Dutch court rules on refurbished devices and private copy levy

The Court of Appeal in The Hague, the Netherlands has determined that the origin of refurbished and used devices is decisive for any private copy levy obligations in the Netherlands. Devices sourced from Dutch private users are not subject to the levy. The court stated that the original purchase already included a levy covering the device’s entire lifespan. This ruling provides clarity for refurbishers handling devices previously owned by Dutch consumers.

Business and foreign devices remain liable

Devices originating from Dutch businesses or imported from abroad are subject to the levy. In these cases, refurbishers are considered equivalent to manufacturers or importers because they prepare the devices for consumer sale and reintroduce them to the Dutch market.

SES versus Stichting Thuiskopie

The case involved refurbished device seller SES, trading as Refurbo, against Stichting Thuiskopie in charge of collecting these levies. Thuiskopie requested that SES disclose all devices refurbished sold in the Netherlands since 2013. The court distinguished four possible sources: Dutch private users, Dutch businesses, direct foreign imports, and devices previously imported by third parties.

Origin determines levy obligations

According to the ruling, SES does not owe a levy for devices from Dutch private users. However, SES must pay for devices sourced from the Dutch business market or imported from abroad when sold to consumers in the Netherlands. The court clarified that refurbishers are treated like manufacturers when making these devices available to consumers for the first time in the Netherlands.

Impact on the secondary market

The decision has significant implications. Most refurbished devices in the Netherlands come from the business market or are imported, meaning the majority will be subject to a private copy levy. The court rejected the notion that all refurbished devices constitute new manufacturing, emphasizing that origin remains the key criterion.

Conclusion on compliance

The court ruling establishes that origin determines levy liability. Devices from Dutch private users are exempt, while devices from businesses or abroad carry obligations. This clarifies compliance requirements for refurbishers (sellers of used devices) across the Netherlands.