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German courts hit Hewlett-Packard over CD burners

OUT-LAW News, 27/11/2000

Hewlett-Packard has become the first company by Germany to be hit with new fees to be paid by makers of compact-disc burners and other high-tech products because they can be used to copy music and other works protected by copyright.

Many neighbouring countries of Germany have similar laws protecting authors and musicians from violating copyright laws, however these focus on tape recorders and video players. Germany has extended its law into the ‘digital age’ by controlling CD burners, hard drives, printers and high-speed modems that make for easy copying and transferring of copyrighted items.

The International Federation of the Phonographic Industry suggests that there are in the region of 500 million CDs pirated by people creating and downloading their own CDs.

Germany’s main licensing group GEMA used Hewlett-Packard as a test case in May because of its status as market leader in CD burners. Following a dispute with the company, the two parties reached an agreement last Thursday, requiring Hewlett-Packard to pay 12DM (£3.66) per machine sold in the future in addition to a sum for past sales. Further companies in Germany selling CD burners will also pay fees depending on their agreement with GEMA. These fees are to be distributed by GEMA to copyright owners through recording houses and music distributors.

Reactionary arguments to this decision are that it does not take into account those with legitimate reasons for copying, while creating complications for hardware manufacturers in Europe.

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