Market
14
Oct
2024
4
min read

Private copying levy: its relevance and impact on the European secondary market

The practice of making private copies of copyrighted material has led many countries, particularly in Europe, to implement levies on devices and media used for such copies. These levies aim to compensate rights holders for potential income losses. The “Private Copying Global Study 2020” , although a bite out of date, provides an extensive analysis of these systems worldwide, with a particular emphasis on Europe. However, the question remains: is this levy still relevant today?

In an era where streaming services dominate, fewer individuals store music on their smartphones. Artists are already compensated through these platforms, leading to concerns that the private copying levy may be outdated. Moreover, the lack of uniform implementation across European countries raises issues of legal inequality. Under European law, the principle is that taxation—of which this levy is a form—should be harmonized, raising questions about its current fairness.

European revenues and trends

Within the European Union (EU), 21 of the 27 member states operate comprehensive private copying levy systems. In 2018, these levies generated €1.019 billion, representing the largest share of global revenues. Despite some fluctuations, the overall trend in income from 2007 to 2018 has been upward.

Revenue per capita varied significantly in 2018, from less than €0.01 in some countries to €5.16 in Iceland. Other countries with relatively high per capita revenue include France, Germany, Austria, and Hungary. The EU average in 2018 was €2.35.

Factors influencing revenue

The study suggests that EU membership and gross national income (GNI) per capita explain 25-35% of the variance in levy revenues. In general, countries within the EU and those with higher GNI per capita report higher revenues. The study also indicates that fixed levies may yield higher revenue than percentage-based levies, though this is not conclusively proven.

National implementations

The implementation of private copying levies varies significantly across Europe. Some examples include:

  • Austria: uses fixed levies, generating €24.7 million in 2018.
  • Belgium: applies a percentage reflecting 'private copy usage' per medium/device to account for professional use.
  • Bosnia-Herzegovina: although legislation exists, mechanisms for collection and distribution are lacking.
  • Bulgaria: similar to Bosnia-Herzegovina, with legislation but no collection and distribution; the European Commission has filed a lawsuit for non-compliance with EU information society directives.
  • Croatia: uses fixed levies and has won legal cases against parties refusing to pay.
  • Czech Republic: collects levies biannually, with distribution occurring annually.

Regional disparities and compliance challenges

Some countries, like France and the Netherlands, have introduced lower levies for refurbished products, assuming shorter lifespans for used devices. However, enforcement varies, with only a few countries, including the Netherlands and France, responding to compliance requests.

Marketplaces and merchant responsibilities

European marketplaces like Back Market and Refurbed should actively inform their merchants of the varying levies across countries for selling used devices. Integrating this requirement could ensure compliance until these levies are potentially abolished. To facilitate this, tools like Musketeer.pro have emerged, providing precise levy information by country and seamlessly integrating with platforms such as Back Market, Refurbed, eBay, and Amazon.

Interested in the global market for used electronics?

From now on, you'll never miss a thing and can easily stay up to date with the latest developments in the secondary market. Sign up today for the newsletter from secondarymarket.news. It's filled with the latest news, trends, developments, and gossip. Stay informed and don't miss out on anything!

Daily (except on Sundays), you'll receive the latest news from the global secondary market straight to your inbox after registering. This way, you'll always stay up to date with the latest secondary market developments and trends.

Sign up for our newsletter

Thank you for registering for the newsletter

From now on, you'll always stay informed and won't miss out on the latest trends and developments in the global secondary market for used electronics.
Oops! Something went wrong while submitting the form.
© 2024 Secondary Market News. All rights reserved.
Privacy & Cookies