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German government defends copyright tax

OUT-LAW News, 07/09/2000

The German Justice Minister Herta Daeubler-Gmelin has spoken in support of the government's plans to impose a new tax on high-tech manufacturers, saying the copyright fees proposed by a new law are necessary to protect the intellectual property of artists, authors and other creative people.

The government is planning to levy a tax on equipment such as computers, modems, printers and CD burners that can be used to reproduce material subject to copyright laws.

Bernhard Rohleder, managing directore of Bitkom, an association and lobby group for IT and telecommunications industries in Germany, warns that the recommendations will, if adopted, increase the total tax burden on the industry by DM1 billion (£309 million) with the price of items such as scanners and fax machines rising by up to 30%. Rohleder added:

“This is absolutely unique. Nowhere else in the world are such far-reaching regulations being discussed… It is totally unacceptable that laws made for the analogue world are being applied to the digital one.”

This figure was rejected by Daeubler-Gmelin, describing it as a horror story that did not accord with the reality. She said she would expect the tax rate to fall below 10% and added that at present, everybody who buys a cassette recorder already pays a copyright tax – and still cassette recorders offer excellent value for money.

In Germany, copyright taxes are levied on technology on which material can be reproduced, including both the hardware, such as a video recorder, and the medium, such as a blank audio or video cassette. The money is distributed among copyright holders by firms that specialise in royalty collection. In June this year, levies were extended to scanners and photocopiers.

The new taxes need the approval of parliament before implementation can take place. The schedule for laying them before parliament has still to be fixed.

 

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