Paraguay Updates Rules on Compensation for Private Use of Copyright

Paraguay has adopted a new regulation on copyright and private copying (Decree No. 4212/25), which updates and replaces the previous 2015 framework. The decree modernises the rules on compensation for private copying in an increasingly more digitalized context.

The regulation confirms that authors, performers, producers, and other rightsholders are entitled to fair compensation when their works are copied using private devices such as smartphones and memory drives. Importantly for businesses, the decree clarifies that this compensation is not a tax, but a civil obligation.

An updated and more exhaustive list of covered equipment reflects current consumer habits and new technological developments. Moreover, under the new rules, 80% of the funds go directly to rightsholders, while 20% is used to promote IP awareness and anti-piracy initiatives.

The decree also strengthens DINAPI’s supervisory role, including controls on imports and customs declarations, to ensure the system is applied transparently and consistently.

Overall, the reform brings greater legal clarity for businesses while supporting Paraguay’s creative sectors in an increasingly digital economy.