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CIVIL CODE OF THE RUSSIAN FEDERATION

of December 18, 2006 No. 230-FZ

(part four)

(as amended on 11-06-2021)

Accepted by the State Duma on November 24, 2006

Approved by the Federation Council on December 8, 2006

Section VII. Rights to results of intellectual activities and means of individualization

Chapter 69. General provisions

Article 1225. The protected results of intellectual activities and means of individualization

1. Results of intellectual activities and means of individualization of legal entities, goods, works, services and the companies equated to them to which legal protection is provided (intellectual property) are:

1) works of science, literature and art;

2) programs for electronic computers (computer program);

3) databases;

4) execution;

5) soundtracks;

6) the message in air or on cable of radio - or telecasts (broadcasting of the organizations of on-air or cable broadcasting);

7) inventions;

8) useful models;

9) industrial designs;

10) selection achievements;

11) topology of integrated chips;

12) know-how (know-how);

13) trade names;

14) trademarks and service marks;

14. 1) geographical instructions;

15) names of places of goods origin;

16) commercial designations.

2. The intellectual property is protected by the law.

Article 1226. Intellectual rights

On results of intellectual activities and means of individualization (results of intellectual activities and means of individualization) equated to them the intellectual rights which include the exclusive right which is property right, and in the cases provided by this Code, also personal non-property rights and other rights are recognized (the following right, right of access and others).

Article 1227. Intellectual rights and corporeal rights

1. The intellectual rights do not depend on the property right and other corporeal rights to the material carrier (thing) in which the corresponding results of intellectual activities or means of individualization are expressed.

2. Transition of the property right to thing does not attract the transition or provision of the intellectual rights to result of intellectual activities or to means of individualization expressed in this thing, except for the case provided by the paragraph the second Item 1 of Article of 1291 of this Code.

3. Provisions of the Section II of this Code are not applied to the intellectual rights if other is not established by rules of this Section.

Article 1228. Author of result of intellectual activities

1. The author of result of intellectual activities the citizen whose creative activity creates such result is recognized.

The citizens who did not make personal creative deposit in creation of such result, including rendered to his author only technical, consulting, organizational or material assistance or the help or only promoting registration of the rights to such result or its use and also the citizens exercising control over the implementation of the corresponding works are not recognized authors of result of intellectual activities.

2. The author of result of intellectual activities possesses copyright, and in the cases provided by this Code, the right addressed to and other personal non-property rights.

The copyright, the right addressed to and other personal non-property rights of the author are inaliennable and non-transferable. The refusal of these rights is insignificant.

Authorship and name of the author are protected is termless. After the death of the author protection of his authorship and name any interested person can perform, except as specified, stipulated in Item 2 Articles 1267 and Item 2 of article 1316 of this Code.

3. The exclusive right on the result of intellectual activities created by creative activity originally arises at his author. This right can be transferred by the author to other person under the agreement, and also can pass to other persons on other bases identified by the law.

4. The rights to the result of intellectual activities created by joint creative activity of two and more citizens (co-authorship) belong to coauthors jointly.

Article 1229. Exclusive right

1. The citizen or the legal entity having exclusive right on result of intellectual activities or on means of individualization (owner), such result or such means having the right to use at discretion by any method which is not contradicting the law. The owner can dispose of exclusive right on result of intellectual activities or on means of individualization (Article 1233) if this Code does not provide other.

The owner can permit or forbid at discretion other persons use of result of intellectual activities or means of individualization. Lack of prohibition is not considered consent (permission).

Other persons cannot use the corresponding results of intellectual activities or means of individualization without the consent of the owner, except as specified, provided by this Code. Use of result of intellectual activities or means of individualization (including their use by the methods provided by this Code) if such use is performed without the consent of the owner, is illegal and attracts the responsibility established by this Code, other laws, except as specified, when use of result of intellectual activities or means of individualization by other persons, than the owner, without its consent is allowed by this Code.

2. The exclusive right on result of intellectual activities or on means of individualization (except exclusive right on trade name) can belong to one person or several persons jointly.

3. In case the exclusive right on result of intellectual activities or on means of individualization belongs to several persons jointly, each of owners can use such result or such means at discretion if this Code or the agreement between owners does not provide other. Relations of persons to whom the exclusive right belongs jointly are determined by the agreement between them.

The order exclusive right on result of intellectual activities or on means of individualization is performed by owners jointly if this Code or the agreement between owners does not provide other.

