EU: EC proposes Encryption Directive

The EC has approved a proposal for a Directive on the legal protection of services and paid-for information. The Directive would prevent MS from restricting the free movement of services and decoders within the EU; it also aims to ban and to impose penalties on all commercial activities linked to unauthorised access to an encrypted service such as the sale of decoders, smart cards or pirated software.

The proposed Directive will also apply to pay-per-view TV, audiovisual and music, as well as electronic publishing and other on-line services. MS will be obliged to ban the manufacture, import, sale, promotion, holding, installation, maintenance and replacement of illegal devices. In cases of infringement, penalties will be imposed that will be proportionate to the offence. Service providers will have the ability to initiate actions for damages, injunctions and, where necessary, confiscation of illegal devices.