COPYRIGHT | The ECJ on Italian rules for CMOs

On 21 March 2024, the European Court of Justice (ECJ) issued its judgment in Case C‑10/22 (Liberi editori e autori (LEA) v Jamendo SA) and found that the Italian legislation precluding independent copyright management organisations from other EU Member States from operating in Italy violates EU law, as it restricts their freedom to provide services unjustly and in a disproportionate manner. The case was brought originally by LEA, an Italian CMO which was seeking to stop Jamendo SA, a Luxembourg-based independent copyright manager, from operating in Italy. The Rome District Court referred the matter to the ECJ, questioning the compatibility of Italian law with Directive (EU) No. 2014/26 on the collective management of copyright. The ECJ ruled that a blanket exclusion of foreign entities is disproportionate. It suggested less restrictive measures to achieve the goal of protecting IP rights and of providing an effective supervision of their application in the territory of the Member State concerned. Consequently, the ECJ deemed the Italian legislation incompatible with EU law.

Newsletter n. 96 – May 2024