BENEFICIARIES OF PRIVATE COPY COMPENSATION

The compensation for audio recording carriers and devices is divided as listed below:

  • 50% to authors

  • 25% to phonogram producers

  • 25% to performers

 

The compensation for video recording carriers and devices is divided as listed below:

30% to authors

70% divided in equal shares among producers of audiovisual works, videogram producers
and performers.

AUDIO SECTION

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Regarding the Audio section, SIAE - according to the Regulation - pays, net of expenses, 50% of the private copying compensation to authors and their successors in title and the remaining 50%, in equal parts, among phonogram producers and performers, also through organizations which act as intermediaries of rights related to copyright, pursuant to Legislative Decree no. 35 of 15 March 2017.

The intermediary organization assumes full and exclusive responsibility on the basis of the criteria, the results, the timeframe, and the distribution procedures of compensation to individual right holders.

The DM 259, that establishes the procedure relating to the distribution of private copying compensation, pursuant to Article 71-octies, paragraph 3-quater, L633/1941, became effective in July 2023.

Audio Author Category

Currently, the compensation is distributed to copyright intermediaries in accordance with a shared distribution rule which considers the amount of copyright rights for:

  • Mechanical Reproduction Right (DRM);

  • Digital Downloading (excluding streaming);

  • Radio broadcasting (national radio broadcasting in analog FM/Digital DAB mode, excluding the so-called in-store radios).

Category Phonogram Producers

Currently, the compensation is distributed to intermediaries in accordance with a shared distribution rule which considers:

  • the amount of mechanical reproduction rights paid by each producer to SIAE, in the relevant accrual year, for the reproduction of carriers and works;

  • the number of carriers and media devices marketed in Italy by the phonographic producer in the relevant accrual year.

  • number of downloads and radio airplays recorded in the relevant accrual year per single work.

Category Performers (AIE Audio)

Pursuant to DM 386/2018, subsequently amended by DM 131/2023, the compensation for private copying is allocated to intermediary organizations of the related rights "as a percentage in relation to the amount of rights intermediated and invoiced on the basis of contracts signed with users by the aforementioned entities, as certified by the auditing body, different from those deriving from private reproduction for personal use, during the year of attribution and on the basis of accrual accounting policy."

Video Section

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Regarding the Video section, the Regulation provides that SIAE will pay, net of expenses, 30% of the compensation for private copying to the authors and the remaining 70%, in three equal parts, to videogram producers, original producers of audiovisual works and performers.

According to the Regulation, the compensation is paid to beneficiaries also through the most representative trade associations of the above-mentioned categories.

The associations of categories assume full and exclusive responsibility regarding the criteria, the results, the timeframe and the distribution procedures of compensation to single rightsholders, whether they are full members, mandate members or not.

In July 2023 the DM 259 entered into force, pursuant to Article 71-octies, paragraph 3-quater, L633/1941.

 

Category Video Authors

Currently the Distribution Regulation is under definition in accordance with art. 6 of DM 259/2023.

 

Category Producers of Videograms and Producers of audiovisual works

The distribution criteria are adopted in accordance with the commitments approved by the AGCM with reference to proc. I853.

Listed below are the Regulations for the distribution of private copying compensation adopted from the date of 14 June 2022

 

1. Distribution Regulation of private copying compensation for the category of videogram producers;

Prot. 258_2022 Report to the Regulation for videogram producers.

2. Distribution Regulation of private copy compensation for the category of original producers of audiovisual works;

Prot. 259_2022 Report on the Regulation for Original Producers of Audiovisual Works.

 

In compliance with proc. I853 AGCM, listed below are the excerpts of the surveys carried out by the GPF research institute on consumer habits (Private copy methods), relating to the 2019, 2020 and 2021 years.

Excerpt GPF Survey Private Copy 2019

Excerpt GPF Survey Private Copy 2020

Excerpt GPF Survey Private Copy 2021

 

Cinema and TV content percentages are also published, with reference to the years 2019, 2020, 2021 and 2022 (referred to in art. 2 of the Regulation on the distribution of compensation for the category of original producers of audiovisual works).

Film-Tv content subdivision 2019

Film-Tv content subdivision 2020

Film-Tv content subdivision 2021

Film- Tv content subdivision 2022

 

Category Performers (AIE Video)

Pursuant to DM 386/2018, subsequently amended by DM 131/2023, the compensation for private copying is allocated to intermediary organizations of the related rights "as a percentage in relation to the amount of rights intermediated and invoiced on the basis of contracts signed with users by the aforementioned entities, as certified by the auditing body, different from those deriving from private reproduction for personal use, during the year of attribution and on the basis of accrual accounting policy."

Supervisory powers

Art. 182-bis LdA to letter d-bis attributes to SIAE the supervision on activities of manufacture, import and distribution of devices and medium of which to art. 71-septies LdA.

For this purpose, inspectors performing inspections may have access to the premises of duplicators, manufacturers, importers and distributors (both wholesale and retail) and may request the presentation of documentation relating to the activity carried out.

PRIVATE COPY FOR CULTURAL PROMOTION ACTIVITIES

To encourage the creativity of young authors, 10% of all the compensation collected*, starting from the year 2016, is allocated by SIAE to national and international cultural promotion activities.

*pursuant to art. 71-septies and calculated before the allocations made by SIAE ex cc. 1 and 3

**as per the annual policy of the Minister of Culture (art.1, c. 335 of Law 208/2015)

PEOPLE WHO ARE REQUIRED TO PAY PRIVATE COPYING COMPENSATION

The compensation for “Private Copy” is paid by those who manufacture or import into the territory of the State recording equipment and blank media in order to make a profit.

A manufacturer liable for the payment of the compensation is any person who produces in Italy devices, media or memories subject to the payment of private copying, even if marketed under the trademarks of third parties.

An importer liable for payment of the compensation is anyone in Italy who is the recipient of devices, media or memories subject to compensation for private copying, regardless of the country of origin of the devices, media or memories themselves. In the case of commercial transactions also carried out by persons resident abroad to a final consumer, the importer is the person who makes the sale or offers the availability of the product.

If the manufacturer and the importer do not pay the compensation due, the law provides for joint and several liability of the distributor of recording equipment and blank media.

A distributor is anyone who distributes, both wholesale and retail, in Italy, devices, media or memories subject to compensation for private copying.

AMOUNT OF APPLICABLE COMPENSATION

The compensation for Private Copy is defined by law.

The rates currently in force are established by the DM 30 June 2020.

On 18 January 2017, the Court of Justice (C-37/2016) declared out of the scope of VAT the compensation paid by entities that produce or market devices and appliances suitable for private reproduction for personal use of phonograms and videograms. It is intended that, due to the principle of alternativity of the levy (VAT and stamp duty), the party liable for payment will be required to pay € 2 as a stamp (which shall be applied on invoices or tax receipts of more than € 77.47, where no VAT is charged), in accordance with the provisions of current tax legislation.