While the Copyright and Related Rights Act 2000 created a public lending right in Irish law, Article 5.3 of the 1992 directive allowed member states to exempt certain kinds of establishments from the obligation to collect the rental right levy in favour of authors. In opting to exempt all Irish libraries, account was taken of the small Irish lending pool, and of the likely small-scale benefit of a public lending right for authors compared with the costs of collection which would arise. The modest benefits of such a measure to authors was also considered in the context of national cultural policy and of our long-standing efforts to make information available to the public. It was for these reasons that Ireland, in its transposition of the directive, effectively exempted all public libraries from liability.
Subsequently, we became aware that the Commission disagreed with our approach in this matter. A letter was therefore issued by the Minister of State with responsibility for trade and commerce to the then Internal Market Commissioner, Mr. Frits Bolkestein on 2 June 2004, in anticipation of a reasoned opinion on the subject. That correspondence indicated that the Department would now consult other Departments that would necessarily be involved in the development of such right but that no final decision had been taken in regard to the introduction of a scheme.
In the event, the Commission issued its reasoned opinion on 7 July on the grounds of insufficient assurances of Irish willingness to respond to its concerns in the matter. In light of the correspondence referred to and other related correspondence, the Commission was fully aware of Ireland's position in respect of the issues set out in its reasoned opinion.
In the meantime, my Department has been consulting the main Departments involved and, following a further wider round of consultations, aims to frame proposals for a workable scheme of public lending rights in the near future. Proposals for legislative changes to give effect to such a scheme would also be required. The development of those proposals will take full account of the Commission's position regarding Ireland's compliance with the terms of the directive. In the meantime, my Department is in continuing informal contact with the European Commission about the matter.
