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Electronics producers to pay for piracy losses

Published: 01 September, 2010, 22:21
Edited: 12 October, 2010, 22:44

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TAGS: Retail, Crime, Russia, Piracy, Prime Time Russia


New import taxes on electronic equipment and data storage devices could be used to pay Russian copyright holders back their losses to piracy.

The initiative was put forward by the First Deputy Prime Minister Igor Shuvalov, who proposed to levy import duties against companies bringing to the country anything that can record an audio or video files – that is, computers, cameras, phones, portable memory devices and even recordable CDs.

This extra charge will amount to 1 to 3 percent of the eventual retail cost of the item. The money will be then redistributed to production houses, record companies and anybody involved in the creation process.

However, those specializing in intellectual property say that although the measure might be a good step forward, it certainly is not going to be an overall solution to Russia’s problem with piracy.

“The most important thing is to figure out – if possible, with the help of the government – who will help this organization collect the royalties,” Andrey Krichevsky, director general of the Russian Right Holders Union, told RT. “The current situation prevents the measure from working on its own. We have to face up to the fact that many of the companies involved in importing electronic equipment are phony companies. Trying to get royalties from them will mean endless and hopeless court cases. That's why we need the government's assistance.”

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