Electronics manufacturers on Wednesday threatened legal action to force European governments to drop an extra charge on iPods and blank CDs after EU regulators backed off a plan to reform copyright levies.
The threat came as the European Commission suddenly backed away from plans to reform the system.
Artist rights groups in most European countries charge copyright fees on blank discs, data storage and music and video players.
The money is used to compensate artists and copyright holders for legal copying such as, for example, when listeners burn an extra version of an album to play one at home and one in the car. In some countries, a portion of the money also supports cultural projects, from sponsoring festivals to paying scholarships.
Manufacturers claim the “unjustified and illegitimate” levies unfairly raise the retail price of their products and now that digital copyright technologies are being introduced to protect against illegal duplications.
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