Debate: Private copying levy wrong and illegal

We have a system where consumers can be forced to pay several hundred kronor for something they do not use. The private copying levy should be reviewed - but the Riksdag is doing nothing, write Klas Elm, ElektronikBranschen and Pär Nygårds, IT&Telekomföretagen.

Parliament is set to reject several motions calling for a review of the private copying levy on Thursday. The private copying levy is a relic of the days of cassette tapes and CDs, which have been completely overtaken by streaming services for music, movies and TV shows. Through these services, consumers are already paying for copyright, yet they have to pay again when they buy smart phones, tablets and laptops.

The law violates EU law. It is supposed to compensate actual damage suffered by copyright holders from private copying, but there is no such damage. Hardware, user surveys and market statistics all show that private copying has virtually stopped. Moreover, there is no system of reimbursement and the funds are collected entirely without government control or involvement. In its current form, the law would be struck down by the European Court of Justice.

As remuneration is based on the memory capacity of, for example, smart phones, tablets and laptops, there is a sharp automatic increase in remuneration as technology develops and memory capacity increases without any link to the level of private copying.

We have a system that contravenes EU law and can force consumers to pay several hundred kronor for something they do not use. But Parliament is doing nothing. Despite high ambitions for Sweden to take advantage of the opportunities of digitization, legislation from the analogue era is retained.

For several years, both the government and parliament have said that a review may be justified, but referred to ongoing work within the EU. This is repeated in this year's reading.

The Riksdag Committee on Industry, Research and Energy refers to the Government Offices, which state that the issue is currently being prepared by the Commission but that no proposals can be expected this year. This is not correct. The last announcement from the Commission was in 2015, when it said it might address private copying. Last year, the Commission presented a series of legislative proposals on copyright and the digital single market, none of which addressed private copying.

In the meantime, the Commission has informed industry associations that it is not actively working on the issue. In particular, there are no new legislative proposals.

Where did the Government Offices get the information that the Commission is working on the issue of private copying levies? We suspect that this has become a casual and convenient excuse to avoid dealing with the issue.

The reality is very different in European countries. In Germany, 70% of music sales are still physical CDs. In several large European countries, such as Poland, Portugal, Italy and Spain, between 15-25% of the population does not yet use the internet. In Sweden, 85-90% of music sales are currently digital, i.e. through services where private copying is not possible. The view of streaming services and private copying is of course characterized by extensive non-connected consumption.

Surveys show that only a small proportion of Swedes make private copies. At the same time, the availability and market for streaming services is increasing. In light of this, private copying levies seem increasingly unreasonable.

Several EU countries have also made changes to the private copying levy. Finland, for example, has completely abolished a system similar to the Swedish one. The assessment in Finland was that increasing streaming services made the system unsustainable. In order to ensure future support for the cultural sector, a budget-financed system was decided on instead. Sweden should also make this necessary change.

Parliament owes the music-loving student and single mother in particular the answer as to why they should pay twice for music, movies and TV consumption, and why they should pay more when they buy a new smartphone with more memory.

There is still an opportunity to take the initiative on this issue when it is discussed in Parliament. Instead of continuing to refer to EU initiatives that will probably never come.

Pär Nygårds, Industry Policy Expert, IT&Telecom Industries
Klas Elm, CEO, ElektronikBranschen