Fair Remuneration for Using Works and Phonograms on the Internet in Russia, USA and EU

Abstract

The article analyzes legal approaches that require the use of a large number of people, including the Internet, and the procedure for paying remuneration to copyright holders. The legislation of some foreign states provides for so-called equitable remuneration. It replaces the traditional way of concluding license agreements and is used only in cases established by law. Collection and distribution of such remuneration is made by a collective rights management organization (CMO). Article 1244 of the Civil Code of the Russian Federation entitles the CMOs to obtain a state accreditation. Accreditation authorizes a CMO to act on behalf of unlimited number of rightsholders and collect equitable remuneration for certain rights, in particular, public performance, broadcast or cable transmission of musical works and / or phonograms published for commercial purposes. In 2004 the law introduced making available right known as the Internet right. In Russia this right is narrower than public performance, broadcast or cable transmission and is not among the means covered by the scope of accreditation of the CMOs. Accredited CMOs interact with “traditional” off-line users, including theaters, TV and radio companies, cinemas, etc., collecting remuneration for rights holders for the use of musical works and phonograms. However, the legislation does not directly authorize the accredited CMOs to collect remuneration from online broadcasters, theaters and cinemas. Such legal uncertainty creates difficulties in respecting the rights of right holders in whose interests accredited CMOs act. In the EU and the US, the use of musical works and phonograms on the Internet is regulated in a different way that allows users in some cases to pay remuneration to right holders through national CMOs. It seems that even the lack of direct regulation allows the Russian accredited CMOs to collect remuneration for certain types of use of works and phonograms on the Internet.