The compensation for private copying (private copying levy) is provided to the authors of creative works so that every citizen can copy and store works for private use. It is based on an EU directive and the relevant legislation.
In Finland, the compensation is paid from the state budget to creative professionals, such as actors, directors, musicians, composers and lyricists both directly and jointly through the grants provided by centres that promote culture.
According to operators in the field, the proposed guillotine cut from 11 million to 5.5 million is harmful and unjustified.
“The cutback would harm artists and the cultural field in two ways: it would cut 50% from the compensations paid to artists and producers through copyright organisations and, correspondingly, reduce the appropriations of centres that promote culture, such as the Finnish Music Foundation MES, AVEK Audiovisual Centre and VISEK Centre for the Promotion of Visual Art,” says CEO of the Finnish Music Foundation Tommi Saarikivi, who is also a musician himself.
The repercussions would impact all of Finland
In addition to individual creative workers, the cutbacks would dramatically impact the cultural export and the vitality of regions.
“Over the years, the compensation has been used to support the creation of more than 3,100 films or other audiovisual works and the production of 10,000 domestic music events in more than 200 municipalities. In addition to creating new culture, the support we distribute generates jobs and tax revenue for the central government. These benefits would be lost as a result of the cutback. The multiplier effects of the cutback would be felt in every Finnish municipality with many music and film events that are important to local vitality being left by the wayside,” says AVEK Director Ulla Simonen, who previously worked as a film producer.
The compensation has supported a large number of successful and eventually exported works in music, the audiovisual field and visual arts.
“The grants provided by MES have played an important role in enabling new opportunities throughout my career as an artist. It is important to maintain these opportunities for future creators of music as well,” says internationally successful blues guitarist, singer, songwriter and entrepreneur Erja Lyytinen.
“AVEK’s support has been key in terms of the overall funding of audiovisual works. Films are funded through a variety of sources, and the process of greenlighting a project for production requires cooperation between various parties. Alongside generating thought-provoking and exportable works, the support also generates jobs and economic activity in the field,” says film director Virpi Suutari.
An unfair and unjustified cutback
The compensation for private copying is based on an EU directive, according to which creators must be fairly compensated for the detriment caused by the copying of creative works.
According to the Copyright Act, the compensation is confirmed based on the amount of annual copying and research on how common the copying is. The compensation level was last defined in 2023, and the amount of copying and the detriment caused by it has not changed significantly since then. The studies commissioned by the Ministry of Education and Culture indicate that the amount of copying has mostly remained the same since 2017.
As such, copying has not been stopped by the digital era. Instead, the financial significance of copying has increased since there has been a transition from the trade of physical products to the trade of storing and streaming rights. According to the analysis conducted by Taloustutkimus in 2017, the detriment caused by private copying to the creative industry amounted to 32–44 million euros.
“Even though the previous compensation level of 11 million euros only covered 25–35 per cent of the damage, the Government how proposes a cut to 5.5 million euros. Yet, the private copying levy is a conscious way for the central government to provide compensation for the concrete financial losses of copyright holders. The cutback is in no way fair or justified,” says Tommi Saarikivi.
Read more about the legal bases of the compensation (in Finnish).
Enquiries
Tommi Saarikivi
CEO, The Finnish Music Foundation MES
tommi.saarikivi(a)mes.fi
+358 (0)40 153 1415
Ulla Simonen
Director, AVEK Audiovisual Centre
ulla.simonen(a)avek.kopiosto.fi
+358 (0)44 790 0344
Artist interview requests
Erja Lyytinen
Blues guitarist, singer and songwriter, MES grant recipient
Publicist Katja Toivanen,
+358 (0)40 701 1686
Virpi Suutari
Film director, AVEK grant recipient
virpi.suutari(a)gmail.com
+358 (0)50 336 5771
The ‘Älä anna kulttuurin kadota’ campaign is being coordinated by the Luovat ry association for creative workers and entrepreneurs, its 14 member organisations and a large group of other organisations and professionals in the cultural field. Campaign content will be distributed on social media over the summer. Read more about the compensation for private copying and the campaign on the Luovat ry website (in Finnish).
