NLA got aggregator to remove newspaper links but nobody sure of copyright

Newspaper publishers and NLA may have won the battle against content aggregators, but can they really claim victory?
Not until copyright laws define and cover online aggregation service.
NewsNow, the UK content aggregator is set to remove links to most national newspapers after a row with the Newspaper Licensing Agency (NLA).
The site will pull links out of its subscription service that relates to content from titles of eight major newspaper groups - including Guardian Media Group, News International, Telegraph Media Group, Associated Newspapers and Independent News & Media- who own the NLA.
NewsNow's move comes after a debate with NLA after the agency launched a crackdown aggregators, PR agencies and all organisations that recycle links for commercial purposes. It announced of plans to claim copyright fees against organisations which share press cuttings by emailing links to newspaper articles on an industrial scale starting from January 2010.
NLA also aimed at charging web-based news aggregators who collect news headlines, make their own feeds, tailor-make it and distribute it widely to businesses and then profit from it (the B2B service providers).
This crackdown is to ensure that a typical aggregator such as NewsNow, which links to content from newspapers and provides them to business on subscription, would be expected to pay up to £10,000 as "web database license fees".
It is clear that NLA has attempted to introduce a new revenue stream at a time when newspaper publishers are losing to freely accessible information on the internet.
NLA spokesman Andrew Hughes clarified that it will not charge backdated fees and will not charge users sharing news links for free. "Our new licences only to paid-for web aggregation services, free-to-use services are unaffected. Web aggregators copy and index website content. This requires the consent of the content owner, and charging those who use website content commercially is fair and reasonable. The reason NewsNow and most other aggregators have accepted our proposals is that detailed legal advice supports our position."
NLA said that all of the major paid-for UK web aggregators except Meltwater have agreed licenses. Meltwater's resistance and NewsNow's plans to remove links than agree to pay license-fees demonstrates the reluctance in the aggregation business to pay because, according to them, their service constitutes "content-search2.
In the last few months the debate between aggregators and publishers has been whether aggregation is a search service or content copying because existing copyright law does not cover aggregation.
While NLA thinks aggregators must pay, legal experts point that circulation of hyperlinks cannot be an infringement of copyright, and that the newspapers' own 'Print 'and 'Email a Friend' icons allow any user to access the article directly, without payment.
In a report, Robin Fry of Beachcroft said: "Most businesses have abandoned the circulation of physical press cuttings, leaving it to individuals to access stories direct from the newspaper websites. The broadsheets clearly allow this on their websites but the NLA still seem to be pursuing businesses for licences which are simply not needed.
"Our aim is to demystify the situation, as we have seen an increase in enquiries from clients on this issue, who are understandably baffled by the numerous and complicated rules and fees in this area. It's quite possible for organisations to access all their press cuttings at no cost whilst staying within the law.
"The NLA has a responsibility to explain the correct legal situation to those it seeks copyright fees from - but at the moment, many are entering into licences - and possibly paying backdated 'indemnity' fees - without really understanding if these are needed for their business."
The battle will only get bitter unless a legal framework is put in place soon.