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German Court Sets Copyright Tax on New PCs

graemee pastes: "The District Court of Munich has ordered Fujitsu Siemens Computers to pay a copyright levy on new PCs. The landmark decision, announced on Thursday, ends a nearly two-year dispute between the largely Germany-based computer maker and the country's VG Wort rights society, which has sought compensation for digital copying. VG Wort had filed a suit against Germany's largest PC maker, Fujitsu Siemens, seeking 30 euro (US$41) for each new computer sold in the country. The court agreed to a 12 euro copyright levy."

23 of 428 comments (clear)

  1. May I be the first to... by rokzy · · Score: 4, Insightful

    ... vomit in absolute disgust.

    Unless of course this completely ligitimises copying c.f. Canada. somehow I doubt it though.

    1. Re:May I be the first to... by sepluv · · Score: 4, Insightful

      May I be the first to do so regardless of whether anything is legitimised; that would make it even worse IMO--as I don't download non-free (as in freedom) music or software, and this would be very unfair to copyright holders who do not join the local German monopolistic protection racketeers.

      --
      Joe Llywelyn Griffith Blakesley
      [This post is in the public domain (copyright-free) unless otherwise stated]
    2. Re:May I be the first to... by Anonymous Coward · · Score: 4, Informative

      In Germany dogs pay tax (true), and TV and Radio receivers pay tax also (16EUR/month). There is a tax of 16% in just about everything you buy, including most food items, and there is also a solidarity tax that goes to rebuild east Germany. If you don't ask for it, you will get a deduction called "church tax" from your paycheck, and at the end of the year there will be even more tax deductions.
      Those who live for creating new taxes will succeed on collecting them, and their money will be one legally collected, but somehow not really deserved, which will benefit them on the short run only. The problem is obviously an old set of laws that were not created with the new Digital World in mind. Hopefully governments will call young people to revise outdated schemes making impossible for old structures to predate on people's resources in such ominous ways.
      For the rest of us, there is a law that says: "hecha la ley, hecha la trampa" ("done the law, done the trap" or, there is always a way around a stupid law). Hack your system.

    3. Re:May I be the first to... by catwh0re · · Score: 5, Insightful
      What doesn't make sense is that it's a tax on something which is illegal.

      It's like the cd-r issue. Either the RIAA gets money from a tax on cd-r, or they get to enforce their copyright for damages in the court... but not both. Both these organisations are effectively double dipping. This shows how courts and governments can be manipulated given the right amount of money.

      Why it's wrong is that users pay a fee for using their cd-rs for any legitimate content, and anyone that uses their computer is similarly paying a fee, for the possibility that they might do something illegal with their machine.

      (The RIAA and similar organisations are too used to their lucrative contractual deals where they get alot of money for doing very little, such as 15% breakage fees still existing from vinyl days, when even then it was ridiculous for the artist to be paying for that.)

    4. Re:May I be the first to... by TykeClone · · Score: 4, Funny
      The taxes were collected for the specific purpose of paying the copyright owners.

      Therefore, like all taxes collected for a specific purpose, they're going towards something else.

      --
      A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.
    5. Re:May I be the first to... by whorfin · · Score: 4, Insightful

      So the German government has created an additional fee for practicing fair use of already purchased content? If that's the case, then WTF do they think fair use means, then? I thought it meant that 'because you have paid for it, you have the rights to this good for your personal use'?

      They should have a similar fee on all printers, copiers and scanners, since using one of those may also be practicing fair use. Not to mention CD and DVD players, televisions, and radios. Thos machines are also essential elements in fair use of purchased media.

      I've got it, the eyeball and earlobe fee, that way they can get everybody. Doesn't matter if your deaf and blind, because I'm sure those people don't get out of paying the 'fair use fee' on their computers.

      --
      Laugh while you can, monkey-boy!
    6. Re:May I be the first to... by InvalidError · · Score: 5, Insightful

      Thankfully, the federal court ruled that levies were redundant and should be terminated.

      While we might not know where all the levy money went, we at least now know the levies will be gone soon (in Canada), assuming they have not already been abolished thanks to the court's decision.

      I wonder what kind of share independents manage to get from royalty claims. Since the RIAA regularly forgets that a free/independent market exists and sues intependents who distribute their own stuff, it must be quite a hassle for independents to fight off the RIAA if it accidentally (but happily) files levy claims for unlicensed productions.

