Publication Only with License – Decision of the Munich Regional Court, Ref.: 42 O 10792/22
Films, videos, music – online platforms make such works publicly accessible to their users. In doing so, copyright law is sometimes overlooked. Online platforms cannot use and publish copyrighted works without the appropriate licenses. This was determined by the Munich Regional Court in a ruling on February 9, 2024 (Ref.: 42 O 10792/22).
The creator enjoys exclusive rights to use and exploit their work. They can also grant licenses for the use of the works to various extents. Using the works without a license, such as publishing them on online platforms, constitutes a violation of copyright law, according to MTR Legal, a law firm that also advises on IP law and copyright law. If the creator has granted exploitation rights to a publisher, an agency, etc., these parties can also enforce copyright claims.
Unlicensed Films on Online Platforms
The case at the Munich Regional Court also dealt with the violation of copyright rights. Here, a film rights distributor took legal action against an online platform for publishing several films without possessing a license. Previously, the film rights distributor had offered to sell the necessary licenses to the platform for a fee. Despite lengthy negotiations, the platform did not purchase the licenses and instead removed the films from the platform. The film rights distributor subsequently filed a lawsuit, including for an injunction.
The lawsuit was successful. The online platform was ordered to cease the public performance of copyrighted films, the Munich Regional Court decided. According to §1 para. 1 of the Copyright Service Provider Law (UrhDaG), providers are legally responsible for the public performance on platforms.
Platform’s Lack of Effort
The defendant could not claim exemption, the court made clear. This would require that the providers have made their best efforts to acquire the contractual usage rights for the public performance of copyrighted works, as stipulated by §4 para. 1 sentence 1 UrhDaG. This was not the case here. While the plaintiff, the film rights distributor, had fulfilled its obligations during the license negotiations and made a concrete offer, the defendant failed to make the best efforts to acquire the licenses, according to the court.
Under the European Directive EU 2019/790 on copyright in the digital single market, negotiations between the parties are to be conducted fairly and promptly. However, the defendant’s behavior did not indicate an interest in a swift agreement. Instead, the negotiations were characterized by a one-sided flow of information from the film rights distributor, the Munich Regional Court further explained. With its delaying tactics, the defendant violated its obligations under §4 UrhDaG.
Involvement of Creators in Value Creation
Copyrighted works are often publicly accessible on platforms on the internet. In implementing the European Directive EU 2019/790, the Copyright Service Provider Law aims to allow creators, whose protected works are used on upload platforms, to participate in the value creation chain, thus enabling them to earn higher licensing revenues. However, this goal would be futile if platform providers could retreat to blocking measures, the court stated.
In cases of licensing violations, platform providers can be held liable, the Munich Regional Court ruled. It sentenced the defendant provider of the online platform to cease and desist, provide information, and pay damages. The verdict is not yet legally binding.
Taking Action Against Unauthorized Publication
Whether a platform has done its best to acquire the required licenses must be decided on a case-by-case basis. However, the Munich Regional Court’s ruling shows that creators have the opportunity to take action against the unauthorized publication of their works and enforce their legal claims for injunction and damages. According to the court’s decision, they do not have to accept delaying tactics from the defendants.
The Copyright Law not only protects films but also language and written works, music, pantomime and dance art, works of visual art, including works of architecture and applied art, photographs, and representations of scientific or technical nature.
MTR Legal attorneys advise on copyright law and other IP law topics.
Feel free to contact us.
