Abstract
The exception of the so-called private use copy provides for a limitation with respect to author’s exclusive right to reproduce a work in case it is reproduced on any carrier by private individuals for personal use other than direct or indirect commercial purposes. However, if that is a case Member States are obliged to provide for a duty to pay “fair compensation” to the entitled parties. At the same time, Member States enjoy a broad margin of liberty in this respect. Such a system of financing complies with the requirements of :fair compensation” since by making a copy of a protected work for their own use private user may cause a potential damage to the author. Hence, Member States may provide for a duty for the end users to pay a licence fee.