Commision postpones Initiative on private Copying !

BRUSSELS, Dec 13 (Reuters) - The European Commission is set to scrap plans to reform a tax on gadgets which can reporduce copyrighted material, signalling a defeat for the electronics industry which says the levy is outdated, an industry source said on Wednesday.
The levy is a tax, imposed by about 20 EU member states, which was designed to compensate artists and performers for the private copying of their works.
EU Internal Market Commissioner Charlie McCreevy was due to publish a recommendation on how the EU should enforce a 2001 copyright directive more stringently.
The directive contains a clause that allows governments to scrap or phase out the tax on products which range from digital music players to copiers and scanners.
Industry sources said McCreevy's plans have been overruled by Commission President, Jose Manuel Barroso.
"The Commission has caved in," the source said.
The Copyright Levies Reform Alliance, which represents the electronics industry said it would hold a press conference later on Wednesday "on President Barroso's decision to withdraw imminent Commission recommendation to reform copyright levies".
McCreevy's spokesman was not available for comment.
McCreevy has faced heavy lobbying over the levy, with the electronics industry saying it is an outdated tax.
But award-winning film directors Pedro Almodovar and Bertrand Tavernier have said it provided 560 million euros ($743.3 million) in funding for European artists and performers last year.
Collecting societies gather the levy and distribute the money to artists and performers. A quarter of it also goes to national treasuries to fund cultural activities and productions.