German Courts Rule Digital Copying by MMOs Must Be Licensed
Berlin courts ruled on 18th December that MMOs need permission for a mastercopy (as opposed to one copy per client) digital processing of press content and have rejected Kantar Germany’s counterclaim that publisher owned PMG is abusing market power.
The case follows MMOs resistance to PMGs introduction of a licence covering digital production. In Germany MMOs use press content from online, epaper or scanned print editions for their production of press reviews in competition with PMGs direct client service Presse Monitor. Individual copying of an article for a specific client has been replaced by the use of one master copy for a multitude of clients. These master copies are held within searchable databases from which a range of additional services can be created. That process and whether a licence is required for mass digitisation was the central point of the case. The ruling suggests that German MMOs will require permission (a licence) from individual publishers or PMG as a one-stop-shop. This could have significant financial impact on service fees.
Kantar were ordered to pay PMGs costs in this action. They have until early February to decide whether to appeal the ruling.