Income from joint use of result of intellectual activities or means of individualization or from the joint order or on such means are distributed by exclusive right on such result between all owners in equal shares if the agreement between them does not provide other.

Each of owners has the right to take independently measures for protection of the rights to result of intellectual activities or on means of individualization.

4. In cases, stipulated in Item 3 Articles 1454, Item 2 of Article 1466 and Item 2 of article 1518 of this Code, independent exclusive rights on the same result of intellectual activities or on the same means of individualization can belong to different persons at the same time.

5. Restrictions of exclusive rights for results of intellectual activities and at the expense of individualization including in case use of results of intellectual activities is allowed without the consent of owners, but with preserving behind them the right to remuneration, are established by this Code.

At the same time restrictions of exclusive rights for works of science, literature and art, objects of the related rights, inventions and industrial designs, trademarks are established with observance of the conditions provided by paragraphs the third, fourth and fifth this Item.

Restrictions of exclusive rights for works of science, literature or art or for objects of the related rights are established in certain particular cases provided that such restrictions do not contradict regular use of works or objects of the related rights and do not infringe unreasonably upon legitimate interests of owners.

Restrictions of exclusive rights for inventions or industrial designs are established in some cases provided that such restrictions with unreasonable image do not contradict regular use of inventions or industrial designs and taking into account legitimate interests of the third parties do not infringe unreasonably upon legitimate interests of owners.

Restrictions of exclusive rights for trademarks are set in some cases provided that such restrictions consider legitimate interests of owners and the third parties.

Article 1230. Effective period of exclusive rights

1. Exclusive rights and at the expense of individualization affect results of intellectual activities during certain term, except as specified, provided by this Code.

2. Duration of effective period of exclusive right on result of intellectual activities or on means of individualization, procedure for calculation of this term, the basis and procedure for its prolongation, and also the basis and procedure for the termination of exclusive right before the expiration are established by this Code.

Article 1231. Action of exclusive and other intellectual rights in the territory of the Russian Federation

1. In the territory of the Russian Federation exclusive rights affect results of intellectual activities and at the expense of individualization, established by international treaties of the Russian Federation and this Code.

The personal non-property and other intellectual rights which are not exclusive act on the territory Russian Federations according to the paragraph the fourth Item 1 of Article 2 of this Code.

2. In case of recognition of exclusive right on result of intellectual activities or on means of individualization according to the international treaty of the Russian Federation content of the right, its action, restrictions, procedure for its implementation and protection are determined by this Code irrespective of provisions of the legislation of the country of emergence of exclusive right if such international treaty or this Code does not provide other.

Article 1231.1. The objects including official symbols, names and distinctive marks

1. Legal protection as industrial design or means of individualization is not provided to the objects including, reproducing or imitating official symbols, names and distinctive marks or their recognizable parts:

1) state symbols and signs (flags, coats of arms, awards, bank notes and so forth);

2) the reduced or full names of the international and intergovernmental organizations, their flags, the coats of arms, other symbols and signs;

3) official control, warranty or assay brands, seals, awards and other distinctions.

2. The official symbols specified in Item 1 of this Article, names and distinctive marks, their recognizable parts or imitations can be included in industrial design or means of individualization as unprotected element if on it there is consent of the relevant competent state body, body of the international or intergovernmental organization.

Article 1232. State registration of results of intellectual activities and means of individualization

1. In the cases provided by this Code the exclusive right on result of intellectual activities or on means of individualization is recognized and protected on condition of state registration of such result or such means.

The owner shall notify respectively federal executive body on intellectual property and federal executive body on selection achievements (Article 1246) about change belonging to state registration of result of intellectual activities or means of individualization of information about the owner: the name or name, the location or the residence and the address for correspondence. Risk of adverse effects if such notification of the corresponding federal executive body is not made or false information is provided, the owner bears.

Federal executive body on intellectual property and federal executive body on selection achievements can make changes to the data relating to state registration of result of intellectual activities or means of individualization for correction of plain and technical errors on own initiative or at the request of any person, previously having notified on it the owner.

2. In cases when the result of intellectual activities or means of individualization is subject according to this Code to state registration, alienation of exclusive right on such result or on such means under the agreement, pledge of this right and provision of right to use of such result or such means under the agreement, and is equal also transition of exclusive right to such result or to such means without agreement, are also subject to state registration which procedure and conditions are established by the Government of the Russian Federation.

3. State registration of alienation of exclusive right on result of intellectual activities or on means of individualization under the agreement, state registration of pledge of this right, and also state registration of provision of right to use of such result or such means under the agreement is performed according to the statement of agreement parties.

