Italy is looking to implement new compensation fees for private copying, a move that could significantly impact users of digital storage and devices.
New fees are proposed for private copying, potentially increasing costs for consumers.
- New ministerial decree proposals include increased compensation for private reproduction of phonograms and videograms.
- This compensation is paid to SIAE by producers and importers of recording devices and media.
- The proposed changes, stemming from a June 30, 2020 decree, also introduce fees for cloud storage.
- Consumers ultimately bear the cost, as it’s added to the final product price.
The permanent consultative committee for copyright has drafted a ministerial decree proposing new compensation fees for the “private reproduction of phonograms and videograms.” These fees, which must be paid to SIAE by producers and importers of recording appliances and supports, represent generalized increases compared to the previous decree signed in 2020. However, a particularly noteworthy and potentially controversial addition is the introduction of compensation for cloud storage space.
Under Law no. 633 of April 22, 1941, private copying for personal, non-profit, and non-commercial use is permitted, provided the original version of the work is legally purchased. Article 71-septies of this law stipulates that authors, interpreters, and producers are entitled to compensation for this private reproduction. This compensation is levied on recording appliances and media manufactured or imported into Italy for profit.
These fees are typically incorporated into the final price of products, including VAT, effectively making consumers the ultimate payers. The existing framework covers a wide range of devices, such as CDs, DVDs, Blu-ray discs, hard drives, SSDs, burners, televisions, set-top boxes, memory cards, USB drives, smartphones, tablets, smartwatches, computers, and MP3 players. The most recent update to these fees occurred with a decree on June 30, 2020.
Cloud Storage Faces New Fees
The new decree, currently undergoing consultation with feedback due by September 1, introduces further increases, with some, like those for smartphones, reportedly rising by up to 40%. The advisory committee has now added cloud storage space to the list of items subject to these compensation fees. The proposed monthly compensation for each user caps at 2.4 euros.
Cloud providers like Google, Microsoft, and Apple might recoup these costs by increasing subscription prices or discontinuing free plans. This means individuals using cloud services for personal files, such as documents and photographs, could also be liable for these new compensation charges.
One could speculate about applying similar compensation principles to music and video streaming services, perhaps based on download file sizes. However, offering such suggestions might be ill-advised.
