The "Directive on measures and procedures to ensure the enforcement of intellectual property rights" is intended to help intellectual property right holders in their fight against counterfeiting and piracy by providing a level playing field for actions brought in any part of the EU.
It has been intensely controversial, with copyright owners and big businesses lobbying for the legislation to be as tough as possible, and civil rights groups and smaller firms stressing that strong legislation will restrict innovation and hurt SMEs.
Indeed, the furore surrounding the proposed Directive was such that the European Parliament vote on the draft was postponed on several occasions, until the Commission was sure that the provisions of the draft were acceptable not only to the Parliament, but also to the Council of Ministers.
The Directive, which covers infringements of intellectual property rights provided under both Community law and the national law of the Member States, includes procedures covering evidence and the protection of evidence and provisional measures such as injunctions and seizure.
Under the new legislation, right holders will be able to ensure the destruction, recall or permanent removal from the market of illegal goods, as well as financial compensation, injunctions and damages. They will also be able to ask judges to order certain persons to reveal the names and addresses of those involved in distributing the illegal goods or services, along with details of the quantities and prices involved.
The Directive signals to Member States certain measures (such as the publication of judicial decisions and the development of professional codes of conduct) that contribute to the fight against counterfeiting and piracy. It also requires Member States to appoint national correspondents to cooperate and exchange information with other Member States and with the Commission.
As well as benefits for right holders, the Directive contains safeguards against abuse, ensures the rights of the defence and includes references to the protection of personal data and confidential information. It does not, however, include provisions on criminal sanctions that had been the subject of much criticism by civil liberties and consumer groups.
The Commission has not ruled out the inclusion of such provisions, and the Directive as adopted is accompanied by a Commission declaration that indicates that the Commission "will examine the possibility" of proposing measures providing for criminal sanctions in the future.
Internal Market Commissioner Frits Bolkestein welcomed the adoption and said:
"The Directive will give the Europe of 25 much stronger defences against counterfeiting and piracy, which are a modern economic plague increasingly linked to organised crime. When intellectual property rights are not respected, there is less investment in innovative industries, research and cultural promotion. That means everyone in Europe loses out."
Member States will implement the Directive within two years of the Directive's publication in the European Union's Official Journal, which will take place very shortly, said the Commission.