LAW OF THE RUSSIAN FEDERATION

On Copyright and Neighbouring Rights

Article 1. Subject-Matter of Regulation

The present Act shall regulate relations arising from the creation and use of works of science, literature and art (copyright), phonograms, performances, dramatic productions, and transmissions by broadcasting or cablecasting organizations (neighbouring rights).

Article 2. Russian Federation Legislation on Copyright and Neighbouring Rights

Russian Federation legislation on copyright and neighbouring rights shall consist of the present Act, as a part of Russian Federation civil-law legislation, in effect throughout Russian Federation territory, of other Russian Federationlegislative acts issued in conformity with the present Act, of the Russian Federation Computer Software and Database Protection Act, and of legislative acts issued on the basis of the present Act by the republics within the Russian Federation.

Article 3. International Treaties

Where international treaty to which the Russian Federation is a party lays down rules other than those contained in the present Act, the rules of the international treaty shall apply.

Article 4. Basic Concepts

For the purposes of the present Act, the terms listed below shall have the following meaning:

author - a natural person producing a work through creative effort;

audiovisual work - a work consisting of a fixed series of inter-related sequences (with or without accompaniment of sound), designed for visual and auditory (where accompanied with sound) perception, with the aid of appropriate technical devices; audiovisual works shall include cinematographic works and all works expressed by similar means (TV and video films,slide strips, and similar works), irrespective of the mode of their original or subsequent recording;

database - an objective form for the presentation and arrangement of data aggregates (articles,calculations, and the like) put together in a system allowing these data to be found and processed by means of electronic computer;

reproduction of work - making of one or more copies of a work or part thereof in any material form, including audio and video recording, making of one or more 3-D copies of a 2-D work, or one or more 2-D copies of a 3-D work; recording in computer memory shall also be deemed reproduction;

reproduction of phonogram - making of one or more copies of phonogram or part thereof on any material medium;

recording - fixing of sounds and/or images with the aid of technical devices in any material form allowing repeated perception), reproduction or communication thereof;

maker of audiovisual work - natural or legal person taking the initiative and responsibility for making such a work; in the absence of proofs to the contrary, the natural or legal person whose name or title appears on this work in the usual way shall be deemed the maker of the audiovisual work;

maker of phonogram - a natural or legal person taking the initiative and responsibility for the first sound recording of performance or other sound; in the absence of proofs to the contrary, the natural or legal person whose name or title appears on this phonogram and/or case thereof in the usual way shall be deemed the maker of the phonogram;

performance - presentation of works, phonograms, performances and dramatic productions by means of game, recital, song, dance in live performance or by means of technical devices (TV and radio broadcast, cable TV, and other technical devices); showing of sequences of audiovisual work in their succession (with or without accompaniment of sound);

performer - actor, singer, musician, dancer or other person acting a role, reading, reciting, singing, playing a musical instrument, or in other ways performing works of literature or art (including variety, circus or puppet show act), and also producer and director of play and conductor;

issue of work - action, taken with the author's consent, which first makes a work accessible to general public knowledge through its publication, public demonstration, public performance, transmission on the air or in other way;

publication - issue into circulation of copies of a work or phonogram in adequate quantity to satisfy reasonable public demand, depending on the nature of the work or phonogram;

broadcast - spread of works, phonograms, performances, dramatic productions, transmissions by broadcasting or cablecasting organizations for general public knowledge (including demonstration or performance) by means of radio or television (except cable TV). In broadcast of works, phonograms, performances, dramatic productions, and transmissions by broadcasting or cablecasting organizations via satellite, broadcast shall be taken to mean reception of signals from ground-based station to satellite and transmission of signals from satellite by means of which works, phonograms, performances, dramatic productions, transmissions by broadcasting or cablecasting organizations may be brought to general public knowledge, irrespective of their actual reception by audiences;

transmission by broadcasting or cablecasting organization program created by the organization itself, and also, on its order and for its own account, by other organization;

demonstration of work - demonstration of the original or copy of work directly or on the screen by means of film, slide strip, TV sequence or other technical media, and demonstration of separate sequences from audiovisual work not in their consecutive order;

subsequent broadcast - subsequent broadcast of earlier broadcast works, phonograms, performances, dramatic productions, and transmissions by broadcasting and cablecasting organizations;

computer program - objective form of presentation of aggregate data and commands designed for functioning of electronic computer or other computer devices with the aim of obtaining a definite result, including preparatory materials obtained in the course of development of programs for electronic computers, and derivative audiovisual reflections;

works of decorative and applied art - 2-D or 3-D works of art transferred to objects of practical use, including artistic artifacts or manufactured works;

public demonstration, public performance or communication for general public knowledge - any demonstration, performance or communication of works, phonograms, performances, dramatic productions, transmissions by broadcasting or cablecasting organizations, directly or by means of technical devices in places of public resort or in the presence of a considerable number of persons not constituting the usual circle of family members, irrespective of whether there is perception of works, phonograms, performances, dramatic productions, transmissions by broadcasting or cablecasting organizations in the place of their communication or in other place simultaneously with communication of works, phonograms, performances, dramatic productions, and transmissions by broadcasting or cablecasting organizations;

producer (director) of play - person effecting production of theatrical, circus, puppet, variety show or other spectacle;

reprography reproduction - facsimile reproduction in any proportions or form of one or more copies of originals or copies of written and other graphic works by photocopying or with other technical facilities, except publishing; reprography reproduction shall not include storage or reproduction of the aforesaid copies in electronic (including digital), optical or other machine-readable form;

lease (hire) - make available a copy of work or phonogram for temporary use with the object of deriving direct or indirect commercial benefit;

communicate - show, perform, broadcast, or perform other act (except distribution of copies of work or phonogram), by means of which works, phonograms, performances, dramatic productions, and transmissions by broadcasting or cablecasting organizations are made accessible for auditory and/or visual perception, irrespective of their actual perception by audience;

cablecast (communicate by cable) for general knowledge communicate works, phonograms, performances, dramatic productions, and transmissions by broadcasting or cablecasting organization for general knowledge by cable, wire, optical fiber, or by similar means;

phonogram - any sound-only recording of performances or other sounds;

copy of work - copy of work made in any material form;

copy of phonogram - copy of phonogram on any material medium made directly or indirectly from phonogram and including all the sounds or part thereof recorded on the phonogram.

SECTION II COPYRIGHT

Article 5. Ambit of Copyright

1. Under the present Act, copyright shall subsist in:

works issued or unissued, but existing in some objective form on Russian Federation territory, irrespective of the citizenship of authors or their successors in law;

works issued or unissued, but existing in some objective form outside the Russian Federation, and recognized as belonging to their authors who are citizens of the Russian Federation or their successors in law;

works issued or unissued, but existing in some objective form outside the Russian Federation, and recognized as belonging to their authors (their successors in law) who are citizens of other states, in conformity with the international treaties of the Russian Federation.

