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Media (Apple) Media The Almighty Buck

Dutch Pass iPod Tax 873

An anonymous reader writes "The Register is reporting that in a few short months a proposal to tax all MP3 players in the Netherlands will become law. The levy taxes 3.28 euros ($4.30 US) for every gigabyte of capacity. This means a 60GB iPod Photo will be hit for an additional 196 euros ($258), all of it going to the record industry's copyright collection agencies. And they call file sharers thieves?"
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Dutch Pass iPod Tax

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  • Hm (Score:3, Informative)

    by scapermoya ( 769847 ) on Friday April 29, 2005 @03:09AM (#12380759) Homepage
    While this seems extravagent (it is), places like The Netherlands and Sweden, etc. have excellent copyright and IP laws. Its widely known that taxes in those countries are very high, but unlike some nations (cough), you see that cash put to work. It would be interesting to see how they handle iPods bought in Germany or France, and brought over.
  • by geniusj ( 140174 ) on Friday April 29, 2005 @03:15AM (#12380797) Homepage
    The US doesn't have a CD-R/MP3 player tax like other countries. This proposal is just absurd.
  • by Loonacy ( 459630 ) on Friday April 29, 2005 @03:16AM (#12380807)
    Like the Digimind [digmind.com] player. They have a version with no drive at all, then you can buy any laptop drive and insert it, whatever size you want.
  • by Serious Simon ( 701084 ) on Friday April 29, 2005 @03:23AM (#12380853)
    No specific law has been passed, and the levy on MP3 players is just a proposal.

    However, similar regulations already exist for blank CD-ROMs, tapes, and photocopiers, because it is assumed that these are (partly) used for the copying of copyrighted material.

    Such copying is legally allowed, the levy exists as a compensation for the copyright holders.

    I think it is possible that a levy on MP3 players will come into existence but at much lower sums than now proposed.

  • by matrem ( 806375 ) on Friday April 29, 2005 @03:30AM (#12380883)
    In the Netherlands it is legal to make extra copies of media you own, or to make a copy of a CD or DVD you borrowed from a friend, neigbor, etc. The copyright holders are compensated through a tax, in a rather obscure way. It is illegal to sell copyrighted work, or make copies and give away the copies yourself. All this is explained (in Dutch) by Stichting De Thuiskopie [cedar.nl]

    I wouldn't be surprised if the situation were the same in Denmark.
  • Guys, guys...! (Score:2, Informative)

    by Anonymous Coward on Friday April 29, 2005 @03:47AM (#12380949)
    I'm from the Netherlands, and I can tell you first of all, that The Register is a bit slow when it comes to news reporting.. and second of all, yes, this is only an idea this organisation called "Stichting Thuiskopie" (Home-copy Organisation) had. They are a tool of the justice dept. in our government.

    Seriously guys, don't expect this to really happen, it's impossible :) Not every silly idea actually makes it to become law.

    For more info (in dutch), this is a letter
  • Re:wow. (Score:2, Informative)

    by iainl ( 136759 ) on Friday April 29, 2005 @03:47AM (#12380952)
    European law states that you can do exactly that, and there's a big fat zero the Dutch government could do about it.

    a) Picking one up over the border and taking it back is legal.
    b) European law means they can't even do you for the levy as you come home again.
    c) Applecare is applicable worldwide on iPods without having to return it to the country you bought it in.

    Therefore, the Dutch Government are screwed if they try this, as everyone will just import.
  • by Anonymous Coward on Friday April 29, 2005 @03:50AM (#12380972)
    Well, this is old news in Holland (see article on tweakers.net, English version available too).

    For now it is a prooposal only, but the current Dutch government is pretty good in 'silently' upgrading such things to law.....

    In fact, the proposal is even worse than mentioned in the article.
    The tax is not only intended for iPods/MP3 players, but for ANY device capable of storing copyrighted content for later playback.
    That includes, computers, HD and DVD video recorders, even spare HD's, SD and Comapct Flash memory, etc.

    All major computer manufacturers have already written letters to the Dutch prime-minister stating, that if this insanity becomes law, they will be forced to withdraw from the Dutch market.

    Several members of the Dutch parliament (at least from the opposition parties) have spoken out their concern's about this too.

    So far the government has made no attempt to actually get this "law" throught the legislation process.