      People should realize that governments are becoming a system of "by rich people for rich people" instead of the "by the people for the people" they used to be and should be - governments are another area where the barriers to entry are rising every round, effectively keeping most people out.

    7. Re:May I be the first to... by Kithraya · · Score: 4, Insightful

      It's like the cd-r issue. Either the RIAA gets money from a tax on cd-r, or they get to enforce their copyright for damages in the court... but not both. Both these organisations are effectively double dipping. This shows how courts and governments can be manipulated given the right amount of money.

      Actually, they may get to do both here. In the US, 22 states now have laws on the books that say drug dealers must pay tax on the illegal drugs they sell. Of course these states aren't actually going to collect anything, but it gives them something else to charge drug dealers with when they're arrested. Unfortunately, this is an example that the RIAA can point at and say "look, we can tax an illegal activity and still go after people for doing it." IANAL, but this seems a very dangerous example to set.

  2. Free downloads in Germany.. by Cederic · · Score: 4, Insightful


    They're already paid for.

    (Sure the courts wont see it that way)

    ~cederic

    1. Re:Free downloads in Germany.. by Teun · · Score: 4, Insightful
      Yep, free downloads.

      You've indeed paid royalties for the stuff you copy.

      Yet this does not make it legal to offer someone else's work for copying.

      Various European courts have already confirmed that the downloaders are not the infringers but the uploaders are.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
  3. This sets up a nasty loop by Buran · · Score: 4, Insightful

    By doing this, they're legitimizing the same activities they claim to be trying to stop. If you are going to pass a levy to compensate for something, you can't expect anyone to listen when you tell them to stop. They will (rightly) say "I paid an extra tax on this equipment to cover the cost of what I'm doing." They'll either have to stop charging a levy or fin that no one will listen.

    1. Re:This sets up a nasty loop by Seumas · · Score: 4, Insightful

      This actually suggests two things.

      First, it would seem to legitimize copying copyrighted material - since they are charging you a fee to cover that very thing.

      Second, if they still prosecute people copying copyrighted material on a home computer, then how can they justify this? They are already penalizing people without due process and assuming that they are guilty of copyrighting (charging them for it whether they do it or not).

  4. Sounds like a bargain! by DrStrangeLug · · Score: 4, Interesting

    You pay car tax and you're legally allowed to drive a car.

    You pay tobacco tax and you're legally allowed to smoke it.

    So if you pay a "digital copying tax" on a computer, you must be allowed to do digital copying on it, surely?

    Out of curiosity, if you built a pc from scratch, which component gets this tax, or is it split up between all of them ?

    1. Re:Sounds like a bargain! by Tom · · Score: 4, Interesting

      So if you pay a "digital copying tax" on a computer, you must be allowed to do digital copying on it, surely?

      Yes, that's the point. In Germany, copying for private purposes is explicitly allowed by law. There are many court cases setting the limits, of course. However, the "Privatkopie" right is quite broad, and it does include making a few (the generally agreed limit is 5 or 6 in total) copies for friends.

      --
      Assorted stuff I do sometimes: Lemuria.org
    2. Re:Sounds like a bargain! by JaredOfEuropa · · Score: 4, Insightful
      Yes, that's the point. In Germany, copying for private purposes is explicitly allowed by law.
      If people are forced pay this hefty tax on blank media and even on computers, then private copying should become a right rather than a privilege. That means that publishers should be forbidden to add any DRM, region codes, Macrovision and whatnot to their content.

      Of course that side of the bargain is always conveniently overlooked. I hope this 'success' won't mean similar arrangements in other European countries; but the movie industry would love to collect a tax for private copies we can't make.
      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    3. Re:Sounds like a bargain! by henni16 · · Score: 5, Informative
      The *sweet* thing about German copyright law and this taxes:
      • The lobby groups are active in buying copyright law updates, since last year very successful
      • Yes, you were allowed to make some private copies for yourself and famuily/close friends, because you pay taxes for CDs, printers, scanners and whatnot
      • BUT since September you may only do so if there is no "copy protection" on the media - and most CDs (in Germany) and DVDs (CSS counts as _copy_ protection) are "protected", so you might not even have the right to make a backup..; I think in "pre-digital-age" you were even allowed (because of the taxes) to make a copy of a rented VHS for yourself, despite all the stupid FBI-Warnings etc
      • You are not allowed anymore to circumvent copy protection, to offer software that does it (CloneCD for example, various DVD-backup solutions) or to describe how to do it (DMCA, anyone?)
      • Since September ou are not sllowed to make a copy from "obviously illegal sources" (introduced to cover P2P)
      • The "VG Wort" mentioned here covers only written works like books and pictures - for copying music there is another "VG" who collects additional taxes..
      • If you really want to vomit, read their proposals for the next changes, like the power to request customer information for IP adresses from ISPs..

