SABAM Loses Battle Against Internet Service Providers

On 3 June 2016, the Court of Appeal of Brussels (the "Court") denied the Belgian Association for Authors, Composers and Publishers ("SABAM") the right to collect remuneration for communication to the public from internet service providers ("ISPs").

The dispute arose in 2011 after SABAM informed Belgian ISPs that a 3.4% fee would be charged on the total price paid annually by internet users to ISPs for their internet subscription. SABAM contended that, since ISPs offer access to the Internet, including copyrighted materials, ISPs were "communicating these materials to the public" within the meaning of Article XI.165 of the Code of Economic Law ((Wetboek Economisch Recht/ Code de Droit Economique – the "Law"). Because such communication was occurring without the authors' consent and since ISPs were generating income therefrom, SABAM alleged that it was entitled to collect remuneration from ISPs on the basis of Article XI.165, paragraph 1.4, of the Law.