    I just hope they never will get around to it.
    Current Dutch political climate is such that no Parliament member will vote against party policy. The parties of the ruling coalition will never vote against the government so any proposal is bound to be accepted.
  • by phulshof ( 204513 ) <phulshof@xs4all.nl> on Friday April 29, 2005 @04:09AM (#12381066) Homepage
    We cannot pirate music: it's legal here to make private copies of music and movies, even if you do not own an original. That's the other side of the levy system...
  • by Asmodai ( 13932 ) on Friday April 29, 2005 @04:16AM (#12381101) Homepage
    Translation of the nu.nl article for the English speaking crowd.

    WOERDEN (city in NL) - Big IT companies such as Apple, Sony and Philips took action in the Netherlands against the plans to add a copying levy for mp3 players. Within two months such a levy is to be expected, so said B. Taselaar of ICT Office, the industry organisation that represents the companies.

    At the moment there is a proposal for a levy of EUR 3,28 per Gigabyte of data storage. This proposal has been made by 'Stichting Thuiskopie' according to ICT Office, which is responsible for the collecting and distributing of payments to copyright holders for the copying of blank audio carriers.

    An iPod music player from Apple with 40 Gigabyte of data storage would increase in price with EUR 131. This is unacceptable, according to ICT Office, also because introduction into multiple European countries looms on the horizon. The industry organisation thinks that IT companies will in the future choose to introduce new products first in the United States and Asia. New developments will pass by Europe, with all consequences for the Netherlands electronics sector.

    (c) ANP
  • Lest we forget... (Score:2, Informative)

    by ThePromenader ( 878501 ) on Friday April 29, 2005 @04:18AM (#12381112) Homepage Journal
    If you think an iPod tax is outrageous, since three years now France has levied a tax of around $1.50 on every blank CD sold. This money goes a the "copyright protection" organisation as well. I can see a music tax being levied where the music is, as most probably 99% of iPod users use their players for music - but CD's? Are there any other abusive laws like this in any other countries? This tax is still in effect here, but as usual, after an inital bout of protest, it's faded mumble-grumble from our minds...
  • Thank god for the EU (Score:3, Informative)

    by MicAttAck ( 16713 ) on Friday April 29, 2005 @04:19AM (#12381114) Homepage
    So, I bought my car in the Netherlands. They even have higher taxes on those, than here in Austria.
    I paid my tax in austria and came away with a saving of somewhere in the 3000-4000 EUR (4000+ US$).
    Since we can trade goods without problems and import tax, you can buy something for the price including tax in germany and ship it to the netherlands.
    Friends of mine do that with blank CD's and DVD's thru ebay all the time. We also have a lot of tax on those, but when you already paid your tax in germany, you don't have to do so in Austria again.
    It all just boils down to knowing what to buy where and how.
    Course, Apple will loose a bit of sales in the Netherlands, but maybe that will leave us with "upgradeable" ipods with exchangable HD's? Sometimes even big cooperations get creative, if they fear they will sell less.
  • by phulshof ( 204513 ) <phulshof@xs4all.nl> on Friday April 29, 2005 @04:21AM (#12381121) Homepage
    As said: DOWNLOADING of audio/video is legal here. Uploading however is not. Placing stuff on a public webserver would fall under the uploading category.
  • by Flyboy Connor ( 741764 ) on Friday April 29, 2005 @04:23AM (#12381127)
    While it is true that a tax of MP3-players is considered in the Netherlands, the height of the tax mentioned is simply untrue [cedar.nl] (link in Dutch).

    To quote from the link: "Het bestuur van de SONT heeft nog geen besluit genomen over de hoogte van het tarief; de onderhandelingen zijn gaande. Berichten die suggereren dat er al enige duidelijkheid is over de hoogte van een tarief zijn onjuist.", which translates as, "The management of the SONT has not decided yet on the height of the tax; that is still being negotiated. Any statements that suggest that there is any clarity on the height of the tax are false." This message is from April 2005.

    The tax on blank DVDs is something like a couple of cents. I suspect that the tax on storage space in MP3-players will probably not be much higher.

  • You're telling me that in two years, we'll have 1000GB laptop drives (~10x up) and 1000000GB desktop drives (~2000x up)? Man, Moore must have been a pessimist.

    But you can fit more bits on a platter if they Get Perpendicular! [hitachigst.com]

    "Hey! Check me out! I'm dancing! I'm dancing!"
  • by phulshof ( 204513 ) <phulshof@xs4all.nl> on Friday April 29, 2005 @04:24AM (#12381132) Homepage
    The levy system is already in place. We're just having regular discussions about whether or not a new media should fall under the levy system or not. I've already seen quite a bit of political opposition to these plans, so we'll just have to wait and see if this idea goes anywhere. You are correct that people will just order their iPods elsewhere in Europe if this levy is imposed.

