New EU Consumer Rights Directive prescribes transparent Digital Rights Management

On Thursday, 23rd of June, the European Parliament voted on a proposal for a Consumer Rights Directive. The aim of that directive is to update and consolidate parts of the European consumer law acquis, partly in the light of technological changes and the increasing importance of digital markets. The draft directive applies explicitly to contracts for the supply of digital content, such as music downloads, the streaming of video or the provision of online games.

Part of that draft directive is a clause saying that traders should inform consumers “about the functionality, including applicable technical protection measures, of digital content”. Moreover, consumers have a right to receive information about “any relevant interoperability of digital content with hardware and software that the trader is aware of or can reasonable be expected to have been aware of”. This could be read as a provision saying that rights holders need to inform consumers about the use of Digital Rights Management technologies and technical content protection measures, but also about other restrictive or potentially invasive technologies such as regional codes or tracking and monitoring tools. Moreover, the directive addresses the issue of limited interoperability, as a result of the use of such technologies.

The idea to tackle copyright related issues with consumer law is a new policy approach from Brussels. “The Commission should examine the need for further harmonized provisions in respect of digital content and submit, if necessary, a legislative proposal for addressing this matter,” according to the European Parliament’s draft Consumers Rights Directive. Formal approval of the draft directive in the EU Council of Ministers is expected for September of this year, and member states will have to transpose its rules before the end of 2013.

Source: Natali Helberger, University of Amsterdam Institute for Information Law (IViR) Kluwer copyright blog; European Parliament