Lecture
1. In order to secure the economic rights of authors, performers, phonogram producers and other holders of copyright and related rights in cases where the practical exercise of such rights on an individual basis is difficult (public performance, including on radio and television, reproduction of a work by means of mechanical, magnetic or other recording, reprographic reproduction and other cases), organisations may be established to manage the economic rights of such persons on a collective basis. Such organisations are established directly by the holders of copyright and related rights and act within the limits of the powers received from them on the basis of a charter approved in the manner established by legislation. 2. It is permitted to establish either separate organisations for different rights and different categories of rightholders, or organisations managing different rights in the interests of different categories of rightholders, or a single organisation simultaneously managing both copyright and related rights.
1. In accordance with this Law, an organisation managing economic rights on a collective basis shall not be entitled to engage in commercial activity.
The restrictions provided for by antimonopoly legislation do not apply to the activity of such an organisation.
2. Powers for the collective management of economic rights are transferred directly by the holders of copyright and related rights voluntarily on the basis of written contracts, and also under the relevant contracts with foreign organisations managing analogous rights. Such contracts are not author's contracts, and the provisions of Articles 30 to 34 of this Law do not apply to them.
Any author, his heir or another holder of copyright and related rights protected in accordance with Section III of this Law is entitled to transfer by contract the exercise of his economic rights to such an organisation, and the organisation is obliged to assume the exercise of these rights on a collective basis, provided that the management of that category of rights falls within the statutory activity of that organisation.
The said organisations are not entitled to use works and subject matter of related rights received by them for management on a collective basis.
3. On the basis of the powers obtained in accordance with paragraph 2 of this Article, an organisation managing economic rights on a collective basis shall grant licences to users for the corresponding modes of use of works and subject matter of related rights. The terms of such licences must be the same for all users of one category. The said organisations are not entitled to refuse to issue a licence to a user without sufficient grounds for doing so.
Such licences permit the use, by the modes provided for in them, of all works and subject matter of related rights, and are granted on behalf of all holders of copyright and related rights, including those who have not transferred powers to the organisation in accordance with paragraph 2 of this Article.
All possible pecuniary claims of holders of copyright and related rights against users connected with the use of their works and subject matter of related rights under such licences must be settled by the organisation granting such licences.
4. An organisation managing economic rights on a collective basis is entitled to retain unclaimed remuneration, including it in the sums distributed or applying it to other purposes in the interests of the holders of copyright and related rights it represents, upon the expiry of three years from the date of its receipt into the organisation's account.
An organisation managing economic rights on a collective basis must perform the following functions on behalf of the holders of copyright and related rights it represents and on the basis of the powers received from them:
1) agree with users the amount of remuneration and the other terms on which licences are issued;
2) grant licences to users for the use of the rights managed by such an organisation;
3) agree with users the amount of remuneration in those cases where the organisation collects such remuneration without issuing a licence (paragraph 2 of Article 26, paragraphs 2 and 3 of Article 39 of this Law);
4) collect the remuneration provided for by the licences and (or) the remuneration provided for by paragraph 3 of this Article;
5) distribute and pay out the remuneration collected in accordance with paragraph 4 of this Article to the holders of copyright and related rights it represents;
6) take any legal action necessary to protect the rights managed by such an organisation;
7) carry out other activity in accordance with the powers received from the holders of copyright and related rights.
1. The activity of an organisation managing economic rights on a collective basis is carried out in the interests of the holders of copyright and related rights represented by such an organisation. To this end the organisation must fulfil the following obligations:
1) simultaneously with the payment of remuneration, provide the holders of copyright and related rights with reports containing information on the use of their rights;
2) use the remuneration collected in accordance with the provisions of paragraph 4 of Article 46 of this Law exclusively for distribution and payment to the holders of copyright and related rights. In doing so, the organisation is entitled to deduct from the remuneration collected the sums needed to cover its actual expenses for collecting, distributing and paying out such remuneration, as well as the sums which are directed to special funds created by that organisation with the consent and in the interests of the holders of copyright and related rights it represents;
3) distribute and regularly pay out the collected sums of remuneration, less the sums specified in subparagraph 2 of this paragraph, in proportion to the actual use of the works and subject matter of related rights.
2. Holders of copyright and related rights who have not granted powers to the organisation with respect to the collection of the remuneration provided for in paragraph 4 of Article 46 of this Law are entitled to demand that the organisation pay them the remuneration due to them in accordance with the distribution carried out, and also to exclude their works and subject matter of related rights from the licences granted by that organisation to users.
Comments