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ILLEGAL IPTV IN THE EUROPEAN UNION

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ILLEGAL IPTV IN THE EUROPEAN UNION

IPTV STUDY FINAL REPORT

ISBN 978-92-9156-270-1 doi: 10.2814/28041 TB-03-19-764-EN-N ? European Union Intellectual Property Office, 2019 Reproduction is authorised provided the source is acknowledged

Economic, Legal and Technical analysis Report November 2019

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Contents

FOREWORD..................................................................................................................5 EXECUTIVE SUMMARY .................................................................................................................. 6 1. PROTECTION OF TELEVISION BROADCASTS IN THE EUROPEAN UNION ...................... 11

1.1 INTERNATIONAL AND EU LEGAL FRAMEWORK .......................................................... 11 1.2 RIGHTS IN TV BROADCASTS UNDER EU LAW: SUBSISTENCE AND OWNERSHIP... 13

1.2.1 Copyright protection of broadcast content.................................................................. 13 1.2.2 The related right in broadcasts of broadcasting organisations.................................... 14 1.3 THE SCOPE OF BROADCASTERS' RIGHTS ON THE INTERNET ................................. 14 1.3.1 Making available right: on-demand versus live streaming .......................................... 15 1.3.2 Online remote recording of TV programmes .............................................................. 15 1.4 THE PROTECTION OF BROADCAST CONTENT ........................................................... 16 1.4.1 Reproduction right and the exception for temporary acts of reproduction................... 16 1.4.2 Communication to the public by retransmission of TV signal via the internet ............. 17 1.4.3 Communication to the public by hyperlinking ............................................................. 17 1.5 LEGISLATIVE DEVELOPMENTS: THE NEW DIRECTIVE ON ONLINE BROADCAST TRANSMISSION......................................................................................................................... 19 1.5.1 Ancillary online services............................................................................................. 19 1.5.2 Online retransmission services .................................................................................. 20 1.5.3 Direct injection ........................................................................................................... 20 1.6 THE LEGISLATION OF EU MEMBER STATES ............................................................... 20 1.6.1 Subsistence and ownership ....................................................................................... 21 1.6.2 Scope of the rights: communication to the public ....................................................... 21 1.6.3 Limitations and exceptions......................................................................................... 23 1.6.4 Legislative developments in Member States .............................................................. 23 1.6.5 The protection of sporting events ............................................................................... 24 1.6.6 Indirect or secondary liability for copyright infringement ............................................. 25 1.6.7 Other legislation potentially covering IPTV infringement ............................................ 25 2. SUSPECTED COPYRIGHT INFRINGING IPTV ECOSYSTEM............................................... 26 2.1 BUSINESS MODELS........................................................................................................ 26 2.1.1 Illegal IPTV Subscription ............................................................................................ 26

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2.1.2 Illegal IPTV for Resellers ........................................................................................... 28 2.1.3 Illegal IPTV Free Streaming Portal............................................................................. 29 2.2 THE ACTORS OF THE ILLEGAL IPTV ECOSYSTEM ..................................................... 30 2.3 HOW THE ECOSYSTEM WORKS ................................................................................... 31 2.4 INDIVIDUAL ACTORS...................................................................................................... 35 2.4.1 Front-end Actors ........................................................................................................ 36 2.4.2 Back-end Actors ........................................................................................................ 39 3. QUANTITATIVE ANALYSIS OF SUSPECTED ILLEGAL IPTV IN THE EU ............................. 47 3.1 MAGNITUDE OF ILLEGAL IPTV: USERS ........................................................................ 48 3.2 MAGNITUDE OF ILLEGAL IPTV: REVENUE ................................................................... 50 3.3 METHODOLOGY AND DATA........................................................................................... 56 3.3.1 Unauthorised IPTV Users .......................................................................................... 56 3.3.2 Unauthorised IPTV Revenue ..................................................................................... 58 4. ENFORCEMENT MEASURES................................................................................................ 62 4.1 THE ROLE OF INTERNET INTERMEDIARIES ................................................................ 62 4.1.1 `Active' intermediaries ................................................................................................ 63 4.1.2 Hosting services ........................................................................................................ 63 4.1.3 Mere conduit and caching .......................................................................................... 64 4.2 CIVIL ENFORCEMENT MEASURES ............................................................................... 65 4.2.1 Blocking injunctions ................................................................................................... 65 4.2.2 Dynamic injunctions ................................................................................................... 66 4.2.3 Live blocking injunctions ............................................................................................ 66 4.2.4 De-indexing injunctions.............................................................................................. 66 4.2.5 Disclosure of information ........................................................................................... 66 4.3 CRIMINAL ENFORCEMENT MEASURES ....................................................................... 67 4.4 ADMINISTRATIVE PROCEDURES .................................................................................. 68 4.5 CUSTOMS MEASURES REGARDING STREAMING DEVICES ...................................... 69 5. SELECTED JURISPRUDENCE OF MEMBER STATES ......................................................... 71 5.1 CIVIL CASE LAW AGAINST DIRECT INFRINGERS ........................................................ 71 5.1.1 Standing to sue.......................................................................................................... 71 5.1.2 Retransmission of TV signal via internet live streaming ............................................. 72

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5.1.3 Hyperlinking to infringing IPTV................................................................................... 73 5.1.4 Illicit IPTV devices...................................................................................................... 75 5.2 INJUNCTIONS AGAINST INTERNET INTERMEDIARIES................................................ 75 5.2.1 Live blocking injunctions against network providers ................................................... 76 5.2.2 Injunctions against search engines and social media................................................. 77 5.2.3 Injunctions against streaming servers ........................................................................ 78 5.2.4 Disclosure of information ........................................................................................... 79 5.3 CRIMINAL CASE LAW ..................................................................................................... 79 5.3.1 Hyperlinking cases in the Czech Republic and France............................................... 79 5.3.2 Illicit IPTV and cardsharing in Denmark ..................................................................... 80 5.3.3 Illicit IPTV devices in the United Kingdom .................................................................. 81 6. CONCLUSIONS AND PERSPECTIVES ................................................................................. 84 BIBLIOGRAPHY ............................................................................................................................. 85 APPENDIX I -- REVIEW OF POLICY, ECONOMIC AND TECHNICAL LITERATURE................... 93 I.I -- MAGNITUDE OF ILLEGAL IPTV ........................................................................................ 94 I.II -- USE OF ILLICIT STREAMING DEVICES .......................................................................... 95 I.III -- IMPACT OF ILLEGAL IPTV.............................................................................................. 96 I.IV -- REVENUE SOURCES ..................................................................................................... 97 I.V -- TECHNICAL LITERATURE ON ILLEGAL IPTV ................................................................ 99 APPENDIX II -- CASE STUDIES OF INTELLECTUAL PROPERTY RIGHTS' INFRINGING ONLINE BUSINESS MODELS APPLIED BY UNAUTHORISED IPTV PROVIDERS .................................. 100 II.I -- ILLEGAL IPTV SUBSCRIPTION ONLINE BUSINESS MODEL (`IPTV RETAILERS')...... 100 II-II -- ILLEGAL IPTV FOR RESELLERS (`IPTV WHOLESALERS') ......................................... 101 II-III -- ILLEGAL IPTV FREE STREAMING PORTALS (`LINK AGGREGATORS').................... 101 APPENDIX III -- ECOSYSTEM OF ILLEGAL IPTV ...................................................................... 114

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