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The European Court of Justice has ruled that Spain's piracy levy, a tax placed on the purchase of blank media, is "indiscriminate" and unacceptable, at least when it comes to taxing certain groups other than private individuals.
The court ruled that without evidence of harm, there can be no levy, since it would be asking perfectly innocent citizens, and organizations, to pay for something they did not do.
The case got to the court's attention when Spain's Sociedad General de Autores y Editore (SGAE), made a demand of payment from Padawan for selling blank DVDs and CDs, citing these blanks may have been used for piracy and according to Spanish law, the levy needs to be collected by companies like Padawan and handed over to the government, via SGAE.
However, Padawan took the matter to court, the European Court of Justice to be precise, and it has just won the case. Sort of.
"A link is necessary between the application of the levy intended to finance fair compensation with respect to digital reproduction equipment, devices and media and the deemed use of them for the purposes of private copying," the ruling said, "Consequently, the indiscriminate application of the private copying levy, in particular with respect to digital reproduction equipment, devices and media not made available to private users and clearly reserved for uses other than private copying, is incompatible with Directive 2001/29."
In other words, while the court accepts that private individuals can be assumed to have used blanks for piracy, and taxed with the levy, certain groups like charities and non-profit organisations, and even legitimate businesses, the levy is not allowed.
The advantage for consumers under such a system is that they are allowed to make private copies under the law, as they have already "paid" for it via the levy.
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The court ruled that without evidence of harm, there can be no levy, since it would be asking perfectly innocent citizens, and organizations, to pay for something they did not do.
The case got to the court's attention when Spain's Sociedad General de Autores y Editore (SGAE), made a demand of payment from Padawan for selling blank DVDs and CDs, citing these blanks may have been used for piracy and according to Spanish law, the levy needs to be collected by companies like Padawan and handed over to the government, via SGAE.
However, Padawan took the matter to court, the European Court of Justice to be precise, and it has just won the case. Sort of.
"A link is necessary between the application of the levy intended to finance fair compensation with respect to digital reproduction equipment, devices and media and the deemed use of them for the purposes of private copying," the ruling said, "Consequently, the indiscriminate application of the private copying levy, in particular with respect to digital reproduction equipment, devices and media not made available to private users and clearly reserved for uses other than private copying, is incompatible with Directive 2001/29."
In other words, while the court accepts that private individuals can be assumed to have used blanks for piracy, and taxed with the levy, certain groups like charities and non-profit organisations, and even legitimate businesses, the levy is not allowed.
The advantage for consumers under such a system is that they are allowed to make private copies under the law, as they have already "paid" for it via the levy.
More:
