CDR: Germans to tax PCs for Lars

[David Honig]

Germany Reportedly Plans 'Internet
     Tax' 

     BERLIN (Reuters) - Germany is planning to slap new
     levies on computer, telecommunications and Internet
     products to ensure that authors are properly rewarded for
     the use of their work, a newspaper said Wednesday.

     The Berliner Zeitung said proposals had been drafted requiring
manufacturers of
     goods from computers to printers, modems, compact disc ``burners'' and
other
     devices to pay royalty fees that would then be forwarded to music and
film
     companies.

     Officials at the Justice Ministry, which it said was behind the move,
were not
     immediately available for comment.

     The new tax would particularly intend to ensure that the authors of
cultural products
     available on the Internet were properly rewarded.

     Similar levies already exist in Germany on devices whose main function
is that of
     copying, such as scanners, photocopiers and fax machines. Depending on
the power
     of the machine involved, the taxes range from $30-$275.

     The levies are paid by manufacturers to firms that specialize in
collecting royalties
     on so-called ``intellectual property.'' They then pass these fees on
to clients such as
     authors, music, film or software companies.

     Hardware companies say extending the taxes to computers and telecom
equipment
     like modems could make them up to 30 percent more expensive.

     Because the taxes are only payable when the products are bought in
Germany, there
     have been warnings they could lead hi-tech firms to flee the country
and sell through
     mail order and other channels from abroad.