The copyright directive was "a workable proposal", said the industry's umbrella group, the International Federation of Phonographic Industries.
IFPI, representing around 1400 major and independent record companies worldwide, said the newly-adopted UK legislation, requiring measures from ISPs to curb piracy on their networks, sets a powerful example to other countries.
IFPI chairman John Kennedy said: "The passing of the Digital Economy Act in the UK recognizes that if a country is to have world-class creative industries, then it also needs laws that will effectively protect their rights from the crippling problem of digital piracy.
"The new UK legislation is a decisive step towards dealing with P2P and other forms of illegal distribution in a way that can substantially reduce the problem. Most importantly, it recognizes that effectively addressing piracy needs active cooperation from internet service providers, in helping curb infringements on their networks.
"The move by the UK creates momentum for the graduated response approach to tackling piracy internationally. Governments increasingly understand that, in the digital economy, creative industries like music, film, books and games can drive growth and jobs for many years to come if they are provided with the right legal environment and with a modern system of enforcement in which ISPs actively cooperate.
"The UK has today joined the ranks of those countries who have taken decisive and well-considered steps to address the issue. We hope this will prompt more focus and urgency for similar measures in other countries where debate is underway."
"There are enough elements here for the music industry to speed up the offering of music to consumers in a wider range of ways," IFPI Chairman Jay Berman said soon after the result was announced.
"The directive recognizes that copyright is an essential part of the Information Society."
With members made up of more than 1,400 record producers and distributors in over 70 countries IFPI represents the recording industry worldwide.
"We appreciate all the work the European Parliament has put into making it possible for our companies to do business. This will be to the benefit of artists and consumers alike," Berman said.
This has become vague problem for the music industry; it will make their profits go down. This draft proposal permits rights' holders in the music and film industries to prevent illegal replication of their works using advanced technology.
"Authors, performers, producers and broadcasting organizations will in principle enjoy exclusive rights regarding the reproduction, communication and dissemination of their work," this is what under the text of the directive.
However, individual European countries have their own exceptions or limitations to the rules.
The limitations include when they regard to it to be in the public interest. An example is to assist certain categories of people, such as the disabled, and reproduction for press purposes. Nevertheless in several instances the exceptions will be on the circumstance that the copyright holder receives fair compensation and in others that the source, including the author's name, is indicated.
Private individuals can produce a copy as long as it is solely for private use and non-commercial use. This is an amendment designed to strike a balance between the rights of artists and the public.
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