The application can be submitted by agreement parties or one of agreement parties. In case of filing of application of one of agreement parties one of the following documents shall be enclosed to the application at the choice of the applicant:

the notification on the taken place order signed by agreement parties exclusive right;

the agreement extract certified by the notary;

the agreement.

In the statement of agreement parties or in the document enclosed to the application of one of agreement parties shall be specified:

agreement type;

data on agreement parties;

the subject of the agreement with indication of the document number certifying exclusive right on result of intellectual activities or on means of individualization.

In case of state registration of provision of right to use of result of intellectual activities or means of individualization along with the data specified in paragraphs seven - the ninth this Item, in the statement of agreement parties or in the document enclosed to the application of one of agreement parties shall be specified:

the duration of the agreement if such term is determined by the agreement;

the territory in which right to use of result of intellectual activities or means of individualization is granted if the territory is determined by the agreement;

the methods of use of result of intellectual activities or goods provided by the agreement and services concerning which right to use of means of individualization is granted;

availability of consent to provision of right to use of result of intellectual activities or means of individualization according to the sublicense agreement if it is agreed (Item 1 of Article 1238);

possibility of agreement cancelation unilaterally.

In case of state registration of pledge of exclusive right along with the data specified in paragraphs seven - the ninth this Item, in the statement of agreement parties or in the document enclosed to the application of one of agreement parties shall be specified:

duration of the agreement of pledge;

restrictions of the right of the pledger to use result of intellectual activities or means of individualization or to dispose of exclusive right on such result or on such means.

4. In case, stipulated in Article 1239 of this Code, the basis for state registration of provision of right to use of result of intellectual activities is the relevant decision of court.

5. The basis for state registration of transition of exclusive right to result of intellectual activities or on means of individualization by inheritance is the certificate on the right to inheritance, except for case, stipulated in Article 1165 of this Code.

6. In case of non-compliance with the requirement about state registration of transition of exclusive right of result of intellectual activities or on means of individualization under the agreement on alienation of exclusive right or without agreement, pledge of exclusive right or provision to other person of right to use of such result or such means under the agreement transition of exclusive right, its guarantee or provision of right to use is considered cancelled.

7. In the cases provided by this Code, state registration of result of intellectual activities can be performed at the request of the owner. In these cases rules of Items 2 - the 6th this Article are applied to the registered result of intellectual activities and to the rights to such result if this Code does not provide other.

Article 1233. Order exclusive right

1. The owner can dispose of the exclusive right belonging to him on result of intellectual activities or on means of individualization by any method which is not contradicting the law and being of such exclusive right, including by its alienation under the agreement to other person (the agreement on alienation of exclusive right) or provisions to other person of right to use of the corresponding result of intellectual activities or means of individualization in the limits (license agreement) set by the agreement.

The conclusion of the license agreement does not involve transition of exclusive right to the licensee.

2. To agreements on the order the exclusive right on result of intellectual activities or on means of individualization, including to agreements on alienation of exclusive right and to license (sublicensed) agreements, applies general provisions about obligations (Article 307 - 419) and about the agreement (Article 420 - 453) as other is not established by rules of this Section and does not follow from content or nature of exclusive right.

3. The agreement in which it is directly not specified that the exclusive right or on means of individualization is transferred to result of intellectual activities in full is considered the license agreement, except for the agreement signed concerning right to use of the result of intellectual activities which is specially created or created for inclusion in difficult object (paragraph two of Item 1 of Article 1240).

4. The terms of the contract about alienation of exclusive right or the license agreement limiting the right of the citizen to create results of intellectual activities of certain sort or in certain area of intellectual activities or to alienate exclusive right on such results to other persons are insignificant.

5. The owner can publicly make, that is by the message to the uncertain group of people, the statement for provision to any persons of opportunity to gratuitously use the sciences belonging to it the work, literatures or arts or object of the related rights on the conditions determined by the owner and during the term specified to them. During the specified term any person has the right to use this work or this object of the related rights on the conditions determined by the owner.

The statement is made by placement on the official site of federal executive body in Internet network. The federal executive body responsible for placement of the corresponding statements, and also procedure and conditions of their placement are determined by the Government of the Russian Federation.

The statement shall contain the data allowing to identify the owner and belonging to it the work or object of the related rights.

In case of absence in the statement of the owner of specifying for term it is considered that the specified term constitutes five years.

