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

Unauthorized Retransmission

121 Rebroadcasting has been possible since the earliest days of radio broadcasting, but because of control of radio spectrum retransmission, it was generally carried out by broadcasters themselves, the state, or authorized intermediaries. Unauthorized retransmission became an issue when community antenna television, the predecessor to contemporary cable television, developed a half-century ago. Many broadcasters accepted CATV retransmission because it extended their markets and audiences into areas where poor signal reception existed and was often done on a relatively non-commercial basis.

122 In countries with large commercial cable services, there was significant opposition to retransmission of broadcasting signals because broadcasters did not want their product to support what they perceived as a growing competitor. In the U.S. and elsewhere, broadcasters initially sought to block cable retransmission of their signals, but later—as systems and audiences expanded—many broadcasters saw benefit in the authorized retransmission because it expanded their markets, audiences, and advertising sales opportunities. They sought ‘must carry’ rules to force cable systems in their areas to retransmit their signals. Later they sought rules giving them the ability to negotiate terms of that retransmission, including channel placement, payments, etc.

123 Unauthorized retransmission occurs when, absent permission of the cable operator, its distribution signals are rebroadcast or redistributed by any means, including cable or the Internet. This is less common than unauthorized retransmission of broadcast signals.

124 Today, unauthorized retransmission via cable tends to exist primarily in developing regions where retransmission regulations or enforcement are absent or weak.

125 With the development of broadband and Internet technologies, individuals and firms worldwide are increasingly acquiring television broadcast signals and feeding them onto the Internet, permitting global distribution. This practice has the effect of providing content to globally dispersed audiences from the nation of the broadcast and to others whose linguistic abilities permit its use.

126 Unauthorized retransmission does not in itself increase the production, programming, or distribution costs to cable systems, as those costs must be incurred for serving the intended market and audience. As with unauthorized reception, it can provide benefits to some advertisers who may gain from the external audience being exposed to their messages if their ads are not removed or replaced. However, advertisers in the unintended territory or external market will be negatively affected by the competing ads carried by the unauthorized retransmissions. Unauthorized retransmission may also interfere with sales of content rights in some states or markets.

127 Unauthorized retransmission denies revenue that might be possible to the extent that the retransmitting organization is able and willing to pay, but can only deny revenue from the receiving audience if the originating cable system has rights and licenses to offer services in the additional territories covered.