HL Deb 14 September 2001 vol 627 cc40-1WA
Lord Freyberg

asked Her Majesty's Government:

When the droit de suite levy will become part of British law; how they intend to inform the public of its introduction; and what arrangements are being made to prepare for this. [HL648]

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)

Droit de suite is a new and complex right. The Government plan to introduce the levy on 1 January 2006—that is, on the last day allowed by the directive harmonising the right. A notice informing the public of the legislation will be mounted on the Patent Office's website at the appropriate time. However, the Government intend to consult widely on transposition of the directive into national law and those affected will be aware, in advance, of the legislation.

Lord Freyberg

asked Her Majesty's Government:

What are the sale price bands and tapering scale of rates of droit de suite as now agreed at the European level. [HL649]

Lord Sainsbury of Turville

The royalty rates are:

  1. (a) 4 per cent of the portion of the sale price up to EUR 50,000 (£30,750);
  2. (b) 3 per cent for the portion of the sale price EUR 50,000.01 to 200,000 (£30,750 to £123,000);
  3. (c) 1 per cent of the portion of the sale price from EUR 200,000.01 to 350,000 (£123,000 to £215,250);
  4. (d) 0.5 per cent for the portion of the sale price from EUR 350,000.01 to 500,000 (£215,000 to £307,500);
  5. (e) 0.25 per cent for the portion of the sale price exceeding EUR 500,000 (£307,500).

By way of derogation, member states may apply a rate of 5 per cent for the portion of the sale price up to EUR 50,000. They may also set a minimum sale price from which sales shall be subjected to droit de suite, but this price must not exceed EUR 3000 (£1,845). If a lower minimum is set, the member state may determine the rate applicable up to EUR 3000; but this must not be lower than 4 per cent. The total royalty payable may not exceed EUR 12,500 (£7,687). [Sterling equivalents are based on a prevailing conversion rate of 1 EUR = 61.5 pence].