Consumer Electronics

13/ 02/ 2014

 Amendments to the Government Resolution on copyright levies

The Cabinet of Ministers of Ukraine (hereinafter – the CMU) has adopted and finally published the CMU Resolution “On Amendments to the Resolution of the Cabinet of Ministers of Ukraine dated 27 June 2003 No992” No55 dated 5 February 2014 (hereinafter – the CMU Resolution No55). The CMU Resolution No55 was elaborated by the State Intellectual Property Service of Ukraine (hereinafter – the SIPS) together with the EBA Consumer Electronics Committee to create a clear list of equipment and data storage devices, which are subject to pay copyright levies.

Background:An absence of a clear list of equipment and data storage devices in the CMU Resolution “On the Rate of Copyright Levies Paid by Producers and Importers of Equipment and Data Storage Device, which Can Be Used in Domestic Conditions for Reproducing Works and Performances Fixed in Phonograms and (or) Videograms” No992 dated 27 June 2003 (hereinafter – Resolution No992) as well as an absence of transparent mechanisms to pay these copyright levies has caused a lot of problems for businesses. The first problem was in their relations with the authorised collective management organisations which interpreted the provisions of the CMU Resolution No992 too broadly. The second problem was the unjustifiably high rates of copyright levies: 3% and 5% of the selling price/cost of the equipment and data storage devices respectively.

Thus, the EBA Consumer Electronics Committee has actively advocated the necessity to revise Resolution No992 since 2011. The EBA organised a number of meetings with representatives of different state authorities and concerned persons, prepared and addressed a number of appeals to both Ukrainian and EU officials and promoted the Committee’s position on this issue at all possible levels. As a result, the draft of the CMU Resolution No55 in line with the EBA proposals was elaborated and published on the SIPS website in May 2013. The CMU Resolution No55 was adopted on 5 February 2014 and entered into force on 7 March 2014. It clearly defines the list of equipment and data storage devices that falls under its action and sets new copyright levies from 0.02% to 1.5% for different groups of products.

We would like to thank all EBA members who supported and contributed to our efforts focused on solving this issue. At the same time the EBA will continue our lobbying activities aimed at creating a business friendly environment in the copyright sphere in Ukraine.

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