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Europe Daily Bulletin No. 9302
Contents Publication in full By article 23 / 39
GENERAL NEWS / (eu) eu/intellectual property

Pressure mounts up on forthcoming recommendation on system for private copy payments

Brussels, 08/11/2006 (Agence Europe) - Currently in the inter-services consultation stage, the European Commission recommendation on the system of remuneration for private copy has provoked some strong reactions in the cultural world. Following the setting up of the “Culture First Alliance” (EUROPE 9292), eight European directors of international repute wrote the European College of Commissioners on 6 November to defend the system against the “frontal attack” led by international electronic hardware manufacturers. Set up by twenty Member States, this system authorises private copies of audio-visual productions while imposing a compensatory payment on blank CDS and DVDs and electronic equipment such as MP3s and then for writers from collecting societies who pay them their royalties. The Commission recommendation, whose adoption is planned for the end of November, may be challenged.

In an effort to control the use of copyright Pedro Almodovar, Ken Loach, the Dardenne brothers, Lars von Trier, Costa Gavras, Nanni Moretti and Mike Leigh, explain in a letter that “we want to express our wholehearted support to the principle of compensation for the private copying of audio and audiovisual works”. They add that, “there is no other alternative for right holders to be compensated…This system meets the needs of both consumers (the ability to copy) and creators (fair compensation). It does not in any way hold back the development of broadband or the penetration of hardware equipment. The ICT industry should recognise its responsibility in remunerating or financing audiovisual production”. This is because the creators, who provide most of the content that can be copied are encouraging consumers to purchase electronic hardware, point out the signatories of the letter.

During the Education, Youth and Culture Council on Monday 13 November, the French delegation will ask the Commission about its intentions regarding a possible reform of the deductions for copyright. France will underline the need to avoid harming the balance attained in the 2001/29/EC directive on the harmonisation of certain aspects of copyright and similar rights in the field of information society.

The industry is not letting up. In a letter dated 3 November and sent to six Commissioners, the “Copyright Levies Reform Alliance” expresses its “deep concern” about the process for adopting the recommendation. The body declares that, “We are alarmed that the Recommendation may be further delayed or, worse, vetoed, and due process thus abandoned”. (The organisation brings together the Business Software Alliance: Apple, Hewlett-Packard, Sony), the European-American Business Council (EABC) and the Recording-media Industry Association of Europe (RIAE), as well as the European Digital Media Association (EDiMA). It points out that this recommendation is part of the European 10-point strategy for stimulating innovation. It explains that full supports “the need for artists and other rightholders to be fairly compensated in application of existing EU legislation. It is our understanding that the Recommendation is not suggesting that levies should be abolished, as some collecting societies have mistakenly claimed, merely that they should accord with European law”. The body advises Member States that are recent about the idea of a reform of the system that challenges the funding of cultural activities to finance these activities by drawing from their own general tax systems. It also affirms that the current system has “tripled” the value of levies collected since the adoption of directive 2001/29/EC but that the amount of disputed levies in just Germany and France alone is close to “€1.5bn” and which will lead to a loss of sales for artists themselves of “approximately €248 million by 2008”in online music revenues as a result of the current system. (mb)

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