Germany Reportedly Plans 'Internet
Tax'
BERLIN (Reuters) - Germany is planning to slap new
levies on computer, telecommunications and Internet
products to ensure that authors are properly rewarded for
the use of their work, a newspaper said Wednesday.
The Berliner Zeitung said proposals had been drafted requiring
manufacturers of
goods from computers to printers, modems, compact disc ``burners'' and
other
devices to pay royalty fees that would then be forwarded to music and
film
companies.
Officials at the Justice Ministry, which it said was behind the move,
were not
immediately available for comment.
The new tax would particularly intend to ensure that the authors of
cultural products
available on the Internet were properly rewarded.
Similar levies already exist in Germany on devices whose main function
is that of
copying, such as scanners, photocopiers and fax machines. Depending on
the power
of the machine involved, the taxes range from $30-$275.
The levies are paid by manufacturers to firms that specialize in
collecting royalties
on so-called ``intellectual property.'' They then pass these fees on
to clients such as
authors, music, film or software companies.
Hardware companies say extending the taxes to computers and telecom
equipment
like modems could make them up to 30 percent more expensive.
Because the taxes are only payable when the products are bought in
Germany, there
have been warnings they could lead hi-tech firms to flee the country
and sell through
mail order and other channels from abroad.