Approved by

the Resolution of the Government

of the Kyrgyz Republic

of July 22, 2002 No. 488

REGULATION

On minimum rates of royalties

for the use of Copyright and Related Rights Subject Matters

(In edition of resolutions of the Government of the KR of August 17, 2007 N339, of May 27, 2013 N280)

 

Section I        General Provisions

Section II    Order of calculation and collection of royalties for public     demonstration, public performance and communication to the public of Copyright and Related Rights subject matters

Section III  Order of calculation and collection of royalties for public demonstration, public performance and communication to the public of Copyright and Related Rights subject matters in broadcasting and cable organizations.

Section IV   Order of calculation and collection of royalties for reproduction of Copyright and Related Rights subject matters through sound and video recording, lending copies of sound and video records (phonograms and videotapes)

Section V    Order of calculation and collection of royalties for reproduction of works of architecture, urban planning, park and garden figurative and decorative arts, photographic works and fragments from audiovisual works as well as their industrial copying

Annex 1.        Rates of royalties for public use of Copyright and Related Rights   subject matters

Annex 2.    Rates of royalties for the use of Copyright and Related Rights subject matters in broadcasting and cable organizations

Annex 3.    Rates of royalties for reproduction and distribution of Copyright and Related Rights subject matters by means of sound and video recording (phonograms and video films) in the form of ringtones (ringtones, ring back tones, real tones), for lending copies of sound and video records(phonograms and video films) and interactive type programs (“multimedia”) for computer software

Annex 4.      Rates of royalties for reproduction of works of architecture, urban planning, park and garden figurative and decorative arts, photographic works and fragments from audiovisual works as well as their industrial copying

 

Section I

General Provisions

1. This Regulation has been developed to enforce the Law of the Kyrgyz Republic “On Copyright and Related Rights” and shall regulate relations on payment of royalties by all organizations that use Copyright and Related Rights subject matters

2. Representatives of authors (or their successors) and performers on the issues related to grant of permissions for public performance of works and other types of the use of Copyright and Related Rights subject matters, calculation and collection of royalties pursuant to the legislation of the Kyrgyz Republic may be an entity which collectively administrates authors’ economic rights, acting within the scope of terms of reference given by authors and entitled to bring suits seeking for protection of their rights and lawfully protected interests of persons represented by them Prior to establishment of organizations of collective administration of authors’ rights, the State Agency on Science and Intellectual Property under the Government of the Kyrgyz Republic (hereinafter referred to as Kyrgyzpatent) shall perform the functions and obligations of such an organization.

3. Rates of royalties stipulated by this Regulation are the minimum rates and shall be applied unless otherwise provided by the contract between user and author, his or her successor or organization dealing with collective administration of authors’ economic rights within the scope of terms of reference given by them and size of remuneration shall not be a subject of dispute between relevant stakeholders.

4. Any natural persons or legal entities dealing with or arranging public performance of works and other types of use of Copyright and Related Rights subject matters irrespective of their forms of ownership shall be the payers for the use of Copyright and Related Rights subject matters.

The payers shall include inter alia:

a) theatres, cinemas, circuses, philharmonic halls and other concert and showcases;

b) broadcasting and cable organizations;

c) producers of phonograms, sound recording studios, ring tones distributors (ringtones, ring      backtones, real tones) etc.;

d) organizers of public shows, producing centers etc.;

e) entertaining organizations (video clubs, discos, night clubs, casinos etc.);

f) public catering facilities (restaurants, bars, cafes, canteens, diners etc.);

g) specialized trade enterprises (including trade outlets, booths, desks, stands), which sell (rent, change) licensed audiovisual products, audio-video equipment; markets and other trade enterprises using phonograms or broadcasted programs to make a sound background in sales areas;

h) hotels, resorts (stadiums, parks, sport halls, rest homes, resorts, sanitariums, holiday resorts   etc.);

i) service entities (beauty salons, barbershops, cosmetic salons, fashion salons etc.) and all types of passenger transport) other natural persons and legal entities, using Copyright and Related Rights subject matters.(in the redaction of the Decision of the Government of the Kyrgyz Republic of August 17, 2007 No.339)

5. All payers are obliged to sign licensing contracts (agreements) with Kyrgyzpatent to be eligible users of Copyright and Related Rights subject matters, and to perform state registration in appropriate manner. A licensing contract shall provide amounts and terms for payments of royalties, rights and obligations of parties, responsibilities for failure to comply with payment obligations and other conditions. Payers are obliged to present to the authorized representative of Kyrgyzpatent to be checked duly calculated payments of royalties, and to review all the documents related to calculations of royalties for public performances of the works; freely allow Kyrgyzpatent representatives to venues of events organized by them for control listening (display).