In case of absence in the statement of the owner of specifying on the territory it is considered that it is the territory of the Russian Federation.

During effective period the application cannot be withdrawn and the conditions of use provided in it cannot be limited.

The owner has no right to perform the specified actions in the presence of the existing license agreement according to which the exclusive license on use of the work or object of the related rights in the same limits is provided. If the owner performs these actions in the presence of the existing license agreement according to which the paid non-exclusive license on use of the work or object of the related rights in the same limits is provided, is terminated such agreement. The owner who made the corresponding statement in the presence of the existing license agreement shall pay the damages caused to the licensee.

The author or other owner if the exclusive right on the work or on object of the related rights is broken by illegal placement of the statement made according to this Item having the right to require application to the violator of measures of protection of exclusive right according to Article 1252 of this Code.

Provisions of this Item are not applied to open licenses (Article 1286. 1).

Article 1234. Agreement on alienation of exclusive right

1. Under the agreement on alienation of exclusive right one party (owner) transfers or shall transfer the exclusive right belonging to it on result of intellectual activities or on means of individualization in full to other party (acquirer).

2. The agreement on alienation of exclusive right is signed in writing. Non-compliance with written form attracts invalidity of the agreement.

Transition of exclusive right under the agreement is subject to state registration in cases and according to the procedure which are stipulated in Article 1232 of this Code.

3. Under the agreement on alienation of exclusive right the acquirer shall pay to the owner the remuneration provided by the agreement if the agreement does not provide other.

In case of absence in the paid agreement on alienation of exclusive right of condition on amount of remuneration or procedure for its determination the agreement is considered unconcluded. At the same time rules of determination of the price, stipulated in Item 3 Articles 424 of this Code, are not applied.

Payment of remuneration for the agreement on alienation of exclusive right can be provided in form of the fixed one-time or periodical payments, percentage allocations from the income (revenue) or in other form.

3.1. Non-paid alienation of exclusive right in the relations between the commercial organizations is not allowed if this Code does not provide other.

4. The exclusive right to result of intellectual activities or to means of individualization passes from the owner to the acquirer at the time of the conclusion of the agreement on alienation of exclusive right if the agreement of the parties does not provide other. If transition of exclusive right under the agreement on alienation of exclusive right is subject to state registration (Item 2 of Article 1232), the exclusive right to such result or to such means passes from the owner to the acquirer at the time of state registration.

5. In case of fundamental breach by the acquirer of obligation to pay to the owner in the time established by the agreement on alienation of exclusive right remuneration for acquisition of right of exclusive right to result of intellectual activities or on means of individualization (the subitem 1 of Item 2 of Article 450) the former owner has the right to require judicially transfer on himself of the rights of the acquirer of exclusive right and indemnification if the exclusive right passed to his acquirer.

If the exclusive right did not pass to the acquirer, in case of fundamental breach of obligation by it to pay remuneration for acquisition of right of exclusive right in the time established by the agreement the owner can refuse the agreement unilaterally and demand indemnification, caused by agreement cancelation. The agreement stops after 30-days term from the moment of receipt by the acquirer of the notification on refusal of the agreement if in this time the acquirer did not fulfill duty to pay remuneration.

Article 1235. License agreement

1. According to the license agreement one party - the owner of exclusive right on result of intellectual activities or on means of individualization (licensor) provides or shall grant to other party (licensee) right to use of such result or such means in the limits provided by the agreement.

The licensee can use result of intellectual activities or means of individualization only within those rights and those methods which are provided by the license agreement. The right to use of result of intellectual activities or means of individualization which is directly not specified in the license agreement is not considered provided to the licensee.

2. The license agreement is signed in writing if this Code does not provide other. Non-compliance with written form attracts invalidity of the license agreement.

Provision of right to use of result of intellectual activities or means of individualization according to the license agreement is subject to state registration in cases and according to the procedure which are stipulated in Article 1232 of this Code.

3. In the license agreement the territory in which use of result of intellectual activities or means of individualization is allowed shall be specified. If the territory in which use of such result or such means is allowed in the agreement is not specified, the licensee has the right to perform their use in all territory of the Russian Federation.

4. The term for which the license agreement is signed cannot exceed effective period of exclusive right on result of intellectual activities or on means of individualization.

In case in the license agreement the term of its action is not determined, the agreement is considered the prisoner for five years if this Code does not provide other.

In case of the termination of exclusive right the license agreement stops.

5. According to the license agreement the licensee shall pay to the licensor the remuneration caused by the agreement if the agreement does not provide other.

