ECJ Rules Further On Private Copying Exception Levies

Summary

The ECJ has given further guidance to a Danish court on the application of the Copyright Directive in respect of the levies payable under the private copying exception. The ruling serves to further emphasise the requirement for fair compensation for rights-holders and highlights the need for the UK government to review its decision to introduce a private copying exception without an accompanying compensation scheme.

Background

Under the Copyright Directive (2001/29/EC) (the "Directive") member states can allow the private copying of protected works on the condition that that rights-holder receives "fair compensation" (Article 5(2)(b)) (known as the private copying exception), the rationale behind this being that the rights-holders should be compensated for lost royalties from private copying. Most member states have implemented Article 5(2)(b) of the Copyright Directive and use a system of copyright levies to provide for compensation to rights-holders.