Debate: The ruling makes iPhones 450 SEK more expensive

On June 10, the Supreme Court announced that it upholds the Court of Appeal's judgment between Telia and Copyswede, which means that Telia must pay SEK 73 million in private copying compensation for iPhones imported into Sweden. This means that the phone will be more expensive and that the consumer will be double-taxed, writes Anne-Marie Fransson of IT&Telecom, Örjan Brinkman, Chairman of the Swedish Consumers' Association and Klas Elm, CEO of ElektronikBranschen in a debate article on Aftonbladet Debatt.

The Supreme Court's ruling exposes how outdated the legislation is. It also makes the issue no longer legal but purely political. The private copying levy, or cassette levy, is used to compensate copyright holders for losses incurred when consumers privately copy music and films, for example, but it misses the mark as users seem to be using their mobile phones less and less for that purpose. Does Parliament want consumers to pay a gigabyte tax in practice?

Consumers are the ones who pay the private copying levy, as the European Court of Justice has ruled. When the Supreme Court rules that iPhones should be covered by the levy, it also means an increase in costs for the consumer.

Copyright is essential for innovation, creativity and the promotion of artistic creation. Copyright holders should of course be fairly compensated for the private copying that still occurs. However, current legislation provides for an increase in compensation as the internal memory of mobile phones grows, while all indications are that private copying has virtually ceased.

The music industry reports that more than 80 percent of music sales are streamed services. Physical CDs account for about 10 percent, worth approximately SEK 120 million.

Those who listen to music via streaming services have in most cases paid a subscription and thus also compensated the copyright holders. Thus, with private copying levies of up to 450 SEK for a smart phone, consumers are forced to pay twice for the same right.

Copyswede's demand for private copying levies amounts to half a billion SEK based on 2015 sales of smart phones, tablets and PCs. Half a billion SEK that they demand that consumers pay.

The Supreme Court focuses on the concept of "specificity", as there are the same features in an iPhone as there were in an mp3 player when the law was written ten years ago, so a smartphone is also considered "specific" for private copying.

The Supreme Court does not go very deeply into the question of how many people copy privately, but notes that different studies show different results, but that "mobile phones are used for private copying to a not insignificant extent".

When the Supreme Court interprets the law in this way, it is time for modernized legislation. It is offensive that the legislation has these consequences. It is unfair to consumers and it tarnishes the image of Sweden as a modern digital society. When the difference between copyright law and reality becomes too great, respect for copyright risks being eroded once again.

Parliament has rejected individual motions calling for change, citing upcoming EU legislation. We do not know how long this will take, but Finland (and Norway) have chosen to reform the compensation through a more modern system that does not hit consumers or have unreasonable consequences when technology gives us new opportunities.

The Supreme Court's ruling therefore places an even stronger demand on politicians to urgently begin work on a new system. For every year the old system is maintained, consumers are taxed by at least half a billion.

Örjan Brinkman, Chairman of Swedish Consumers

Klas Elm, CEO, ElektronikBranschen

Anne-Marie Fransson, Federal Director, IT & Telecom Companies