    Oh, and it's either The Netherlands (English) or Nederland (Dutch). :)
  • by JaredOfEuropa ( 526365 ) on Friday April 29, 2005 @04:36AM (#12381189) Journal
    From the website of the antichrist himself [cedar.nl]. This was just added there.
    Zo ook digitale portable audiospelers en dvd-recorders met harde schijf die op dit moment onderwerp van onderhandeling zijn. De hoogte van de vergoeding wordt bepaald in een aparte onderhandelingsstichting (SONT) waar de betalingsplichtigen en de rechthebbenden gelijk zijn vertegenwoordigd. [...] Het bestuur van de SONT heeft nog geen besluit genomen over de hoogte van het tarief; de onderhandelingen zijn gaande. Berichten die suggereren dat er al enige duidelijkheid is over de hoogte van een tarief zijn onjuist.
    Translation: ...Also digital portable audioplayers and DVD recorders with an internal hard disk which are at this time subject of negotiations. The amount of the levy is being negotiated in a separate foundation (SONT), where copyright owners and subjects of the levy are equally represented. [...] At this time, the SONT committee has not reached a decision on the amount of the levy; negotiations are still in progress. Any article suggesting that there already is some indication on the proposed levy, is incorrect.
  • 3.28 is not true (Score:5, Informative)

    by jeroen94704 ( 542819 ) on Friday April 29, 2005 @04:41AM (#12381201)
    While the proposal is real, the register's claim it will be Eur 3.28 per gigabyte is not correct. The website of the Stichting Thuiskopie explicitly states (loosely translated): "Reports stating there is any agreement at all about the level of taxation are incorrect".
  • Re:wow. (Score:2, Informative)

    by cazzazullu ( 645423 ) on Friday April 29, 2005 @04:42AM (#12381204)
    something similar happened here in Belgium, but with bottles for beverages: They introduced a tax on non-recyclable bottles (some 10 cent I think), but after one year, they got rid of this tax. Why? Because a lot of people were just buying their stuff in other countries (Belgium is really small, you are in another country fast if you want to).

    If people go buy their stuff across the border to save some euro's, imagine what they will do to save several tens or hundreds of euros...

    Since we have a computerstore at home, at 30 kilometers from the border with the netherlands, I will not complain if they push this tax through. Gotta order some more ipods now though, have to go...
  • by forty7 ( 722797 ) on Friday April 29, 2005 @04:45AM (#12381211)
    how do you spell "something from Nederlands"?

    "Dutch". :o)
  • by pe1chl ( 90186 ) on Friday April 29, 2005 @04:47AM (#12381216)
    Even worse: the mechanism of "compensation" for copying by means of a levy has become completely accepted in government circles.

    First there was such a levy on compact cassettes and video tapes. In those days it could probably be claimed that most carriers were used to hold material for which rights had not been paid (although it remains a point of discussion whether you are allowed to record something from radio or tv transmissions for which you have presumably paid rights to listen or view).

    But then it extended to carriers that are not only for music, like CD-R and DVD-R. Entire user groups use these for completely different purposes than are the goal of the levy, still they have to pay.

    In the meantime you now also have to pay a levy on photocopiers. Every company in the Netherlands that owns a photocopier has to pay because some nitwit believes that photocopiers are used to copy books.
    We have many photocopiers where I work but I never see someone with a book. But piles and piles of internal documents are fed through the sheetfeeders and copied 20 times. The company pays a levy on each copy that would probably go to some novel author who never did anything to earn this money.

    A levy on MP3 players is only the next step.
  • by Sad Loser ( 625938 ) * on Friday April 29, 2005 @04:50AM (#12381230)

    I think this is kind of academic as goods are allowed to be freely distributed for personal use within the EC, and anyone in Holland who wants an ipod will just buy it mail-order from the UK or somewhere without the tax.

    Exactly the same thing has happened with the iTrip - it is illegal to sell or use here in the UK but so many have been imported, that they are turning a blind eye to the selling now.

    It's a bit like trying to tax the super wealthy - if you try to do it too much, they just move somewhere else, and you end up with no money.

