Extracts from the judgment of the Swedish Court of Appeal (Svea Hovrätt)


Extracts from the judgment of the Swedish Court of Appeal (Svea Hovrätt) concerning the appeal of the commercial television channel TV4 against the decision of the City Court of Stockholm on 20 December 2004.
 

Unofficial translation from the original Swedish document

The decision of the Court of Appeal (April 12, 2006, Case no. T 451-05)

1. The Court of Appeal confirms the decision of the City Court.

2. TV4 Aktiebolag shall pay for the costs of the legal proceedings in the Court of Appeal

– to Mr Claes Eriksson SEK 237,982:- of which SEK 185,000:- is for legal representation...

– to the estate of Mr Vilgot Sjöman SEK 238,292:- , of which SEK 185,000:- is for legal representation...

/—/

The findings of the Court of Appeal are as follows:

The parties have cited the same circumstances and in the main put forward the same arguments as they did in the proceedings at the City Court. TV4 has however drawn special attention to the fact that, if an infringement of the moral rights has been committed, then it was not negligent of TV4 to assume that the rightholders accepted that there were interruptions in the broadcasting of the films for advertising.

In the Court of Appeal, the film directors Mr Claes Eriksson and Mr Vilgot Sjöman and Mr Mats Örbrink from TV4 have been given a new hearing. Tape recordings of interrogations at the City Court of the film directors Mr Kjell-Åke Andersson and Mr Kjell Grede and the film professor Ms Astrid Söderbergh- Widding were listened to. Written evidence has been referred to. A video recording of the broadcast by TV4 of the films in question was shown to the Appeal Court too, and this recording included the commercial breaks.

The Court of Appeal has come to the following conclusion:
There is no dispute as to the fact that the films are cinematographic works in the sense meant by the Swedish Copyright Law, and that Mr Claes Eriksson and Mr Vilgot Sjöman are the creators of the two films. Nor is there any dispute between the parties that the creators, if it be confirmed that an infringement of their rights has occurred, shall be considered to have been affected by such damage as is named in paragraph 54 of the third section of the Copyright Law.

What is at dispute between the parties is whether the commercial breaks are in fact an infringement of the moral right of the creators, whether these rights have been waived, and whether TV4 has acted negligently.

The investigation of the case has concerned, among other issues, the question of where to draw the boundary between civil law and public law. TV4 has claimed that the commercial breaks that TV4 has made in the broadcasted films have followed European practice. This practice, to which all commercial TV channels adhere, is based on the so-called TV Directive (the Council’s directive 89/552EEG of October 3, 1989, about the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities) and the amendments to the directive made in 1997 as well as, as regards Sweden, the regulations in the Radio and TV Law (1996:844). That law, which was amended in 2002, is in these sections based on the TV-directive in its amended form. As has been noted in the judgment of the City Court, the main rule according to the Radio and TV Law is that advertisements shall be broadcast between programmes (chapter 7, paragraph 7). According to paragraph 7, advertisements may, under certain circumstances, be broadcast during feature films, but – according to paragraph 7 – only if this is done in such a way that neither the integrity and the value of the programme nor the the creator’s rights are infringed. The reasoning behind the amendments to the law indicate that these are not intended to affect the copyright rules. An offensive change or a break in a cinematographic work, if it is to be in accordance with agreements and the law in force, still requires the permission of the rights’ holders (proposal 2001/02:82 p.13). The regulations in the Radio and TV Law thus comprise the outer frame for the degree to which it is at all allowed to have commercial breaks when broadcasting a programme. The public law regulations thus do not affect the analysis with regard to the question whether the creator’s moral rights have been violated.

In agreement with the City Court, the Court of Appeal finds that commercial breaks in the films shown, do not mean that the cinematographic works have been shown in such an alien form or in such an alien context that the breaks for that reason should constitute a violation.

The Court of Appeal further shares the opinion of the City Court that, in accordance with the preliminaries and legal practice of the Copyright Law, the analysis of whether TV4's measures of interrupting the films with commercial breaks when broadcasting Mr Claes Eriksson’s and Mr Vilgot Sjöman’s feature films shall be undertaken in accordance with an objective standard. The Court of Appeal wishes however, with regard to the establishment of such an objective criterion, to point out that one can not ignore what is considered from the perspective of the creator to be a violation, but that on the contrary the view of the creator is a given starting point. In the objective standard, one must thus balance the view of the creator against any opposing interests and this standard must thereafter be seen in the light of what a creator on every given occasion should be considered as having reason to accept. This can for example mean that a rightholder must be prepared to accept unimportant changes which do not affect the general view of the work. There can also be opposing interests of an artistic or other nature that can motivate that a change shall be regarded as acceptable.

The commercial breaks being treated of here, can in the opinion of the Court of Appeal not be regarded as such unimportant changes in the cinematographic works that they already for that reason ought to be accepted by the creators. In accordance with what the Court of Appeal has declared earlier, the fact that the law allows commercial breaks can not be used to justify a case that commercial breaks do not violate the moral rights of the creators. It is also clear to the Court of Appeal that the interests that lie behind the commercial breaks are not of such a nature that, when establishing what objectively should be seen as acceptable, they should take precedence over the interests of the rights’ holder that his work should not be shown in a form that he considers a violation.

With the starting point in what Mr Kjell-Åke Andersson, Mr Kjell Grede and Ms Astrid Söderbergh Widding have, from starting points based on principles, expressed, the Court of Appeal considers that it is obvious that the commercial breaks treated of here not only have interrupted the continuity and the dramaturgy of the cinematographic works but have also introduced settings that are alien and unmotivated. In one case, the commercial breaks have further meant that the sought-after dramatic effect of switching between two scenes has been removed. On account of the arguments put forward and the reasons that the City Court have otherwise referred to, the Court of Appeal finds that the addition of commercial breaks to the films has meant a violation of the creators’ moral rights in the sense in which the City Court has declared. The Court of Appeal further allies itself to the analysis of the City Court with regard to the question of whether Mr Claes Eriksson and Mr Vilgot Sjöman have waived their moral rights in connection with commercial breaks in the films and the analysis of whether the infringement has occurred through negligence. The judgment of the City Court is thus confirmed.