Storage device royalties now have to be paid on portable electronic storage devices in proportion to their storage capacity, adding many hundreds or thousands of forints to their cost. Smart mobile phones are subject to payment as well.
This change, which came into force in April 2009, applies to any portable device suitable for storing audio or audiovisual content (such as pen drives and USB flash drives) and to storage devices integrated into portable multimedia sets (including mobile phones with a storage capacity above 64MB).
Royalties are already levied on other types of video and audio media, such as recordable CDs and DVDs, memory cards, memory sticks and microdrives.
The decision reflects the way technology is driving the market: surveys show that USBs are used by 35% of users to store music and by 6% to store films.
The royalties are payable to the Hungarian Bureau for the Protection of Authors' Rights, ARTISJUS. They are payable by the manufacturer unless the storage device is manufactured abroad, in which case they are payable by the person required to pay the customs duty. If no customs duty is payable, the importer and the distributor are jointly and severally liable for the royalties.
However, any trader distributing the devices in Hungary who is liable for royalties but has already paid royalties in another country can obtain a certificate from ARTISJUS enabling it to reclaim the Hungarian royalty payments. In some situations, an allowance can also be given from published royalties.
Payment of royalties is certified by an optically protected label issued by Artisjus. Both copyright and criminal law impose sanctions for any unauthorised removal or tampering with the label.
Laws: Sections 20 (1) and (2) of Act LXXVI of 1999 on Copyright; Communiqué of Society Artisjus on royalties on empty audio and video media levied with regard to copies made for private purposes (in effect until 31 December 2009)
