> A common misconception is that levies are compensation for illegal copying such as file sharing. This is incorrect, however, levies are only intended to compensate for private copying that is legally allowed in many jurisdictions. For example, uploading a purchased CD on to another personal device such as a laptop or MP3 player.
"Private copying" is generally allowed under copyright law -- except that under DMCA, it's only allowed if you're not circumventing DRM. So for example, you can legally make a private copy of a CD, but not a Blu-ray disc.
Private copying is not generally allowed, but private copying levies tend to be adopted alongside specific exceptions for certain cases of private copying in the copyright law of the jurisdiction adopting them (e.g., in the US, those in the Audio Home Recording Act.)