Article 20—Contract Adjustment Mechanism

This chapter focuses on Article 20 of Directive 2019/790, order on copyright in the Digital Single Market in Europe, which analyzes the contract adjustment mechanism. It reviews the rights of authors and performers or their representatives in claiming additional, appropriate, and fair remuneration from the party with whom they entered into a contract for the exploitation of their rights in the absence of an applicable collective bargaining agreement. It also points out that authors and performers tend to be in the weaker contractual position when they grant a licence or transfer their rights for the purposes of exploitation in return for remuneration. The chapter analyzes certain contracts for the exploitation of rights harmonised at Union level that are of long duration. It talks about a remuneration adjustment mechanism that should be provided for cases where the remuneration originally agreed under a licence or a transfer of rights becomes disproportionately low.