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Ministry of Security and Justice

State Secretary for Security and Justice mr. F. Teeven

P.O. Box 20301

2500 EH The Hague

19 November 2012

Concerning: Decision 505 on copyright levies

Dear State Secretary Teeven,

We are writing to you to express serious concern about Decision 505, published in the Staatsblad van het

Koninkrijk der Nederlanden on 23 October, 2012. We would like to request a meeting with you at the

earliest opportunity to discuss this matter, and we would urge you to postpone the implementation of the

Decision and to make the Decision consistent with European Union law (Directive 2001/29, the

Copyright Directive).

The signatories to this letter include senior executives of leading ICT companies with major operations in

the Netherlands and across Europe, as well as leaders of industry organisations representing the Dutch

and European ICT sector.

In our view, Decision 505 will, if implemented, impede our ability to serve our customers in the

Netherlands and raise the cost of digital technology. Furthermore, it will cause trade barriers and serious

disincentives to operating logistics hubs and distribution centres in the Netherlands.

We have serious doubts as to the legality of the Decision. It is likely to be in conflict with the Copyright

Directive. It does not live up to the requirement that fair compensation be based on assessment of harm of

private copying, and it seems to include compensation for illegal copies. Further, the Decision fails to

provide a workable system for exempting products sold to professional users. Finally, there are several

points of uncertainty and ambiguity in the Decision that would make it extremely difficult and costly to

implement in practical terms.

It is not only in the Netherlands that levies on ICT products cause difficulties. There are dozens of legal

challenges and court cases in progress across European countries. Several court cases have been referred

to the Court of Justice of the European Union, and upcoming rulings from the Court could impact

Decision 505 directly.

Further, in view of the serious economic damage, Single Market trade distortion, litigation and

administrative burdens associated with levies, the European Commission is now considering options for

reform of European levies systems.

Several companies are taking legal advice as concerns Decision 505. Companies may conclude that they

cannot legally comply with it. We are keen to work with you and your staff to find constructive solutions,

and we urge you to reconsider the Decision and at a minimum postpone its implementation. However, as

expressed in the letter sent to you by FIAR on this matter on 16 July, 2012. , the ultimate objective should

be the abolition of media/device-based levies systems, both in the Netherlands and in other European

countries.

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Our representatives will be in touch with your office in due course to discuss dates for a meeting.

A copy of this letter will also be sent to Minister Kamp of Economic Affairs, the Standing Committee of

Economic Affairs and the Standing Committee of Security and Justice in Parliament.

Yours sincerely,

John Higgins CBE

Director General, DIGITALEUROPE

Jeannine Peek

General Manager, Dell Netherlands

G.P.M. Van der Wilk

Managing Director BeNeLux, Fujitsu Technology Solutions

Hans Daniels

Vice President and Managing Director General Western Europe (GWE)

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Luc Gheysens

Vice President Europe, Imation Europe B.V.

Jeffrey T. Lawrence

Director of Global Content Policy, Intel Corporation

Chris Weber

Executive Vice President, Sales and Marketing, Nokia

J. Van Bouwel

Managing Director, Panasonic BeNeLux

Christophe Lefort

Managin Director, West Europe, Research in Motion

B.B. Moon

CFO, Samsung Electronics BeNeLux B.V.