide comprehensive insights into the dynamics of piracy across a wide range of content types, including films, music, publications, software, and television. Additionally, the report sheds light on the growing prevalence of IPTV (Internet Protocol Television) piracy, emphasizing its unique characteristics and significant market impact.

The Evolving Scope of Online Copyright Infringement

The EUIPO’s journey into understanding online piracy began with a 2019 report that primarily focused on films, music, and TV. Over time, the analysis expanded to encompass pirated access to publications and software, starting in 2021. This broadening of scope highlights the adaptive nature of piracy as it extends to new forms of media and software products. The latest data, covering January 2017 to December 2023, paints a comprehensive picture of piracy across all 27 EU Member States.

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The Role and Challenges of Copyright Law in the Digital Age

Copyright law protects creative works by granting authors exclusive rights to control their use and derive income. These rights include reproduction, distribution, and public communication. Additionally, related rights safeguard the contributions of performers, producers, and broadcasters, ensuring they are compensated for their efforts. Copyright protection is automatic upon creation, distinguishing it from other intellectual property rights, and applies to the expression of ideas rather than the ideas themselves.

In the EU, copyright laws have been harmonized through directives and regulations, balancing the territorial nature of national systems. Protection typically lasts for the author’s lifetime plus 70 years, while related rights last 50 years, with some exceptions extending to 70 years.

Authors also possess moral rights, such as authorship and integrity, which persist even if economic rights are transferred. Economically, copyright ensures fair compensation for creators while enabling public access and fostering innovation.

Copyright infringement arises when works are used without permission unless covered by exceptions, like private copying for personal use. In the digital age, infringement has become easier through large-scale file-sharing and streaming. The Court of Justice of the European Union (CJEU) has clarified the rules regarding digital copyright, including intermediary liability and the limits of exceptions.

The rapid evolution of media industries has challenged copyright enforcement. Pirates use sophisticated methods to evade detection, undermining legitimate markets. Addressing these issues requires robust laws, technological advancements, and cooperation between stakeholders to sustain creative industries while ensuring access to content.

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IPTV Piracy: A Distinct and Escalating Threat

One of the most notable additions to the EUIPO’s research is its detailed examination of IPTV piracy. Unlike traditional forms of online piracy, IPTV involves illegal streaming of TV shows, movies, and live sports through internet-based platforms. These services often replicate the appearance of legitimate platforms but operate outside legal frameworks, bypassing official subscription channels.

IPTV piracy typically requires specialized equipment such as set-top boxes or dedicated applications. It operates through a variety of revenue streams, including subscription fees, advertisements, or reseller partnerships. The economic ramifications are extensive, as it undermines revenue streams for content creators, broadcasters, and legitimate subscription services, while also reducing the perceived value of broadcast rights.

Law enforcement efforts, including large-scale operations to dismantle IPTV networks, have achieved some success. However, tackling IPTV piracy requires a multifaceted approach. Technological solutions, such as improved content protection systems, need to be paired with international legal cooperation and consumer education initiatives to reduce demand for illegal services.

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Trends Across Different Content Categories

The EUIPO’s analysis highlights significant trends in piracy behaviors across various types of content, providing insights into the changing landscape of copyright infringement.

1. Television piracy

• Trends and Preferences: Television piracy stabilized in 2023, with an average of 5.1 accesses per internet user per month. Streaming remains the dominant method, accounting for the majority of pirated TV content consumption. Desktop devices are preferred over mobile devices, with desktops constituting 60% of accesses.
• Regional Disparities: Significant differences exist among Member States, influenced by factors such as economic conditions, access to legitimate content, and consumer habits.

2. Film piracy

• Decline in Activity: Film piracy saw a 25% decline in 2023, reaching 0.9 accesses per user per month. Streaming accounted for 74% of film piracy incidents, with torrenting playing a smaller role.
• Device Usage: While desktops remain the primary method for accessing pirated films, mobile usage is gaining prominence, reflecting broader digital consumption patterns.

3. Music piracy

• Current Trends: Music piracy ended 2023 with 0.6 accesses per user per month, a slight increase compared to the previous year. Ripping remains the most common method of piracy, and mobile devices are the primary access point.
• Diverse Patterns: Preferences for piracy methods and devices vary significantly across EU Member States, influenced by local economic and cultural factors.