In case of absence in the paid license agreement of condition about amount of remuneration or procedure for its determination the agreement is considered unconcluded. At the same time rules of determination of the price, stipulated in Item 3 Articles 424 of this Code, are not applied.

Payment of remuneration for the license agreement can be provided in form of the fixed one-time or periodical payments, percentage allocations from the income (revenue) or in other form.

5.1. Non-paid provision of right to use of result of intellectual activities or means of individualization in the relations between the commercial organizations in the territory of the whole world and on all effective period of exclusive right on the terms of the exclusive license is not allowed if this Code does not establish other.

6. The license agreement shall provide:

1) the subject of the agreement by specifying on result of intellectual activities or on means of individualization which right to use is granted under the agreement, with indication of in appropriate cases of the document number certifying exclusive right on such result or on such means (the patent, the certificate);

2) methods of use of result of intellectual activities or means of individualization.

7. Transition of exclusive right to result of intellectual activities or to means of individualization to the new owner is not the basis for change or termination of the license agreement signed by the prior owner.

Article 1236. Types of license agreements

1. The license agreement can provide:

1) provision to the licensee of right to use of result of intellectual activities or means of individualization with preserving for the licensor of the right of issue of licenses to other persons (the simple (non-exclusive) license);

2) provision to the licensee of right to use of result of intellectual activities or means of individualization without preserving for the licensor of the right of issue of licenses to other persons (exclusive license).

1.1. The licensor has no right to use result of intellectual activities or means of individualization in those limits in which right to use of such result or such means of individualization is provided to the licensee under the agreement on the terms of the exclusive license if this agreement does not provide other.

2. If the license agreement does not provide other, the license is supposed simple (non-exclusive).

3. One license agreement concerning various methods of use of result of intellectual activities or means of individualization can contain conditions, stipulated in Item 1 this Article for license agreements of different types.

Article 1237. Execution of the license agreement

1. The licensee shall submit to the licensor reports on use of result of intellectual activities or means of individualization if the license agreement or this Code does not provide other. If in the license agreement providing submission of reports on use of result of intellectual activities or means of individualization there are no conditions about the term and procedure for their representation, the licensee shall submit such reports to the licensor according to its requirement.

2. During effective period of the license agreement the licensor shall abstain from any actions capable to complicate implementation by the licensee of the right to use of result of intellectual activities or means of individualization granted to it in the limits set by the agreement.

3. Use of result of intellectual activities or means of individualization by the method which is not provided by the license agreement or after cancellation of such agreement, or otherwise outside the rights granted to the licensee under the agreement attracts responsibility for violation of exclusive right on result of intellectual activities or on means of individualization, established by this Code, other laws or the agreement.

4. In case of fundamental breach by the licensee of obligation to pay to the licensor in the time established by the license agreement remuneration for provision of right to use of result of intellectual activities or means of individualization the licensor can refuse unilaterally the license agreement and demand indemnification, caused by its termination. The agreement stops after 30-days term from the moment of receipt of the notification on refusal of the agreement if in this time the licensee did not fulfill duty to pay remuneration.

Article 1238. Sublicense agreement

1. In case of written consent of the licensor the licensee can grant right to use of result of intellectual activities or means of individualization to other person (sublicense agreement) under the agreement.

2. According to the sublicense agreement rights to use of result of intellectual activities or means of individualization only within those rights and those methods of use which are provided by the license agreement for the licensee can be granted to the sublicensee.

3. The sublicense agreement signed for the term exceeding effective period of the license agreement is considered the prisoner on effective period of the license agreement.

4. Responsibility to the licensor for actions of the sublicensee is born by the licensee if the license agreement does not provide other.

5. Rules of this Code about the license agreement are applied to the sublicense agreement.

Article 1239. Compulsory license

In the cases provided by this Code, the court can make upon the demand of the interested person the decision on provision to this person on the conditions of right to use of result of intellectual activities specified in the judgment on which exclusive right belongs to other person (compulsory license).

Article 1240. Use of result of intellectual activities as a part of difficult object

1. Person who organized creation of the difficult object including several protected results of intellectual activities (the movie, other audiovisual work, theatrical and spectacular representation, multimedia product, the database), acquires right to use of the specified results based on agreements on alienation of exclusive right or the license agreements signed by such person with owners of exclusive rights on the corresponding results of intellectual activities.

