In a case referred by a Spanish court to the European Court of Justice, the latter has ruled that the application of a private copying levy to reproduction media such as MP3 players, CDs and smartphones bought by companies for purposes other than private copying is not compatible with EU law. The ECJ ruled that such a levy can be applied to devices or supports only when they are liable to be used by people for their private use. Spanish rights management agency SGAE had sued and won a case against Spanish distributor Padawan for unpaid copyright levies between 2002 and 2004. Padawan claimed that the indiscriminate application of the levy was not compatible with EU law and appealed. The Spanish appellate court then asked the ECJ to rule what EU law stated in the context of the case. Spanish internet users' association AUI welcomed the decision, saying it made no sense to charge a levy before knowing how a device would be used, Efe reports. ADSLZone writes that Spain started taxing CDs and DVDs in 2003, then MP3 players and mobile phones in 2006. The Spanish court must now take the ECJ ruling into account to judge Padawan's appeal. The SGAE has much to lose as the private copying levy brought in over EUR 27 million of revenue last year, more than music copyrights.
