Transfer of Value – How Article 17 levels the playing field

Article 17, formerly Article 13, directly addresses an issue that is commonly known as the Transfer of Value.

The Transfer of Value, also referred to as the value gap, is the funnelling away of value from creators into the hands of a number of online platforms, such as YouTube, Vimeo, SoundCloud, Facebook etc..

Over the past decade, user uploaded content platforms have become the most popular way for people to access music and other creative works. This has its advantages, such as allowing creators to share their work far more widely than ever before. However, the downside is that these same creators were not being remunerated fairly, if at all, for their work, leading to a huge market imbalance that threatened their livelihoods.

Read more about the issue and how Article 17 will bring sweeping positive changes below.

 

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Unaccountable hosting services

For a long time, platforms hid behind the loophole of being unaccountable hosting services. Despite their significant market share and the huge amounts of money generated – from advertising and other means – by providing access to creative works, platforms were failing to share this profit fairly, if at all, with the creators.

The result was that big platforms grew, and in the process became household names, but at the expense of creators, who found themselves struggling to live off of their work. The Transfer of Value also threatened the sustainability of the whole creative sector by distorting the market for legitimate online businesses. Businesses that cleared rights from creators, paid their taxes and employed people in Europe were at a disadvantage up against the free-riding platform services who captured the larger share of online traffic and revenues while hiding behind the ambiguity of the rules to avoid remuneration of creators and rightholders.

Correcting the Transfer of Value

What does Article 17 actually say?

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