Austrian Rights Holder Group Wants To Hit Cloud Services With A 'You Must Be A Pirate' Tax
from the cloudy-with-a-chance-of-rent-seeking dept
Another "YOU ARE ALL PIRATES" levy is being proposed by Austrian rights holders group Autoren. In addition to the fees already paid by consumers on blank CDs and DVDs, IG Autoren is pushing even further. And it's not just interested in physical media.Consumers in Austria already pay levies on blank CDs and DVDs. Rights holders have been advocating to expand these kinds of fees to hard drives and other forms of storage media as well, and apparently aren’t just thinking about local storage. In its newspaper, IG Autoren wrote:Hardware makers have pushed back, calling these proposed levies what they really are: double dipping. Consumers already pay the levy on blank media and now, Autoren wants to tax the computer, the hard drive and the cloud it connects to. With the dropoff in sales of blank media, IG Autoren's got to make up the income somewhere, right? This is what passes for "fairness" in the eyes of rights holders. If one form of media dies out, along with its associated fees, it must be replaced with another. Rather than face the fact that a business model that predicates itself on the assumption that piracy is the main reason people purchase CDs, DVDs, hard drives and cloud storage is a thoroughly flawed model, IG Autoren would rather push for additional levies -- all in the name of the artists, of course.
“We not only want a hard disc levy, we also want a levy for the usage of the cloud.”
One would think that if levying taxes on storage was such a money maker, artists would be better off selling blank CDs at their merch tables if they could collect the levy directly, rather than through a third party. In fact, for those further down on the sales chart, it just might be, considering the "trickle down" effect continues to rain dollars on the most successful artists while leaving the other 95% with mere pennies.
Not that IG Autoren is interested in approaching this logically. To defend its rent-seeking, it points to Germany, the country with some of the most screwed up concessions to rights holders' demands.
Rights holders on the other hand point to Germany, where levies are already in effect. German consumers currently pay €13.65 ($17.66) for every PC and between €7 and €9 for external hard drives. However, there is no fee for cloud storage services in Germany.The European Commission is currently considering reforms to copyright law to better apply it to the digital age. IG Autoren apparently believes means this means it should be able to apply its levies, ones that began back in the analog age of cassettes, to cloud services and any other technology that could conceivably hold an mp3. And it's not just IG Autoren. As reported back in October, a coalition of rights holders sent a submission stating that they were "entitled" to remuneration for personal copies. Fortunately, the commission's paper pointed out that cloud services actually reduced the number of copies made, making a private copy levy "less appropriate."
If the past is any indication, these rights holders will likely be granted a levy on hard drives and other storage devices, but cloud services may be a tougher battle. Considering many services offer limited free accounts and are likely unwilling to foot the bill for a €7-9 levy, this means these services won't be available (at least not the free option) in countries collecting this fee. The end result of this rent-seeking is fewer options for the public simply because a handful of rights holding organizations feel they're "owed" a cut from anything that can conceivably hold copied files.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: austria, cloud computing, copying, copyright, levies, taxes
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
Silly me. I thought that's what we had the Congress for.
[ link to this | view in chronology ]
But apparently, just like this tax proposal, I am a facilitator of piracy and not any kind of true victim whatsoever.
[ link to this | view in chronology ]
If I am levied ...
[ link to this | view in chronology ]
Re: If I am levied ...
[ link to this | view in chronology ]
So does this mean...
[ link to this | view in chronology ]
Re: So does this mean...
[ link to this | view in chronology ]
Re: Re: So does this mean...
[ link to this | view in chronology ]
Re: Re: So does this mean...
Levies are not branded directly as compensating for piracy, which is the reason they are there and growing like a tumour.
[ link to this | view in chronology ]
From the Copyright Industry.
[ link to this | view in chronology ]
Re: From the Copyright Industry.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
The US does have such a copyright tax. It's 3% of the price of the initial sale of the media.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re: Re:
"17 U.S.C. § 1008 bars copyright infringement action and 17 U.S.C. § 1003 provides for a royalty of 2% of the initial transfer price for devices and 3% for media.[12] The royalty rate in 17 U.S.C. § 1004 was established by the Fairness in Music Licensing Act of 1998. This only applies to CDs which are labeled and sold for music use; they do not apply to blank computer CDs, even though they can be (and often are) used to record or "burn" music from the computer to CD. The royalty also applies to stand-alone CD recorders, but not to CD burners used with computers. Most recently, portable satellite radio recording devices contribute to this royalty fund.[13]
Thanks to a precedent established in a 1998 lawsuit involving the Rio PMP300 player, most MP3 players are deemed "computer peripherals" and are not subject to a royalty of this type in the U.S."
