LAW OF UKRAINE

of May 15, 2018 No. 2415-VIII

About effective management of property rights of owners in the sphere of copyright and (or) the related rights

This Law determines legal and organizational basis of collective management of property rights of subjects of copyright and (or) the related rights in Ukraine.

Section I General provisions

Article 1. Determination of terms

1. In this Law terms are used in such value:

voluntary collective management - collective control which is exercised of the organizations of collective management registered in the procedure established by this Law is exclusive concerning the objects of copyright and (or) the related rights included in the catalog of the relevant organization of collective management;

the partnership agreement - the written (electronic) agreement signed by the accredited organization of collective management which exercises obligatory collective control, with other accredited organization of collective management which exercises expanded collective control in the respective sphere about payment of receivable share of the income from the rights of the corresponding category of owners;

the agreement on representation of the rights - the written (electronic) agreement between the organizations of collective management, including with the similar foreign organizations to which one organization authorizes other organization to exercise control of the rights to the corresponding objects of copyright and (or) the related rights;

the income from the rights - the money received by the organization of collective management from users or other organizations of collective management as remuneration for use of objects of copyright and (or) the related rights or as contributions to advantage of owners;

the electronic system of administration - information and telecommunication system which connects by means of the Internet the organization of collective management with owners and users and provides the automated accounting of objects of property rights, including their declaring by owners, accounting of receipts, distribution and payment of the income from the rights by the organization of collective management;

collection for management - the money withheld, enlisted or estimated in the organization of collective management from income amount from the rights or any other income which is not forbidden by the law for covering of expenses on ensuring the organization activity of collective management provided by this Law;

the catalog of the organization of collective management - set of objects of copyright and (or) the related rights on which the organization manages property rights;

collective management - activities from collection, distributions and payments to owners of the income from the rights which is performed in interests more than one owner on conditions and with respect for the principles provided by this Law;

the user - any legal entity, physical person, physical person - the entrepreneur, making actions which according to the Law of Ukraine "About copyright and the related rights" require receipt of consent of subjects of copyright and (or) the related rights, or otherwise shall pay remuneration or assignments to owners;

unclaimed means - the part of the income from the rights which is not distributed and (or) not paid in the time established by this Law owing to impossibility of identification of the corresponding objects of copyright and (or) the related rights and (or) the owner concerning such objects or objective impossibility to find the location of the identified owner and to pay it money;

obligatory collective management - collective management of property rights on objects of copyright and (or) the related rights, irrespective of their availability in the catalog of the organization of collective control which is exercised of accredited Organization the organizations in the spheres determined by this Law;

the organization of collective management - the public association with the status of the legal entity registered in Organization which does not aim at the profit earning based only by owners which activities are directed to collective management of property rights on objects of copyright and (or) the related rights;

the owner - the subject of copyright or related right or other person, in addition to the organization of collective management which based on the contract with the subject of copyright and (or) the related rights or under the law has the right to share of the income from the rights;

expanded collective management - collective management of property rights on objects of copyright and (or) the related rights, irrespective of their availability in the catalog of the organization of collective management (except cases when the appropriate rights are withdrawn by the owner from collective management according to the procedure, established by this Law), in the spheres determined by this Law, is performed by accredited Organization the organizations in the spheres determined by this Law;

Organization - the central executive body which provides forming and realizes state policy in the sphere of intellectual property;

organization member of collective management - the owner or consolidation (association) of owners, other organization of collective management which according to the legislation and articles of organization of collective management received the status of organization member of collective management.

Other terms are used in this Law in the value given in the Law of Ukraine "About copyright and the related rights".

Article 2. Legislation of Ukraine on collective management of property rights of subjects of copyright and (or) related rights

1. The legislation in the sphere of collective management of property rights of subjects of copyright and (or) the related rights consists of the Constitution of Ukraine, the Civil code of Ukraine, this Law and other laws adopted according to them the regulatory legal acts governing the relations in this sphere.

Article 3. Application of rules of the international treaty

1. If the existing international treaty which consent to be bound is provided by the Verkhovna Rada of Ukraine establishes other rules, than those which contain in this Law are applied rules of the international treaty.

Article 4. Powers of organization

1. The organization provides forming and realizes state policy in the sphere of protection of copyright and the related rights by implementation of the state supervision of organization activity of collective management and accomplishment of the following functions:

1) ensuring registration and accreditation of the organizations of collective management, maintaining Register of the organizations of collective management;

2) ensuring compliance with requirements of this Law by the organizations of collective management;

3) application to the organizations of collective management of sanctions according to the procedure, determined by this Law;

4) obtaining from the public authorities of information, documents and materials necessary for implementation of collective management;

5) rendering the methodical help of collective management to the organizations both profile associations and associations of users;

6) the analysis of observance of requirements of the legislation in the sphere of collective management, monitoring of activities of the accredited organizations of collective management and promulgation of the relevant information on the official website of Organization;

7) ensuring functioning of electronic system of registration and accounting in the sphere of copyright and the related rights.

2. The organization claims:

1) the application form about accreditation and registration of the organization of collective management;

2) form of the annual activities report of the organization of collective management;

3) the application form about modification of the Register of the organizations of collective management;

4) report form of the teleradio organizations about use of objects of copyright and (or) the related rights on air of the teleradio organization;

5) procedure for functioning of electronic system of registration and accounting in the sphere of copyright and the related rights and authorization of electronic platforms.

Section II of Feature of implementation of collective management of property rights of subjects of copyright and (or) related rights

Article 5. Basic principles of collective management of property rights of subjects of copyright and (or) related rights

1. Collective management of property rights of subjects of copyright and (or) the related rights perform the organizations of collective management registered by Organization in the procedure established by this Law.

The organization of collective management is the non-profitable organization which is formed in form of business of public association (public organization or the public union) with the status of the legal entity which single type of activity is accomplishment of the tasks and functions determined by article 12 of this Law.

Founders of the organization of collective management owners can be exclusive.

Physical persons - citizens of Ukraine, foreigners, stateless persons and legal entities of private law can be founders and organization members of collective management.

Restrictions or privileges for the organizations of collective management depending on type, nationality, property status or professional accessory of founders or members of such organizations are not allowed.

2. The principles of organization activity of collective management is:

1) strict respect for interests of owners - the organizations of collective management shall be effective in the best way for the benefit of owners, effectively collect, distribute and pay the income from the rights, not assign to owners any obligations which are not objectively necessary for protection of their rights and interests and for effective management of their property rights;

2) equality - is not allowed establishment of privileges for separate categories of owners depending on their type (legal entities or physical persons), organizational memberships of collective management, participation or nonparticipation in management of such organization, nationality, residence and so forth;

3) transparency - the organizations of collective management provide open entry of owners, users and the public to information on the activities determined by this Law;

4) accountability - the organizations of collective management report to domestic and (or) foreign owners on the activities according to the procedure, established by this Law;

5) effective management - the organizations of collective management provide collection, distribution and payment of the income from the rights to owners with the most bystry, effective and exact method and only with reasonable costs.

Expenses of the organizations of collective management on purchase of goods, works and services correspond to criterion of management efficiency if they are performed with use of the procedures established by the Law of Ukraine "About public purchases".

3. Owners as subjects of copyright and (or) the related rights have the right to charge management of the property rights to the organizations of collective management.

Owners have the right to freely elect the organization of collective management which will manage their property rights, to determine what property rights and on what objects of copyright and (or) the related rights to transfer to the control, taking into account the features provided by this Law.

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