2. A work shall also be deemed published in the Russian Federation where, in the course of 30 days after the date of the first publication outside the Russian Federation, it was published on Russian Federation territory.

3. Where protection to a work is granted on Russian Federation territory under international treaties of the Russian Federation, the author of the work shall be determined in conformity with the law of the state on the territory of the occurrence of the juridical fact serving as ground for possession of copyright.

Article 6. Object of Copyright. General Provisions

1. Copyright shall subsist in works of science, literature and art resulting from creative effort, irrespective of the purpose or merit of the work, or mode of expression.

2. Copyright shall subsist in issued works and in unissued works existing in any objective form whatsoever:

written (manuscript, typescript, music score, and so on);

oral (public pronouncement, public performance, and so on);

audio or video recording (mechanical, magnetic, digital, optical, and so on);

image (drawing, sketch, picture, plan, cinema-, TV-, video- or photo-sequence, and so on);

three-dimensional (sculpture, model, mockup, structure, and so on);

in other forms.

3. Part of work (including its title) which meets the requirements of Clause 1 of the present Article and which may be used independently, shall be an object of copyright.

4. Copyright shall not subsist in ideas, methods, processes, systems, modes, conceptions, principles, discoveries, or facts.

5. Copyright in works shall not be connected with the title to the material object in which the work is expressed.

Conveyance of title to material object or of the right of possession thereof shall not in itself entail conveyance of any copyrights in the work expressed in this object, except in the cases specified in Article 17 of the present Act.

Article 7. Works Which Shall Be Objects of Copyright

1. The following shall be objects of copyright:

literary works (including computer programs);

dramatic works, musical dramatizations, and plays;

choreographic works and pantomimes;

musical works with or without lyrics;

audiovisual works (cinema, TV and video films, slide strips, and other screen and TV works);

works of painting, sculpture, graphics, design, graphic narrations, cartoons and other works of figurative art;

works of decorative, applied and theatrical art;

works of architecture, town-planning and landscaping art;

photographic works and works obtained by methods similar to photography;

geographic, geological and other maps, plans, sketches and plastic works pertaining to geography, topography and other sciences;

other works.

2. Protection of programs for electronic computers shall extend to all types of computer programs (including operating systems), which may be expressed in any language and in any form, including original text and object code.

3. The objects of copyright shall also include:

derivative works (translations, editing, annotations, abstracts, summaries, reviews, dramatizations, arrangements, and other remakes of works of science, literature and art;

collections (encyclopedias, anthologies, databases) and other works of compilation resulting from creative effort in the selection or arrangement of materials.

Copyright shall subsist in derivative works and works of compilation, irrespective of whether copyright subsists in the works on which these are based or which these include.

Article 8. Works Which Shall Not Be Objects of Copyright

The following shall not be objects of copyright:

official documents (laws, judicial decisions, other legislative, administrative and judicial texts), and their official translations;

state symbols and marks (flags, emblems, orders, banknotes and other state symbols and marks);

works of folk art;

information reports of events and facts.

Article 9. Origin of Copyright. Presumption of Authorship

1. Copyright in a work of science, literature and art shall originate in virtue of its creation. No registration of the work, no special processing of the work or compliance with any formalities whatsoever shall be required for copyright to originate, subsist and be exercised.

The holder of exclusive copyright shall be entitled, in order to give notice of his rights, to use the copyright protection symbol, which shall be placed on each copy of the work, and which shall consist of three elements:

the encircled Latin letter "C";

the name (title) of the holder of the exclusive copyright;

the year of the first publication of the work.

2. In the absence of proofs to the contrary, the person indicated as the author on the original or copy of the work shall be deemed the author of the work.

3. Where works are published anonymously or pseudonymously (except where the author’s pseudonym leaves no doubt as to his identity), the publisher whose name or title is indicated on the work, in the absence of proofs to the contrary, shall be deemed the representative of the author under the present Act, and shall, in such capacity, have the right to protect the author's rights and ensure exercise thereof. This arrangement shall remain in effect until the author of such work discloses his identity and declares his authorship.

Article 10. Co-Authorship

1. Copyright in a work produced by the joint creative efforts of two or more persons (co-authorship) shall vest in the co-authors jointly, irrespective of whether such a work is an integral whole or consists of parts each of which is of independent merit.

Part of works shall be deemed of independent merit, where it may be used independently of the other parts of such work.

Each of the co-authors shall be entitled to use his created part of the work which is of independent merit, at his own discretion, unless agreement between them provides otherwise.

2. The right to use the work as a whole shall belong to the co-authors jointly.

Relationships between the co-authors may be determined by agreement between them.

Where the work of co-authors constitutes a single integral whole, none of the co-authors shall be entitled to prohibit the use of the work, without good grounds thereto.

Article 11. Copyright of Compilers of Collections and Other Works of Compilation

1. Copyright in the selection or arrangement of materials resulting from creative effort (compilation) shall vest in the author of the collection and other works of compilation (compiler).

Copyright shall vest in the compiler, subject to compiler's observance of the rights of the authors of each of the works included in the work of compilation.

The authors of works included in a work of compilation shall be entitled to use their works, unless contract of authorship provides otherwise.

The compiler's copyright shall not impede other persons from making their own selection or arrangement of the same materials to produce their own works of compilation.

2. Publishers of encyclopedias, encyclopedic dictionaries, periodical or serialized collections of scientific works, newspapers, journals, magazines, and other periodical publications shall have exclusive rights in the use of such publications. The publisher shall be entitled, in any use of such publications, to indicate his title or to require such indication.

Authors of works included in such publications shall retain exclusive rights in the use of their works, irrespective of the publication as a whole.

Article 12. Copyright of Translators and Authors of Other Derivative Works

1. Translators and authors of other derivative works shall have copyright in their translation, reworking, rearrangement or other alteration.

Copyright in the created derivative work shall vest in the translator and author of other derivative work, subject to their observance of the rights of the author of the work they have translated, reworked, rearranged or altered in other ways.

2. The copyright of translators and authors of other derivative works shall be no bar to other persons in making their own translations and alterations of the same works.

Article 13. Copyright in Audiovisual Works

1. The authors of audiovisual works shall be:

the producer or director;

the author of scenario (script writer);

the author of a musical work (with or without lyrics) expressly created for this audiovisual work (composer).

2. Conclusion of contract for the creation of an audiovisual work shall entail assignment by the authors of this work to the maker of the audiovisual work of the exclusive rights to the reproduction, distribution, public performance, communication by cable for general public knowledge, broadcast, or any other public communication of the audiovisual work, and also to subtitling and dubbing of the text of the audiovisual work, unless contract provides otherwise. The aforesaid rights shall subsist during the continuation of copyright in the audiovisual work.