      As a footnote: the movie industry has used lots of pressure on shops and video stores to forbid the import of non-RC2-DVDs (you can't buy/rent them anywhere anymore). There are sometimes price differences that you could order an RC1-DVD-player from amazon.com with your RC1-DVDs and pay less than buying the RC2-DVDs in Germany.
      Example: just waiting for the 4th season of Angel;
      RC1: ~42 Euros from playusa.com(+possible customs and German VAT (16%))
      RC2: 110-120(!) Euros, depending on the shops..
  5. Parts? by miyako · · Score: 5, Interesting

    I wonder how this will effect people who build their own PCs. Does the tax only apply to people who buy a pre-fab machine, or will individual components also be taxed, or is it on the honor system where if you build a computer at home you are obligated to send in the ammount required by the tax.
    As assinine as this is overall, I would much rather pay a $50 tax on any computer than have the media industries completely destroy or cripple beyond recognition the internet and anything remotely interesting that computers can do.

    --
    Famous Last Words: "hmm...wikipedia says it's edible"
  6. Germanic vs. Roman law by Anonymous Coward · · Score: 5, Informative

    First they tax CD-R(W) media by default because they assume you will use them for copyright-protected content and now they're also making you pay an additional tax on computers because they assume you will illegally be using copyright-protected content on your computer. They just assume mens rea without proving it on an individual basis. Guilty until proven otherwise is the premise Germanic law is based on. The German legal system as well as all other modern legal systems are based on Roman law, which is based on the premise that you are innocent until proven guilty. How this decision could have come about is totally beyond me. What's next? An additional tax on eyeglasses because you might use them to view copyright-protected content?!

    Just as a reminder, the four levels of mens rea set forth in the MPC (Model Penal Code) are:

    (1) Purposely - Express purpose to commit a specific crime against a particular person

    (2) Knowingly - Knowledge that one's actions would certainly result in a crime against someone, but did not specifically intend to commit that crime against the particular victim which one is accused of injuring

    (3) Recklessly - Knew that one's actions had an unjustifiable risk of leading to a certain result, but did not care about that risk ("reckless disregard"), and acted anyway

    (4) Negligently - Did not intend to cause the result that happened, but failed to exercise a reasonable duty of care to prevent that result (which includes failing to become aware of the risk of that result)

    Some commentators like to add on a fifth uncodified level (technically applicable only in civil lawsuits and not criminal prosecutions):

    (5) Strict liability - Did everything possible to prevent the result that happened, but will be held liable anyway as a matter of public policy, because the government wants to force all such similarly situated persons to always exercise the maximum reasonable duty of care under such circumstances.
  7. Blazing idiocy by Toby+The+Economist · · Score: 4, Insightful

    I hate bureaucracy.

    Tax this, tax that, distort the market.

    VG Wort have increased the price of PCs to *everyone*. Over the whole of the economy, anyone who uses a PC to create a product or offer a service will now have to charge that much more - which means the entire economy is that much less productive, because there is a fixed amount of money available for investment, and the price of buying a PC based service is now higher.

    What's more, the knock on effect is huge, because PCs are vital to so many industries. It will now be that much more expensive to buy *food*, because all the PCs bought by food retailers and wholesalers are that much more expensive; and we ALL buy food!

    This sort of ruling, the very fact is can occur, is a hallmark of the danger of concentrating economic power in the hands of political power.

    This court has both political power - the right to make decisions - and economic power - the right to make decisions which influence, in this case, a form of taxation.

    When political decisions are badly made in the political sphere, the consequences are things like national ID cards, or foreign countries becoming upset with us.

    When political decisions are badly made in the economic sphere, there is less choice of goods to buy, they cost more, and everyone, to a greater or lesser extent, becomes poorer.

