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@proceedings{2252657,
author = {Woznica, Ondřej},
booktitle = {Visit of Institute of Law and Technology Masaryk University at the Department for Innovation and Digitalisation in Law of the University of Vienna},
keywords = {Coase Theorem, Copyright, CDSM Directive, Information Asymmetry, Licensing, Platform Liability, Social Production, Transaction Costs, User-Generated Content, Value Gap},
language = {eng},
title = {CDSM Article 17: free riding, asymmetry in markets and overblocking of user-generated content},
year = {2023}
}
TY - CONF
ID - 2252657
AU - Woznica, Ondřej
PY - 2023
TI - CDSM Article 17: free riding, asymmetry in markets and overblocking of user-generated content
KW - Coase Theorem, Copyright, CDSM Directive, Information Asymmetry, Licensing, Platform Liability, Social Production, Transaction Costs, User-Generated Content, Value Gap
N2 - The contribution aims to provide background into the centrepiece of online copyright regulation, the Article 17 CDSM Directive. The insight provided applies the theory of Economy and Law to rapidly developing technology to identify tendencies previously sidelined by normative research. The analysis builds predominantly on Coasean economics. Article seeks to provide legal background and consider broader policy reasoning, namely the value gap argument, as the driving force behind the implementation and as a moral panic. Article 17 CDSM Directive provides rightsholders with a better position to leverage copyright by extending legal bundle of rights to previously public domain uses, namely the sharing of user-generated content online where only users performed copyright-relevant acts. Accordingly, Article 17 requires platforms to license, remove, and prevent the re-emergence of content. In addition, it provides rightsholders with legal access to CRM tools to prevent reappearances. Lastly, Article 17 contains several mechanisms for balancing that have been empirically demonstrated to be poorly implemented by platforms. The article concludes that Article 17 significantly reduces information asymmetry by assigning decision-making status to platforms. It also resolves the observed market failure of value gap, provided the policy reasoning described is valid, which is not supported by the article. CDSM, however, also increases legal fragmentation between jurisdiction and forms of copyright-relevant use. Finally, the risk of overblocking and overpolicing is potent. Subsequently, safeguards introduced in the legislative text and the recent CJEU ruling are crucial.
ER -
WOZNICA, Ondřej. CDSM Article 17: free riding, asymmetry in markets and overblocking of user-generated content. In \textit{Visit of Institute of Law and Technology Masaryk University at the Department for Innovation and Digitalisation in Law of the University of Vienna}. 2023.
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