The maker of the audiovisual work shall be entitled, in any use of this work, to indicate his name or title, or to require such indication.

3. In public performance of the audiovisual work, the author of the musical work (with or without lyrics) shall retain the right to royalties for public performance of his musical work.

4. The authors of works included as component parts of an audiovisual work, whether existing earlier (author of novel on which script is based, and the like) or created in the process of work thereon (director of photography, artistic director, and others) shall enjoy copyright each in his own work.

Article 14. Copyright in Ex Officio Works

1. Copyright in a work created in the performance of official duties or official assignment from employer (ex officio work) shall vest in the author of the ex officio work.

2. Exclusive right to use ex officio work shall vest in the person with whom the author has relations of employment (employer), unless contract between the person and the author provides otherwise.

The amount of royalties for each type of use of ex officio work and the procedure of payment thereof shall be established by contract between the author and the employer.

3. The employer shall have the right, in any use of ex officio work, to indicate his title or require such indication.

4. The provisions of the present Article shall not apply to the creation, in the performance of official duties or official assignment from employer, of encyclopedias, encyclopedic dictionaries, periodical and serialized collections of scientific works, newspapers, journals, magazines and other periodical publications (Clause 2 of Article 11 of the present Act).

Article 15. Personal Intangible Property Rights

The author shall have, with respect to his work, the following personal intangible property rights:

the right to be recognized as the author of the work (right of authorship);

the right to use or allow the use of the work under the author's true name or pseudonym, or without designation of name, i.e., anonymously (right of name);

the right to issue or to allow the issue of the work in any form (right of issue), including the right of recall;

the right to protect the work, including its title, against any distortion or other infringement prejudicial to the author's honor and dignity (right to protection of author's reputation).

2. The author shall have the right to reverse earlier decision on issue of the work (right of recall), subject to payment of damages caused by such decision to user, including benefits forgone. Where the work has already been issued, the author shall have the duty to give public notice of its recall. In the event, he shall be entitled to withdraw from publication, at his own expense, earlier-produced copies of the work. The provisions of the present Clause shall not apply to the creation of ex officio works.

3. Personal intangible property rights shall vest in the author, irrespective of his tangible property rights, and shall continue to vest in him in the event of concession of exclusive rights to the use of the work.

Article 16. Tangible Property Rights

1. Exclusive rights to the use of the work in any form and in any way shall vest in the author with respect to his work.

2. The author's exclusive rights to the use of the work shall signify the right to take or allow the following actions:

to reproduce the work (right of reproduction;

to distribute copies of the work in any way: sell, lease, and the like (right of distribution);

to import copies of the work for the purposes of distribution, including copies made with the permission of the holder of exclusive copyright (right of importation);

to make public demonstration of the work (right of public demonstration);

to make public performance of the work (right of public performance);

to communicate the work (including demonstration, performance or broadcast) for general public knowledge through broadcast and/or subsequent broadcast (right of broadcast);

to communicate the work (including demonstration, performance or broadcast) for general public knowledge by cable, wire, or by means of other similar media (right of cablecast for general public knowledge);

to translate a work (right of translation);

to remake, rearrange or alter a work in other ways (right of alteration).

The author's exclusive right to use design, architectural, town-planning and landscaping projects shall include the practical implementation of such projects. The author of an accepted architectural project shall be entitled to require the principal (customer) to give the author the right to take part in implementation of his project during the production of the building documents and during the erection of the building or structure, unless contract provides otherwise.

3. Where copies of rightfully published work have been put into civil commerce by means of sale, further distribution shall be allowed without the author's consent or payment of royalties.

The right to distribution of copies of a work through lease shall vest in the author, irrespective of the ownership of these copies.

4. The amount and calculation of royalties for each type of use of a work shall be fixed in the contract of authorship, and in contracts concluded with the organizations having collective management of authors' property rights with users.

5. The restrictions on author's rights specified in Clause 2 of the present Article shall be laid down by Articles 17 to 26 of the present Act, provided such use does not cause unwarranted harm to the normal use of a work, and does not unjustifiably infringe the author's legitimate interests.

Article 17. Right of Access to Works of Figurative Art. Right to Royalties on Resales

1. The author of a work of figurative art shall be entitled to require of the owner of the work to allow for the possibility of exercising the right of reproduction of the author's work (right of access). In the event, the owner of the work may must not be required to deliver the work to the author.

2. Conveyance of title to a work of figurative art (gratuitously or for money's worth) from the author to another person shall signify the first sale of this work.

In each case of public resale of a work of figurative art (through auction, art gallery, art salon, shop, and the like) at a price exceeding the earlier price by at least 20 percent, the author shall be entitled to receive from the vendor royalties amounting to 5 percent of the resale price (right to royalties on resales). The aforesaid right shall be inalienable and shall pass only to the author's heirs at law for the duration of copyright.

Article 18. Reproduction of Work for Personal Purposes Without Author's Consent or Payment of Royalties

1. Reproduction of a rightfully issued work shall be allowed without the author's consent or payment of royalties exclusively for personal purposes, except in the cases specified in Article 26 of the present Act.

2. The provisions of Clause 1 of the present Article shall not apply to:

reproduction of works of architecture in the form of buildings and similar structures;

reproduction of databases or substantive parts thereof;

reproduction of computer programs, except in the cases specified in Article 25 of the present Act;

reprography reproduction of books (fully) and musical scores.

Article 19. Use of Work Without Author's Consent or Payment of Royalties

The following shall be allowed without the author's consent or payment of royalties, but with obligatory indication of the name of the author whose work is being used, and of the source of borrowing:

(1) quotation, in the original and in translation, for scientific, research, polemic, critical and information purposes from rightfully issued works, within the scope justified by the purpose of quotation, including reproduction of extracts from newspaper and magazine articles in the form of press reviews;

(2) use of rightfully issued works and extracts therefrom as illustrations in educational publications, radio and TV programs, and audio and video recordings, within the scope justified by the declared purpose;

(3) reproduction in newspapers, broadcasting or cablecasting for general public knowledge of rightfully published newspaper or magazine articles on current economic, political, social and religious topics, or of broadcast works of similar nature, where such reproduction, broadcast or cablecast was not expressly prohibited by the author;

(4) reproduction in newspapers, broadcasting or cablecasting for general public knowledge of publicly pronounced political speeches, addresses, reports and other similar works within the scope justified by the information purpose. In the event, the author shall retain the right to publish such works in collections;

(5) reproduction or communication for general public knowledge in reviews of current events by means of photography, broadcast or cablecast for general public knowledge of works which are seen or heard in the course of such events, within the scope justified by the information purpose. In the event, the author shall retain the right to publish such works in collections;

(6) reproduction of rightfully issued works, without extraction of profit, in Braille or in other special systems for the blind, except works expressly created for such modes of reproduction.

