Government Maintains Cassette Tax – Faces Criticism

The government proposes to extend the so-called cassette tax on storage media in an updated form, which means extra fees for consumers. Critics argue that this is a tax that goes directly to the copyright industry.

The cassette tax aims to provide compensation to authors and other rights holders for private copying of their protected works and performances. It results in higher prices for items used to store files, such as USB sticks, memory cards, and hard drives.

According to the government, the proposal will also ensure simpler, more predictable, and competition-neutral rules for companies, as well as compensation levels that guarantee the burden on consumers cannot become too great.

All authors whose exclusive rights have been restricted for private copying and whose works have been made available for acquisition purposes shall have the right to compensation, unless the economic impact is only negligible. The same right shall also apply to artists, producers of sound or visual recordings, and radio and television companies.

Regarding compensable electronic products, it is proposed that the restriction to devices that can record sound or moving images be removed, which means that the regulation will essentially become technology-neutral. A so-called voluntary secondary liability is also proposed for the electronics industry, along with the right to a refund of compensation in cases such as re-export.

At the same time, the compensation per storage space for storage media such as hard drives, and multifunctional devices such as mobile phones and computers, is being lowered and is combined with caps. For devices intended for reproduction, such as copiers and printers, a fixed compensation level is being introduced.

Tax for the Copyright Industry

Relevant stakeholders can use reduction rules to ensure that the compensation is reasonable.

The non-profit 5 July Foundation, which seeks to increase internet users’ freedom, security, and privacy, is critical.

“Perhaps people used to share music on cassette or CD, because there was no alternative. Today, when almost everything you want is available to stream directly, the need for this is virtually non-existent,” they write, calling it “a tax on digital products that goes straight to the copyright industry.”