EC-study on contractual practices affecting the transfer of copyright and related rights
01-04-2025 Print this page
Authors and performers frequently transfer their rights to third parties for exploitation. The rules and practices governing these transfers vary significantly across Member States and sectors (music, audiovisual, visual arts, literature, and video games). This study, commissioned by the European Commission, analyzes these contractual practices and their impact on authors, performers, and producers.
A key focus is the bargaining power of authors and performers. In the audiovisual sector, authors often have weak bargaining positions, leading to buy-out contracts with lump-sum payments or low royalties. Performers benefit somewhat from collective bargaining agreements. In the music sector, 38% of authors and performers reported a decline in bargaining power, while in visual arts and literature, competitive pressures and technological developments further limit negotiation leverage.
Producers face challenges in retaining exploitation rights, particularly when collaborating with global streaming platforms. A lack of transparency regarding exploitation data and the dominance of the commissioning model restricts their ability to retain ownership rights, posing a threat to the European audiovisual industry.
Legal analysis
At the international and EU level, rules exist to protect authors and performers, but they do not impose strict limitations on rights transfers. The EU Directive on Copyright in the Digital Single Market (DSM Directive) introduces principles such as proportional remuneration and transparency, but enforcement remains weak. National laws may provide additional safeguards, such as restricting rights transfers to what is strictly necessary.
For producers, EU law offers little specific protection beyond general contractual principles and provisions in the Audiovisual Media Services Directive. There is also a lack of clear rules on choice of law and jurisdiction in international contracts, leaving authors, performers, and producers subject to contractual freedom without mechanisms to correct power imbalances.
