Move to harmonise levies on blank tapes

Date: 28/11/1996

By Chris Johnstone

THE European Commission has signalled that it is likely to seek an end to EU chaos over levies on blank video and audio tapes with a proposal for harmonised charges in the new year.

“It is most probable we will do something,” said a Commission source this week.

But officials also concede that it will be difficult to convince EU governments to agree on uniform rates.

“They might agree on harmonisation, but they would all like it to be at their own national levels,” said one.

Tape levies, which are designed to compensate artists, record and film companies for the loss of earnings from home copying, have been imposed by member states in a patchwork fashion across the EU.

Eleven countries have them, with Sweden now considering whether to join the club. The UK, Ireland, and Luxembourg have so far resisted falling into line, but are now expected to come under mounting pressure to do so.

There are also substantial differences in the rates levied by those member states which do impose a charge. In Denmark, for instance, they account for 50&percent; of the retail price of video tapes, while Greece imposes a 6&percent; levy.

Critics of the lack of a harmonised EU-wide regime maintain that these differences are distorting the internal market, with blank tapes flowing from countries where there are no duties to those where there are.

The high priority given to tackling the Union's patchwork of copying rules in the Commission's recent communication on copyright and related rights in the information society has increased the pressure for action on recording levies.

So too has Portugal's decision earlier this autumn to introduce a charge. “It is more urgent now,” said one official.

The Commission hopes that packaging an initiative on blank tapes together with other information society measures should give any new proposal a greater chance of success than the two previous attempts.

“We would expect a clear proposal in the new year,” said European Tape Industry Council representative Andreas Kalmar.

The ETIC, which includes large manufacturers such as BASF, TDK, Sony, Maxell, and Fuji, has campaigned vigorously for an end to the current confused picture.

“A uniform levy would be the only option now. If you admit there is distortion of the market at the moment then anything else would not be serious,” insisted Kalmar.

The ETIC maintains that the overall effect of duties has been to put pressure on tape prices and erode profits.

“We do not like the levies, but they seem to be the only solution. We would like them to be harmonised at the lowest rate possible,” said Kalmar.