Q&A about the extra Private Copying Levy in December

What is Private Copying Levy, PKE?

The Swedish Copyright Act (§ 12) contains a restriction on copyright, which means that anybody is allowed to make one, or a few, copies of published works for private use (private copying). At the same time, the law entitles creators to remuneration for their works copied in this way, the so-called Private Copying Levy (PKE). That is why it is not an issue of a licence fee for STIM, but rather a fee that should be paid to creators of musical works according to legal requirements.  

Those who have the legal right to receive Private Copying Levy collected in Sweden are creators whose protected works have been broadcast on radio or television, or published on devices via which they can be reproduced (e.g. CD or DVD). 

Who should pay Private Copying Levy and how is this compensation collected?  

According to the Swedish Copyright Act (§ 26k(1)), Private Copying Levy is to be paid by anyone who imports or manufactures products for the Swedish market that can be used for private copying. These companies are represented by the trade association, Elektronikbranschen. The organization Copyswede collects and gathers all Private Copying Levy within Sweden for STIM and 13 other member organizations that represent collectives of creators and performers. STIM receives part of the compensation that Copyswede collects, as remuneration for each calendar year’s private copying of musical works in sound and moving image. Copyswede also pays Private Copying Levy to the music organizations SAMI and IFPI Sweden for music copying. 

How does STIM distribute Private Copying Levy? 

When STIM pays out private copying compensation, it is not possible to base it on exact data that shows which musical works have been copied. This is because private copying is a personal activity, and copyright law restrictions on private copying mean that creators cannot control how their works are copied. Therefore, STIM has to rely on its knowledge of the industry to identify sources from which musical works are likely to have been copied. 

Once STIM has established a good understanding of the sources used for private copying and the types of products involved, it can identify representative music reporting data for the music that may have been copied from those sources. For example, music on Swedish Public Service Radio (SR) is a likely source of private copying of broadcast audio. STIM has reporting data for SR and knows which works SR has broadcast during a specific year. By identifying such representative data for music that may have been copied, STIM can use this data as an analogy for direct private copying payments. 

In accordance with Swedish regulations for Private Copying Levy, STIM will compensate creators who are Swedish citizens or permanently residing in Sweden. EU membership means that creators who are citizens of other EU or EEA* countries should also receive a share of Private Copying Levy collected in Sweden. This means that STIM will compensate creators affiliated to sister societies in those countries. For affiliates of sister societies in the rest of the world, Swedish law requires that there must be a corresponding compensation scheme for private copying in that territory, allowing Swedish creators to receive such compensation from there (the so-called reciprocity requirement). 

* The EEA is EU countries plus Iceland, Liechtenstein and Norway. The EU countries are Belgium, Bulgaria, Cyprus, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Croatia, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Rumania, Slovakia, Slovenia, Spain, Sweden, Czech Republic, Germany, Hungary and Austria.  

Why is there extra Private Copying Levy money coming in now in December, and what is it for? 

Elektronikbranschen and Copyswede have long been unable to agree on Private Copying Levy to be paid for mobile phones, tablets and computers. The issue has been pursued in court for many years as a result, but an agreement has now been reached and Copyswede has collected the payouts for the years from 2009 and onwards. In addition, Private Copying Levy has also been collected for other “old” and “new” products from 2021 and beyond that STIM will now begin to pay out.  

STIM will process the payments year by year, working backward. Although it may not seem logical, this approach is being taken due to the complexity of handling older data. Consequently, STIM will start distributing Private Copying Levy for 2017-2023, and then for each preceding year back to 2009. 

Within each music usage area (e.g., radio or TV), the most representative data for each year will be selected. Payments will be determined using standardized models. The use of these models for allocating Private Copying Levy amounts within each music usage area provides a straightforward and simple method of payment. 

What do you do if you’re not a member of STIM but believe you are entitled to Private Copying Levy?

STIM’s direct distribution of Private Copying Levy only covers creators who are members of STIM or a society to which STIM pays out this type of compensation. In addition, you must be included in the representative data that STIM’s Private Copying Levy distribution is based on. Creators not represented by STIM in our licensing agreements, but who are applying for Private Copying Levy and are entitled to it under Swedish regulations, need to submit a request to STIM. Contact STIM for more information.

For creators not represented by STIM in our licensing agreements but who wish to request Private Copying Levy from STIM, a special form has been produced. This form outlines what needs to be provided for STIM to be able assess and process the claim. STIM must be able to verify that the relevant works have been used within the music usage area the representative data is drawn from – and determine how, when, and for how long, the works have been used in a copying source that qualifies. This verification is necessary for STIM to be able to see what compensation the works should have received if they had been included in the data used for STIM’s direct Private Copying Levy payments.