Wary film chiefs poised to unleash movie downloads

By Anna McLauchlin

Date: 16/02/06

A European Charter on online movies which would allow broadband internet users legally to download their favourite feature films via the internet will be discussed by film studio and internet bosses in Vienna on 21 February.

A group of officials from the European telecom sector, such as Italian and Belgian incumbents Telecom Italia and Belgacom, and from the US and European film industry - including Time Warner and Vivendi Universal - is studying a draft text issued on Tuesday (14 February) by the European Commission.

The text lays out best practices that the EU executive hopes could lead to commitment from both sides to making films more available for downloading online. The aim is to sign the charter at the Cannes Film Festival, which takes place on 17-24 May.

According to a source close to the negotiations, there are still a number of contentious issues to be ironed out before agreement is reached at Cannes. High on this list is who should foot the bill for measures to prevent people illegally downloading films from the internet, which is the film industry's biggest fear and the main reason that the dialogue has been so sensitive to date.

One example of best practice is the French notion of a 'gradual response', where internet service providers (ISPs) send multiple warnings to subscribers who make a habit of downloading illegal content, before cutting off their subscription. But this kind of monitoring and reaction requires significant investment.

"Consensus is not impossible," said the source. "The principle that there needs to be co-operation between ISPs and content holders is well established. But it is a balancing act between finding such a vague agreement that everyone will agree to it and producing something more substantive that is then likely to cause conflict. I don't think that we have yet found that balance."

ISPs and the content industry have traditionally been at loggerheads because the latter often refuse to allow their films to be licensed for downloading online because of ISPs' failure to control piracy on the net.

At the same time, ISPs have refused to invest substantially in piracy control in the absence of a framework allowing them to license films easily across Europe. Gaining access to rights requires clearance with a hefty amount of red tape in each member state.

The Commission launched a 'Film Online' initiative in April 2005 in a bid to advance the situation for the benefit of consumers. Film Online gives representatives from both sides a means to meet regularly to find a way to deter illegal file-sharing and develop legal services without the need for regulatory intervention from Brussels.

The charter is likely to be split into three main parts, with commitments from both sides to improve availability, public awareness of copyright obligations and to co-operate on fighting piracy.

But some have also criticised the closed-door meetings, which include industry representatives from just 13 US and EU companies.

Richard Nash from the European Internet Services Providers Association (EuroISPA) said of the charter: "It concerns us that something that the Commission would like the industry to embrace universally, especially on such a sensitive issue, would be discussed in this limited way and not be subject to wider consultation."

A European Charter on online movies which would allow broadband internet users legally to download their favourite feature films via the Internet was to be discussed by representative of the European telecoms sector and the European and US film industries at a meeting in Vienna on 21 February. The European Commission had presented a draft text on 14 February 2006 and it was planned that the charter could be signed at the Cannes Film Festival, to take place on 17-24 May 2006.