How IT Companies try to Circumvent Democracy
Recently there has been a decision about another special duty for being allowed to create private copies of media. This time it’s about computers, but not all computers. Currently, there are already duties on CD / DVD writers, the discs and hard drives which are then given to copyright associations, e.g. for music or text. It is a strategy of the German entertainment industry to denigrate each type of copy (they do not mention private copy, but they neither exclude it) and then demand compensation for the damage these “evil” private copies do to them.
However, this case is not about entertainment industry, at least not mainly. It rather is about companies who follow these claims just to achieve a better balance sheet at the end of the term. Even worse is that these huge companies also want to force other companies to do the same.
The range between 13 and 30 €
It has already begun some years ago with law suits between entertainment industry and PC manufacters. The entertainment industry claims they have a right on duties on each sold computer, which leads to a problem for the computer manufacters: They have to retain money just in case they lose and have to pay.
I read the number of 30 euros in a news paper, which they wanted to get rid of. It is a really huge difference if a company has to save 30 € per sold computer or ca. 13 €. Therefore, some major companies wanted to stop the law suits and sign a treaty with the ZPÜ, an association for copyright holders.
Working committee in their way
Yet, the working committee of the German association for IT, tele-communication and new media (BITKOM) was in their way. A report mentioned that 1 € was enough, but of course this offer was refused by ZPÜ. Therefore, the needed 2/3 majority could not be reached in a democratic voting. Since there would have been a normal majority, the executive committee tried to sign the treaty itself, luckily being stopped by two other IT companies.
The solution was the foundation of a new association called Federal Computer Manufacters Association (BCH). It seemed a bit strange when media reported that there had been a agreement between BCH and ZPÜ, because nobody had ever heard of BCH before—and now it’s clear: The BCH has been formed by seven companies who wanted to sign this treaty.
ZPÜ using its position
Instead of being confident the ZPÜ is now trying to use their advantage and demand even more duties on “similar devices”. This could mean a lot, but according to Frank Brunen, CEO of Belinea and opponent of the high duty, probably devices like “USB sticks, mp3 players etc. etc.” are meant.
Moreover, the BCH is trying to confuse people by mentioning that “PC manufacters and importers” now had to pay about 13 € for each sold computer to the ZPÜ. This was understood by some media as if each manufacter now had to pay 13 €. However, according to Brunen’s lawyer, BITKOM is in charge of the negotiations and a great number of participants would be needed to make it obligatory for everybody and these seven major companies—even though it’s Acer, Fujitsu, Hewlett-Packard, IBM, Medion, Samsung und Sony—are not even an average number.
Moreover, BITKOM wants to change its rules to require only normal majorities for such changes. This is done due to the huge pressure that these major companies have on the association paying much money to BITKOM. If BITKOM signed this treaty, this would be a huge defeat for the small PC retailers etc., because they are said to have good chances at Federal Court.
Wednesday, January 13, 2010
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