New tax has ruptured European unity, according to Eurocinema, CopyEspaña, IBAU and Eurocopia.
At the 60th San Sebastián Film Festival, European associations have come together to denounce the new compensation system for private copying in Spain.
According to Eurocinema, CopyEspaña, IBAU and Eurocopia this new tax has ruptured European unity and they call for a return to the previous system of private copying compensation where there was a tax on blank cds and other recording media.
This new model, established this year, for compensating right holders for private copying has “created a new and innecesary tax being paid by all Spanish citizens, wether they make copies for personal use or not”.
The new system has also meant a very significant reduction of revenues.
When there was a tax for CDs, content creators received around 115m Euros. At this point, this has become a subsidy of 5 million which has yet to be paid for shareholders.
During an open meeting in San Sebastián, rights holders pointed out that “the compensation system is established in 23 countries. Making the private copying royalty into an effective tax with payment coming from the State General Budget does not exist in any other EU member state”.
At the same event, Aepo Artis, Association of European Performers Organisations, released a statement that new law “does not equate to the previous system of fair compensation and indisputably represents a considerable decrease in performer’s income”.
Aepo reminded attendees that that the renumeration collected as fair compensation for private copying represents more than 35% of the total amount collected by collective rights management. They also denounce that the compatibility of the new regime with European Union law is questionable.