Copyright protectors claim governmental compensation

Photo: Jaanus Lensment

Author fees still collected from cassette and VHS tapes – by now almost obsolete.

Non-profit organisations Estonian Authors’ Society, Estonian Association of Phonogram Producers, and Estonian Performers Association have sued the government for €831,416 – the sum, according to their reckoning, missed by authors, performers and phonogram producers during 2010–2013 due to governmental inaction.

It is allowed, in Estonia, for anyone to make copies of music and movie recordings for personal use. For copyright owners of said recordings to get fair compensation, a «blank cassette system» is employed.

«Blank cassette fee» is a fee asked from suppliers of recording devices and media irrespective of whether the media is actually used or not. This is to compensate authors, performers and phonogram producers of the works for having their rights restricted in public interests.

Since 2006, the «blank tape rate» has stood at three percent of supply price of recording devices and eight percent on recording media, VAT excluded. The list of audio, video and data mediums thus taxable are, as assessed by the abovementioned ASBLs, clearly outdated and despite of calls by them and the repeated promises by government the list remains unchanged for these past eight years. Thence the decision to sue.

«Today, fees for authors are still being collected from cassette tapes and VHS cassettes, which are basically out of use by now; therefore, the remunerations for authors have drastically down,» said sworn advocate Priit Lätt of law office Glimstedt, representing the copyright protectors.

To specify: in Estonia, audio carriers subject to fees are cassette tapes, audio and data CDs, and minidiscs; with video, video tapes and DVDs are included. Taxable devices include tape recorders, video recorders, and DVD players and recorders. During 1999–2006, the list includes MP3-players, but later these have dropped out.

The organisations concerned desire the list to add Blu-Ray and HD DVD-discs, and the corresponding devices. Also, they desire additional fee from importers of digital players, digital boxes, SAT-TV receivers, and a part of television receivers. For mobile phones and devices integrated with computers or usable only as plugged into computers, they seek no fee.

According to Mr Lätt, the claim is based on 2011 draft regulation by culture ministry then rejected by the government.

Culture ministry did not wish to comment. Justice ministry representing the state in court said in its curt commentary that they have indeed been dealing with the «blank tape fee» issue during the years, but due to lack of consensus they are yet to arrive at a solution.

To have recourse to court, Estonian copyright protectors were inspired by Latvia where local authors’ society a couple of years ago beat the state in constitutional court, forcing Latvia to amend laws.

«It is not out aim to argue, rather to reach a compromise. This (having recourse to court – edit) is our last chance. Over a year already we have debated with the state over the deadline to present compensations; should we delay some more, we would simply be too late,» said Mr Lätt.

«The main thing would be updating the regulation to the digital era, not the compensation. If the state amends the regulation, then we will definitely consider whether to proceed with the dispute or not,» said the lawyer.

The first hearing in Tallinn Administrative Court was due this Wednesday; however, the parties arrived at agreement yesterday afternoon to settle disputes via written proceeding.