Article 1241. The Transfer of an Exclusive Right to Other Persons without a Contract

The transfer of the exclusive right to the result of intellectual activity or means of individualisation to another person without the conclusion of a contract with the right holder is admissible in the cases and on the grounds established by a law, for instance, in line of universal succession (inheritance, the reorganisation of a legal entity) and in the event of the levy of execution of the right holder's property.

Article 1242. The Organisations Collectively Managing Copyright and Allied Rights

1. The authors, performers and manufacturers of sound recordings and other owners of copyright and allied rights, when it is difficult for them to exercise their rights individually or when the present Code permits the use of objects of copyright and allied rights without the consent of the owners of the relevant rights but with a fee being paid to them, may form membership-based non-commercial organisations which have the powers granted thereto by right holders and the duty to manage the relevant rights on a collective basis (organisations managing rights on a collective basis).
The formation of such organisations shall not impede the representation of the owners of copyright and allied rights by other legal entities and citizens.

2. Organisations managing rights on a collective basis may be formed to manage the rights classified as one or several types of objects of copyright and allied rights, manage one or several types of such rights in respect of certain manners in which the relevant objects may be used or to manage any copyright and/or allied rights.

3. A ground underlying the powers of an organisation managing rights on a collective basis shall be a contract of assignment of right management powers concluded by the organisation with a right holder in writing, except for the case envisaged by Paragraph 1 of Item 3 of Article 1244 of the present Code.
The said contract may be concluded with the right holders being members of the organisation and with the right holders not being members thereof. In this case, the organisation managing rights on a collective basis shall undertake to manage these rights if the management of this category of rights falls within the charter activities of the organisation. Also a ground underlying the powers of an organisation managing rights on a collective basis may be a contract with another organisation, including a foreign one managing rights on a collective basis.
The contracts mentioned in Paragraphs 1 and 2 of the present item are subject to the general provisions on obligations (Articles 307-419) and on contracts (Articles 420-453), in as much as otherwise ensues the content or nature of the right put in management. The rules of the present section on contracts of alienation of exclusive rights and on licence contract are not applicable to the said contracts.

4. Organisation managing rights on a collective basis are not entitled to use the objects of copyright and allied rights for which exclusive rights have been transferred thereto for management.

5. Organisation managing rights on a collective basis are entitled to present claims in court either on behalf of right holders or on their own behalf, and also to commit the other legal actions required for protecting the rights that have been transferred thereto for being managed on a collective basis.
An accredited organisation (Article 1244) is also entitled to present claims in the court on behalf of an indefinite group of right holders as may be required for protecting the rights managed by this organisation.

6. The legal status of organisations managing rights on a collective basis, the functions of such organisations, the rights and duties of their members are defined by the present Code, laws on non-commercial organisations and the charters of the relevant organisations.

Article 1243. The Performance of Contracts with Right Holders by an Organisation Managing Rights on a Collective Basis

1. An organisation managing rights on a collective basis shall conclude licence contracts with users for the provision to them of the rights transferred by right holders to the organisation for management concerning the relevant manner of use of objects of copyright and allied rights on the terms of a simple (non-exclusive) licence and collect fees for the use of these objects. In cases when objects of copyright and allied rights according to the present Code may be used without the right holder's consent but with a fee thereto the organisation managing rights on a collective basis shall conclude contracts with users for the payment of a fee and collect funds for the purpose.
The organisation managing rights on a collective basis is not entitled to refuse to conclude a contract with a user without a sufficiently good reason.

2. If a licence contract with a user is concluded directly by a right holder the organisation managing rights on a collective basis may collect fees for the use of objects of copyright and allied rights only if there is an expressly stated provision to this effect in the said contract.

3. On the request of the organisation managing rights on a collective basis users shall present their reports thereto on the use of objects of copyright and allied rights, as well as the other information and documents required for the purpose of fee collection and distribution, with the list thereof, and term for the provision thereof as defined in the contract.

4. The organisation managing rights on a collective basis shall distribute the fee for the use of objects of copyright and allied rights among right holders, and also pay out the said fee thereto.
The organisation managing rights on a collective basis is entitled to withhold from the fee amounts of money to cover the necessary expenses relating to the collection, distribution and disbursement of the fee as well as the amounts of money posted to the special funds set up by this organisation with the consent and in the interests of the right holders it represents, in the amounts and procedure set out in the charter of the organisation.
Fee distribution and disbursement shall take place on a regular basis on the dates set by the charter of the organisation managing rights on a collective basis pro rata to the actual use of relevant objects of copyright and allied rights determined on the basis of the information and documents received from users, and also other information on the use of the objects of copyright and allied rights, including statistical data.
Simultaneously with fee disbursement the organisation managing rights on a collective basis shall present a report to the right holder on the use of his rights, including the amount of fee collected and on the sums withheld from it.

5. The organisation managing rights on a collective basis shall maintain registers with information on right holders, the rights transferred to the organisation for management, and also objects of copyright and allied rights. The information found in the registers shall be provided to all persons concerned in the procedure established by the organisation, except for the information that according to a law cannot be disclosed without the consent of the right holder.
The organisation managing rights on a collective basis shall place information in a public information system on the rights transferred to the organisation for management, including the title of the object of copyright and allied rights and the name of the author or other right holder.

 

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