Legislation

Article 1245

State Accreditation of Organizations for Collective Management of Rights
1. A collective management organization may receive State accreditation for exercising activities in the following spheres of collective management:
1) management of exclusive rights to published musical works (with or without lyrics) and fragments of musical-dramatic works with respect to their public performance, communication on the air or by cable, including by means of rebroadcast (Article 1270(2), subclauses (6)-[8]);
2) exercising of rights of composers who are authors of musical works (with or without lyrics) used in an audiovisual work to receive remuneration for public performance or communication on the air or by cable of such audiovisual work (Article 1263[3]);
3) management of the resale right with respect to works of visual arts, and also authors manuscripts (or autographs) of literary and musical works (Article 1293);
4) exercising of rights for private copying of authors, performers, phonogram and audiovisual works manufacturers (Article 1245);
5) exercising of rights of performers to receive remuneration for public performance, and also for communication of the air or by cable of phonograms published for commercial purposes
6) exercising of rights of phonogram manufacturers to receive remuneration for public performance, and also for communication on the air or by cable of phonograms published for commercial purposes (Article 1326).

State accreditation shall be exercised on the principles of procedures transparency and public consultations with interested parties, including rights holders, according to procedure, established by the Government of the Russian Federation.

2. In each sphere of collective management, listed in Clause 1 of the present Article, the State accreditation can be granted only to one collective management organization.
A collective management organization can be granted with the State accreditation for exercising activities in one, two or more spheres, listed in Clause 1 of the present Article.
Limitations, imposed by antimonopoly legislation, shall not be applied to activities of accredited collective management organizations.

3. Accredited collective management organizations shall be authorized to manage the rights of rights holders who signed membership contracts in accordance with Clause 3 Article 1242 of the present Code, and the rights of rights holders, who did not sign such membership contracts.
Existence of accredited organizations shall not prevent creation of other collective management organizations, which exercise their activities in the spheres, including the ones listed in Clause 1 of the present Article. These organizations shall be authorized to sign license contracts with users only on behalf of rights holders, who granted these powers to the organization directly, in accordance with Article 1242(3) of the present Code.

4. A rights holder, who did not sign a membership contract with an accredited collective management organization (Clause 3 of the present Article), shall have the right to withdraw his rights from the organization’s management at any moment in full or partially. The rights holder shall notify the accredited organization of his withdrawal in writing. If the rights holder intends to withdraw his author’s or neighboring rights, or copyright objects partially, he shall submit a list of the rights or objects withdrawn to the accredited organization.

Upon expiry of three months from the day of a written withdrawal receipt, the accredited organization shall exclude all specified rights and/or objects from its licensing contracts with users and to publish this information in a public information system. The accredited organization shall pay remuneration, collected in accordance with license contracts, to the rights holders, and shall submit a report in accordance with Article 1243(4), paragraph 4 of the present Code.

5. An accredited organization shall undertake all reasonable and necessary means to identify rights holders, who have the right for remuneration, collected in accordance with license and remuneration contracts. Unless established otherwise by a law, an accredited organization is obliged to accept a rights holder as is member, if the rights holder has the right to receive remuneration, collected in accordance with licensing and remuneration contracts.

6. Accredited organizations execute their activities under control of an authorized federal executive body.

Accredited organizations are obliged to submit a report on their activities to the authorized federal executive body, and also to publish it in national mass media. The form of the report shall be established by the authorized federal executive body.

7. Model Articles of Incorporation of an accredited organization shall be approved under procedure, outlined by the Government of the Russian Federation.

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Article 1245

Remuneration for Free Reproduction of Phonograms and Audiovisual Works for Private Use

1. The right to remuneration for free reproduction of phonograms and audiovisual works for private use shall belong to authors, performers and manufacturers of phonograms and audiovisual works. This remuneration is compensatory. Private copying levy, paid by recordable media manufacturers and importers, shall be distributed between the rights holders.
The Government of the Russian Federation shall approve the list of recordable media, blank tape levy rate and blank tape levy collection procedures.
2. Collection of blank tape levy shall be executed by an accredited organization (Article 1244).
3. Blank tape levy shall be distributed between rights holders on the following proportion: 40% shall be paid to authors, 30% shall be paid to performers, 30% shall be paid to phonogram and audiovisual works producers. Blank tape levy shall be distributed between authors, performers and phonogram and audiovisual works producers pro rata with actual usage of the correspondent phonograms or audiovisual works. The Government of the Russian Federation shall set the procedures of blank tape levy distribution and payoff.
4. Manufacturers of exported and professional (designed not for home usage) recordable media shall not be charged with blank tape levy.
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