In case person who organized creation of difficult object acquires right to use of the result of intellectual activities which is specially created or created for inclusion in such difficult object, the relevant agreement it is considered the agreement on alienation of exclusive right if other is not provided by the agreement of the parties.

The license agreement providing use of result of intellectual activities as a part of difficult object consists for all term and concerning all territory of action of the appropriate exclusive right if the agreement does not provide other.

2. The conditions of the license agreement limiting use of result of intellectual activities as a part of difficult object are invalid.

3. When using result of intellectual activities as a part of difficult object for the author of such result the copyright and other personal non-property rights to such result remain.

4. When using result of intellectual activities as a part of difficult object the person who organized creation of this object, having the right to enter the name or the name or to require such specifying.

5. Rules of this Article are applied to right to use of results of intellectual activities as a part of the single technology created for the account or with attraction of financial resources of the federal budget as other is not established by rules of Chapter 77 of this Code.

Article 1241. Transition of exclusive right to other persons without agreement

Transition of exclusive right to result of intellectual activities or to means of individualization to other person without the conclusion of the contract with the owner is allowed in cases and on the bases which are established by the law, including according to the procedure of universal succession (inheritance, reorganization of the legal entity) and in case of the address of claim to property of the owner.

Article 1242. The organizations exercising collective control of copyright and related rights

1. Authors, contractors, manufacturers of soundtracks and other owners of copyright and related rights in cases when implementation of their rights in individual procedure is complicated or when this Code allows use of objects of copyright and related rights without the consent of owners of the appropriate rights, but with payment of remuneration to them, can create the non-profit organizations based on membership to which according to the powers conferred to them by owners management of the appropriate rights on collective basis is assigned (the organizations for management of the rights on collective basis).

Creation of such organizations does not interfere with implementation of representation of owners of copyright and related rights by other legal entities and citizens.

2. The organizations for management of the rights on collective basis can be created for management of the rights relating to one or several types of objects of copyright and related rights for management of one or several types of such rights concerning certain methods of use of the corresponding objects or for management of any author's and (or) related rights.

3. The basis of powers of the organization for management of the rights on collective basis is the agreement on delegation of power on management of the rights signed by such organization with the owner in writing, except for the case provided by paragraph one of Item 3 of Article 1244 of this Code.

The specified agreement can be signed with the owners who are members of such organization and with the owners who are not her members. At the same time the organization for management of the rights on collective basis shall assume management of these rights if management of such category of the rights treats authorized activities of this organization. The contract with other organization, including foreign, managing the rights on collective basis can also be the basis of powers of the organization for management of the rights on collective basis.

General provisions about obligations are applied to the agreements specified in paragraphs one and the second this Item (Article 307 - 419) and about the agreement (Article 420 - 453) as other does not follow from content or nature of the right transferred to the control. Rules of this Section on agreements on alienation of exclusive rights and about license agreements are not applied to the specified agreements.

4. The organizations for management of the rights on collective basis objects have no right to use copyright and related rights on which exclusive rights are transferred by it to the control.

5. The organizations for management of the rights on collective basis have the right on behalf of owners or on its own behalf to impose requirements in court, and also to make other legal acts necessary for protection of the rights transferred by it to the control on collective basis.

The accredited organization (Article 1244) requirements having also the right to impose owners on behalf of uncertain circle in court, necessary for protection of the rights, control of which exercises such organization.

6. Legal status of the organizations for management of the rights on collective basis, function of these organizations, the rights and obligations of their members are determined by this Code, the laws on non-profit organizations and charters of the relevant organizations.

Article 1243. Execution by the organizations for management of the rights on collective basis of contracts with owners

1. The organization for management of the rights on collective basis signs with users license agreements about provision by it of the rights transferred by it to the control owners to the corresponding methods of use of objects of copyright and related rights on the terms of the simple (non-exclusive) license and collects remuneration for use of these objects from users. In cases if objects of copyright and related rights according to this Code can be used without the consent of the owner, but with payment of remuneration to it, the organization for management of the rights on collective basis signs agreements on payment of remuneration with users, other persons to whom this Code assigns obligation on payment of means for remuneration payment, and raises funds for these purposes.

The organization for management of the rights on collective basis has no right to refuse to the user or other persons to whom this Code assigns obligation on payment of means for remuneration payment, in the conclusion of the agreement without good causes.

2. If the license agreement with the user is signed directly by the owner, the organization for management of the rights on collective basis can collect remuneration for use of objects of copyright and related rights only provided that it is directly provided by the specified agreement.