Article 20. Use of Works Through Reprography Reproduction

Reproduction, in a single copy, without extraction of profit, shall be allowed without the author's consent and without payment of royalties, but with obligatory indication of the name of the author whose work is being used, and the source of borrowing, of the following:

(1) rightfully published work by libraries and archives for restoration or replacement of lost or spoiled copies, supply of copies of the work to other libraries which have, for some reason, lost the work from their own stock;

(2) separate articles and short works rightfully published in collections, newspapers and other periodical publications, short extracts from rightfully published written works (with or without illustrations) by libraries and archives by request of natural persons for the purposes of education and research;

(3) separate articles and short works rightfully published in collections, newspapers and other periodical publications, short extracts from rightfully published written works (with or without illustrations) by educational institutions for studies in class.

Article 21. Free Use of Works Permanently Situated in Places of Public Resort

Reproduction, broadcasting or cablecasting for general public knowledge shall be allowed, without the author's consent or payment of royalties, of works of architecture, photography and figurative art permanently located in places of public resort, except where portrayal of the work is the basic object of such reproduction, broadcasting or cablecasting for general public knowledge or where portrayal of the work is used for commercial purposes.

Article 22. Free Public Performance

Public performance of musical works shall be allowed, without the author's consent or payment of royalties, during official and religious ceremonies, or funerals, within the scope justified by the nature of such ceremonies.

Article 23. Free Reproduction for Judicial Purposes

Reproduction of works shall be allowed, without the author's consent or payment of royalties, for judicial proceedings, within the scope justified by the purpose.

Article 24. Free Recording for Short-Term Use by Broadcasting Organizations

Broadcasting organization may, without the author's consent or payment of additional royalties, make recording for short-term use of the work with respect to which this organization has obtained the right of broadcast, provided such recording is made by the broadcasting organization by means of its own equipment and for its own transmissions. In the event, the organization shall have the duty to erase such recording within six months, unless a longer period was agreed with the author of the recorded work. Such recording may be preserved without the consent of the author of the work in official archives, where the recording is purely documentary.

Article 25. Free Reproduction of Computer Programs and Databases. Decompilation of Computer Programs

A person in rightful possession of a copy of computer program or database shall be entitled, without obtaining permission from the author or other holder of exclusive rights to the use of the work without payment of additional royalties:

(1) to make in computer program or database changes exclusively for the purpose of its functioning on the user's technical facilities, to perform any operations relating to the functioning of computer program or database in accordance with its purpose, including recording and storage in computer memory (one computer or one network user), and to correct obvious errors, unless contract with the author provides otherwise;

(2) to make a copy of computer program or database, provided the copy is intended only for archive purposes or for replacement of rightfully acquired copy, where the original of computer program or database has been lost or erased, or has become unfit for use. In the event, the copy of computer program or database may not be used for purposes other than those specified in Subclause 1 of the present Clause, and must be erased where possession of copy of such computer program or database ceases to be rightful.

2. A person in rightful possession of a copy of computer program shall be entitled, without the consent of the author or other holder of exclusive rights, and without payment of additional royalties, to reproduce and translate the compiled code into the source code (decompilation) or to assign other persons to perform such operations, where these are required to make computer program independently developed by this person interoperable with other programs which may interact with the decompiled program, subject to the following conditions:

(1) the information required to achieve interoperability was not earlier available to this person from other sources;

(2) the aforesaid operations are performed only with respect to the parts of decompiled computer program which are required to achieve interoperability;

(3) the information obtained as a result of decompilation may be used only to make an independently developed computer program interoperable with other programs, may not be transferred to other persons, except where this is required to make an independently developed computer program interoperable with other programs, and may not be used to develop a computer program essentially similar in type with decompiled computer program, or to perform any other operation infringing copyright.

3. Application of the provisions of the present Article must not do unwarranted harm to the normal use of computer program or database, and must not unjustifiably infringe the legitimate interests of the author or other holder of exclusive rights to computer program or database.

Article 26. Reproduction of Work for Personal Purposes Without Author's Consent, With Payment of Royalties

1. By way of exception to the provisions of Articles 37 and 38 of the present Act, reproduction of audiovisual work or sound recording of work shall be allowed, solely for personal purposes, without the consent of the author of the work, performer or maker of phonogram, but with payment of royalties to these persons.

2. Royalties for the reproduction specified in Clause 1 of the present Article shall be paid by the makers or importers of equipment (audio and video cassette recorders, other equipment) and material media (audio and/or video films or cassettes, laser disks, compact disks, other material media) used for such reproduction.

Such royalties shall be collected and distributed by one of the organizations having collective management of the property rights of authors, makers of phonograms, and performers, in accordance with agreement between these organizations (Article 44 of the present Act). Unless such agreement provides otherwise, the aforesaid royalties shall be distributed in the following proportion: 40 percent to authors, 30 percent to performers, and 30 percent to makers of phonograms.

The amount of royalties and the conditions of payment thereof shall be determined by agreement between the aforesaid makers and importers, on the one hand, and organizations having collective management of the property rightsof authors, makers of phonograms and performers, on the other hand, by expressly authorized Russian Federation agency.

3. No royalties shall be paid with respect to the equipment and material media specified in paragraph one of Clause 2 of the present Article which are to be exported, and also with respect to professional equipment not intended for use in the home.

Article 27. Duration of Copyright

1. Copyright shall subsist throughout the author's life and for 50 years after his death, except in the cases specified by the present Article.

The author's right of authorship, the right of name and the right to protection of reputation shall subsist in perpetuity.

2. The author shall be entitled, in the same proceeding as the appointment of testamentary executor, to designate a person to whom the author assigns the protection of the author's right of authorship, right of name, and right to protection of reputation, upon the author's death. This person shall exercise his powers for the duration of his life.

In the absence of such designation, protection of the author's right of authorship, right of name and right to protection of reputation upon the author's death shall be exercised by his heirs or expressly authorized Russian Federation agency, which shall provide such protection where no heirs exist or where their copyright has expired.

3. Copyright in a work issued anonymously or pseudonymously shall subsist in the course of 50 years after the date of its rightful issue.

Where, in the course of the aforesaid time period, the author of a work issued anonymously or pseudonymously discloses his identity or where his identity is established beyond doubt, the provision of paragraph one of Clause 1 of the present Article shall apply.

4. Copyright in a work created in co-authorship shall subsist throughout the entire life and for 50 years after the death of the last surviving co-author.

5. Copyright in a work first issued after the author's death shall subsist for 50 years after its issue.

Where the author was subjected to repression and has been rehabilitated posthumously, the rights-protection period specified by the present Article shall commence from January 1 of the year following upon the year of rehabilitation.

Where the author was in service during the Great Patriotic War or was a participant therein, the copyright-protection period provided for by the present Article shall be increased by four years.

