German Copyright Levy Angers PC Manufacturers

by Ulrika Lomas, for LawAndTax-News.com, Brussels

25 January 2005

Following a court ruling last month which extended the imposition of the German copyright levy to computers, the European Information & Communications Technology Industry Association (EICTA) has pledged to appeal the decision.

For many years, Germany has been collecting copyright levies on the sale of analogue copying devices, such as blank audio and video cassettes. The levies are intended to compensate rights holders for lost royalties from private copying of music, images and movies.

However, in December, the District Court of Munich last ordered Fujitsu Siemens Computers (Holding) BV to pay a copyright levy of $13 plus 16% VAT on new PCs. Supported by the German Patent Office, VG Wort - an association of German composers, authors and publishers - went to court originally seeking a levy of EUR30 (US$41) per new computer sold in the country, in compensation for royalties lost through digital copying. VG Wort announced at the time that it planned to apply the decision to all PC vendors in the country.

Speaking to the VNU Network last week regarding the Munich court's decision, and a separate ruling in Stuttgart which defines printers as "copy-making" devices which should therefore be subject to the levy, EICTA executive board member Lizanne Scott argued that:

"The German courts have erected new barriers to the European single market, and the decisions run contrary to the Lisbon Agenda of strengthening Europe's industrial competitiveness."

She went on to add:

"We cannot understand how a member state of the EU with one of the largest technology markets can arbitrarily decide to place levies on the tools needed to build the European knowledge economy."

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