2007, SSRN Electronic Journal
Directive 2000/31/EC on electronic commerce (hereinafter referred to as: "the directive") aims to remove obstacles to cross-border provision of on-line services in the Internal Market and to provide legal certainty to businesses and citizens. It was adopted on 8 June 2000. Articles 12 to 14 of the directive establish precisely defined limitations on the liability of intermediary service providers who offer mere conduit, caching and hosting. The study takes into account the fact that some Member States -motivated by the legitimate wish to provide for additional legal clarity -included in their transposition certain additional elements not covered by the directive, such as the liability of providers of hyperlinks, search engines or other intermediaries. The liability limitations in the directive apply to certain clearly delimited activities carried out by internet intermediaries, i.e. to the technical process of access and transmission provision, as well as storage of information provided by a recipient of the service in a communication network. The liability limitations provided for by the directive are established in a horizontal manner, i.e. they cover civil, administrative and criminal liability for all types of illegal activities initiated by third parties online, including copyright and trademark piracy, defamation, misleading advertising, unfair commercial practices, child pornography etc. The liability limitations of intermediaries were considered indispensable to ensuring both, the provision of basic services which safeguard the free flow of information in the network and the provision of a legally certain framework which allows the Internet and e-commerce to develop. Articles 12 to 14 of the directive do not affect the possibility for a national court or administrative authority to require a given service provider to terminate or prevent an infringement on a case-by-case basis (i.e. to issue injunctions aiming at removal of illegal information or the disabling of access to it) which is -in principle -subject to the national law of the Member States. Article 15 prevents Member States from imposing on internet intermediaries, with respect to activities covered by Articles 12 to 14, a general obligation to monitor the information they transmit or store or a general obligation to actively seek out facts and circumstances indicating illegal activities. This is important, as general monitoring of millions of sites and Study on liability of internet intermediaries -A. INTRODUCTION 12/11/2007 5/115 web pages would, in practical terms, be impossible and would result in disproportionate burdens on intermediaries and higher costs of access to basic services for users. However, Article 15 does not prevent public authorities in the Member States from imposing a monitoring obligation in a specific, clearly defined individual case (recital 47). Articles 14 and 15 do not affect the possibility for Member States of requiring hosting service providers to apply duties of care which can reasonably be expected from them and which are specified by national law, in order to detect and prevent certain types of illegal activities (recital 48). The conditions under which a hosting service provider is exempted from liability, as set out in Article 14 (1) (b) of the directive, constitute the basis for development of notice and take down procedures for illegal information by stakeholders. As already mentioned above, Article 14 applies horizontally to all types of information. At the time when the directive was adopted, it was decided that notice and take down procedures should not be regulated in the directive itself. Instead, Article 16 and recital 40 of the directive expressly encourage selfregulation in this field. The study takes into account the fact that some Member States included in their transposition measures certain additional elements not covered by the directive, such as (statutory) notice and take down procedures for illegal content. Article 21 of the directive requires the Commission to submit to the European Parliament and the Council every two years a report on the application of this directive, accompanied, where necessary, by additional measures in order to take account of legal, technical and economic developments in the field of information society services. In November 2003 the Commission published a First Report on the application of the directive. Considering the lack of practical experience with the directive at that time the report concluded that proposals for complementary measures would be premature. No date has been fixed for the second report for which the current study will provide input. Study on liability of internet intermediaries -B. RECOMMENDATIONS 12/11/2007 12/115 The manner in which courts and legal practitioners interpret the E-Commerce-Directive ("ECD") in the EU's various national jurisdictions reveals a complex tapestry of implementation. This often reflects the distinct values found in each of the respective legal regimes. Moreover, changes in the social evaluation of the Internet (good or evil? enhancing communication or crimes and copyright infringements?), new techniques, and business models seem to have influenced legal practice and court decisions. This report examines conclusions which might be drawn from case studies undertaken in the different member states. It also considers statements from various stakeholder groups (including those presented at a conference on liability provisions in the ECD, organised in Berlin in May 2007). All of the proposals and suggestions in this report are made with due regard to the need to respect the existing legal framework established by various European Directives in this field, including those on InfoSoc 1 , Enforcement 2 , and Audiovisual Media Services 3 Directives. It should be borne in mind throughout that there are few legal areas where the conflict between stakeholder groups is greater than that between copyright holders and the telecommunication and E-commerce industry. Balancing the conflicting interests will be a difficult task, and accordingly the proposals and conclusions presented in this report are provisional. It should be noted that the conclusions of this report reflect exclusively the views of the consultants which do not necessarily correspond to those of the EU-Commission. The conclusions herein focus firstly on the structure of the ECD and propose amendments, before concentrating on general problems which overlap all the different kinds of liability privileges, but remain largely unregulated by the ECD such as injunctions and information location tools (hyperlinks, search engines). As regards the exemption from liability for mere conduit, there seem to be few problems concerning application and interpretation of the liability privilege regulated in Art. 12 ECD. 4 In contrast, court and administrative practice mainly had to deal with (administrative or civil 1 Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society, OJ 167/10 of 22.6.2001. 2 Directive 2004/48/EC of the European Parliament and of the Council of 29.4.2004 on the enforcement of intellectual property rights, OJ 157/45 of 30.4.2004. 3 The European Parliament has formally approved without amendments the Council's common position on the new Audiovisual Media Services without frontiers Directive,