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

Executive Summary

1 This report of the study on socioeconomic dimensions of unauthorized use of signals explores the types and conditions of unauthorized uses, the economic effects of the uses, the interests of stakeholders affected by the proposed treaty on protection of broadcast signals, and how they are affected by its provisions.

2 The report explains the rationale of the proposed treaty, how unauthorized uses of signals take place in the broadcasting (terrestrial and satellite) and the cable and cable satellite environments and the differences between unauthorized reception, unauthorized decryption, unauthorized retransmission (understood in this report as meaning a simultaneous transmission), and unauthorized fixation and post-fixation uses (including reproduction and distribution).

3 This report reviews the economics of broadcasting and identifies the economic effects of unauthorized uses, revealing how they affect company costs, cost recovery, demand for authorized uses, and revenues of companies. It shows that the locations of the unauthorized uses and whether free-to-air or paid signals are involved play significant roles in whether harm occurs and the extent of harm created by unauthorized uses.

4 The report delineates the rights within and related to the signal and the implications of these for authorized and unauthorized retransmissions and post-fixation uses of signals. It also identifies social benefits that may result from unauthorized uses and identifies some uses that some stakeholders argue are worthy of exceptions or limitations to protections.

5 The report then shows the extent to which the interests of stakeholders will be affected by provisions of the proposed treaty, and considers the distribution of benefits and detriments of proposed options in the treaty among the stakeholders and the equity of their distribution.

6 Through its assessment of the treaty, the report shows:

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  that the primary benefits of the treaty accrue to broadcasters and cable and satellite operators;
  
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  that large international broadcasters and domestic broadcasters and cablecasters disseminating sporting events, concerts, and movies can be expected to be greatest beneficiaries;
  
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  that authors and performers, production firms, and rights holders/licensers will benefit from an additional layer of protection and enforcement that reinforces their rights under other treaties;
  
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  that rights of fixation and post-fixation for broadcasters will not generally disadvantage content owners (authors, performers, and other rights holders) because they do not override rights provided elsewhere;
  
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  that domestic broadcasters and cablecasters, distribution systems and tax receipts will benefit, but to a degree that cannot be projected;
  
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  that interests of audiences/consumers/users and society are protected only to the extent that contracting parties have or put in place legislation and regulatory measures that protect their interests;
  
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  that the greatest benefits for broadcasters and various rights holders and licensers can be expected in upper middle and high income states;
  
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  that some economic benefits are likely to occur in lower middle income states, but that benefits are unlikely to occur in low income states for many years due to other intervening factors;
  
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  that the primary disadvantages of the treaty are the additional expenditures that states/governments will be required to incur to administer and enforce its provisions;
  
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  that the administration/enforcement disadvantage will have the greatest impact on low and lower middle income states;
  
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  that audiences/consumers/users and society will be somewhat disadvantaged by reduced access to some content;
  
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  that the content disadvantage will have the greatest impact on low and lower middle income states.
  

7 The report concludes that the treaty:

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  is likely to provide some positive benefits in terms of revenue for broadcasters and cablecasters and wealth generation and tax benefits for states, but to an extent that cannot now be clearly estimated;
  
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  will provide some additional protection for existing investments in programming, but that it is impossible to project whether it will lead to increased investment;
  
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  is likely to be easier to enforce than other IP treaties because it involves actions of broadcasters, cablecasters and others that are highly visible to authorities;
  
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  will improve and streamline enforcement adjudication processes and procedures through its national treatment provisions.