Reforming of  copyright in EU and considered policy options - Option 4
            
            Option 4 would be achieved through a Regulation  setting out common EU rules and replacing national legislation with a legal  base of Article 118 TFEU. A single EU copyright title would be developed to  replace national copyright titles. Under a unitary title, the exclusive rights  would be defined as being protected in the whole territory of the EU. In order  for unitary title to be effective, there would need to be exhaustive  harmonisation, and direct applicability, of the entire copyright framework. To  that end, a European Copyright Code would be created. So far, harmonisation has  focused principally on rights and exceptions (and even in that respect there  are divergences). This would mean that in order to ensure the effectiveness of  a unitary title, all other elements in a “Copyright Code” would need to be  harmonised fully this includes: all exclusive rights that are not fully  harmonised, including the adaptation right, the definition of protected subject  matter; the threshold of originality; authorship; ownership; moral rights; term  of protection; exceptions and limitations; copyright contract law; enforcement  law and practice. A European Copyright Code would thus replace all national  legislation on copyright, and all national copyright titles. It is likely to  imply the need to establish either special copyright courts at the national  level or an EU-level copyright court.
            Summary of impacts of  Option 4
            By virtue of establishing a single title and a  European Copyright code, copyright could no longer be invoked to justify the  segmentation of the internal market for the provision of content services. This  implies the need to arbitrate a compromise between the droit d’auteur tradition  and the Anglo-Saxon ‘copyright’ approaches. The removal of all territorial restrictions  is likely to increase the price of licence fees, as authorisations (and  services) would cover the entire EU. This is likely to favour larger companies  with a cross-border network, over national network operators. On the other hand,  these impacts could be mitigated by the development of licencing practices  based on the number of users targeted/actually served. In general transaction  costs will be radically reduced (application of one single uniform set of rules  through the EU). This will benefit all actors in the value chain and will lower  entry barriers for new entrants. It will also improve legal certainty for all  stakeholders.