E sccr/21/2 Original: English date: August , 2010 Standing Committee on Copyright and Related Rights Twenty First Session Geneva, November to 12, 2010

Table of Contents

Table of Contents i

Executive Summary 1

I. Introduction 2

II. Rationales for Protecting Signals 5

iii. Stakeholders Affected by the Proposed Treaty 6

Authors and Performers 7

Production Firms 8

Content Rights Holders and Licensers 9

Broadcasters/Cablecasters and Cable and Satellite System Operators 10

Audiences/Consumers/Users 11

States/Governments 12

Society 14

IV. Unauthorized Signal Use 15

Unauthorized Pre-Public Transmission Signal Uses 16

Unauthorized Use in the Terrestrial and Satellite Environment 16

Unauthorized Reception 16

Unauthorized Decryption 17

Unauthorized Retransmission 18

Unauthorized Fixation 19

Unauthorized Post-Fixation Use 19

Unauthorized Use in the Cable Environment 20

Unauthorized Connection 20

Unauthorized Decryption 21

Unauthorized Retransmission 21

Unauthorized Fixation 22

Unauthorized Post-Fixation Use 22

V. FUNDAMENTAL ECONOMICS OF BROADCASTING AND CABLECASTING 22

Broadcasting as a Public Good 23

The Challenge of Prices 24

Implications of Cost Structures of Different Types of Broadcasting 26

VI. ECONOMIC LOSSES IN UNAUTHORIZED USES OF SIGNALS 27

Broadcasting and Issues of Demand 28

VII. EFFECTS OF UNAUTHORIZED USES ON INVESTMENT 36

VIII. EFFECTS OF UNAUTHORIZED USES ON PROFITS 37

IX. ECONOMIC ISSUES OF SOCIAL WELFARE 37

X. EFFECTS OF RIGHTS AND LICENSES ON ABILITIES OF BROADCASTERS

AND CABLECASTERS TO EXPLOIT THEIR SIGNALS 42

Rights and Licenses in a Broadcast Stream 43

Right of Retransmission 44

Right of Fixation 45

Post-Fixation Rights 45

Protection in Relation to Signals Prior to Broadcast or Cablecast 46

Cases Illustrating the Impact of Unauthorized Use or Retransmission 46

How Signal Reception and Retransmission Outside an Intended Market or Audience Affects Rights and Licenses and Other Potential Uses 47

Benefits to Rights Holders if Broadcasters/Cablecasters are Able to Control Signal, Retransmission, and Post-Fixation Rights 49

XI. CONTRIBUTIONS OF UNLICENSED USE OF SIGNALS TO SOCIAL WELFARE 50

Exceptions in the Public Interest 51

Broadcasting and the Public Interest 51

Cases in which Public Interest Arguments are Seen by Some to Rise
above the Proposed Treaty’s Signal Protections 53

XII. ASSESSING OVERALL EFFECTS OF THE PROPOSED TREATY 57

XIII. How Stakeholders are Affected by the Proposed Treaty 59

Authors and Performers, Production Firms, and Rights Holders/Licensers 59

Broadcasters (Terrestrial and Satellite) and Cablecasters and Cable/Satellite Operators 60

Audiences/Consumers/Users 60

States/Governments 60

Society 61

XIV. BALANCE OF BENEFITS ANALYSIS 70

XV. HOW BENEFITS AND DISADVANTAGES MIGHT EVOLVE OVER TIME 72

XVI. ALTERNATIVE WAYS OF SEEKING BENEFITS 74

XVII. CONCLUSIONS 76

ANNEX: ORGANIZATIONS/EXPERTS CONSULTED

Figures and Tables

Figure 1: Context of Broadcast and Cablecast Signal Creation and Use 3

Figure 2: Types and Means of Unauthorized Signal Use 14

Figure 3: Harms as Seen in an Analysis Tree 32

Figure 4: Broadcast and Cablecast Policy Typically Balances
Social Welfare Objectives 36
Table 1: Summary of Economic Losses in Different Situations 28

Table 2: Central Issues and Potential Effects of the Proposed Treaty

Relevant to Social Welfare Analysis 37

Table 3: Method and Data Types for Measuring Quantifiable Results 38

Table 4: Effects of the Treaty Articles on Stakeholders 57