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Hub AI
Private copying levy AI simulator
(@Private copying levy_simulator)
Hub AI
Private copying levy AI simulator
(@Private copying levy_simulator)
Private copying levy
A private copying levy (also known as blank media tax or levy) is a government-mandated scheme in which a special tax or levy (additional to any general sales tax) is charged on purchases of recordable media. Such taxes are in place in various countries and the income is typically allocated to the developers of "content". (A distinction is sometimes made between "tax" and "levy" based on the recipient of the accumulated funds; taxes are received by a government, while levies are received by a private body, such as a copyright collective.)
Levy system may operate in principle as a system of collectivisation, partially replacing a property approach of sale of individual units.
Such levies were first introduced in Germany in the 1960s. With the advent of the audio cassette, legislators were persuaded that cassette recorders would decimate sales of records as friend after friend would then make copies of only one purchased album. Levies today are assessed on recordable compact discs, a form of media that did not exist when levies were first conceived. Although the bulk of unrecorded compact discs are actually used in the computing industry, they are still "taxed" to provide a revenue stream to the recording industry.
A common misconception is that levies are compensation for illegal copying such as file sharing. This is incorrect, however, levies are only intended to compensate for private copying that is legally allowed in many jurisdictions. For example, uploading a purchased CD on to another personal device such as a laptop or MP3 player. Generally, legislators allow private copies for two reasons: firstly, because otherwise, the enforcement would be unfeasible for private reasons, and secondly, because the administrative burden would be disproportionate.
In the European Union, the legal basis for levies is the 2001 InfoSoc Directive. It mandates that EU countries must put in place a compensation scheme to compensate rightsholders for harm caused where there is a private copy exemption.
In 2015, the European Parliament approved a non-binding resolution (Reda Report) asking a review of the levy in the European Union, building on previous resolutions and studies. However, there has been no change in the EU legal framework since. Industry players continue to lobby for reform of the system which they argue is outdated and does not reflect the rise in streaming services which has caused a drop in private copying.
A difficulty that arises is devising a mechanism for distributing the proceeds to copyright holders that is considered "fair" by all copyright holders and consumers. Fairer methods should involve extensive sampling of users to determine actual copying behaviour, or alternatively paying all musicians at a simple flat-rate.
While the main aim of levy systems is to compensate authors for losses due to private copying, some part of the collected money is also used for general cultural funding purposes. In Germany this is required by law. This funding is usually distributed by the same entities (collecting societies) that distribute the levies to individual authors.
Private copying levy
A private copying levy (also known as blank media tax or levy) is a government-mandated scheme in which a special tax or levy (additional to any general sales tax) is charged on purchases of recordable media. Such taxes are in place in various countries and the income is typically allocated to the developers of "content". (A distinction is sometimes made between "tax" and "levy" based on the recipient of the accumulated funds; taxes are received by a government, while levies are received by a private body, such as a copyright collective.)
Levy system may operate in principle as a system of collectivisation, partially replacing a property approach of sale of individual units.
Such levies were first introduced in Germany in the 1960s. With the advent of the audio cassette, legislators were persuaded that cassette recorders would decimate sales of records as friend after friend would then make copies of only one purchased album. Levies today are assessed on recordable compact discs, a form of media that did not exist when levies were first conceived. Although the bulk of unrecorded compact discs are actually used in the computing industry, they are still "taxed" to provide a revenue stream to the recording industry.
A common misconception is that levies are compensation for illegal copying such as file sharing. This is incorrect, however, levies are only intended to compensate for private copying that is legally allowed in many jurisdictions. For example, uploading a purchased CD on to another personal device such as a laptop or MP3 player. Generally, legislators allow private copies for two reasons: firstly, because otherwise, the enforcement would be unfeasible for private reasons, and secondly, because the administrative burden would be disproportionate.
In the European Union, the legal basis for levies is the 2001 InfoSoc Directive. It mandates that EU countries must put in place a compensation scheme to compensate rightsholders for harm caused where there is a private copy exemption.
In 2015, the European Parliament approved a non-binding resolution (Reda Report) asking a review of the levy in the European Union, building on previous resolutions and studies. However, there has been no change in the EU legal framework since. Industry players continue to lobby for reform of the system which they argue is outdated and does not reflect the rise in streaming services which has caused a drop in private copying.
A difficulty that arises is devising a mechanism for distributing the proceeds to copyright holders that is considered "fair" by all copyright holders and consumers. Fairer methods should involve extensive sampling of users to determine actual copying behaviour, or alternatively paying all musicians at a simple flat-rate.
While the main aim of levy systems is to compensate authors for losses due to private copying, some part of the collected money is also used for general cultural funding purposes. In Germany this is required by law. This funding is usually distributed by the same entities (collecting societies) that distribute the levies to individual authors.