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Consumers are allowed to make a copy of copyrighted or neighbouring rights-protected works (from a legal source) for their own practice, study, or use. This is referred to as a private copy and is included in the Copyright Act and the Neighbouring Rights Act. Copyright holders and neighbouring rights holders are compensated for this through an indirect remuneration known as the private copying remuneration. This applies to authors and neighbouring rights holders of all types of audio, audiovisual works, writings, and images. The remunerations are paid upon the purchase of media carriers and collected and distributed by Stichting de Thuiskopie. The amount of the remunerations is determined by the Stichting Onderhandelingen Thuiskopie (SONT).
The amount of the remuneration for private copying must be 'fair' and relate to the damage suffered by rights holders as a result of copying for private use. On behalf of SONT, Dialogic has conducted research into this damage, in order to reassess the rates.
The research is based on the premise that the damage from private copies can be determined using the following formula:
Schade thuiskopieën = number of private copies made per year x damage per consumption x consumption factor
In this research, the focus is on mapping out the factor 'damage per consumption', which is elaborated as the 'net marginal revenue for rights holders' from a licensed consumption. Within this framework, two approaches have been distinguished:
- The substitution model - also known as demand loss. This model considers the extent to which consumers would have purchased licensed copies if they had not made private copies.
- The licensing model - where each private copy is seen as a form of value. Streaming falls under this model.
Additionally, four types of works have been examined, discussing the exploitation models, applicability, and net marginal revenues for rights holders:
- Audio works
- Audiovisual works
- Books and writings
- Images
For various types of works, there is a wide range in the estimation of net marginal revenue. This is particularly evident in other information from publications, podcasts, radio programs, music videos, and online videos. Due to the complexity of image exploitation, it was not possible to establish a net marginal revenue for rights holders per consumption. However, the research report provides a detailed elaboration of relevant benchmarks and (with the necessary context) estimates for specific types of works.
Visit the SONT website for further information on this and related research.
