EU Commissioner calls for forum on MP3 player levy
Thursday, May 29th, 2008The long running dispute over proposals to slap a levy on digital audio devices such as MP3 players and iPods has reached boiling point this week in Brussels, as the EU Internal Market Commissioner, Charlie McCreevy called for a forum to resolve the problem.
The issue surrounds the fact that because MP3 players and other digital audio players can be used to pass recordings easily from peer to peer, artists are losing out on revenue. The proposal is to place a tax on the MP3 players themselves so that the music labels can recoup some of the lost earnings.
Some of the big electronics manufacturers such as Philips, Nokia and HP are pitted against the authorities who are responsible for collecting the levy.
McCreevy wants to diffuse the ‘passion’ from the discussions and instead wants a forum to calmly debate the issue and to finalise a decision going forward.
McCreevy stated:
It’s time the parties speak to each other directly. I have a simple wish, I would like this hearing to be the start of a process through which the main partners can sit down and calmly discuss a number of issues.
According to the EU, the levy, which already exists in some EU states, raised 400 million Euros in 2007. The levy was introduced in the 1960s for blank recording formats such as cassette tapes, but has been changed to include other media such as blank CDs and Mini Discs over the years.
Currently the UK is one of the countries where there is no levy on MP3 players. If the levy is extended to the UK you can expect the cost to be passed onto the consumer at the point of sale.








