The draft Directive aims to adapt the rights of copyright owners such as musicians, directors and publishers for the "digital age". It creates a new set of rights to govern the creation, production, sale or transmission of copyright-protected material. The US passed a similar law in 1998, the Digital Millennium Copyright Act.
Industry observers fear that the Directive, if passed in its present form, could open loopholes that would legalise the widespread on-line sharing of music and video files.
The concern is largely centred on the wording of a provision that allows for private copying. Under the draft, an individual can make a copy of copyright protected material for private use. The concern of copyright owners is that the wording is ambiguous and could legitimise mass file sharing services like Napster.