6. Calculation of the period provided for by the present Article shall commence from January 1 of the year following upon the year of the occurrence of the juridical fact which is the ground for the commencement of the running of the period.

Article 28. Public Domain

The expiry of the duration of copyright in a work shall signify its entry into the public domain.

Works which have never been given protection on Russian Federation territory shall also be deemed to have entered the public domain.

2. Works entering the public domain may be freely used by any person without payment of royalties. In the event, the author's right of authorship, right of name and right to protection of reputation must be respected (Article 15 of the present Act).

3. The Russian Federation Government may provide for cases in which special deductions shall be paid for the use on Russian Federation territory of works entering the public domain. Such deductions shall be paid to authors' professional funds, and to organizations having collective management of authors' property rights, and may not be in excess of one percent of the profits received for the use of such works.

Article 29. Passage of Copyright by Inheritance

Copyright shall pass by inheritance.

The author's right of authorship of a work, the right of name, and the right to protection of reputation shall not pass by inheritance. The author's heirs shall be entitled to enjoy protection of the aforesaid rights. These powers of the heirs shall not be restricted in time.

In the absence of heirs, protection of the author's aforesaid rights shall be exercised by an expressly authorized Russian Federation agency.

Article 30. Transfer of Property Rights. Contract of Authorship

1. The property rights specified in Article 16 of the present Act may be assigned only under contract of authorship, except in the cases specified in Articles 18 to 26 of the present Act.

Assignment of property rights may be made on the basis of contract of authorship on assignment of exclusive rights or on the basis of contract of authorship on assignment of nonexclusive rights.

2. Contract of authorship on assignment of exclusive rights shall allow the use of a work in a definite manner and within the contractual limits only by the person to whom these rights are being assigned, and shall give this person the right to bar such use of the work by other persons.

The right to bar the use of a work by other persons may be exercised by the author of the work where the person to whom the exclusive rights have been assigned has failed to exercise protection of this right.

3. Contract of authorship on assignment of nonexclusive rights shall allow the user to make use of the work on a par with the holder of exclusive rights who has assigned such rights, and/or other persons obtaining permission to use this work in a similar manner.

4. Rights assigned under contract of authorship shall be deemed nonexclusive, unless contract expressly provides otherwise.

Article 31. Terms of Contract of Authorship

1. Contract of authorship must provide for the ways in which use is made of the work (the concrete rights assigned under the said contract); the time period and the territory for which the right is assigned; the amount of royalties and/or the procedure for determining the amount of royalties for each mode of use of the work, the procedure and dates of payment, and other terms and conditions which the parties deem essential to the given contract.

In the absence in contract of authorship of a clause stating the time for which the right is being assigned, the contract may be rescinded by the author upon the expiration of five years from the date of its conclusion, where the user has been duly notified thereof in writing six months prior to rescission of the contract.

In the absence in contract of authorship of a clause on the territory for which the right is assigned, the effect of the right assigned under the contract shall be limited to Russian Federation territory.

2. All rights to the use of the work not directly assigned under contract of authorship shall be deemed not duly assigned.

Rights to the use of a work unknown at the time of the making of contract may not be the subject-matter of contract of authorship.

3. Royalties shall be determined by contract of authorship in the form of a percentage of the income for the respective mode of use of the work or, where this cannot be done because of the nature of the work or of its specific use, in the form of an amount written into the contract, or in other way.

The minimum rates of royalties shall be fixed by the Russian Federation Government. The minimum amounts of royalties shall be indexed simultaneously with the indexation of the statutory minimum monthly wage.

Where contract of authorship on publication or other reproduction of a work determines royalties in the form of a fixed amount, the contract must state the maximum number of copies in the printing of the work.

4. Rights assigned under contract of authorship may be assigned fully or in part to other persons only where this is expressly provided for by the contract.

5. Rights to the use of works which the author may create in the future may not be the subject-matter of contract of authorship.

6. Terms and conditions of contract of authorship restricting the author in the creation, in the future, of works on the given subject or in the given field shall be null and void.

7. Terms and conditions of contract of authorship contrary to the provisions of the present Act shall be null and void.

Article 32. Form of Contract of Authorship

1. Contract of authorship must be done in writing. Contract of authorship on the use of a work in the periodical press may be concluded orally.

2. Where sale is made of copies of computer programs and databases and access thereto is given to mass users, application shall be allowed of special contracting procedure, as laid down in the Russian Federation Computer Software and Database Protection Act.

Article 33. Order Contract of Authorship

1. Under order contract of authorship, the author shall undertake to create a work in conformity with the terms and conditions of the contract, and to convey it to the customer.

2. The customer shall have the duty to make an advance payment to the author on account of the contractual royalties. The amount, procedure and dates of the advance payment shall be written into the contract by agreement between the parties.

Article 34. Liability Under Contract of Authorship

1. A party which has failed to fulfill or which has improperly fulfilled its obligations under contract of authorship shall have the duty to indemnify the damages caused to the other party, including benefits forgone.

2. Where the author has failed to submit the ordered work, in conformity with the terms and conditions of the order contract of authorship, he shall have the duty to indemnify the real damages caused to the customer.

SECTION III NEIGHBOURING RIGHTS

Article 35. Ambit of Neighbouring Rights

1. The rights of the performer shall be deemed vested in the performer, under the present Act, where:

(1) the performer is a citizen of the Russian Federation;

(2) the performance or dramatic production first took place on Russian Federation territory;

(3) the performance or dramatic production is recorded on a phonogram covered by the provisions of Clause 2 of the present Article;

(4) the performance or dramatic production not recorded on phonogram is included in broadcast or cablecast covered by the provisions of Clause 3 of the present Article.

2. The rights of the maker of phonogram shall be deemed vested in the maker, under the present Act, where:

(1) the phonogram-maker is a citizen of the Russian Federation or a legal person domiciled on Russian Federation territory;

(2) the phonogram was first made public on Russian Federation territory.

3. The rights of broadcasting or cablecasting organization shall be deemed vested in the organization, under the present Act, where the organization is domiciled on Russian Federation territory and carries on transmissions by means of Russian Federation-located transmitters.

4. Any copyright-neighbouring rights reserved by foreign individuals or legal persons shall be recognized in the Russian Federation pursuant to the international treaties which the Russian Federation is party to.

Article 36. Subjects of Neighbouring Rights

1. Performers, makers of phonograms, and broadcasting or cablecasting organizations shall be subjects of neighbouring rights.

2. The maker of phonogram and the broadcasting or cablecasting organization shall exercise their rights, as specified in the present Section, within the limits of the rights secured under contract with the performer or author of the work recorded on the phonogram, broadcast, or communicated by cable.

Permission for the use of dramatic production obtained from producer or director of a play shall not obviate the need to obtain permission from other performers taking part in the dramatic production, and also from the author of the work being performed.

