Legal Definitions - Directive on Rental, Lending and Certain Neighbouring Rights

The Directive on Rental, Lending and Certain Neighbouring Rights is a European Union law, introduced in 1992, designed to protect the intellectual property rights of creators and related parties. It establishes rules for compensating copyright holders when their works, such as films, music, or books, are rented out commercially or lent by public institutions. Furthermore, it defines and protects the "neighbouring rights" of individuals and entities closely involved in bringing creative works to the public, including performers (like actors and musicians), producers of phonograms (sound recordings) and films, broadcasting organizations, and cable distributors. This ensures they also receive fair remuneration for the use of their contributions.

Here are some examples illustrating how this directive applies:

• Commercial Rental of Films: Imagine a local video rental store in an EU country that rents out DVDs of newly released movies. Under this Directive, the film studio (the copyright owner) and potentially the actors and director (as performers and producers with neighbouring rights) are entitled to receive a portion of the rental fees. This ensures they are compensated for the commercial exploitation of their creative work beyond the initial sale of the DVD.

• Public Lending of Audiobooks: Consider a public library in a European Union member state that acquires multiple copies of a bestselling audiobook. When library patrons borrow these audiobooks, the author of the book (the copyright owner) and the narrator (as a performer with neighbouring rights) are entitled to receive remuneration for these public loans, as stipulated by the Directive. This mechanism acknowledges the value of their work even when it's not being purchased directly.

• Broadcasting Live Performances: A European television network broadcasts a concert performance by a popular band. The band members (performers), the record label that produced the live recording (producer of phonograms), and the broadcasting organization itself all have rights protected by this Directive. The Directive ensures that these parties are appropriately compensated for the public broadcast of the performance, recognizing their distinct contributions to the creative work.