4. Publications piracy

• Flat Growth: Publications piracy remained steady in 2023, with an average of 2.7 accesses per user per month. Downloading dominates piracy methods, comprising 88% of incidents.
• Popular Content: Manga leads as the most pirated publication type. Mobile devices are preferred, outpacing desktops by 50%.
• National Differences: Countries exhibit wide variations in piracy rates, with some significantly below the EU average and others well above it.

5. Software piracy

• Rising Trend: Software piracy increased by 6% in 2023, averaging 0.9 accesses per user per month. Mobile software, especially games, is the most pirated category.
• Device Shifts: Mobile devices now account for half of all software piracy, a sharp contrast to declining desktop usage.

6. Sports and Live Events piracy

• Dynamic Fluctuations: Sports piracy, a subset of TV piracy, rose from 2021 to 2023, peaking at 0.75 accesses per user per month in October 2022. It slightly decreased to 0.53 accesses by the end of 2023.
• Preferred Devices: Desktops continue to dominate this category, indicating the specific viewing preferences of sports enthusiasts.

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Unveiling the Drivers Behind piracy

The EUIPO’s econometric models provide a deeper understanding of the socio-economic and demographic variables influencing piracy across content types:

• Television Piracy: Youth unemployment correlates negatively with piracy, possibly because unemployed individuals often live with parents who subscribe to legitimate services. High internet penetration and greater access to mobile devices also contribute to lower piracy rates. Conversely, the COVID-19 pandemic spurred an increase in piracy as restrictions limited access to public entertainment venues.
• Film Piracy: Higher GDP per capita is associated with reduced piracy rates, indicating that economic prosperity enables more people to afford legitimate services. However, higher proportions of young people and elevated youth unemployment rates drive up piracy levels. Greater awareness of legal streaming platforms tends to reduce film piracy.
• Music Piracy: Economic inequality, as measured by the Gini index, strongly influences music piracy. Countries with higher income inequality exhibit higher piracy rates, while a large youth population and permissive attitudes towards piracy exacerbate the problem.
• Publications Piracy: Similar to music piracy, higher income inequality and increased internet usage correlate with higher levels of publications piracy. The growing popularity of mobile devices has also contributed to the prevalence of pirated publications.
• Software Piracy: Income inequality, mobile penetration, and a general inclination towards piracy are key drivers of software piracy. The increasing ubiquity of mobile devices has led to a surge in pirated mobile applications and games.
• Sports and Live Events Piracy: Surprisingly, GDP per capita positively correlates with live sports piracy. This may be due to higher demand in wealthier countries, where elevated prices deter some consumers from subscribing to legal services. In contrast, lower GDP countries may lack significant interest or accessibility to such events.

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The Role of Legal Alternatives and Public Awareness

A consistent finding across all content types is the critical role of legal alternatives and public awareness in reducing piracy. For example, the availability of robust streaming platforms and affordable subscription services has contributed to declines in film and TV piracy. Similarly, the presence of a larger number of TV channels correlates negatively with TV piracy rates, suggesting that access to diverse legal options reduces the allure of illegal alternatives.

Public awareness campaigns further bolster these efforts. Educating consumers about the negative consequences of piracy—both legal and economic—helps dissuade individuals from engaging in illegal activities. Highlighting the advantages of legal platforms, such as better quality, reliability, and customer support, also plays a pivotal role in shifting consumer behavior.

Conclusion

Online copyright infringement remains a significant challenge in the European Union, with varying trends across different content types. While declines in film and TV piracy offer promising signs, the rise of IPTV piracy and the persistence of software and live sports piracy underscore the evolving nature of the problem. Addressing these issues requires a multi-pronged strategy that combines legal enforcement, technological innovation, and consumer education.

As digital consumption continues to grow, fostering a robust legal ecosystem that balances affordability, accessibility, and quality will be essential in reducing piracy rates and safeguarding intellectual property across the EU. By leveraging the insights provided by the EUIPO’s comprehensive research, policymakers and stakeholders can design targeted interventions to combat this ongoing issue effectively.

Source: European Observatory on Infringements of Intellectual Property Rights of the EUIPO

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