The Commission has published a notice under Article 27(4) of Regulation 1/2003 to consult on commitments offered by the International Confederation of Societies of Authors and Composers (CISAC) and its EEA members under Article 9 of Regulation 1/2003. The proposed commitments are intended to address the Commission's concerns that categories of clauses in CISAC's model contract and the reciprocal representation contracts between collecting society members in the EEA infringe Article 81(1) of the EC Treaty.
Following a complaint in April 2003 about the operation of the CISAC model contract, in February 2006 the Commission sent a statement of objections to CISAC and its members. The Commission considered that the following two categories of clause in the CISAC model contract and the reciprocal representation contracts between CISAC's members infringe Article 81(1) of the EC Treaty:
- Membership clauses. Membership clauses prevent members of CISAC from accepting any person or company as a member, where that person has the nationality of one of the countries in which another member of CISAC operates.
- Territoriality clauses. The effect of territoriality clauses is that commercial users can only obtain a licence from the local collecting society. Reciprocal representation is done on an exclusive basis for the respective territory of the collecting societies and, in any event, the user licence will be limited to the domestic territory of the collecting society. This is the case even for transmission over the internet, cable retransmission and satellite transmission.