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Internet broadcasting fees as a brake on innovation

Summary

In 1997, ideas of charging broadcasting fees for internet-capable PCs met with fierce opposition. The industry association for information technology threatened to sue, and research minister Rüttgers spoke of a brake on innovation: a company with 1,000 PCs would have had to pay almost 30,000 marks a month. The fee collection agency GEZ admitted that the state treaty had not foreseen the technology and waived fees for the time being.

Ideas

  • The state treaty defined every device that can reproduce broadcasts without a time delay as a receiver.
  • This formally made internet-capable PCs liable for the fee as well.
  • The IT industry argued that internet transmissions were asynchronous and not broadcasting.
  • A new regulation needed the approval of all German states.

Insights

  • Technology-neutral legal wording often covers devices nobody had thought of.
  • Fee models per device fit poorly with workplaces with many computers.

Facts

  • Under the rules of the time, a company with 1,000 computers would have paid almost 30,000 marks a month.
  • The GEZ did not want to charge fees for internet PCs until a workable regulation was in place.

References

Critique

  • The report mainly reflects the industry’s view; the arguments of the broadcasters hardly appear.

Remarks

  • The fee for “new types of broadcast receivers” came in 2007; since 2013 a device-independent broadcasting contribution per household and business premises has applied.

Recommendations

  • With new classes of devices, check early which existing levies or obligations they could trigger.
  • Take part in consultations when rules are being made for technology you operate.

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