3. The performer shall exercise the rights specified in the present Section, provided the rights of the author of the work performed are respected.

4. No formalities need be performed for the origination and exercise of neighbouring rights. Phonogram-maker and performer shall be entitled, in order to give notice of their rights, to use the neighbouring-rights protection symbol, which shall be placed on each copy of the phonogram and/or on each case containing phonogram, and which shall consist of three elements:

the encircled Latin letter "P";

the name (title) of the holder of exclusive neighbouring rights;

the year of the first publication of phonogram.

Article 37. Performer's Rights

1. Apart from the cases specified by the present Act, the following exclusive rights shall vest in the performer with respect to his performance or dramatic production:

right of name;

right to protection of performance or dramatic production against any distortion or other infringement prejudicial to the performer's honor and dignity;

right to use the performance or dramatic production in any form, including the right to receive royalties for each type of use of the performance or dramatic production.

2. Exclusive right to use performance or dramatic production shall signify the right to perform or to permit performance of the following acts:

(1) to broadcast or cablecast for general public knowledge performance or dramatic production, where the performance or dramatic production used in such transmission was not broadcast earlier or is not being transmitted with the use of recording;

(2) to record performance or dramatic production not recorded earlier;

(3) to reproduce recording of performance or dramatic production;

(4) to broadcast or cablecast recording of performance or dramatic production, where such recording was initially made for other than commercial purposes;

(5) to lease phonogram published for commercial purposes containing a recording of performance or dramatic production with the performer's participation. This right shall, at conclusion of contract for recording of performance or dramatic production on phonogram, pass to the phonogram-maker, with the performer retaining the right to receive royalties for lease of copies of such phonogram (Article 39 of the present Act).

3. The performer's exclusive right specified in Subclause 3 of Clause 2 of the present Article shall not apply to cases in which:

the initial recording of performance or dramatic production was made with the performer's consent;

the reproduction of performance or dramatic production is made for the same purposes for which the performer's consent was obtained in the recording of performance or dramatic production;

the reproduction of performance or dramatic production is made for the same purposes for which recording was made in conformity with the provisions of Article 42 of the present Act.

4. The permissions specified in Clause 2 of the present Article shall be issued by the performer, and where performance is by a group of performers, by the leader of such a group, through conclusion of written contract with user.

5. The permissions specified in Subclauses 1, 2 and 3 of Clause 2 of the present Article for subsequent transmissions of performance or dramatic production, recording for transmission, and reproduction of such recording by broadcasting or cablecasting organizations shall not be required, where these are expressly written into contract between performer and broadcasting or cablecasting organization. The amount of royalties due to the performer for such use shall also be written into this contract.

6. Conclusion of contract between performer and maker of audiovisual work for the creation of an audiovisual work shall entail assignment by the performer of the rights specified in Subclauses 1, 2, 3 and 4 of Clause 2 of the present Article.

The performer's assignment of such rights shall be limited to the use of the audiovisual work and, unless contract provides otherwise, shall not include the rights to separate use of sound or image recorded in the audiovisual work.

7. The performer's exclusive rights specified in Clause 2 of the present Article may be assigned under contract to other persons.

Article 38. Rights of Phonogram-Maker

1. Apart from the cases specified by the present Act, exclusive rights to the use of the phonogram in any form shall vest in the phonogram-maker with respect to his phonogram, except the right to receive royalties for each type of phonogram use.

2. The exclusive right to use phonogram shall signify the right to perform or to permit performance of the following acts:

(1) to reproduce the phonogram;

(2) to rework or in any other way to alter the phonogram;

(3) to distribute copies of the phonogram, i.e., to sell or lease such copies, and the like;

(4) to import copies of the phonogram for thepurposes of distribution, including copies made with the permission of the phonogram-maker.

3. Where copies of rightfully published phonogram are introduced into civil commerce through sale thereof, their further distribution shall be allowed without the phonogram-maker's consent, and without payment of royalties.

The right to distribution of phonogram copies through lease thereof shall vest in the phonogram-maker, irrespective of the title to these copies.

4. The exclusive rights of phonogram-maker specified in Clause 2 of the present Article may be assigned under contract to other persons.

Article 39. Use of Phonogram Published for Commercial Purposes Without the Consent of Phonogram-Maker or Performer

1. By way of exception to the provisions of Articles 37 and 38 of the present Act, the following shall be allowed without the consent of the maker of phonogram published for commercial purposes, and of the performer whose performance is recorded on such phonogram, but with payment of royalties:

(1) public performance of phonogram;

(2) broadcast of phonogram;

(3) cablecast of phonogram for general public knowledge.

2. Collection, apportionment and payment of the royalties specified in Clause 1 of the present Article shall be made by one of the organizations having collective management of the rights of phonogram-makers and performers (Article 44 of the present Act), under agreement between these organizations. Unless such agreement provides otherwise, the aforesaid royalties shall be apportioned equally between the maker and the performer of the phonogram.

3. The amount and terms of payment of the royalties shall be determined by agreement between the phonogram-user or associations of such users, on the one part, and the organizations having effective management of the rights of phonogram-makers and performers, on the other, and where the parties have failed to reach such agreement, by an expressly authorized Russian Federation agency.

The amount of royalties shall be fixed for each type of phonogram use.

4. Phonogram-users must submit to the organization specified in Clause 2 of the present Article programs containing precise information on the number of phonogram-users, and other information and documents required for the collection and apportionment of royalties.

Article 40. Rights of Broadcasting Organizations

Apart from the cases specified by the present Act, the exclusive rights to use transmission in any form and to give permission for the use thereof, including the right to receive royalties for the granting of such permission, shall vest in broadcasting organization with respect to its transmission.

2. The exclusive right to give permission for the use of transmission shall signify the right of broadcasting organization to permit performance of the following acts:

(1) give permission to another broadcasting organization to make simultaneous broadcast of its transmission;

(2) to cablecast its transmission for general public knowledge;

(3) to make recording of the transmission;

(4) to reproduce the recording of the transmission;

(5) to communicate the transmission for general public knowledge in places with paid admission.

3. The exclusive right of broadcasting organization specified in Subclause 4 of Clause 2 of the present Article shall not apply to cases in which:

the recording of transmission was made with the consent of the broadcasting organization;

the reproduction of the transmission is effected for the same purposes for which recording thereof was made, in conformity with the provisions of Article 42 of the present Act.

Article 41. Rights of Cablecasting Organizations

1. Apart from the cases specified in the present Act, the exclusive rights to use transmission in any form and to give permission for the use thereof, including the right to receive royalties for the granting of such permission, shall vest in the cablecasting organization with respect to its transmission.

