After going back and forth several times on the last few months, including the previously veto of the President of the Portuguese Republic, the amendments to the Private Copying Law were finally approved by Law no. 49/2015 of June 5, 2015.
We highlight:
1. Scope
With the intent of compensating the authors for the damages caused by the private copying, the present Law provides the introduction of a surcharge directly in price of sale:
2. Fair Compensation
The amount established for the compensation depends on the devices and supports specifications, and it should be included in the price of the first sale, in a moment prior to the introduction of VAT in each device.
For further information on the surcharges established please see the table attached to the referred Law available on the following link: Law no. 49/2015
Finally, is important to highlight that if the activity engaged is intended for business, for instance copy shops, the price of the copies and other supports shall include a compensation amount corresponding to 3% of the sale price prior to the introduction of VAT.
3. Exemptions
Please note that according to the Law, natural or legal persons may be exempt from the payment of the compensation provided that they meet at least one of the following conditions:
In order to be exempt from the payment, is required to demonstrate to the managing entity - Private Copying Management Association - the verification of the conditions mentioned above. This proceeding should be completed in a moment prior to the acquisition of the devices.
Once obtained the referred declaration, and in order to beneficiate from the exempt, the document should be presented when purchasing the equipment.
4. Collection
Under the law, the first person acquiring the devices in Portuguese territory is responsible for the payment of the compensation provided that the equipment is not intended for export.
On the other hand, the collection and delivery of the amounts received is up to the manufactures established on Portuguese soil, as well as, to the importers. The referred payment shall be made every three months to a bank account in favour of the managing entity.
Manufactures and importers shall also report every six months to the General Inspection of Cultural Activities and to the managing entity the following information:
5. Administrative Offences
Please note that should the manufactures and the importers fail to comply with the reporting obligations, the competent authorities are entitled to punish them by fines between EUR 250, 00 and 1.500,00.
In addition, the Law also foresees that the sale of devices without the introduction of the referred compensation amount shall be punished with a fine ranging from EUR 500, 00 to 5.000,00.
6. Entry in to force
The present Law shall enter into force on 5 July, 2015.