Wipo Treaties Act Awaits Clinton Ok

WASHINGTON, D.C.‹With the legislation that paves the way for Senate ratification of the World Intellectual Property Organisation (WIPO) treaties now awaiting President Clinton's signature, the U.S. is set to become the third country to complete the ratification process.
Because they are not self-executing, the two digital-age copyright treaties must be ratified by 30 countries before they become effective. Although 50 countries signed the treaty agreement in Geneva, Switzerland, in December 1996, only the Republic of Moldova and Indonesia have completed this process.
Observers say that U.S. ratification will likely serve as a blueprint and a wake-up call for the European Community and other nations that have yet to ratify the treaty.
"All of our colleagues at [the International Federation of the Phonographic Industry] have told us that progress around the world in implementing these treaties would be severely hampered if Congress did not pass the legislation this year, because the U.S. took so much of the lead in negotiating the treaties in the first place and is perceived to have a very strong self-interest in getting it passed," says Hilary Rosen, president/CEO of the Recording Industry Assn. of America (RIAA).
Ed Murphy, president/CEO of the National Music Publishers' Assn., says, "The U.S. getting out in the lead is important because other nations are studying our legislation and hopefully finding some guidance. The EC, you know, has been grappling with these issues, and other countries haven't even begun to deal with them.
"So hopefully they'll find some things they'll be able to adopt," he adds, "such as how we dealt with the treaty's circumvention tools, which establish the rules of the road, but also others we've been able to reach some accord on, like the liability language that affects [online service providers] and telephone companies."
In recent years, "the U.S. has been very effective in bilateral trade enforcement," Rosen adds, "and I think the message was, if we don't have a bite, we're not allowed to bark. The European Community is moving well along, and I certainly hope that this demonstrates to those governments that a legitimate compromise [with other interest groups] is possible."
The enabling legislation for U.S. passage, known as the Digital Millennium Copyright Act, was passed unanimously by the U.S. House of Representatives Oct. 12 (BillboardBulletin, Oct. 13). It will allow the Senate to ratify the WIPO treaties.
Once the legislation receives the president's signature, the treaties go to the Senate for ratification. At press time, sources on the Hill were unsure whether the Senate will have time for a ratification vote before the 105th Congress adjourns Oct. 14 or 15. If not, ratification (a two-thirds vote is required) will be the first order of business upon Congress's return in January. Sources say little will stand in the way of ratification.
The WIPO treaties will ensure that member nations enjoy the added anti-piracy protections necessary for effective electronic commerce, including that on the Internet.
To the relief of copyright industry officials, the final version of the enabling legislation was forged from separate Senate and House versions even as lawmakers also struggled with presidential impeachment proceedings and a budget bill. The Senate passed the final version Oct. 8.
U.S. passage comes as a long-awaited victory for the RIAA, music publishing groups, and performing right societies that were seeking copyright-protection safeguards for digital commerce. Although the treaties did not require major changes in U.S. copyright law, which already meets treaty standards, the enabling language ensures U.S. compliance with WIPO treaty provisions outlawing international trafficking in "black box" machines and software equivalents designed with the main purpose of circumventing copyright-protection systems.
It also establishes the limits of infringement liability for online service providers (OSP) and other "conduit" services such as telephone companies and sets "fair use" standards sought by libraries and universities. In addition, the bill creates a compulsory license for Webcasters that will give labels new royalty income and guarantee Webcasters authorized access to material.
Music industry groups pitched a two-year battle to gain the protections in the face of opposition from consumer electronics companies and copyright "user" groups, concerned that the provisions were too broad.
Rosen views the final version, which contains compromise provisions the RIAA initially fought against, as a plus. "It's somewhat of an omnibus copyright bill for us," she says, in that it contains sections like those relating to OSP liability limits and Webcasting that reach beyond the WIPO copyright-protection provisions.