2. The exclusive right to give permission for the use of transmission shall signify the right of the cablecasting organization to permit performance of the following acts:

(1) to give permission to another cablecasting organization simultaneously to cablecast the transmission for general public knowledge;

(2) to broadcast the transmission;

(3) to make a recording of the transmission;

(4) to reproduce the recording of the transmission;

(5) to communicate the transmission for general public knowledge in places with paid admission.

3. The exclusive right of the cablecasting organization specified in Subclause 4 of Clause 2 of the present Article shall not apply to cases in which:

the recording of transmission was made with the consent of the cablecasting organization;

the reproduction of transmission is made for the same purposes as those for which recording thereof was made, in conformity with the provisions of Article 42 of the present Act.

Article 42. Restriction of the Rights of Performer, Phonogram-Maker and Broadcasting or Cablecasting Organization

1. By way of exception to the provisions of Articles 37 to 41 of the present Act, use of performance, dramatic production, broadcast or cablecast, and recordings thereof, and also reproduction of phonogram shall be allowed without the consent of the performer, the phonogram-maker, or the broadcasting or cablecasting organization, and without payment of royalties:

(1) for inclusion in reviews of current events of short extracts from performance, dramatic production, phonogram, broadcast or cablecast;

(2) exclusively for educational or scientific purposes;

(3) for quotation in the form of short extracts from performance, dramatic production, phonogram, broadcast or cablecast, provided that such quotation is made for the purposes of information. In the event, any use by broadcasting or cablecasting organization for transmission by air or cable of copies of phonogram published for commercial purposes shall be allowed only subject to compliance with the provisions of Article 39 of the present Act;

(4) in the other cases specified by the provisions of Section II of the present Act with respect to restriction of the property rights of the author of literary, scientific and artistic works.

2. By way of exception to the provisions of Articles 37 to 41 of the present Act, use of broadcast or cablecast, and recording thereof, and also reproduction of phonogram for personal purposes shall be allowed without the consent of the performer, the phonogram-maker, and the broadcasting or cablecasting organization. Reproduction of phonogram shall be allowed subject to payment of royalties, in conformity with Article 26 of the present Act.

3. No application shall be made of the provisions of Articles 37, 38, 40 and 41 of the present Act with respect to obtaining the permission of the performer, phonogram-maker and broadcasting organization to make short-term-use recordings of performance, dramatic production or transmission, to make reproduction of such recordings and reproduction of phonogram published for commercial purposes, where the short-term-use recording or reproduction is made by broadcasting organization with the use of its own equipment and for its own transmission, subject to:

(1) broadcasting organization obtaining advance permission to broadcast the dramatic production, performance or transmission with respect to which, in conformity with the provisions of the present Clause, short-term-use recording or reproduction thereof is made;

(2) its erasure within the time limits fixed for short-term-use recording of literary, scientific and artistic works made by broadcasting organization, in conformity with the provisions of Article 24 of the present Act, except for a single copy, which may be stored in official archives for reasons of its exceptional documentary nature.

4. The restrictions laid down by the present Article shall be applied without detriment to the normal use of phonogram, performance, dramatic production, broadcast or cablecast, and recordings thereof, and of the literary, scientific and artistic works included therein, and without infringement of the legitimate interests of the performer, phonogram-maker, broadcasting or cablecasting organization, or the authors of the aforesaid works.

Article 43. Duration of Neighbouring Rights

1. The rights specified in the present Section with respect to performer shall remain in effect for 50 years after the first performance or dramatic production.

The performer's right of name and right to protection of performance or dramatic production against any distortion or other encroachment, as established in Article 37 of the present Act, shall be protected in perpetuity.

2. The rights provided for by the present Section with respect to phonogram-maker shall remain in effect for 50 years after the first publication of the phonogram or for 50 years after its first recording, where the phonogram was not published during this period.

3. The rights provided for by the present Section with respect to broadcasting organization shall remain in effect for 50 years after the first broadcast by such organization.

4. The rights provided for by the present Section with respect to cablecasting organization shall remain in effect for 50 years after the first cablecast by such organization.

5. The periods specified in Clauses 1, 2, 3 and 4 of the present Article shall run from January 1 of the year following upon the year of occurrence of the juridical fact providing ground for the commencement of the running of the period.

6. Where the performer was subjected to repression and was rehabilitated posthumously, the rights-protection period specified in the present Article shall run from January 1 of the year following upon the year of rehabilitation.

Where the performer was in service during the Great Patriotic War or was a participant therein, the rights-protection period specified by the present Article shall be increased by four years.

7. To the heirs (with respect to legal persons, to the legal successors) of the performer, phonogram-maker, broadcasting or cablecasting organization shall pass the right to give permission for the use of the performance, dramatic production, phonogram, broadcast or cablecast, and to receive royalties within the limits of the remaining parts of the time periods specified in Clauses 1, 2, 3 and 4 of the present Article.

SECTION IV COLLECTIVE MANAGEMENT OF PROPERTY RIGHTS

Article 44. Purposes of Collective Management of Property Rights

1. With the object of ensuring the property rights of authors, performers, phonogram-makers and other owners of copyrights and neighbouring rights, where their practical exercise individually is made difficult (public performance, including radio and TV transmission, reproduction of a work through mechanical, magnetic or other recording, reprography reproduction, and in other cases), organizations may be set up for the collective management of the property rights of the aforesaid persons.

Such organizations shall be directly founded by the owners of copyrights and neighbouring rights, and shall operate within the powers vested in them, on the basis of rules confirmed in the statutory manner.

2. Establishment shall be allowed either of separate organizations for the various rights and for classes of right owners, or of organizations managing various rights in the interests of different classes of right owners, or of one organization simultaneously managing copyrights and neighbouring rights.

Article 45. Organizations Collectively Managing Property Rights

Under the present Act, organizations collectively managing property rights shall not be entitled to engage in commercial activity.

Restrictions laid down by antimonopoly legislation shall not be applied with respect to the activity of such organizations.

2. Powers for the collective management of property rights shall be assigned directly by the owners of copyrights and neighbouring rights voluntarily, under written agreements, and under appropriate agreements with foreign organizations managing similar rights. Such agreements shall not be contracts of authorship, and no application shall be made thereto of the provisions of Articles 30 to 34 of the present Act.

Any author, his heirs, or other owner of copyrights and neighbouring rights protected under Section III of the present Act shall be entitled to assign, under contract, the exercise of his property rights to such organization, while the organization shall have the duty to accept the exercise of these rights on a collective basis, where the management of this class of rights is written into the rules and regulations of this organization.

The aforesaid organizations shall not be entitled to make use of the works and objects of neighbouring rights assigned for collective management.

3. Organizations collectively managing property rights shall, on the basis of the powers vested in them under Clause 2 of the present Article, issue licenses to users for the various modes of use of works and objects of neighbouring rights. The terms of such licenses must be similar for all users of the same class. The aforesaid organizations shall not be entitled to deny the issue of license to user, without good grounds therefor.