    I am sure that the shop sellers of ipods will just arrange to have them delivered from another country, but will lose out big time to the intenet and mail-order sales. If they want to destroy their high-street shops, who are we to stop them?
  • by toadnine ( 525325 ) on Friday April 29, 2005 @04:54AM (#12381249)
    Actually, in the Netherlands it's still legal to download music and movies for personal use. It's illegal to share it though, because only the copyright holder has exploitation rights.
  • Comment removed (Score:5, Informative)

    by account_deleted ( 4530225 ) on Friday April 29, 2005 @05:30AM (#12381362)
    Comment removed based on user account deletion
  • by vrai ( 521708 ) on Friday April 29, 2005 @05:36AM (#12381376)
    Most African nations have a quite staggering level of centralisation. Hence the problem they have with corruption. The only difference is that it costs a lot less to buy an African politician than a US Senator.

    The fact that many people may use illegally copied music on their iPod is utterly irrelevant. My MP3 player is populated with songs ripped from my own CD collection - if I were to buy a new player this would still be the case. Why should I pay what amounts to a fine for a criminal act that I haven't committed?

    Assumption of innocence is the founding principle of the legal system in all vaguely civilised countries. This tax (and other like it) are based on an assumption of guilt. For this reason alone they should appal anyone who has even the slightest respect for an individual's liberty.

  • by Adrilla ( 830520 ) * on Friday April 29, 2005 @05:56AM (#12381430) Homepage
    But these taxes aren't going to the cops, they're going to the recording industry, who are just strongarming the average user into paying a unjust fee. If I buy an Ipod, I pay the high price of the Ipod, I pay this extremely high tax, and THEN I pay Itunes for DRM'ed music that the music industry says isn't charging me enough. I'm just disgusted by their tactics and I'm not the only one. Their actions are turning many people against them and it's giving people the mindset that they might as well pirate the music because the music industry's recent tactics make them less worthy of our honest consumer dollars.
  • Carrier Tax (Score:2, Informative)

    by Rolfje ( 650661 ) on Friday April 29, 2005 @06:00AM (#12381434) Homepage Journal
    Did you know the Dutch are allready paying this type of tax on Cassete tapes, DVD-ROMS and CD-ROMS? Effectively, if you are just using DVD's as storage space, part of your money still goes to the movie industry (or so the dutch taxes make you beleive). I guess they still don't have enough money, so now they'll blindly start taxing storage space as well. In a few years you could actually be paying taxes on your harddrive because you potentially could store music or movies on it. It is allready going there. On top of it all, the music industry is trying to cripple discs to keep you from copying them, and by doing so also keep some customers from actually playing the music. Also: Legal movies have 3 minutes of warning screens before the thing starts. Most illegal copies are stripped of these screens (thank god) and start immediately. "Nice way" to reward people for buying legal DVD's... And do you like the WMA DRM scheme where you can only play the music you bought on just the PC with which you bought it? You own it, and still you can't play it It just shows how much feeling the dutch governement, and the music/video industry has with the real world... Meanwhile, the players which take smartmedia cards or alike are the way to avoid these taxes, until Apple starts selling iPods and their drivers seperately: http://www.amazon.com/exec/obidos/tg/detail/-/B000 04RG6K/102-6743478-3663353?v=glance [amazon.com]
  • by raarts ( 5057 ) * on Friday April 29, 2005 @06:07AM (#12381452)
    According to the Dutch page you refer to, the tax on blank DVD's lies between 0,50 and 1,00 on a DVD, so that is more than 'a couple of cents'. Who do you work for?

    Trying to be devil's advocate: "we currently charge up to 1 for 5 Gbyte on DVD's, but they are not re-used with new music all the time, so we should charge higher for MP3 players. Let say we charge five times as much (we are the devil right?) so in that case we charge 1 per GB, this amounts to an extra tax of 60 for an iPod player. Now what we need to do is pick a price as high as possible, but that is low enough to not outrage the general public."

    I am Dutch (have been for 45 years now), and I predict this law *will* make it. Germany, Denmark already have similar taxes on media.

