Padawan SL v. Sociedad General de Autores y Editores de España (SGAE)

Case C-467/08 (2010)

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Padawan SL v. Sociedad General de Autores y Editores de España (SGAE)

European Union Court of Justice
Case C-467/08 (2010)

Facts

Article 5(2)(b) of the European Union (EU) Directive on Copyright and Related Rights in the Information Society 2001/29/EC (the directive) enabled member states to allow exemptions from copyright law. However, the directive specified that such exemptions could be made only if copyright owners were fairly compensated for them. Spain created an exemption for private copying, and, to produce compensation for copyright owners, it levied a fee on all copying equipment sold within the country, regardless of whether that equipment was purchased by private persons or commercial entities. The Sociedad General de Autores y Editores de España (SGAE) (defendant) was the organization charged with collecting the fee. When SGAE attempted to collect from Padawan SL (Padawan) (plaintiff), a Spanish company that manufactured CD, DVD, and MP3 devices, Padawan refused to pay, arguing that the fee contravened the directive’s fair-compensation standard. The Barcelona Court of Appeal referred the question of what constituted fair compensation to the EU Court of Justice, which considered the question in a preliminary ruling.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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