3. Users shall upon the demand of the organization for management of the rights on collective basis submit it reports on use of objects of copyright and related rights, and also other data and documents necessary for collection and distribution of remuneration which list and terms of representation are determined in the agreement.

4. The organization for management of the rights on collective basis makes distribution of remuneration for use of objects of copyright and related rights between owners, and also performs payment of the specified remuneration to them.

The organization for management of the rights on collective basis has the right to hold from remuneration of the amount on covering of necessary expenses on collection, distribution and payment of such remuneration, and also the amount which go to the special funds created by this organization from consent and in the interests represented by it owners in sizes and according to the procedure which are provided by articles of organization. The extreme (maximum) size of the amounts withheld by the accredited organization (Article 1244) on covering of necessary expenses on collection, distribution and payment of remuneration, and also the amounts which go to special funds is established by the Government of the Russian Federation.

Distribution of remuneration and payment of remuneration shall be made regularly in the terms provided by articles of organization on management of the rights on collective basis and in proportion to the actual use of the corresponding objects of copyright and related rights determined on the basis of the data and documents received from users, and also copyright and related rights granted about use of other objects, including data of statistical property.

Along with remuneration payment the organization for management of the rights on collective basis shall submit to the owner the report containing data on use of its rights, including on the amount of assembled remuneration and on the amounts withheld from it.

The accredited organization (Article 1244) for the purpose of representation to the owner by means of Internet network of the data specified in paragraph four of this Item provides functioning of the information system "private office of the owner" and provides to the owner the authorized access to it.

5. The organization for management of the rights on collective basis creates the registers containing the information about owners about the rights transferred by it to the control and also about objects of copyright and related rights. The data containing in such registers are provided to all interested persons according to the procedure, established by the organization, except for data which according to the law cannot be disclosed without the consent of the owner.

The organization for management of the rights on collective basis places in public information system information on the rights transferred by it to the control including the name of object of the author's or related rights, name of the author or other owner.

6. Nonpayment by the organization for management of the rights on collective basis of the remuneration collected for the owner owing to violation of procedure for the management by it of the rights established by this Code attracts application to this organization of measures of protection of exclusive right according to Article 1252 of this Code.

Article 1244. The state accreditation of the organizations for management of the rights on collective basis

1. The organization for management of the rights on collective basis can obtain the state accreditation for implementation of activities in the following spheres of collective management:

1) management of exclusive rights on promulgated pieces of music (with the text or without text) and fragments of musical and drama works concerning their public performance, the message in air or on cable, including by relaying (subitems 6 - 8.1 Items 2 of Article 1270);

2) implementation of the rights of authors of the pieces of music (with the text or without text) used in the audiovisual work on receipt of remuneration for public performance or the message in air or on cable, including by relaying, such audiovisual work (Item 3 of Article 1263);

3) management of the following right concerning the work of the fine arts, and also author's manuscripts (autographs) literary and pieces of music (Article 1293);

4) implementation of the rights of authors, contractors, manufacturers of soundtracks and audiovisual works on receipt of remuneration for reproduction of soundtracks and audiovisual works for personal reasons (Article 1245);

5) implementation of the rights of contractors to receipt of remuneration for public performance, and also for the message in air or on cable of the soundtracks published for commercial purposes (Article 1326);

6) implementation of the rights of manufacturers of soundtracks to receipt of remuneration for public performance, and also for the message in air or on cable of the soundtracks published for commercial purposes (Article 1326).

The state accreditation is performed on the basis of the principles of openness of the procedure and accounting of opinion of interested persons, including owners, according to the procedure, determined by the Government of the Russian Federation.

2. The state accreditation on implementation of activities in each of the spheres of collective management specified in Item 1 of this Article can be received only by one organization for management of the rights on collective basis.

The organization for management of the rights on collective basis can obtain the state accreditation for implementation of activities in one, two and more spheres of collective management specified in Item 1 of this Article.

In relation to activities of the accredited organization the restrictions provided by the antitrust law are not applied.

3. The organization for management of the rights on collective basis which obtained the state accreditation (the accredited organization), having the right along with management of the rights of those owners with which it signed contracts according to the procedure, stipulated in Item 3 Articles 1242 of this Code to exercise control of the rights and collection of remuneration for those owners with whom at it such contracts are not signed.

Availability of the accredited organization does not interfere with creation of other organizations for management of the rights on collective basis, including in the spheres of collective management specified in Item 1 of this Article. Such organizations have the right to sign contracts with users only for the benefit of the owners who conferred them powers on management of the rights according to the procedure, stipulated in Item 3 Articles 1242 of this Code.

