The Court of Justice has held that the amount of the levy payable for making private copies of a protected work may not take unlawful reproductions into account, in Case C-435/12, ACI Adam BV and Others v Stichting de Thuiskopie, Stichting Onderhandelingen Thuiskopie vergoeding (the link is to the press release). The Court took the view that the law should not tolerate unlawful reproductions, so the law has to draw a distinction between private copies from lawful sources and others. National legislation which does not distinguish between lawful and unlawful private reproductions cannot ensure a proper application of the private copying exception. The levy system must ensure that a fair balance is maintained between the rights and interests of authors and users, and if it does not distinguish between lawful and unlawful reproduction that balance is not struck.
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