Private copying levies should be clearly visible on all bills and contracts in the products' sales chain, including on consumers’ invoices and till receipts. Consumers should be informed of the amount and destination of the levies and more generally the reason for this mechanism which compensates the freedom to copy they have thanks to the private copying exception.
- All stakeholders agree on this point.
Transparency of decision-making processes
The levy-setting processes should follow clear and transparent rules and be made public whilst respecting trade secrets. Information on applicable tariffs, the methods of calculation of such tariffs, usage studies and other data used as a basis for such decisions should also be published as well as information on the decision-making body (composition, decision-making and participation rules) and records of meetings, agendas and decisions.
Distribution to rightholders
Being collected at the earliest stage of the sales chain (the manufacture or import stage) by CMOs which directly distribute it to rightholders, the private copying remuneration takes the shortest possible route from its source to its beneficiaries, which limits management costs.
With the European Directive on collective rights management currently being negotiated, special attention is paid to the transparency of the revenue flows collected, distributed and paid to rightholders by CMOs, including private copying income. Transparency requirements apply both to individual distributions and cultural and social activities which can be financed by private copying levies.
- According to Article 7 of the Directive, the general meeting of members decides on the distribution policy of the amounts due to rightholders and on the rules on deductions to rights revenue.
- Article 20 provides that CMOs produce and make public an annual transparency report, including a special report on the use of the amounts deducted for social and cultural purposes.
- All SAA members already publish their annual report on their respective websites, which contains information on the collection and distribution of private copying remuneration, as well as on their social and cultural activities.