Newsletter
National Communications Commission announces the framework for the draft "Internet Audio-visual Service Management Act"
National Communications Commission announces the framework for the draft "Internet Audio-visual Service Management Act"
To improve Internet audio-visual services, safeguard the rights of domestic consumers and promote the development of the local audio-visual content industry, the National Communications Commission (NCC) announced the framework for the draft "Internet Audio-visual Service Management Act" on May 25, 2022 (the "2022 Framework"). The 2022 Framework readjusts the draft "Internet Audio-visual Service Management Act" announced by the NCC on July 22, 2020 (the "2020 Draft "). The highlights of the 2022 Framework are summarized as below:
1. Scope for the OTT services being regulated:
According to the 2022 Framework, Internet audio-visual services (over-the-top services, the "OTT") operators will be regulated if the following three conditions are met: (i) having a commercial base/branch office within the Republic of China (ROC or Taiwan) or having a substantial connection with Taiwan; (ii) engaging in Internet audio-visual services; and (iii) having business of a certain scale. Same as the 2020 Draft, the User Generated Content ("UGC") and shared information on social media platforms (for example, Facebook, YouTube, Instagram, etc.) are not subject to the 2022 Framework.
2. Registration and Obligations
(1) Unlike the voluntary registration mechanism under the 2020 Draft, the 2022 Framework adopts a "behavior management mechanism". That is, in principle, although registration is not required for OTT operators, certain obligations have to be fulfilled. Furthermore, the NCC may consider certain factors such as the number of users and other significant public interests when deciding on the list of OTT operators that are required to register and to fulfill other special obligations (Please refer to point (3) below).
(2) In order to avoid placing excessive burden on small and medium-sized OTT operators, a hierarchical obligation mechanism is adopted. All OTT operators with a presence in Taiwan or having a substantial connection with Taiwan are required to comply with the General Obligations. The General Obligations include (i) disclosure of basic information; (ii) appointment of an agent to handle matters in Taiwan (for offshore OTT operators); (iii) provision of content with proper copyright licenses; (iv) management and removal of improper content; and (v) provision of response to inquiries on data.
(3) Under the hierarchical obligations mechanism, OTT operators that are required to register must fulfill the Special Obligations; for example, (i) creation of a special section for local contents or production/joint production with local producers of local contents; (ii) disclosure of and compliance with the Terms of Service; and (iii) establishment of or joining a self-regulatory organization.
3. Misconduct and enforcement measures.
In response to the concerns over piracy and copyright infringements, the 2022 Framework specifies that it would be deemed a misconduct if an OTT operator is found by the court to have violated copyright law for the content that it provided.For OTT operators that violate copyright law repeatedly and fail to take corrective measures, the NCC may order the Internet service provider, telecommunications operators, or those who set up public telecommunications networks to refuse such OTT operators' request for telecommunications services and communication transmission or to take necessary measures.
The NCC will announce the new Internet Audio-visual Service Management Act after deliberation and its internal approval and welcomes any comments from the industries, government, and academia.
Please do not hesitate to contact our Digital, TMT and Data Privacy practice group if you have further inquiry about the 2022 Framework.