Study from group finds half billion Euro increase in European copyright levies expected by 2009, despite growing market for copy-protected digital media
BRUSSELS, 5 April 2006 – A coalition of associations representing the information and telecommunications technology, consumer electronics and digital media industries was launched today with the aim of pressing for urgent reform on European copyright levies. The Copyright Levies Reform Alliance (CLRA) wants to improve fairness and transparency in the collection of copyright levies on professional and consumer products and devises in the European Union, and provide fair treatment for consumers and fair compensation for content creators.
At today’s launch, the CLRA released an economic impact study detailing the extent of levies collection in nine European countries[1]. The study finds that levies will increase from €1.57 billion in 2006 to €2.12 billion in 2009. Meanwhile, Forrester Research finds online content downloads will represent 36 percent of the entire music market by 2011. The European Copyright Directive indicates that as digital copy protection increases, copyright levies should decrease - yet, CLRA’s report finds that not to be the case.
“Copyright levies on digital products are an outdated form of taxation that penalizes consumers, artists and industry alike,” said Mark MacGann, spokesperson for the CLRA and Director General of European digital technology industry group 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.”
The study finds that levies have more than tripled in Europe since 2001 when levies collections in the nine countries totalled €545 million, increasing to €1.57 billion in 2006. The data also show the highest levies collection is in Germany with €353 million in 2006 – projected to increase to €454 million by 2009.
Copyright levies were introduced in most European countries before the advent of copy-protection technology as a means of compensating copyright owners for legitimate private copying. Notably, the UK, Ireland, Luxembourg, Cypress and Malta do not currently impose copyright levies on digital equipment.
On digital devices, consumers are charged a levy in the purchase price of equipment such as CD recorders and MP3 players and blank media such as blank compact discs, creating 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 reprographic devices at disproportionate rates to the cost of the equipment. 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.
“Copyright levies are basically an unfair, indiscriminate and non-transparent tax on consumers, and run contrary to the EU’s efforts to make the Information Society more accessible,” said MacGann. “By making digital devices more affordable for consumers, we can further encourage the uptake of technology in Europe and free valuable resources for reinvestment in innovation and European competitiveness.”
About the Copyright Levies Reform Alliance
The Copyright Levies Reform Alliance is comprised of 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).
For further information about the Copyright Levies Reform Alliance or for copies of the Levies Collection Study, please contact:
Daniel Karam at EICTA, +32 (0) 473 645 387, Daniel.Karam@eicta.org
Press enquiries, please contact:
John Mandeville at APCO: +32 (0) 2645 9842, jmandeville@apco-europe.com
Chris Blundell at Brunswick: +44 207-404-5959, cblundell@brunswickgroup.com
