The private copying fee applies from 1 July 2021 on refurbished smartphones. This tax is an additional cost that now affects the second-hand market.

Implemented by the Private Copying Commission in early June, this fee applies from 1 July to second-hand mobiles.  The actors of the reconditioned tried an amendment to exempt them from the latter had been rejected by the government on June 10, 2021. The fee, already applied on a new smartphone, will apply a second time on the same smartphone, if the latter is sold second-hand as a refurbished product.

It jeopardizes the entire activity of the second life of tech products but also impacts the purchasing power of the French. Competitive advantages in the territory will be reduced and the risk of job destruction increases.  

Private Copying in its early stages : 

Set up in 1985, the private copying fee is a (compulsory) remuneration paid to artists in a flat-rate manner by each individual when purchasing a storage medium. It gives him the right to copy works in a personal capacity. Audio cassettes were first affected and then replaced with CDs and digital storage media.

Thanks to the growing sale of smartphones - which account for 70% of the revenues from the private copying levy, rights holders, that is to say the State, now collect nearly 300 million euros per year. In exchange, users are free to copy music files (like MP3) from one mobile to another.

Concretely, what is this new tax ? 

The private copying tax is a financial compensation mechanism provided for by French law. It aims to compensate for the potential losses suffered by creators and rights holders as a result of reproductions made for private purposes. This tax is levied on certain blank media and electronic devices, including smartphones, which may be used to copy copyrighted works.

When you buy a new or used smartphone in France, part of the purchase price may include a contribution to the private copying tax. This contribution is generally donated to copyright collectives, which then redistribute it to artists, authors and rights holders.

It is important to note that the private copying tax is charged when buying the smartphone and not when reselling a used device. Thus, if you buy a used smartphone, you will not have to pay this tax a second time.

For example :  

A new smartphone with a storage capacity of 64 GB is thus hit with a fee of 12 euros, against 7.20 euros for its refurbished version (or 19.20 euros in total for a mobile sold in a new version and then reconditioned in France).

The amount received by rights holders goes up to 22.40 euros for devices over 64 GB, which will now be affected by a fee of 8.40 euros if they are repackaged (against 14 euros in new version).

Dipli: the fulfillment service that performs in the reconditioned

Dipli simplifies and secures the second life of tech products. We support professionals to help them achieve the best performance in this market. We serve as control hub, reconditioning assistant, and distribution channel. No matter your role in the supply chain, you can become a hero of the circular economy. More than 550,000 products have found a second life on the platform since its inception.