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Verkhovna Rada of Ukraine adopts second reading of bill on collective copyright management
15.05.2018 | 14:13 | Directorate for relations with state bodies and public

On May 15, 2018, the Verkhovna Rada of Ukraine adopted the second reading of the bill 7466 drafted by the Economic Development and Trade Ministry and entitled On Effective Management Of Proprietary Rights In Field Of Copyrights And/Or Associated Rights. The bill aims to introduce effective and transparent system of collective management of proprietary rights in the field of copyrights and associated rights.

Collective Management Organizations (CMO) are institutions authorized to manage copyrights or associated rights by copyright holders. The CMO can be authorized by copyright holders to sign contracts with users, agree and set the royalty, collect, distribute and pay the royalty. They are also responsible for protection of copyright of musicians, writers, artists and other copyright holders.

Deputy Economic Development and Trade Minister of Ukraine Mykhailo Titarchuk, who was the one to present the bill 7466 at the Ukrainian Parliament, noted the importance of the bill's speediest adoption.

"Ukrainian authors, musicians and other copyright holders can now sense substantial support of the state. Now they have a powerful tool to effectively protect their copyrights and associated rights, to control end recipients of the royalty on their behalf. That will certainly improve the quality of business climate in our country as well as its international image. Moreover, the establishment of an effective system to protect copyrights and associated rights is one of the most significant obligations of Ukraine before the European and world communities," said Mykhailo Titarchuk.

The bill 7466 offers to introduce one CMO per collective management sector. That lets authors, musicians or other copyright holders to know exactly what organization is responsible for certain sector and category of artists. The bill also offers to introduce criteria of the selection of organizations by providing the CMO status only to the organizations having the most comprehensive program, international recognition and real support of copyright holders.

In compliance with the new bill, the organizations will have to permanently report on their activity, inform copyright holders about use of their compositions or associated rights, respective royalty provided, etc. Copyright holders will have an opportunity to permanently check annual reports online on publicly-available websites of the said organizations.

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