  • by phulshof ( 204513 ) <phulshof@xs4all.nl> on Friday April 29, 2005 @08:29AM (#12382069) Homepage
    Reread my statement please: since we've already paid for the music through the levies it IS LEGAL in the Netherlands to download anything (audio/video) at will.
  • by alien at large ( 769598 ) on Friday April 29, 2005 @08:38AM (#12382125)
    Unfortunately it doesn't work that way. You pay twice, once for the songs you buy and once with the levy. Paying the levy has no legal implications in the sense that you can now download whatever you like. On the other hand downloading is legal as it stands now in the Netherlands. You are allowed to make copies for study etc. Hosting and offering copyrighted content without consent of the copyright holder is not allowed, downloading without consent is.
  • by QuietLagoon ( 813062 ) on Friday April 29, 2005 @08:40AM (#12382137)
    The US doesn't have a CD-R/MP3 player tax like other countries.

    The United States did, and still does, have a tax on blank audio cassettes, with the proceeds of the tax going to the record industry. In pushing the tax bill through Congress, the record industry said that the tax was to make sure the artists got money for their work. However, little of the tax actually went to the artists, most went to the record labels and publishing companies.

  • Re:An idea.. (Score:3, Informative)

    by CokeBear ( 16811 ) on Friday April 29, 2005 @09:19AM (#12382485) Journal
    The drive is for my.. uh.. notebook computer. Yeah, thats it... my notebook computer needs a new hard drive.

  • OMG! Phulshof is absolutely right. According to the site he linked to the Netherlands has a Author/Copyright Law 1912 in which article 16b states that you can indeed *legally* make copies of someone elses CD/DVD collection, as long as you have paid the tax on the CDR/DVDR you use!!! The only exception is computer software, where you do need to be the owner to legitimately make a copy for your own use.


    To make it even worse.. it's also legal if you didn't pay the tax on the DVD/CD because you bought it in Luxemburg or bought it from a shop who bought those in Luxemburg.
    Because you paid the levy of 0% on DVD- and CD recordables in Luxemburg.
    God, I love this free market in the EU thingy.

  • by Money for Nothin' ( 754763 ) on Friday April 29, 2005 @11:59AM (#12384292)
    Taxing the people for the benefit of industry? That is fascism, by definition: government and business working together (the U.S. military-industrial complex is another example).

    Of course, fascism is easier in socialist nations, when you have a large, powerful, well-funded-by-already-high-taxes government to implement such fascist policy... A more-limited, smaller government is easier to watch over and thus, easier to prevent from doing such things...
  • by schon ( 31600 ) on Friday April 29, 2005 @12:07PM (#12384372)
    The US doesn't have a CD-R/MP3 player tax like other countries.

    How much you wanna bet? [cornell.edu]

    This may come as a shock to you, but not only are you wrong, but the US was one of the first countries to introduce something like this.

  • by Anonymous Coward on Friday April 29, 2005 @12:20PM (#12384511)
    Too bad the Netherlands has changed since then ..
    Now, you are required to carry ID, and cops can ask you for ID at any time. If you dont have it, you go to jail until you can be indentified. "preventive" searching is next.

    You know, them thar terrorists and stuff...

    Oh and the Netherlands has the highest amount of phone taps in the world, so many that the justice department 'lost count' when asked by parliament.
  • by taskforce ( 866056 ) on Friday April 29, 2005 @12:21PM (#12384535) Homepage
    The tax is on all removable storage. (I'm hoping it doesn't include internal disk drives as well)

    But external HDs are certainly included (how would an EU politician be able to distinguish between tiny USB 5GB HD and a 256mb USB Memory stick.

    If the 5GB HD USB HD is included then this would also be included, as it's external.

    http://uk.insight.com/apps/productpresentation/ind ex.php?product_id=LCE300944E&src=FRO1 [insight.com]

    I have a sneaking suspicion that we're not gonna be seeing many data backup companies based in the Netherlands.

  • Re:iTrip UK legality (Score:2, Informative)

    by BluhDeBluh ( 805090 ) on Friday April 29, 2005 @01:18PM (#12385312)
    The iTrip is banned as part of a general law making all FM transmitters illegal without a licence (which only Radio stations can get).

    My Dad has one for his iPod and plays 60/70s tunes on it. He is the criminal!11one
  • by frinkazoid ( 880013 ) on Friday April 29, 2005 @02:30PM (#12386107)
    this is untrue: One of the basic ideas od the EU is: Free Traffic Of Persons And Goods So it's perfectly legal. As far as the tax systems go, they are not comparable. In Europ due to the 'socialist' (=/= comunist) system in most countries, the 'IRS' knows what you've earned, you only have to fill in extra investments and such.Yo don't have to declare each and every expense

And it should be the law: If you use the word `paradigm' without knowing what the dictionary says it means, you go to jail. No exceptions. -- David Jones

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