New European Commission study on copyright transfer and authors’ contracts

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Following up on the findings of 2023 Media Industry Outlook, the European Commission has published a study aiming to gather information and evidence on contractual practices involving the transfer of copyright and related rights, such as buy-out contracts. The study analyses how such practices affect authors’ and performers’ remuneration across all cultural and creative sectors, as well as audiovisual producers’ ability to invest in new works.

Contractual practices involving a transfer of the rights of authors and performers

As first documented at European level in a 2019 study on audiovisual authors’ income commissioned by FERA and FSE, the EU Commission study finds that they face weak bargaining power, often resulting in buy-out contracts with low lump-sum payments or minimal royalties. By contrast, performers’ bargaining power is increased by wider recourse to collective bargaining agreements.

Responders to a related survey widely see current levels of remuneration as unfair: 51% of authors say it is rarely fair, and 33% believe it is never fair, largely due to early-stage negotiations, standardised fees, and lump-sum payments that ignore the work’s future value.

Rights retention and statutory remuneration vary between member states, but overall producers generally acquire a broad range rights, while authors retain limited exclusive rights and non-waivable remuneration.

Contractual practices affecting producers in the audiovisual sector

The study finds that audiovisual producers in the EU face significant challenges due to limited bargaining power when negotiating with global streamers and broadcasters, particularly under the commissioning model where financiers retain most or all rights without fully funding productions. Independent producers, especially in smaller markets, are most affected, often lacking access to capital and facing a lack of commissioning opportunities.

Although some streamers are shifting toward more balanced licensing and co-production models, the continued dominance of commissioning contracts, especially with non-EU players, threatens the independence and diversity of European audiovisual production.

Legal analysis of contractual practices

Finally, the study explores how rights transfer agreements are regulated at international, EU, and national levels, focusing on buy-out practices and the rules around choice of law and jurisdiction. It also highlights legal gaps, especially in ensuring fairness and addressing power imbalances in contracts.

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To go further:

Read full study: https://digital-strategy.ec.europa.eu/en/library/commission-publishes-study-contractual-practices-affecting-transfer-copyright-and-related-rights?