1 RUSSIAN CIVIL CODE & IPTV CONTENT. 2 Presentation by Project Manager of “Independent Copyright Management Consulting” Aleksey Sergeevich Kondrin Presentation.

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RUSSIAN CIVIL CODERUSSIAN CIVIL CODE&&

IPTV CONTENTIPTV CONTENT

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Presentation by Project ManagerPresentation by Project Managerof “Independent Copyrightof “Independent CopyrightManagement Consulting”Management Consulting”

Aleksey Sergeevich KondrinAleksey Sergeevich Kondrin

Presentation was prepared in co-authorship with postgraduate Presentation was prepared in co-authorship with postgraduate student at Russian Academy of Justice of Supreme Court of student at Russian Academy of Justice of Supreme Court of

Russian Federation and Supreme Court of Arbitration of Russian Federation and Supreme Court of Arbitration of Russian Federation Ilya KondrinRussian Federation Ilya Kondrin

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Contents:Contents:

§1. Cardinal changes in a “Performance Right” system

- «Blanket» or «One-off» licences

§2. Cardinal changes in a system of copyrights and neighbouring rights collective management (Performing Rights Societies)

- Who, when and for what kinds of IPTV content can legally grant “Blanket” licences

- Who, when and for what kinds of IPTV content can legally grant “One-off” licences

- New requirements to “Performing Rights Societies”

- Situation with state accreditation of “Performing Rights Societies” in Russia

- Intensification of competition between “Performing Rights Societies” in field of neighbouring rights (performers rights and producers rights)

- What effect will have a competition between “Performing Rights Societies” in a field of neighbouring rights on players of IPTV market

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§1. Cardinal changes in a “Performance Right” system

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1

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composer

poet

song3

phonogramperformance

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performancein a

record studio5

phonogram

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copies

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“live” performanceof a song

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Complex ofComplex of “Performance Right”“Performance Right”

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Con

sum

ers

ofIP

TV

con

ten

t

IPTVcontent

New “players”New “players”

Mobile broadcasting operatorMobile broadcasting operator

TelcoTelco operator operator

Operator of broadcasting over satelliteOperator of broadcasting over satellite

Broadcasting operatorBroadcasting operator

Cable casting operatorCable casting operator

С

Р

copyrights

neighbouringrights

Main reason of changes in a “Performance Right” Main reason of changes in a “Performance Right” system is new “players” and new servicessystem is new “players” and new services

New servicesNew services

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Only accredited societiesOnly accredited societies

Blanket licences from 1Blanket licences from 1stst of January 2008 of January 2008

Annotation:Blanket licence – the licence in the name of all right holders both which transferred rights to collecting society and which did not.

Nationalrepertoire

Internationalrepertoire

Internationalrepertoire

Nationalrepertoire

Collecting copyright management societyCollecting neighbouring

rights management society

Broadcasters(on-air, cable, satellite)

С Р

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Objects of copyright for which accredited collective copyright Objects of copyright for which accredited collective copyright management society can issue blanket licences after the 1st of January management society can issue blanket licences after the 1st of January

2008:2008:

Excerpts from dramatico-musical worksExcerpts from dramatico-musical works

Musical works with text or withoutMusical works with text or without

par.par. 1 1 of art.of art. 1 12244 44 of Civil Code of RFof Civil Code of RF

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Objects of copyright for which issuance of blanket licences after the 1st of Objects of copyright for which issuance of blanket licences after the 1st of January 2008 is impossibleJanuary 2008 is impossible:

1. Literary works (including computer programs);2. Dramatic and dramatico-musical works, scenarios);3. Choreographic works and entertainments in dumb show;4. Audiovisual works;5. Works of painting, sculpture, drawing, design, graphic stories, comics and

other works of art;6. Works of decorative and applied and scenographic arts;7. Works of architecture, town building and landscape art, including in the form

of projects, drafts, images and models;8. Photographic works, to which are assimilated works expressed by a process

analogous to photography;9. Geographical, geological and other maps, plans, sketches and plastic works

relating to geography, topography and other sciences.

Broadcaster can obtain rights only on the groundBroadcaster can obtain rights only on the ground

““One-off” licencesOne-off” licences

Annotation:Annotation:“One-off” licence – the licence on behalf of any right holder for one strictly specified object of copyright

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Who can issue “ONE-OFF” licences after the 1st of January 2008?Who can issue “ONE-OFF” licences after the 1st of January 2008?