    --
    Toby

  8. Pay up, but don't you dare make copies! by siljeal · · Score: 4, Interesting

    In Germany you need to pay copyright levies on virtually everything that would be suitable for creating copies, be it on CD/DVD writers, CD-R(W)/DVD-R(W) media, printers, etc. You would think that this copyright levy would entitle you to some fair use, such as private copies of, say, the latest audio cd you bought. And sure enough, even though the very people who get the money would like to abolish any notion of fair use and legal copies for private purposes, you may find that even now you are not allowed to make copies of things you paid for. Way too many audio CDs sold in Germany today have copy protections (I'd rather refer to them as play protections), and by law you may not attempt to overcome these protections, rendering any copy you make an illegal one.

    I think this is really a fine display of greed. Make everyone pay but give nothing in return.

  9. VG Wort doesn't pay much to copyright holders by Get+Behind+the+Mule · · Score: 4, Informative

    I can add some perspective as someone who has received funds from VG Wort, because after all, this is all about people like me, right? The whole point is to protect the rights of copyright holders and ensure that they are adequately compensated for their work. So is it really worth it?

    I co-authored some long-since-forgotten academic articles and a book back in my days as a graduate student. The articles appeared in some conference proceedings, and the book, as well as a couple of the articels, were published in the Lecture Notes series of the Springer Verlag. So my name got put on a list somewhere, and every year for about three or four years, a check from VG Wort came in the mail.

    To put it briefly, I could have just as well done without it. I don't know how they determined how much money was dispersed to each individual, it was based on some formula that I never bothered to try to understand. At any rate, it was nothing to get rich on, maybe about a hundred marks or so if I remember correctly (this was back before the Euro). About enough to take a girl out on a nice dinner date, once a year. Which of course is nothing to sneeze at, especially if you're a student hustling to make ends meet and struggling for ways to impress a girl. But I could have just as well managed without it. (If she's worth it, you always find a way, you know; and one nice dinner in a year won't get you very far.)

    More prolific authors get more money from VG Wort, since the money is based on how much you've published. But I doubt that the cash from VG Wort makes a whole lot of difference to people who make their living as authors; they have to get the vast part of their income by other means.

    So if this is the benefit to society that is to be gained by making everyone pay an extra 12 Euros for each PC, I think it's obvious that we can just as well pass it up. Aside from all the philosophical debates about copyright law and whether it's fair and just to pay creators of content this way, the practical effects of the scheme are just not very significant. Why put this added burden on the buyers of PCs just so some student can take someone out once a year? It's better for everyone, economically and socially, to keep the prices of computer hardware down than to extend this meager benefit to copyright holders.

  10. This needs to be exposed. by IO+ERROR · · Score: 4, Interesting
    And based on my experiences here in the U.S., the easiest way to expose this decision is to make this levy appear as a line item on the invoice. For instance:

    Siemens Kick-Ass PC €699
    120GB Hard Drive
    1GB RAM
    Keyboard
    Mouse
    Digital copying levy €12

    And people will ask questions about it. Then you explain it (in the FAQ or a brochure) and point people toward the government.

    --
    How am I supposed to fit a pithy, relevant quote into 120 characters?
  11. Re:Has anyone tried defending an infringement suit by Catbeller · · Score: 4, Insightful

    "Has anyone tried defending an infringement suit on the theory that they paid a copyright levy on the media and thus paid for making the copy?"

    I believe they got the law giving them lovely money to compensate them for the FAIR-USE copies.

    A beautiful, nasty, WRONG argument, because a copyright holder is not entitled to compensation for Fair Use copying. That's WHY it's called Fair Use: because it is fair for the user to copy without paying.

    But it sidetracks the whole Why-Am-I-Being-Sued-For-Copying-When-I've-Already- Paid-Them? argument :( Although it makes my skin crawl.

    That's why word meanings are important! You can't let your foe own the win by redefining the terms used in your arguments so that you can't even make yourself understood in the debate. Orwell made this clear. L. Ron Hubbard used word redefinitions (Win, Enemy, etc) in his writings to redefine how his followers thought when certain key words were used, making argument with his ideas impossible. Redefinitions of the word "pirate" and "thief" to describe copying intangibles was intentional on the **AA's part. Bush's PR people reconstituted the simple idea of the word "torture" into the less objectionable "abuse" in the news media. It's all about the words. If your opponent removes your ability to express yourself in words understandable by a third party, you've lost.