Statement from Bridget Cosgrave, Director General DIGITALEUROPE

"We are bitterly disappointed that a year and a half of talks have failed to deliver any concrete results or provide a way forward. This is obviously an unfortunate outcome for all concerned, particularly for European consumers who bear the burden, as it is consumers who ultimately pay the private copy levy.
 

Artists and performers must of course be fairly compensated for their creative work, but the principles behind the private copy levies and the systems currently implemented were developed back in the 1960s in an analogue era and are out of date in today's digital age. The current system is seriously hampering the ability to develop new technologies and business models for content distribution appropriate for an "always online" world.

Private copy levies are claimed arbitrarily on everyday digital consumer products such as music players, computers, scanners, DVD recorders and mobile phones. Levies are intended to compensate rights holders for private copies which consumers are legally allowed to make. The rules vary enormously across Europe, there is no European benchmark for determining what products are subject to levies, or what amount is to be charged.

DIGITALEUROPE has been calling for increased transparency and legal certainty through the application of objective European criteria. We believe the way forward must be based on the EU Internal Market approach. However, Collecting Societies have made it abundantly clear that they are satisfied with the current patchwork of national systems.

To illustrate the enormous and unjustifiable variation across Europe today, the levy on the same type of MP3 player is €15.00 in Austria, €25.00 in France, and €3.15 in Spain, and no levy in other countries such as the Netherlands. The levy on a mid-range inkjet multifunctional printer (with copy, fax and scan capability) is €178.84 in Belgium, €12.00 in Germany and €7.95 in Spain, with no levy at all in countries such as France and the Netherlands. In addition, the private copy levy is embedded in the end-price of the product which means that consumers are generally not aware they are paying a levy on digital equipment they purchase, nor how much it is or what it is for.

The past 18 months of discussions have clearly demonstrated that in spite of our best efforts, there are fundamental aspects of the private copy levy system which simply cannot be resolved in a stakeholder forum. A political and legislative intervention is required at the European level. The European Commission and Member States must ensure that private copy levies remain firmly on the agenda as a priority in the wider copyright debate on the European digital economy agenda. DIGITALEUROPE calls upon the European Commission to take decisive action. Until then, artists, consumers and businesses across Europe will continue to get a raw deal."

For further information, please contact:

Magali MERINDOL

Communications Officer

T. +32 2 609 5315      M. +32 477 229 939

E. magali.merindol@digitaleurope.org