Collective management organizations Collective management organizations operating underoperating under

written agreementwritten agreement with right holder with right holder authorizing to manage the rights.authorizing to manage the rights.

par. 3 of art. 1242 of CC of RFpar. 3 of art. 1242 of CC of RF

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§2. Cardinal changes in a system of copyrights and neighbouring rights collective management (Performing

Rights Societies)

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System of collecting of “Royalties” for the “Performance Right” before the 1st of January 2008System of collecting of “Royalties” for the “Performance Right” before the 1st of January 2008

Р

С copyrights

neighbouringrights

royaltiesallocation

Collectingsocieties

“blanket”licences

royalties

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Система сбора «Роялти» за «Система сбора «Роялти» за «Performance RightPerformance Right» в Великобритании» в Великобритании

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С copyrightsISWC

neighbouringrights

ISRC

distribution ofroyalties according

to information

collectingsocietiesMCPSPRSPPLVPL

information aboutrights is communicated

directly or through CatCo

licence feeand report of

repertoire exploitation

licences “BLANKET”And

“ONE-OFF”Licencesto exploit

a repertoire

Annotation:

ISWC – International Standard Musical Work Code

ISRC – International Standard Recording Code

CatCO – digital system of accounting and distribution of royalties invented by British Recording Industry (Tracking System)

Accumulation of royalties for “Performance Right” in Great Britain is stably increasingAccumulation of royalties for “Performance Right” in Great Britain is stably increasing

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New requirements of russian legislator to “Performing New requirements of russian legislator to “Performing Rights Societies” after the 1st of January 2008Rights Societies” after the 1st of January 2008

It has to be founded in form of non-profit organizationIt has to be founded in form of non-profit organization

Organizational form has to provide a Organizational form has to provide a “membership”“membership” of copyright and neighbouring rights owners in of copyright and neighbouring rights owners in

that organizationthat organization

The ground for authorities of non-profit organization is The ground for authorities of non-profit organization is written agreement with each of owners of copyright written agreement with each of owners of copyright and neighbouring rights authorizing to manage the and neighbouring rights authorizing to manage the

rightsrights

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Organizational forms of non-profit organizationsOrganizational forms of non-profit organizationswhich are not regarded aswhich are not regarded as

““Performing Rights Societies”Performing Rights Societies”after the 1st of January 2008after the 1st of January 2008

FundsFunds

State corporationsState corporations

Private institutionsPrivate institutions

Autonomous non-profit organizationsAutonomous non-profit organizations

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How have reacted some non-profit organizations to new How have reacted some non-profit organizations to new requirements of russian legislator torequirements of russian legislator to““Performing Rights Societies” Performing Rights Societies” ??

They have made a request to the state institutions to keep in They have made a request to the state institutions to keep in suspense statutory provisions of IV part of CC of RF in suspense statutory provisions of IV part of CC of RF in

relation to collective management societies.relation to collective management societies.

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Situation with state accreditation of “Performing Rights Societies” in Russia

It is not ruled out that the state accreditation will not occur It is not ruled out that the state accreditation will not occur in 2008in 2008

At best accredited collecting societies will be only in 2009At best accredited collecting societies will be only in 2009

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Organizationsthat consider themselves as

“Performing Rights Societies”in a field of neighbouring rights

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Cut-throat competition between “Performing Rights Societies”in a field of neighbouring rights (performers’ rights and producers’ rights)

for the status of “ACCREDITED SOCIETY”and issuance of “BLANKET LICENCES”

V.

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“WEAK” SIDES OF “RUSSIAN PHONOGRAPHIC ASSOCIATION”

Organizational form of RPA – Autonomous non-profit Organizational form of RPA – Autonomous non-profit organization (does not provide a organization (does not provide a “membership”“membership”))

Russian existing legislation does not provide to RPA the Russian existing legislation does not provide to RPA the real possibility to re-register itself in another real possibility to re-register itself in another acceptable organizational form providing a acceptable organizational form providing a

““membershipmembership””

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“Strong” sides of “Russian Phonographic Association”

Was found under the patronage of International Was found under the patronage of International Federation of Phonographic Industry Federation of Phonographic Industry (IFPI)(IFPI)

Enjoys encouragement of mostly russian members of Enjoys encouragement of mostly russian members of International Federation of Phonographic Industry International Federation of Phonographic Industry

(IFPI)(IFPI)

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“Weak” sides of “ROSP” and “ROUPI”

Don’t have the patronage of International Federation of Don’t have the patronage of International Federation of Phonographic Industry Phonographic Industry (IFPI)(IFPI)

Don’t have encouragement of mostly russian members of Don’t have encouragement of mostly russian members of International Federation of Phonographic Industry International Federation of Phonographic Industry

(IFPI)(IFPI)

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““Strong” sides of “ROSP” and “ROUPI”Strong” sides of “ROSP” and “ROUPI”

Organizational form of ROSP ROUPI – Organizational form of ROSP ROUPI – Non-profit partnership (provide a Non-profit partnership (provide a

““membershipmembership””))

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What effect will have a competition between “Performing Rights Societies” in a field of neighbouring rights on players of IPTV market?

Ineffective search of owner of neighbouring rights on a certain performance or phonogram

Unpredictable increase of documents circulation

Unpredictable increase of costs on a neighbouring rights “clearance”

Increase the number of proceedings in which will be involved involuntarily the players of IPTV market

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