Travelling with subscriptions to online services - new EU regulation

New EU Regulation allows for Europeans consumers who have paid for online content services in their home country to access those services when they are temporarily outside their Member State of residence.

Today, it is quite common that the programs in the consumer's device, for example on-demand TV subscription as well as subscription of premium sporting events, are limited to his home country, due to licensing practices of right holders.

However, technological developments and the growing use of portable devices such as tablets and smartphones have greatly facilitated access to online content services independently of the location of the users. As a result, consumers increasingly want to access online contentservices not only in their home country but also when they travel in another Member State.

As part of the digital single market strategy, the European Council adopted the Regulation on Cross-Border Portability of Online Content Services. The regulation is aimed at allowing Europeans consumers to access those services when they are temporarily abroad (i.e. visiting another country within the EU). Alongside with the ‘Roam like at home’ rules, the regulation forms part of the European Digital Single market strategy. The regulation will come into effect in the first quarter of 2018.

The new regulation represents a first step towards improving access to cultural works, along with the action plan on the modernization of copyright rules.

The regulation applies to audiovisual media services and other linear and on-demand content services. It is mandatory for paid-for services, but optional for free services.

Clauses in contracts designed to prohibit or limit the cross-border portability of such online content services should be unenforceable. The providers and holders of rights of online content services should not be allowed to circumvent the application of this regulation by choosing the law of a third country as the law applicable to contracts between them.

The notion of temporary presence in other Member States refers to a limited period of time. Some safeguards have been added to ensure data protection and privacy are respected (especially for IP address checks), and a waiver clause has been introduced which allows content providers to avoid verifying the residence of their customers when all the holders of copyright, related rights, or other rights in the content agree.

This update is intended as a summary only and should not be regarded or relied upon as advice regarding any specific situation. For specific advice please contact our office.