Most EU Member
States began imposing levies on the price of copying equipment
before the advent of copy protection technology. The levies, which
were intended to compensate copyright owners for the lost royalties
from private copying of music, movies, text and images, were
initially charged on blank audio and videocassettes, and also
photocopiers and tape recorders.
But technology has moved on. Private copying now takes place
largely on digital devices and Member States have moved to impose
levies on these too – charging a levy on the purchase price of
equipment such as CD recorders and MP3 players and blank media such
as blank compact discs.
Critics argue that this creates a multiple payment scenario
where consumers pay for permission to copy at the time of download,
and are charged again – one or more times – in the purchase of
devices used to play the content.
Levies are also charged on scanners and printers and other
devices at disproportionate rates to the cost of the equipment, say
lobbyists. German consumers, for instance, could pay an extra €147
on the average home office set-up, with levies imposed on printers,
scanners, computers and DVD drives.
The UK, Ireland and Luxembourg do not impose such levies
because, unlike the bulk of their neighbours, they do not allow
private copying except in very narrowly defined circumstances. The
US does allow certain private copying but does not impose such
levies.
Industry groups such as the Business Software Alliance (BSA),
European American Business Council (EABC), European Digital Media
Association (EDiMA), European Information and Communications
Technology and Consumer Electronics Association (EICTA), and
Recording-media Industry Association of Europe (RIAE) have been
lobbying for years to have the levies removed.
Yesterday they formed an alliance – the CLRA – to work together
on the issue.
They hope that the CLRA will improve fairness and transparency
in the collection of copyright levies on professional and consumer
products and devices in the European Union, and provide fair
treatment for consumers and fair compensation for content
creators.
To mark the launch, the CLRA yesterday released an economic
impact study detailing the extent of levies collection in nine
European countries – Austria, Belgium, Finland, France, Germany,
Italy, the Netherlands, Spain and Sweden.
The study found that levies are likely to increase from €1.57
billion in 2006 to €2.12 billion in 2009, complementing another
study by Forrester Research that found that online content
downloads will represent 36% of the entire music market by 2011.
This contradicts the expectation set out in the European Copyright
Directive that as digital copy protection increases, copyright
levies should decrease, says the CLRA.
The CLRA study also found that levies have more than tripled in
Europe since 2001 when levies collections in the nine countries
totalled €545 million. This year levies collections are expected to
reach €1.57 billion. The data also shows that the highest levies
collection is in Germany with €353 million in 2006 – projected to
increase to €454 million by 2009.
“Copyright levies on digital products are an outdated form of
taxation that penalises consumers, artists and industry alike,”
said Mark MacGann, spokesperson for the CLRA and Director General
of EICTA. “European lawmakers have an obligation to bring real
benefits by establishing efficiency and transparency in the
collection of levies while phasing out the levies system.”
