The District Court of The Hague has ruled that the repair or inspection of electronic devices does not constitute “manufacturing” under Dutch Copyright Law. This judgment comes in response to a claim by Stichting Thuiskopie, the Dutch organization responsible for collect private copy levies, which argued that the defendant, a refurbisher of electronic devices, should be classified as a manufacturer and therefore liable to pay a private copying levy on refurbished items sold in the Netherlands.
Refurbishers not considered manufacturers under copyright law
According to Stichting Thuiskopie, the defendant’s activities—such as testing, repairing, and replacing parts on used devices before reselling them with a warranty—should qualify the company as a "manufacturer." This designation would make them responsible for paying the private copying levy on refurbished goods. However, the court disagreed, stating that simply repairing or inspecting a device does not equate to manufacturing under Dutch copyright law. This decision aligns with previous rulings, reinforcing that refurbishing does not classify a company as a manufacturer for copyright purposes.
Reduced copy levy for refurbished products since 2021
Since 2021, refurbished devices sold directly to consumers in the Netherlands have been subject to a reduced private copying levy, at 40% of the standard rate. Under the Dutch Copyright Act, manufacturers or importers of devices are obligated to pay this levy to compensate creators for private copies made of copyrighted works. Thuiskopie can also request sales records from sellers to verify that the levy has been paid by the manufacturer or importer.
Defendant required to report imported and sold devices
While the court ruled that the defendant is not a manufacturer, it still mandated that the company provide a detailed report to Thuiskopie. This report must include the number of devices imported into and sold within the Netherlands since November 2019. Additionally, the defendant is required to comply with the private copying levy requirements on all devices sold in the Netherlands, including showing documentation upon request and paying the levy within 30 days of receiving an invoice from Thuiskopie.
Implications for the Dutch refurbished electronics market
This ruling provides much-needed clarity for companies in the Dutch refurbished electronics industry. It confirms that refurbishing activities—such as repairs and testing—do not classify a company as a manufacturer under copyright law. This means that for trade-in devices originating within the Netherlands, no private copying levy is required. However, the obligation for refurbishers to comply with reporting requirements and pay the private copying levy remains in place for all imported devices.
Market
Trade-in
Repair
Refurbishing