Such licenses shall allow the use, in the modes specified therein, of all works and objects of neighbouring rights, and shall be issued in the name of all the owners of copyrights and neighbouring rights, including owners who have not assigned powers to the organization, in conformity with Clause 2 of the present Article.

All possible property claims by the owners of copyrights and neighbouring rights on users arising from the use of their works and objects of neighbouring rights under such license must be settled by the organization issuing such license.

4. The organization collectively managing property rights shall be entitled to retain unclaimed royalties, including these in the amounts to be apportioned or using these for other purposes in the interests of the represented owners of copyrights and neighbouring rights, upon the expiration of three years from the date of entry of the royalties on the organization's account.

Article 46. Functions of Organizations Collectively Managing Property Rights

Organization collectively managing property rights must exercise, in the name of the represented owners of copyrights and neighbouring rights, and on the basis of the powers vested in it, the following functions:

(1) to agree with users the amount of royalties and other terms on which licenses are issued;

(2) to grant licenses to users for the use of the rights managed by such an organization;

(3) to agree with users the amount of royalties, where the organization is engaged in the collection of such royalties without issue of license (Clause 2 of Article 26, Clauses 2 and 3 of Article 39 of the present Act);

(4) to collect the license-stipulated royalties and/or the royalties specified in Clause 3 of the present Article;

(5) to apportion and pay out the royalties collected under Clause 4 of the present Article to the represented holders of copyrights and neighbouring rights;

(6) to perform any juridical acts required for the protection of the rights managed by such organization;

(7) to carry out other acts in accordance with the powers assigned by the owners of copyrights and neighbouring rights.

Article 47. Duties of Organizations Collectively Managing Property Rights

1. Organizations collectively managing property rights shall act in the interests of the owners of copyrights and neighbouring rights vested in such an organization. For these purposes, the organization must fulfill the following duties:

(1) simultaneously with the payment of royalties, submit to the owners of copyrights and neighbouring rights statements on the use of their rights;

(2) use the royalties collected under the provisions of Clause 4 of Article 46 of the present Act solely for apportionment and payment to the owners of copyrights and neighbouring rights. In so doing, the organization shall be entitled to deduct from the collected royalties amounts required to cover its actual costs in the collection, apportionment and payment of such royalties, and amounts going to special funds set up by the organization with the consent and in the interests of the represented owners of copyrights and neighbouring rights;

(3) to apportion and regularly pay out the collected amounts of royalties, less the amounts specified in Subclause 2 of the present Clause, in proportion to the actual use of works and objects of neighbouring rights.

2. The owners of copyrights and neighbouring rights who have not assigned powers to the organization with respect to the collection of royalties, as specified in Clause 4 of Article 46 of the present Act, shall be entitled to claim payment by the organization of the royalties due to them, according to the apportionment, and also to exclude their works and objects of neighbouring rights from licenses issued to users by this organization.

SECTION V PROTECTION OF COPYRIGHTS AND NEIGHBOURING RIGHTS

Article 48. Infringement of Copyrights and Neighbouring Rights. Pirated Copies of Works and Phonograms

1. Infringement of the copyrights and neighbouring rights provided for by the present Act shall entail civil, criminal and administrative liability, in conformity with Russian Federation law.

2. Natural or legal person failing to fulfill the requirements of the present Act shall be deemed a pirate.

3. Copies of works and phonograms whose fabrication or distribution entails infringement of copyrights and neighbouring rights shall be deemed pirated copies.

4. Copies of works and phonograms protected in the Russian Federation under the present Act, and imported without consent of the owners of copyrights and neighbouring rightsinto the Russian Federation from the country in which these works and phonograms have never been protected or have ceased to be protected shall also be deemed pirated copies.

Article 49. Civil law and other protective provisions regarding copyright and neighbouring rights

1. The owners of exclusive copyrights and neighbouring rights shall be entitled to demand of the pirate:

(1) recognition of rights;

(2) restoration of the status quo ante and cessation of acts infringing the right or creating the danger of infringement thereof;

(3) payment of damages, including benefits forgone;

(4) recovery of the income received by the pirate in consequence of the breach of copyrights and neighbouring rights, instead of payment of damages;

(5) payment of compensation amounting to between 10 and 50,000 times the Russian Federation statutory minimum monthly wage, at the discretion of court of law or court of arbitration, instead of payment of damages or recovery of income;

(6) adoption of other statutory measures pertaining to the protection of their rights.

The measures specified in Subclauses 3, 4 and 5 of the present Clause shall be applied at the discretion of the owner of copyrights and neighbouring rights.

2. Apart from payment of damages, recovery of income or payment of compensation in a fixed amount, court of law or court of arbitration shall impose, for infringement of copyrights or neighbouring rights, a fine amounting to 10 percent of the amount awarded by the court in favor of the plaintiff. The amounts of fine shall be entered, in the statutory manner, into the respective budgets.

3. To secure protection of their rights, owners of exclusive copyrights and neighbouring rights shall be entitled to have resort, in the established manner, to court of law, court of arbitration, or court of mediation, an inquest authority, or a preliminary investigation bidoes in accordance with the jurisdictional competence thereof.

4. Counterfeit copies of productions/recordings shall be subject to seizure pursuant to a ruling passed by a court or an individual judge, or by an Arbitration court.

All counterfeit copies of productions/recordings thus seized shall be subject to annihilation, unless the owner of copyright or neighbouring rights has requested that such copies be passed into its custody. A court or an individual judge, or an Arbitration court may rule that the materials and equipment used in the manufacture and reproduction of counterfeit copies of productions/recordings be seized as well.

Article 50. Provision of Collateral Security in Cases of Infringement of Copyrights and Neighbouring Rights

1. The court or an individual judge, and also an Arbitration court, may issue an injunction ordering either the person assumed on good ground to be a pirate of copyrights and neighbouring rights to refrain from doing particular acts (fabrication, production, sale, lease, importation or other use specified by the present Act, or transportation, storage or possession, for the purpose of release for civil commerce, of copies of works and phonograms assumed to be pirated copies).

2. The court or an individual judge, and also an Arbitration court, may issue an order on the seizure and confiscation of all the copies of works and phonograms assumed to be pirated copies, and of materials and equipment designed for fabrication and reproduction thereof.

Given sufficient evidence is available of a violation of copyright or neighbouring rights, an investigative authority, a prosecutor, a court or an individual judge shall take the necessary steps to locate and impose an arrest on all copies of the allegedly counterfeit productions/recordings, as well as on the materials and equipment intended for the manufacture and duplication of the said copies of productions/recordings, which steps may include, in cases warranting it, a seizure and subsequent state safekeeping of the said products and equipment.

Moskow, July, 9 1993. No 5351-1

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