Consumer Electronics

15/ 01/ 2021

The European Business Association welcomes the registration of the draft Law №4537

The EBA has repeatedly drawn the attention of state authorities to the fact that the current system of payment of copyright levies from electronics for so-called private copying and reprographic reproduction is outdated, inefficient, and unfair to all stakeholders.

According to business, the collection is obsolete because it was developed in the pre-digital era when there was a mass copying of video and audio cassettes. Modern technology has built-in special hardware that blocks unauthorized copying and allows you to view works online without recording them on the device or media. Moreover, the additional equipment levy deepens the crisis in the electronics market, where virtually one in three smartphones or TVs was illegally imported. Therefore, copyright levies are unfair to equipment manufacturers.

As for the injustice of the existing system in relation to consumers, not all consumers use the function of unauthorized copying of the work on the device. At the same time, everyone has to pay according to the existing system. In addition, the consumer now has the opportunity to purchase online any subscription to a music channel, book, etc. Therefore, the payment of an additional fee for the equipment will actually lead to “double taxation”.

As for the fairness of the existing system of collecting copyright levies and their distribution by collective management organizations among the authors, in our opinion, it never existed. Because it is impossible to know which author’s work was copied, how many times, and on which devices. Moreover, modern technologies allow us to build a new system and enable authors to directly receive funds from consumers of their content.

That is why the EBA in its official letters, releases, and during working meetings constantly drew the attention of the authorities to the reform’s necessity. The EBA welcomes the registration of the draft Law №4537 on improving the efficiency and transparency of the copyright levies system. This draft law solves the above problems and will reduce the number of abuses in the distribution of collected levies and the number of litigations between importers and authorized collective management organizations, which have a very negative impact on the investment climate in Ukraine. Therefore, the EBA supports the draft Law №4537 and hopes for its adoption as soon as possible.

If you need additional information, please contact Viktoriia.Kulykova@eba.com.ua, Manager of the EBA Consumer Electronics Committee.

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