Brussels, 26/07/2016 (Agence Europe) - On Tuesday 26 July, the European Commission announced its decision to make the commitments offered by Paramount Pictures to respond to the Commission's concerns over contractual clauses preventing the cross-border provision of pay-TV services binding for five years.
In general, American film studios grant licences for audiovisual content to a single pay-TV broadcaster in each member state (or in several member states which share the same language). By virtue of clauses contained in the broadcasting agreements under licence for cinematographic works entered into between Paramount and Sky UK, the latter was prohibited from allowing European consumers residing outside the United Kingdom and Ireland access to cinematographic works by satellite or online. Furthermore, Paramount was obliged to ensure that no broadcasters other than Sky UK could offer their pay-TV services in the United Kingdom and Ireland.
The Commission sent Paramount Pictures a statement of objections on the subject in July 2015 (EUROPE 11365). In April 2016, Paramount offered commitments aiming to respond to the Commission's concerns. The Commission then held a consultation on these commitments (EUROPE 11538). After a few additional clarifications were provided by Paramount Pictures, the Commission now takes the view that these commitments are sufficient to respond to its concerns.
Under these commitments, which will apply for five years throughout the European Economic Area, Paramount Pictures will not introduce any contractual obligations when it grants licences for audiovisual content aiming to prevent a pay-TV broadcaster from responding to requests from clients outside the territory for which the broadcaster holds a licence (no obligation upon the broadcaster) or requiring Paramount to prohibit broadcasters from outside the licenced territory from responding to requests from consumers inside the licensed territory. Paramount has also undertaken not to take legal action in the event of a breach of an existing obligation.
The 2015 statement of objections was also sent to five other cinema studios (Disney, NBC Universal, Sony, Twentieth Century Fox and Warner Bros) and to Sky UK. The Commission's investigations into the five other studios and Sky UK are still ongoing. (Original version in French by Elodie Lamer)