Why current Russian law makes implementation of Russian internet tax impossible?
Why Russian government, Russian ministry of culture, rights holders, who have proposed their own idea of registry of rights in content for their exercise in internet and hope to receive money from Russian state for its implementation, did not mention one very important thing? Who has proposed this idea? The answer is – Russian Union of Right holders, collecting private copying levy.
What is private copying levy under Russian law? Under article 1245 of Russian civil code “authors, performers, producers of phonograms and audiovisual works have the right to receive compensation for free reproduction of phonograms and audiovisual works only for private purposes. Such compensation has compensatory character and is to be paid to right holders by importers and manufactures of equipment and material mediums used for such reproduction.” Russian Union of Right Holders has accreditation, i.e. exclusive authority, to collect Russian private copying levy. The computer is included in list of taxable equipment used in private copying. The full list of equipment you can learn on Russian Union of Right Holders website.
As an outcome – reproduction in the memory of computer only for private purposes is to be paid for as a private copying levy. Manufactures and importers paid this private copying levy.
What is proposed Russian internet tax?
Under the draft a new accreditation, i.e. exclusive authority to collect money for certain exercise of intellectual property rights, is proposed to be implemented. “Collective management of exclusive rights in published musical works (with or without text), literary works, audiovisual works, recordings of performance and phonograms in relation of their reproduction in the memory of computer only for private purposes (article 1270, item 2, sub-item 1; article 1317, item 2, sub-item 5; article 1324, item 2, sub-item 5) and making them available (article 1270, item 2, sub-item 11; article 1317, item 2, sub-item 3; article 1324, item 2, sub-item 4).”
As an outcome – making available and reproduction, including phonograms and audiovisual works, in the memory of computer only for private purposes is to be paid for as internet tax.
Under the other relevant provision of Russian civil code, namely article 1244, “state accreditation in each field of collective management, referred in this article, can be obtained only by one CMO”. The question, if there is already CMO, accredited to collect compensation for reproduction of phonograms and audiovisual works in the memory of computer only for private purposes, how you can authorise other CMO to do the same? What the Russian government intends to change in this draft?