Mexico considers 2% levy on electronic devices for copyright

The Mexican Secretariat of Culture and the National Institute of Copyright (Indautor) are reportedly developing a proposal to implement a levy of up to 2% on electronic devices. The target products include cell phones, tablets, computers, screens, and USB flash drives.

This initiative, which has been colloquially referred to as a ‘digital moche,’ is based on the concept of compensation for ‘private copying.’ The justification is that these devices have the capacity to store or reproduce content protected by copyright, even if the user does not actually perform such actions. The proposal is reportedly being supported by the Society of Authors and Composers of Mexico (SACM).

While the tax would formally be applied to producers and importers, there are concerns that the cost will be passed on to consumers, increasing the final retail price of essential technology. A similar attempt to reform the Federal Copyright Law was proposed in 2021 but did not proceed through Congress.