The Russian Ministry of Culture has prepared draft Government Resolutions intended to detail the procedure for applying the new provisions of the Russian Civil Code.
Rules for entering information on works into the public information system
The Orphan Works Law imposes a requirement on Collective Management Organizations (“CMOs”) to maintain a register of information on the rights holders and rights administered by them.Information from such register may be provided to an interested person conducting a search for the right holder of a work.
The Russian Ministry of Culture proposes to establish rules for entering information on such works on the publicly available register.
The list of rules is set out in the Draft Resolution of the Government of the Russian Federation “On the approval of the Rules for entering information on works of literature, fine art, decorative and applied art, photographic works, works obtained by means similar to photography, musical works (with or without lyrics), sound recordings and performances, the authors or other right holders of which are assumed to be unknown, into the publicly available information system” (prepared by the Ministry of Culture of the Russian Federation on 18 October 2024).
The rules provide that information on orphan works will be entered on the register by an accredited CMO. The same CMO will be responsible for the completeness, accuracy and up-to-date nature of the information contained in the register.
Any changes to such system should be made within five business days. Upon receipt of a claim that any information contained in the register is incorrect, the CMO will have 10 working days to review it.
It is anticipated that the following information will be entered into the register:
- information permitting the identification of a work, sound recording or performance;
- information on the existence of licence agreements in relation to the items listed in point 1; and
- information on the use of the items listed in point 1.
Eligibility criteria for credit organisations where CMOs may open a nominal account for the benefit of the right holder of an orphan work
The Orphan Works Law requires CMOs to open a nominal account to which payments for using a certain orphan work will be deposited. It is intended that such payments will be subsequently made to the right holder once he or she has been identified. The Russian Ministry of Culture has proposed eligibility criteria for credit organisations where such nominal accounts may be opened. The list of such criteria is set out in the Draft Resolution of the Government of the Russian Federation “On establishing requirements for credit organisations with which collective management organizations have the right to open nominal accounts for depositing royalties for using copyright and related rights items” (prepared by the Ministry of Culture of Russia on 16 October 2024). It is proposed that a nominal account may be opened only with a Russian credit organisation which meets nine criteria simultaneously. In particular, an eligible organisation should have a universal banking licence; meet the profitability and capital adequacy requirements; and be in compliance with the banking laws.Limits on the use of funds by the nominee account holder to cover current expenses
The Russian Ministry of Culture suggests setting the maximum amount of funds that an account holder may use to cover their current account maintenance and payment expenses.The initiative is contained in the Draft Resolution of the Government of the Russian Federation “On establishing the amount of funds used by a nominal account holder to cover necessary expenses and improve mechanisms of interaction with authors and other right holders” (prepared by the Ministry of Culture of Russia on 16 October 2024).
The Ministry considers it possible to subordinate such legal relations to the general rules on the withholding of funds by CMOs acting under Resolution of the Government of the Russian Federation dated 29 December 2007 No. 992.
Under the current laws, the amount of funds that may be used by a nominee account holder should not exceed 45% of the total amount of royalties collected. In addition they may allocate no more than 20% to special funds created by the CMOs in the right holders’ interests.
Therefore, the initiatives of the Ministry of Culture of Russia are aimed at specifying the practical aspects of the application of the Orphan Works Law by CMOs.
