WIPO treaties During the TRIPS negotiations, it became clear that the Agreement would not catch up with recent developments in digital communication and information technologies. Against this backdrop and facing the threat of losing relevance, WIPO suggested a new treaty for the online environment and a update of the protections for performers, producers of phonograms and broadcasting organizations. Since a revision of the Berne Convention--requiring all signatory nations to vote unanimously for the amendments--was not a feasible option WIPO appointed a committee of experts to draft a Special Agreement. At a diplomatic conference in December 1996, finally, the WIPO Copyright Treaty(WcT)and the WIPO Performances and Phonograms Treaty were They became law in May 2002. The United States signed both, and the European Union(EU)implemented the treaties through the European Copyright Directive. The EU member states are following suit in the course of transposing EU copyright law into national law In this section, we focus on the WCT of 1996. This Treaty governs the protection of literary and artistic works and is in its scope identical to the Berne Convention. It explicitly confirms that copyright protection extends to computer programs and databases. The Treaty clarifies three specific rights and addresses three important issues Right of distribution. The Treaty provides an exclusive right of distribution to authors Under the berne convention this right had only been granted with respect to cinematograph works. The Treaty leaves it to its signatories to determine if and under what conditions the exclusive distribution right will apply beyond the first authorized transfer of ownership. In the United States, for instance, the distribution right exhausts after the first sale( the "first sale doctrine) Right of rental. In addition, the Treaty grants a right of rental to authors of certain kinds of works such as computer programs, cinematographic works and works embodied in phonograms. Accordingly, authors have the exclusive right to authorize the commercial rental to the public of the originals or copies of their works. The Treaty also sets forth important exceptions to these rights. Right of communication to the public. Further, the Treaty grants authors of literary and artistic works the exclusive right to authorize any communication to the public of their works, by wire or wireless means, including by making ther available via interactive on-demand services or the like Under the Berne Convention this right had been limited This lengthy process started in 1991 and involved many studies and reports submitted by national governments and other wp-1204-0003 Gartner G2. com @2004 Gartner, Inc. and The Berkman Center for Intemet Society. All rights reserved. Page 7 of 35wp-1204-0003 GartnerG2.com © 2004 Gartner, Inc. and The Berkman Center for Internet & Society. All rights reserved. Page 7 of 35  .   During the TRIPS negotiations, it became clear that the Agreement would not catch up with recent developments in digital communication and information technologies. Against this backdrop and facing the threat of losing relevance, WIPO suggested a new treaty for the online environment and an update of the protections for performers, producers of phonograms and broadcasting organizations. Since a revision of the Berne Convention—requiring all signatory nations to vote unanimously for the amendments—was not a feasible option, WIPO appointed a committee of experts to draft a Special Agreement. 14 At a diplomatic conference in December 1996, finally, the WIPO Copyright Treaty (WCT) 15 and the WIPO Performances and Phonograms Treaty (WPPT) 16 were adopted. They became law in May 2002. The United States signed both, and the European Union (EU) implemented the treaties through the European Copyright Directive. The EU member states are following suit in the course of transposing EU copyright law into national law. In this section, we focus on the WCT of 1996. This Treaty governs the protection of literary and artistic works and is in its scope identical to the Berne Convention. It explicitly confirms that copyright protection extends to computer programs and databases. The Treaty clarifies three specific rights and addresses three important issues. • Right of distribution. The Treaty provides an exclusive right of distribution to authors. Under the Berne Convention, this right had only been granted with respect to cinematographic works. The Treaty leaves it to its signatories to determine if and under what conditions the exclusive distribution right will apply beyond the first authorized transfer of ownership. In the United States, for instance, the distribution right exhausts after the first sale (the “first sale doctrine”). • Right of rental. In addition, the Treaty grants a right of rental to authors of certain kinds of works such as computer programs, cinematographic works and works embodied in phonograms. Accordingly, authors have the exclusive right to authorize the commercial rental to the public of the originals or copies of their works. The Treaty also sets forth important exceptions to these rights. • Right of communication to the public. Further, the Treaty grants authors of literary and artistic works the exclusive right to authorize any communication to the public of their works, by wire or wireless means, including by making them available via interactive on-demand services or the like. Under the Berne Convention, this right had been limited 14 This lengthy process started in 1991 and involved many studies and reports submitted by national governments and other players. 15 http://www.wipo.int/documents/en/diplconf/distrib/94dc.htm. 16 http://www.wipo.int/documents/en/diplconf/distrib/95dc.htm