4. The owner who did not sign with the accredited organization agreements on delegation of power on management of the rights (Item 3 of this Article) having the right to refuse at any time fully or partially management of this organization of its rights. The owner shall notify on the decision the accredited organization in writing. If the owner intends to refuse management of the accredited organization only of part of the author's or related rights and (or) objects of these rights, he shall provide it the list of such excludable rights and (or) objects.

After three months from the date of obtaining from the owner of the adequate notice the accredited organization shall exclude the rights and (or) objects specified to them from contracts with all users and to place information on it in public information system. The accredited organization shall pay to the owner the reward which is due to him earned from users according to earlier signed agreements and to submit the report according to the paragraph the fourth item 4 of Article 1243 of this Code.

5. The accredited organization shall take reasonable and sufficient measures on establishment of the owners having the right to remuneration according to the license agreements and agreements on remuneration payment signed by this organization. If other is not established by the law, the accredited organization has no right to refuse admission to membership of this organization to the owner having the right to remuneration according to the license agreements and agreements on remuneration payment signed by this organization.

6. The accredited organizations perform the activities under control of the authorized federal executive body performing functions on control and supervision in the sphere of copyright and the related rights (authorized federal executive body).

Annual accounting (financial) accounts of the accredited organization, annual accounting (financial) accounts of the special funds created by it as legal entities are subject to statutory audit and reveal by placement together with audit opinion about it on the official site of the accredited organization in Internet network no later than ten working days following the date of receipt of audit opinion, but no later than December 31 of the year following after accounting year. Data on such placement with indication of date of placement are represented by the accredited organization to authorized federal executive body within three working days following behind day of placement.

Annual accounting (financial) accounts and audit opinion about it shall be available on the official site of the accredited organization in Internet network within five years from the date of placement.

The accredited organizations shall submit annually in authorized federal executive body reports on the activities for the form approved by authorized federal executive body.

The accredited organizations shall open information on the activities performed by them, including on the applied technique of collection and distribution of assembled remuneration, and also on activities of the special funds created by them as legal entities. The standard of disclosure by the accredited organizations of information providing structure, procedure and terms of disclosure of information affirms the Government of the Russian Federation.

7. The standard charter of the accredited organization affirms according to the procedure, determined by the Government of the Russian Federation.

8. The remuneration which was not demanded by the owner within three years since January 1 of the year following after year in which such remuneration was distributed by the accredited organization joins the accredited organization in the amounts which are subject to the next distribution, on condition of acceptance by it died, stipulated in Item the 5th this Article.

Article 1244.1. Supervisory board of the accredited organization

1. In the accredited organization the supervisory board which is collegiate organ of management of the accredited organization which exercises control of activities of its executive bodies and also is created resolves other issues carried by the standard charter of the accredited organization to its exclusive competence taking into account provisions of Item 3 of this Article and Article 65.3 of this Code.

2. The supervisory board of the accredited organization is created of owners, the organizations of culture, the creative unions, users, representatives of the federal executive body performing normative legal regulation in the sphere of copyright and the related rights, the federal executive bodies authorized on control (supervision) of observance of requirements of the legislation of the Russian Federation by the accredited organizations and also persons performing powers of members of collegiate executive bodies of the accredited organization. At the same time person performing powers of sole executive body of the accredited organization cannot be the member of the supervisory board of the accredited organization, but participates in meetings of the supervisory board with the right of advisory vote.

The quantitative structure of the supervisory board shall not be less than 11 members. The procedure for forming of the supervisory board affirms authorized federal executive body.

3. Are within the exclusive competence of the supervisory board of the accredited organization:

control of activities of executive bodies of the organization;

control of financial and economic organization activity;

control of expenditure by special funds of money;

other questions carried by the standard charter of the accredited organization to its exclusive competence.

The questions carried to exclusive competence of the supervisory board cannot be transferred for the decision to other bodies of the accredited organization.

4. The supervisory board of the accredited organization performs the activities on a voluntary basis.

Article 1245. Remuneration for free reproduction of soundtracks and audiovisual works for personal reasons

1. Authors, contractors, manufacturers of soundtracks and audiovisual works possess the right to remuneration for free reproduction of soundtracks and audiovisual works exclusively for personal reasons. Such remuneration has compensation nature and is paid to owners at the expense of means which are subject to payment by manufacturers and importers of the equipment and the material carriers used for such reproduction.

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