A levy on electronic gadgets sold in the European Union is an extra tax that hinders competition and limits consumer choice, a new industry alliance said on April 05.
The levy dates to the 1960s when it was introduced on blank tapes to compensate performers for private copying of copyright music.
"This levy is designed for the analogue 1960s and not applicable to the digital age," Mark MacGann, spokesman for the new Copyright Levies Reform Alliance, told reporters.
It is imposed on manufacturers and importers but passed on to consumers to bump up the price of gadgets ranging from iPods to copiers and scanners.
The levy, for example, on an iPod digital music player ranges from 2.56 euros in Germany to 18 in Austria and 90.6 in Spain, the alliance said. There is no levy on gadgets in Britain, Ireland, Luxembourg, Cyprus and Malta.
The alliance wants the system reformed because for some products such as digital music players, consumers already pay a copyright fee on downloaded music and other content.
MacGann said the levy is so high on electronics sold in some EU states that it wipes out profit margins and suppliers avoid entering the market, limiting consumer choice and competition.
EU states where the levy is imposed are expected to collect 1.57 billion euros this year and 2.12 billion in 2009.
The alliance was launched on Wednesday to persuade the European Commission to enforce a 2001 EU copyright directive more stringently, particularly a clause that allows for the scrapping of levies.
The levies are collected by collecting societies on behalf of performers, but MacGann said that due to disputes over how much should be paid, industry also sets aside 3 billion euros a year to cover disputed amounts.
The Commission will publish its views by year end but could meet resistance from states as a third of the money raised goes to government coffers to promote cultural activities.
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