The compensation for private copying is statutory compensation paid to the creative industries for the copying of works for private use. For years, the amount of compensation has been established at EUR 11 million in the state budget. This level was also confirmed in the General Government Fiscal Plan for 2023–2026.
Of the total amount of EUR 11 million, approximately EUR 5.5 million has been distributed to the creative industries through AVEK and Kopiosto.
“We knew to expect cuts in the compensation for private copying, but nothing as catastrophic as this. This news comes as a shock to the Finnish audiovisual sector. In addition to creating new culture, the support we distribute generates jobs and tax revenue for the central government. It is short-sighted and brutal to cut from employment and investments that also benefit the central government,” says Director of AVEK Ulla Simonen.
Support from AVEK supports employment and exports
AVEK grants and support largely constitute direct support for creating documentaries, media art and short films. In 2023, AVEK distributed EUR 1.9 million in compensation for private copying, paid from the state budget.
Of the grants and support awarded by AVEK, EUR 1.5 million was paid to businesses in the sector for various productions. This supported the creation of a total of 135 works.
The audiovisual sector is very labour-intensive. Most of the costs of film productions go towards salaries and wages either directly or indirectly through subcontracting. Society recovers money from the creation of audiovisual works not only through withholding tax and pensions or other related costs but also through value-added tax for goods and services purchased by the production.
“When a director or screenwriter receives support, it generates work and financial activity,” says film director Virpi Suutari regarding the significance of support received from AVEK.
“The support I received makes things much easier, as I’ve been meaning to hire someone for a while, but I haven’t had the opportunity. The support also makes that possible,” says artist Pilvi Takala regarding the support she received.
In addition to productions, AVEK grants and support were allocated for education, internationalisation and the organisation of courses, events and festivals. These forms of support are also important to the creative industries.
“We’ve already had international successes in the audiovisual sector, but there is still export potential yet to be utilised. The forms of support provided by AVEK for the development of international training, networking and funding are particularly important for authors at the start of their careers,” says film director Juho Kuosmanen.
Dent in the income of audiovisual authors
The compensation for private copying is also a source of income for thousands of Finnish creative professionals and performing artists.
“Kopiosto distributes compensation for private copying to about 6,500 professionals in the audiovisual sector each year. The compensation is part of these authors’ income, which is made up of small streams,” explains Kopiosto’s CEO Valtteri Niiranen.
The amount of compensation for private copying paid to audiovisual authors and performing artists is about 5 cents/copy. It is distributed among all the authors who have copyrights to the work. For example, for one film, compensation will be handed out to about 10–15 authors.
The real level of the compensation for private copying has decreased drastically over the years. The compensation paid in Finland is also small by international standards. Therefore, developing the compensation system is important in order to foster the success of the Finnish audiovisual sector.
