Germany: Never before have so many products been subject to copyright levies

After alone this year and alone in Germany, two other large product families became taxable through contracts between collecting societies and companies, Smartwatches are now also taxable. Manufacturers and importers have to pay 1.50 euros per unit. The agreement for Smartwatches applies retroactively from 1 January 2019 and at least until the end of 2022. Only then can the amount of levies be renegotiated.

While the scope of taxable products in Germany was manageable for a long time, it has now become inclusive and comprehensive. Germany is one of the countries with levies on reprography equipment, which includes copiers, printers and scanners. In addition, until a few years ago, only some storage media were subject to levies. But intensive negotiations took place so that today, practically all relevant IT devices, all storage media and the entire range of consumer electronics are additionally subject to copyright levies.

Ultimately, the contracting parties have overcome long-standing obstacles to negotiations, the European market is more competitive, companies have more planning security and right holders have more income.

However, many more companies now have more work to do in terms of sales volume reporting. For example, a Smartwatch must first be clearly distinguished from a pure fitness tracker as well as from jewellery and toys in accordance with the product definition in the tariff agreement.

For more information: copyright@1cc-consulting.com