Personal Copy: Following CJEU decision, cloud providers must pay

Cloud and online storage providers are subject to personal copy tax. If we do not know under what rules the decision will be used in France, the European courts have decided: Cloud – and – copying media.

As recalled Our colleagues from the next INpact, The private copy tax is governed by European law, especially by order of copyright and related rights, making it an exception to use. In France, but also in Austria, the European Union (CJEU) filed a Strato AG (Cloud Service Provider) lawsuit against the Austrian company Sasem ​​(Astro-Mechana). His role? Resolve this dispute and determine whether storage on the cloud is a medium, yes or no, subject to personal copy tax.

Therefore, the High Court of Europe issued a judgment on March 24, 2022, according to which the private copying exception cloud, paving the way for the owners to pay compensation. He noted that this device can cover any format, directly or indirectly, temporarily or permanently. Storing a work on a server for its online use via the cloud is, in his view, a reproduction subject to the definition of personal copy. Downloading a work saved in this way is also considered a copy. According to him, the server is a medium worthy of personal copying fee, even if it is used only for a backup.

Compulsory damage compensation

As a reminder, the private copy tax levied on the sale of smartphones, computers, tablets, boxes, USB keys and other external hard drives, And in products that will be updated soon, User-copied works should be used to repair damage to the owners. Briefly by our colleagues: “If there are reproductions, if these reproductions are related to the works, there is also damage, they must be compensated, and therefore must be compensated.”. It begs the question: Do cloud providers pay a private copy tax? If so, how will the compensation be calculated?

The next INpact explains it “Order explained by CJEU leaves a great deal for collection methods”, Each country will be free to determine the method until the compensation applies. Even without knowing these future rules, the CJEU ruling is a victory for Sacem, who has been campaigning in France for almost 10 years to subject cloud players to private copy tax. Some will undoubtedly see it as a new line attacking digital players.