6. Collection, distribution and payment of appropriate remuneration to authors (or their successors) and other right owners of shall be done by Kyrgyzpatent.

7. Amount of payments to cover expenses related to collection, calculation and payment of royalties shall be defined by the Board of Authors under Kyrgyzpatent.

8. Distribution of remuneration among authors, co-authors, performers and other economic rights owners shall be done according to the Order of distribution of royalties for the use of Copyright and Related Rights subject matters (hereinafter referred to as the Order), developed and approved by Kyrgyzpatent based on the national legislation and international obligations of the Kyrgyz Republic.

9. Kyrgyzpatent shall be entitled to keep unclaimed royalties by including it into distributed amounts or to use it for other purposes for the benefit of Copyright and Related Rights owners represented by Kyrgyzpatent, three years after transferring to the Kyrgyzpatent bank account.

10. Illegal use of Copyright and Related Rights subject matters shall result in civil, administrative and criminal liability provided by the legislation of the Kyrgyz Republic.

SectionII

Order of calculation and collection of royalties for public

demonstration, public performance and communication

to the public of Copyright and Related Rights subject matters

 

11. Royalties shall be calculated under any circumstances both during paid and unpaid (by spectators/customers) entrance, irrespective of whether a program or a work is performed in live or performed by technical means.

12. Royalties in case of public performances consisting of works protected or not protected by Copyright (including music accompanying dramatic works) shall start at the full rate provided by Annex 1 to this Regulation.

13. Distribution of royalties for public performance of works stated in items 1-3 of Annex 1 to this Regulation created by co-authors as an integral work or consisting of independent parts, shall be done on the basis of the Order. Royalties for public performance shall be calculated only for those co-authors (or their successors), whose copyright is protected. The amount of remuneration to be paid to co-authors shall be calculated on the base of the Order

14. If cost of tickets for New Year parties includes cost of gifts, then it is excluded from the calculation of gross collection of tickets that have been sold out

15. In case of public performance with paid entrance (by spectators or customers) the organizer of the event shall be a payer of royalties (concert/show). The organizer of event shall have signed a licensing contract entitling him/her to use works to be publicly performed. Royalties shall be calculated on the base of rates stipulated in Annex 1 to this Agreement.

16. When works are publicly performed with unpaid entrance by spectators/customers, the organizer of event (concert, play, show etc.) shall be a payer of royalties. Size of royalties shall be defined on the base of fixed rates stipulated in the licensing contract(s).

17. If the organizer of event (concert, play, show etc.) is not the owner of a building (area), where a work is publicly performed, then the owner of the area prior to signing the renting contract shall be obliged to request from the organizer a copy of licensing contract entitling him/her to respective works. When providing the building to the organizer with no licensing contract, the building owner shall be responsible for any failure to pay royalties along with the organizer of event

18. In case of public demonstration, public performance or communication to the public in places with free public access or in places specified in subparagraphs f), g), h), i), item 4, Section 1 of this Agreement with substantial number of persons who are not the members of one family, the owner of area (building, salon etc.) shall be a payer. Amounts of royalties shall be defined on the base of fixed rates.

Section III

Order of calculation and collection of royalties for public

demonstration, public performance and communication to the public

of Copyright and Related Rights subject matters

in broadcasting and cable organizations

 

19. Broadcasting and cable organizations shall pay royalties for their use of Copyright and Related Rights subject matters in the form of interest of total gross annual income of the organization, whose amount shall be defined by the licensing agreement and cannot be less than those stipulated by paragraphs 1-2 of Annex 2 to this Regulation.

20. Royalties to be paid to authors and performers for communication to the public of their works (plays) by means of broadcasting or cable organizations shall be calculated according to the distribution regulation.

Section IV

Order of calculation and collection of royalties for reproduction

of Copyright and Related Rights subject matters through sound

and video recording, lending copies of sound and video records

(phonograms and videotapes)

21. Legal entities and natural persons which reproduce Copyright and Related Rights subject matters by means of sound and video recording in order to distribute them, lend copies of audio and video records and audiovisual works (phonograms and videofilms) shall be the payers of royalties.

