October 24, 2024
In a nutshell: a fairer, more transparent framework
The DSM Directive imposes strict reporting obligations on producers towards authors, with the aim of creating a more transparent and equitable framework for copyright management. Producers must now ensure that authors are regularly informed of the revenues generated by theirworks, and receive their fair share. In a context wheretransparency is increasingly valued, these new obligations help to strengthen confidence and improve practices within the European audiovisual industry.
The DSM Directive (Directive on Copyright in theDigital Single Market) has shaken up the European audiovisual sector since itsadoption in 2019. This directive imposes new reporting obligations onfilm and audiovisual content producers, in particular vis-à-vis authors andrights holders, to ensure greater transparency and fairer remuneration.
Transparency and remuneration: key obligations
One of the major advances of the DSM Directive is theintroduction of greater transparency between producers and authors. Inconcrete terms, this means that producers must now provide detailed royaltystatements to authors on the revenues generated by their works. Thisregular reporting must include precise information on the exploitation ofworks, such as sales, streaming and any other form of distribution.
The aim of these reporting obligations is to ensurethat authors receive their fair share of income from the exploitation of theirworks. This concerns both direct revenues from streaming platforms orinternational sales, and indirect revenues generated by other channels.
What reports must producers provide?
Producers are required to submit regular financialreports to authors, transparently indicating :
These reports must be clear, complete and provided atregular intervals, generally once a year, depending on the terms of thecontracts or agreements between producers and authors.
Compliance and benefits for producers
Meeting the obligations of the DSM Directive is notjust a matter of legal compliance. For producers, providing regular royaltystatements also helps build a relationship of trust with authors and otherrightsholders. By ensuring transparent tracking and fair revenue distribution,producers secure better long-term collaborations and strengthen theircredibility in the industry.
What's more, numerous digital tools, such as Blockframes,help producers automate this reporting process. These platforms not only managethe complexity of royalty calculations, but also ensure that all financial datacomplies with the requirements of the DSM Directive.