Numerous changes to copyright levies for electronic products in Europe are expected as of 1 January 2024. Some of these include annual adjustments to tariffs, whilst others are simply common practice and some are already foreseeable today. The sooner companies take account of these changes in software, processes and product prices for 2024, the better.
Changes
The tariff revisions in Austria and Denmark, for example, are already planned. This is in line with the standard, regular procedure. However, as in other countries, the products covered should be examined carefully. Upon closer scrutiny, there are more products covered than indicated by the product names or definitions in the tariff publications. In addition, the definition of the scope of application can change according to the consensus of the authorities and industry without amending the publications. One example is the long-standing, ambivalent issue of the obligation to pay fees for certain external storage devices in Switzerland.
Due to the constant development in game consoles, in addition to the typical use of video games, the question of the levy obligation for these devices arises again. The collecting societies in many countries are expected to adopt a standpoint in 2024. This is because game consoles enable private copying, which is exactly what users do during game demonstrations, or when recording their own actions.
Some of the changes for next year are administrative in nature and relate to the fulfillment of the levy obligation. For example, an additional collecting society has recently been established in Spain.
Developments
Changes that have not been defined but are foreseeable may include additional products in the scope of application, as well as important organizational changes in France. Philippe Latombe, member of the National Assembly, has proposed fundamental reforms to the French levy system. The role of the Commission for Copyright Levies, which has been solely responsible to date, is to be limited to making proposals to Parliament. In addition, the system for exempting professional users from the levy obligation is to be significantly simplified. Alongside this political initiative, the responsible bodies are preparing to recalculate the tariffs in 2024, where desktop PCs and laptops are to be included in the scope of application.
Refurbishment
The duty to pay levies on refurbished products will also be the subject of controversial debate and clarification in 2024. This is because, for once, there is a clear divide in the consideration of environmental and copyright aspects. The positions on the copyright levy obligation for devices that have already been in use continue to differ significantly from country to country. The aim to promote the development of the recycling market makes ecological sense because it creates jobs while giving more people the opportunity to equip themselves at lower cost. However, all of this does not affect the principle of flat-rate compensation for the legitimate practice of private copying. Protected content is used, even copied, and this is happening on an ever-increasing scale. Discussions are therefore centered around the fundamental prevention of double payment, i.e. the levy for the new device and then again for the refurbished device. This can be avoided by considering the question of whether the individual device is placed on the market for the first time or is refurbished. In some countries, including Germany, this has already been established: Devices with copying and storage functions are subject to copyright levies only once, whether new or refurbished, as long as they are marketed within Germany.
1cc GmbH will continue to assist companies next year in identifying and evaluating these developments through systematic monitoring and individual consulting.
