EU – Copyright levies on used products

Copyright levies may be applicable on used products brought on to the market after repair or refurbishment. In the context of leasing contracts, the question also arises as to whether each new device is subject to levies during the term of the contract. Many suppliers aren’t aware of these particular payment obligations that are not uniform in all EU-countries and are difficult to be justified legally.

As a matter of fact, the obligation is legally controversial: On the one hand, national law doesn’t always regulate the payment obligations for refurbished products, while on the other hand, refurbished products placed on the market have the same functionality as the original products. The buyer may use and reproduce works protected by copyright, so that the right holder receives due compensation.

Accordingly, the competent German authority is currently approaching affected companies directly and claiming levies on used products like, PCs, mobile phones and tablets. When asserting claims in Germany, the suppliers’ contractual situation with the authorities has to be taken into account, as well. Consequently, parties that receive letters from the German collecting society are encouraged to check the claim carefully for applicability.

For more information, please feel free to contact us at: copyright@1cc-consulting.com