4.74 Under the Information Society Directive, countries are able to enact a private copying
exception provided that ‘fair compensation’ is given to rights holders.62 In France, Germany
and many other countries levies are exacted on hardware and blank media. One of the main
problems with levies is that they are blunt instruments: the amount is fixed and therefore does
not reflect the number of times a device is used, nor can it compensate for each individual
copy. It is also not clear that royalties are accurately remitted to rights holders as it is very
difficult to determine whose music is being copied. The European Commission is reviewing
the entire body of copyright law, and is specifically investigating whether levies work. (my emphasis)
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