No fair compensation in respect of reproductions made using unlawful sources

Copyright. Article 5(2)(b) Copyright Directive does not preclude legislation for fair compensation in respect of multifunctional media such as mobile telephone memory cards, irrespective of whether the main function of such media is to make such copies, provided that one of the functions of the media enables the operator to use them for that purpose. Legislation for fair compensation in respect of the supply of media that may be used for copying for private use (such as mobile telephone memory cards), but not for components whose main purpose is to store copies for private use (such as the internal memories of MP3 players) is allowed, provided that those different categories are not comparable or the different treatment they receive is justified. Producers and importers who sell mobile telephone memory cards can be required to pay the fair compensation, if they do not know whether the final purchasers of the cards will be individuals or business customers. Member States permitted to provide in certain cases for an exemption from payment of fair compensation, provided the prejudice caused to rightholders is minimal. Where a Member State has excluded any right for rightholders to authorise reproduction of their works for private use, authorisation by the rightholder cannot give rise to an obligation to pay fair compensation. Use technological measures has no effect on the fair compensation payable in respect of private reproductions made  by means of such devices. No fair compensation in respect of reproductions made using unlawful sources. Fair compensation allowed in respect of reproductions of protected works made by a natural person by or with the aid of a device which belongs to a third party.

IPPT20150305, CJEU, Copydan v Nokia

C‑463/12 - ECLI:EU:C:2015:144