Summary of Impacts of Option 3b
Territoriality and absolute territorial restrictions in licensing agreements
Under the “country of origin” principle, a service provider can use the licence in its country of origin (possibly obtained from a person holding the rights in that country only) in order to actively market content outside its country of origin as well. When rights are territorially fragmented, e.g. when different persons or entities hold the rights for different Member States, a service provider established in one Member States may therefore undermine the economic position of right holders in other Member States.
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