Identifier
Created
Classification
Origin
07ZAGREB100
2007-01-29 15:05:00
UNCLASSIFIED
Embassy Zagreb
Cable title:
CROATIA INTRODUCES SURCHARGES ON RECORDABLE
how-toVZCZCXRO1470 RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHVB #0100 0291505 ZNR UUUUU ZZH R 291505Z JAN 07 FM AMEMBASSY ZAGREB TO RUEHC/SECSTATE WASHDC 7210 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS ZAGREB 000100
SIPDIS
STATE FOR EUR/SCE
EB/IPE
SIPDIS
E.O. 12958: N/A
TAGS: ECON KIPR ETRD HR INTELLECTUAL PROPERTY
SUBJECT: CROATIA INTRODUCES SURCHARGES ON RECORDABLE
MEDIA
UNCLAS ZAGREB 000100
SIPDIS
STATE FOR EUR/SCE
EB/IPE
SIPDIS
E.O. 12958: N/A
TAGS: ECON KIPR ETRD HR INTELLECTUAL PROPERTY
SUBJECT: CROATIA INTRODUCES SURCHARGES ON RECORDABLE
MEDIA
1. Summary: Croatia has implemented a system of
surcharges on recordable media (CDs, DVDs, burners,
etc.) in an effort to offset the losses to the
entertainment industry from digital piracy. The new
system of surcharges went into effect on January 1,
2007 and is evaluated bi-monthly to assess its
effect on the market. Representatives of the
entertainment industry welcomed the move, which they
say brings Croatia, which already has strong IPR
protection, into line with European practices. End
Summary.
Reaching agreement
--------------
2. On January 12, 2007, after years of negotiations
between the Croatian Composers' Society (ZAMP) and
the Croatian Chamber of Commerce (HGK),agreement
was reached on a set of surcharges for recordable
media. This agreement defines the amount of the
surcharges and the manner in which the fees will be
collected from importers and producers of affected
media. The 2003 Law on Author's Rights serves as
the legal basis for the surcharges.
The surcharges
--------------
3. Implementation of the surcharges began on
January 1 of this year. The surcharge for CDs will
start at 0.08 HRK (.014 USD) and will increase
incrementally to .64 HRK (.11 USD) by the end of
2009. For DVDs, the fee will start at .12 HRK (.021
USD) and will rise to .96 HRK (.17 USD) by 2009.
The surcharge for all memory cards (up to 5 GB) is 6
HRK (1.05 USD) this year and will increase to 32 HRK
(5.62) by 2009. The CD burner surcharge will start
at 4 HRK and will, by 2009, reach 25 HRK, while the
DVD burner surcharge will start at 4 HRK and will
reach 40 HRK by 2009.
Redistribution and monitoring
--------------
4. The surcharges will be collected by the ZAMP and
will be distributed to associations that manage
artists' work, who will then redistribute the
earnings to the artists. Emboffs spoke with Lordan
Ljubenkov, ZAMP legal adviser, who was extremely
pleased that this system is finally in place.
Ljubenkov emphasized that this is another step in
the direction of protecting author's rights as well
as harmonizing with EU legislation, noting also that
his organization felt that Croatia takes IPR
protection seriously.
5. Ljubenkov explained that the system will be
closely monitored for its effects on the market,
part of the compromise reached with unhappy
importers. A working group will meet every 60 days
to assess the market and review sales, in addition
to analyzing data and comparing with the EU markets.
If the sale of certain items is affected negatively,
then the fee will be reviewed and could be decreased
or abolished.
Public reaction
--------------
6. Public reaction has been muted, though there are
those who are not pleased with the new fees. One
internet website has called upon citizens to protest
by signing a petition calling for the fees to be
abolished. The website has neatly outlined their
reasons for protesting the fees. To date, some
8,224 people have signed the petition.
BRADTKE
SIPDIS
STATE FOR EUR/SCE
EB/IPE
SIPDIS
E.O. 12958: N/A
TAGS: ECON KIPR ETRD HR INTELLECTUAL PROPERTY
SUBJECT: CROATIA INTRODUCES SURCHARGES ON RECORDABLE
MEDIA
1. Summary: Croatia has implemented a system of
surcharges on recordable media (CDs, DVDs, burners,
etc.) in an effort to offset the losses to the
entertainment industry from digital piracy. The new
system of surcharges went into effect on January 1,
2007 and is evaluated bi-monthly to assess its
effect on the market. Representatives of the
entertainment industry welcomed the move, which they
say brings Croatia, which already has strong IPR
protection, into line with European practices. End
Summary.
Reaching agreement
--------------
2. On January 12, 2007, after years of negotiations
between the Croatian Composers' Society (ZAMP) and
the Croatian Chamber of Commerce (HGK),agreement
was reached on a set of surcharges for recordable
media. This agreement defines the amount of the
surcharges and the manner in which the fees will be
collected from importers and producers of affected
media. The 2003 Law on Author's Rights serves as
the legal basis for the surcharges.
The surcharges
--------------
3. Implementation of the surcharges began on
January 1 of this year. The surcharge for CDs will
start at 0.08 HRK (.014 USD) and will increase
incrementally to .64 HRK (.11 USD) by the end of
2009. For DVDs, the fee will start at .12 HRK (.021
USD) and will rise to .96 HRK (.17 USD) by 2009.
The surcharge for all memory cards (up to 5 GB) is 6
HRK (1.05 USD) this year and will increase to 32 HRK
(5.62) by 2009. The CD burner surcharge will start
at 4 HRK and will, by 2009, reach 25 HRK, while the
DVD burner surcharge will start at 4 HRK and will
reach 40 HRK by 2009.
Redistribution and monitoring
--------------
4. The surcharges will be collected by the ZAMP and
will be distributed to associations that manage
artists' work, who will then redistribute the
earnings to the artists. Emboffs spoke with Lordan
Ljubenkov, ZAMP legal adviser, who was extremely
pleased that this system is finally in place.
Ljubenkov emphasized that this is another step in
the direction of protecting author's rights as well
as harmonizing with EU legislation, noting also that
his organization felt that Croatia takes IPR
protection seriously.
5. Ljubenkov explained that the system will be
closely monitored for its effects on the market,
part of the compromise reached with unhappy
importers. A working group will meet every 60 days
to assess the market and review sales, in addition
to analyzing data and comparing with the EU markets.
If the sale of certain items is affected negatively,
then the fee will be reviewed and could be decreased
or abolished.
Public reaction
--------------
6. Public reaction has been muted, though there are
those who are not pleased with the new fees. One
internet website has called upon citizens to protest
by signing a petition calling for the fees to be
abolished. The website has neatly outlined their
reasons for protesting the fees. To date, some
8,224 people have signed the petition.
BRADTKE