22. Not only audiovisual and music works are Copyright and Related Rights objects, for reproduction of which the royalties shall be paid based on the rates of Annex 3 to this Regulation, but also interactive software (“multimedia”), video games, learning programs and other software.

 

Section V

Order of calculation and collection of royalties for reproduction

of works of architecture, urban planning, park and

garden figurative and decorative arts, photographic works and

fragments from audiovisual works as well as their industrial copying

 

23. Royalties for reproduction and industrial copying of figurative and decorative arts, photographic works and fragments of audiovisual works shall be paid in addition to royalties for creation there of Amounts of royalties for creation of such works shall be defined on agreement between the parties.

24. Payer of royalties is a legal entity or a natural person reproducing of works of architecture, urban planning, park and garden figurative and decorative arts, photographic works and fragments from audiovisual works as well as their industrial copying.

25. Amount of royalties for reproduction of decorative works in utilitarian items (dish sets, floor vases, plates, bowls, lamps, dishware, hangers, mirrors etc.), souvenirs and small wares, weaved and textile items, carpets, knitted garments etc. shall be defined by bilateral agreement between the payer and author and cannot be less than those stipulated in Annex 4.

Annex1

Rates of royalties for public use of Copyright and Related Rights subject matters

 

N                    Type of work Royalties rates % of gross collections received

due selling of tickets for show ,concert (and other programs)

1 Original and translated dramatic works (plays prosaic and poetic, plays for children doll plays) 15
2 Adaptations 10
3 Musical dramatic works (operas, operetta, music comedies, musicals and ballet) 15
4 Concert of symphonic, vocal and symphonic chamber works and works for national instruments 9 (for entire program)

 

 

5 Concert of works other than specified in paragraph 4, including pop (dramatized and new year shows, balls, variety shows etc.) 6 (for entire program)
6 Advertising show programs and dramatized shows with free access to spectators. fixed rate
7 Circus programs 2 (for entire program)
8 For the use of music works as backgrounds music in sport competitions exhibitions of sportsmen, fashion shows, with paid entrance 3 (for entire program)
9 For performance of music works in dance floors discos, cafes, restaurants and other public places with paid entrance 5 (for entire program)
10 For the use of music works by users, specified in sub-items d), e), g), h), i) item 4,section 1 of this Regulation Fixed rate
11 For the use of music in cinemas (text or without) created for audiovisual works 1

Annex2

Rates of royalties for the use of Copyright and Related Rights subject matters in broadcasting and cable organizations

N Types of used works Rates of royalties in % of gross annual income
1

 

 

 

 

 

2

For the use of Copyright and Related Rights subject matters in broadcasting and cable organizations (radio, TV), in which share of music of the total broadcasting volume is:

Less than 50 %

More than 50 %

For the use of Copyright and Related Rights in cable broadcasting TV

 

 

 

1

2

3

 

 

Annex 3

Rates of royalties for reproduction and distribution of Copyright and Related Rights subject matters by means of sound and video recording (phonograms and video films) in the form of ringtones (ringtones, ringback tones, real tones), for lending copies of sound and video records(phonograms and video films) and interactive type programs (“multimedia”) for computer software

(In the redaction of the Decision of the Government of the Kyrgyz Republic of August 17, 2007 No. 339)

 

N Type of used work Rates of royalties percent
1 Reproduction of Copyright and Related Rights in case of their serial production 8 – of release price of each issued copy (irrespective of number of works recorded in a carrier)
2 Lending of copies of sound and video records (phonograms and videofilms) 8 – of income gained for renting of copies of sound records
3 Distribution of Copyright and Related Rights in the firm of ringtones, ring real tones
–          At distribution through net mobile operator 10 – of release price for each case of distribution of the works;
–          At distribution through retail trade points of downloading of melodies for cell phones Fixed rate

Note: Release price is the price for which copies of sound recording are sold out for their further reselling.

Income is amount gained from specific customer/client.

Annex4

RATES of royalties for reproduction of works of architecture, urban planning, park and garden figurative and decorative arts, photographic works and fragments from audiovisual works as well as their industrial copying

 

N Types of figurative arts works Rates of royalties in percent  of release price of consignments
1

2

Small plastic items and miniature sculpture, sculpture works

Figurative art works, including photos and fragment of audiovisual works in industrial items(Souvenirs and small wares, weaved and textile items and etc)

1

0,5