Exclusive Interview: Veiko Strauss on Musketeer.pro’s mission to simplify private copy levy compliance in Europe

The inspiration behind Musketeer.pro

When asked Strauss explained that his journey with PCL compliance began during his career with Foxway, a Swedish leader in trade-in services and used device sales. At Foxway, Strauss encountered a frustrating array of levy systems, tariffs, and reporting standards across Europe. "Each country has its own requirements, levy rates, and deadlines," Strauss said. "It’s a massive headache for any business, no matter the size. Even when the levies themselves aren’t substantial, the administrative work needed to comply is disproportionately costly and time-consuming."

Why should sellers be concerned about PCL compliance?

Strauss emphasized the importance of understanding the legal landscape surrounding PCLs. "The regulations exist, and collecting organizations can initiate legal action whenever they choose. So, at a minimum, sellers need to be aware of the risks," he explained. "Non-compliance can put a business at serious financial and reputational risk. Even though the enforcement levels vary across countries, it’s essential for companies to be prepared."

The burden of compliance: What makes PCL challenging for sellers?

When asked about the challenges sellers face, Strauss was quick to highlight the sheer variety of systems across Europe. "Every nation has different levy rates, unique reporting templates, and separate deadlines," he noted. "For a seller, navigating these requirements is a daunting task. Even if the levy amount isn’t significant, the paperwork and compliance processes make it disproportionately difficult to manage."

According to Strauss, this complexity often means that companies are spending far more on administration than on the levies themselves. "The administrative side of PCL compliance can eat into resources that companies could otherwise allocate towards growth," he said. "With Musketeer.pro, we’re hoping to offer an affordable, efficient solution that reduces this burden."

Marketplace dynamics: The impact of PCL compliance

Marketplaces could take stronger steps to promote fair competition, especially regarding compliance with private copy levy (PCL) regulations. "In marketplaces with a buy box system, like Back Market and Refurbed, there’s an unfair advantage for sellers who don’t comply with PCL requirements," he explained. "Compliant sellers might lose between € 2.50 to € 15 in margin per sale. This loss might not sound significant, but in a competitive environment, even a small margin difference can mean losing the buy box—and consequently, a lot of sales."

He described how non-compliant sellers can gain an edge over those who adhere to regulations, creating a disincentive for following the law. "Effectively, it punishes the businesses that play by the rules," Strauss said. "It’s a clear example of how regulatory compliance can sometimes hinder rather than help fair market competition."

Challenges for collecting organizations

He pointed out that collecting organizations face considerable hurdles in enforcing PCL compliance, mainly due to a lack of transparency in sales data. "Without accurate data on actual sales, enforcing PCL regulations is nearly impossible," he noted. Strauss suggested that the new EU Digital Services Act could play a crucial role in helping these organizations obtain data from marketplaces, enabling more robust enforcement of PCL regulations.

However, Strauss also believes that the collecting organizations should adopt a more collaborative approach with the refurbished electronics industry. "Many of these organizations are too attached to the idea of protecting the legacy legislation that don’t necessarily serve the industry today," he said. "If they were more willing to work with businesses in this space, they could create policies that benefit everyone."

Building consumer trust: A quality stamp for compliant sellers

Strauss proposed a potential solution for bridging the trust gap in the refurbished industry—a quality stamp for compliant sellers. "Studies show that consumer trust is still a big challenge in the refurbished industry," he said. "A certification indicating that a seller is fully compliant with PCL could be a game-changer, giving consumers confidence that they’re dealing with a trustworthy provider."

He further believes that such a stamp would not only benefit consumers but also provide a clear advantage to businesses that go the extra mile to comply with regulations. "This kind of certification could be a powerful tool in leveling the playing field and promoting responsible business practices," he said.

Outlook for PCL compliance: Moving towards a sustainable regulatory framework

Strauss is optimistic about Musketeer.pro's role in simplifying PCL compliance for businesses, but he remains cautious about the broader regulatory landscape. "The PCL regulations were originally designed to protect intellectual property, but they haven’t evolved to meet the realities of today’s tech industry," he explained. "To achieve a sustainable framework, there needs to be a shift in how these rules are enforced and updated."

He added that Musketeer.pro’s tool could be instrumental in providing a compliance solution that scales with a company’s needs, regardless of where they operate. "We want to make compliance as painless as possible, so companies can focus on growing their business instead of getting bogged down in bureaucracy."