So buying from the US and importing would still be a workaround providing it isn't forbidden or too expensive due to shipping or maybe custom duties.
[ link to this | view in chronology ]
Re: Re: Re:
Both would make it illegal to import it without paying the taxes and levies. Now, if we are talking personal use and therefore no reselling it would be legal, but it is hard to justify a trip to the states and back unless you have more things on the shopping list than just a few CD burners, 200 blank CDs etc.
[ link to this | view in chronology ]
You need to ask this question?
Please don't take this as a snide remark. Customer = pirate to these parasites. If you downloaded something and put it on any form of media capable of storing it, you must have pirated it. These parasites don't see anything other than pirates.
[ link to this | view in chronology ]
Question
[ link to this | view in chronology ]
Re: Question
[ link to this | view in chronology ]
Re: Re: Question
[ link to this | view in chronology ]
Re: Re: Question
[ link to this | view in chronology ]
I would say I'm shocked but this is par for the course for maximists so I'll just go with disgusted
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
Double-dipping -- even triple-dipping -- is nothing new to the content industries. Consolidating wealth from the bottom to the top is habitual behavior for the content industries. I wouldn't be surprised if over half of our deficit was wrought by corporate subsidies.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Ok people...
Australia = Island continent where they value beer, cricket, rugby and/or Aussie Rules Football. Not relevant to the story.
[ link to this | view in chronology ]
Re: Ok people...
[ link to this | view in chronology ]
Re: Re: Ok people...
[ link to this | view in chronology ]
So let me get this straight...
Now you know exactly how well this plan will limit piracy, it will enable it and make people feel justified in doing it.
[ link to this | view in chronology ]
Re: So let me get this straight...
[ link to this | view in chronology ]
Re: Re: So let me get this straight...
[ link to this | view in chronology ]
Yes, the innocent always pay for criminals.
So what's your point here?
[ link to this | view in chronology ]
Re: Yes, the innocent always pay for criminals.
[ link to this | view in chronology ]
Re: Yes, the innocent always pay for criminals.
Think for the moment that in order for these things to get online, how did they? Someone went out of their way to buy these things, made a digital copy, and then set it free onto the Internet for others to make copies of. These are the "pirates" you're speaking of, and they do have the money! Not to mention for the likes of us who are at least a bit more logical than you are that download do return the favor by paying.
So, I'll just keep on repeating: why should we take you seriously? You're an idiot.
[ link to this | view in chronology ]
Re: Yes, the innocent always pay for criminals.
The only people who will be 'punished' by these levies are the legitimate users and providers. The 'pirates' will just avoid the levies by avoiding cloud services.
Do you see, now, why these levies are a bad idea or do you need a big purple dinosaur to explain it in a way 2 year olds can understand it?
[ link to this | view in chronology ]
Re: Yes, the innocent always pay for criminals.
[ link to this | view in chronology ]
Re: Yes, the innocent always pay for criminals.
So by you theory, the CIA, and other law enforcement agencies (just to make one sector) are pirates.
Guess its true that your type believe everyone is a pirate.
[ link to this | view in chronology ]
Re: Re: Yes, the innocent always pay for criminals.
[ link to this | view in chronology ]
Taxes for military and defense related stuff for example can be renamed "You must be a terrorist" tax, why else do they need to spy on us? They didn't get serious about thinking that way (In the US anyway) until after 9/11.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
The one thing I will never do however is give money to ASCAP, MPAA, RIAA, BPI or BSA supporters, I rather go to jail. So I pirate when I need something from those people and I don't feel bad, specially when I see the jerks trying to get free money, without having to work for it as if they are entitled to it, never mind my abhorrence to granted monopolies.
[ link to this | view in chronology ]
A small correction
It's obvious really: Anyone who buys a NAS (file server) with a pre-installed hard drive is a filthy thief. Someone like me, on the other hand, who buys the box and drive separately, and installs himself, is an upstanding citizen, who would not dream of ripping his entire DVD collection so he can watch it on his tablet.
[ link to this | view in chronology ]
Re: A small correction
So, just about every business on the planet with backup plans for their data?
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Don't forget
Legal or not, anyone paying a fee to store the media is going to be a lot less inclined to pay for it in the first place.
[ link to this | view in chronology ]
[ link to this | view in chronology ]