BREAKING NEWS: Europe Passes Controversial New Copyright Law

"Today's vote ensures the right balance between the interests of all players — users, creators, authors, press — while putting in place proportionate obligations on online platforms," the European Commission, which produced the first draft of the rules, said in a statement.

Helen Smith, executive chair of IMPALA, which represents independent record labels, declared the new rules a victory for creators of content.

"This is a landmark day for Europe's creators and citizens, and a significant step towards a fairer internet," she said. "Platforms facilitate a unique relationship between artists and fans, and this will be given a boost as a result of this directive. It will have a ripple effect worldwide."

Digital rights campaigners had called on lawmakers to drop part of the legislation that requires platforms to take down unauthorized content, saying it would force them to use crude content filters to guard against illegal content. These filters would automatically delete content for which users had not obtained explicit upload permission, stifling the creative use of digital content online.

Lawmakers rejected these arguments, put forward by Julia Reda, a member of Germany's pro-digital rights Pirate Party. Instead, they backed a range of exceptions that would allow content to be used for parody, quotation and other purposes.

Technology companies such as Google and Facebook had also opposed the copyright overhaul, stating that the changes would require them to build expensive content filters and stop linking to publications.

On March 26, Google issued a statement saying the EU's copyright reforms would produce legal uncertainty and hurt the bloc's creative and digital economies.

"The details matter, and we look forward to working with policymakers, publishers, creators and rights holders as EU member states move to implement these new rules," the company said.

The new rules mean Google will have to pay fair compensation to publishers, artists and musicians.

Axel Voss, a conservative German lawmaker, said that claims that the new rules would stifle creativity were "complete exaggerations."

The Commission said that the copyright rules would "protect freedom of expression" by setting "strong safeguards for users." The use of existing works for purposes of quotation, criticism, review, caricature as well as parody would be explicitly allowed, according to the Commission. "Memes and similar parody creations can be used freely," it said.

The rules, which need the final approval of the EU's 28 national governments, will come into effect in approximately two years.

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Simon Taylor writes for Legal Week, the London-based ALM sibling publication of Entertainment Law & Finance.