At the core of the debate are "collection societies", powerful private-sector groups authorized by law in most European nations to impose levies on equipment that can be used to copy commercial products.
The fees raised by the societies are disbursed among copyright holders as compensation for unauthorized copying of their works. The laws were originally intended to apply to copy machines and tape recorders, but collection societies in several nations have attempted recently to use the laws to impose levies on computers. While the initial focus is on personal computers, whether sold to consumers or businesses, industry officials worry levies could be extended to other types of computers if the collection societies succeed in their initial targets.
The collection societies argue that scanners, CD burners and the Internet have transformed computers and computer-based devices into the world's most efficient copy machines. While equipment makers don't argue with that assertion, they say levies on hardware, which in Germany alone could range from US$34 for PCs to as much as US$216 for the most powerful scanners, are bound to discourage widespread purchases of the tools necessary for massive numbers of Europeans to connect to the Internet.
In short, says Townsend Feehan, secretary general of the European Association of Consumer Electronics Manufacturers, Europe may be "shooting itself in the foot" with copyright laws that hamper equipment sales. Industry officials say the levies will force them to either charge more for their products or absorb the costs, further cutting already slim profit margins.
The collection societies counter that until technology has been designed and implemented to prevent unauthorized reproductions of copyrighted works, levies on equipment will be necessary to ensure that owners of intellectual property get their due.
Germany has so far been the most aggressive in imposing levies on computer-based equipment. But other nations, notably Austria, France and Greece, are considering similar levies.
While equipment makers say publicly that they see no imminent danger of the U.S. following Europe's lead on levies, some company representatives admit privately that they are worried about the precedent.
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