RESTRICTEDWORLD TRADE
ORGANIZATIONIP/Q4/ISL/1
23 March 1998
(98-1166)
Council for Trade-Related Aspects
of Intellectual Property RightsOriginal:  English
REVIEW OF LEGISLATION ON ENFORCEMENT
Iceland1
The present document reproduces the introductory statement made by the delegation of Iceland,
the questions put to it and the responses given in th e review of legislation on enforcement in the context
of the Council's meeting of 17-21 November 1997.2
_______________
I. INTRODUCTION
I would like to begin by presenting some general comments of significance to the more detailed
questions.
The procedures for enforcing intellectual property  rights are in general the same as for other
kinds of rights and claims.  The various intellectual property laws contain special provisions regarding
injunctions, damages, destruction and other criteria for their use, but the procedure is governed by thegeneral rules.
Civil lawsuits concerning intellectual property rights are governed by the Civil Procedure Act
No. 91 from 1991.  The enforcement of judgements is governed by the provisions of the Act on
Execution of Judgements No. 90 from 1989 and provisional measures by the Act on Attachment and
Injunction No. 31 from 1990.  The performance of the enforcement procedures is purely in the characterof administrative acts carried out by district commi ssioners.  However, if a dispute arises during their
performance the resolution of such disputes is within the judicial domain.
Criminal prosecution is governed by the Criminal Procedures Act No. 19 from 1991.
The Icelandic Customs Act No. 55 from 1987 was amended in 1995 to comply with the TRIPS
Agreement.  The measures stipulated in Section 4 of the TRIPS Agreement are implemented in
Article 50A of the Customs Act.  As most of the qu estions posed to Iceland by Japan relate to border
measures, we have attached an English translation of Article 50A of the Customs Act to our answers
3 .
                                                     
1 As regards laws and regulations relevant to the area under review and notified by Iceland under Article
63.2  of the Agreement, reference is made to documents IP/N/1/ISL/1 and IP/N/6/ISL/1.
2 The minutes of this meeting have been circulated as document IP/C/M/16.
3 This attachment is reproduced in the present document as Annex 1 (in English only).IP/Q4/ISL/1
Page 2
It may be of interest in this context to note that an application for the suspension of release by the
customs authorities based on these provisions has yet to be made.
In response to some of the more detailed questions posed by Japan a general overview of the
Icelandic judicial system has been provided.4
In general, it seems fair in this context to emphasize the modern nature of Icelandic legislation,
which is characterized not only by strong rights for right holders but also a well-functioning legalmechanism to enforce those rights.
II. REPLIES TO QUESTIONS POSED BY JAPAN
1. Please indicate the "competent authoritie s" stipulated in Article 51 of the TRIPS
Agreement.
The Director of Customs at the place of importation is the competent authority.
2. Please explain whether "proceedings leading to a decision on the merits of the case"
stipulated in Article 55 of the TRIPS Agreement are judicial or administrative.
The proceedings leading to a decision on the merits of the case are primarily judicial.  An
injunction can be granted on the basis of administrative proceedings, but the plaintiff must initiate court
proceedings in order to confirm the injunction before court.
3. Are there any ways other than  the application stipulated in Articles 51 and 52 of the
TRIPS Agreement (hereafter referred to as "t he Application") which enable a right holder to
request the competent authorities to suspend the release of the goods which infringe intellectual
property rights or which are suspected to  infringe intellectual property rights?
In addition to those special border measures according to Article 50A of the Customs Act
No. 55/1987, temporary injunctions (interlocutory injunctions) are available according to Act No. 31
from 1990.  It stipulates that a right holder may request the authorities to prohibit a party to commit anact that presents an imminent danger of infringeme nt of intellectual property rights, to maintain the
status quo (see Article 24 of Act No. 31/1990).
4. Please explain what term your country regards  as "a reasonable period within which the
competent authorities shall inform the applic ant whether or not they have accepted the
Application" stipulated in Article 52 of the TRIPS Agreement.
The customs authorities shall inform the applicant as soon as possible after decision on the
Application.
5. Please explain the term during which the Application is effective.
There are no special provisions on duration, but the customs authorities are obliged to decide on
the Application promptly.
                                                     
4 This overview is reproduced in the present document as Annex 2.IP/Q4/ISL/1
Page 3
6. Please explain whether a right holder is obliged to pay any fees to lodge the Application.
A right holder is not obliged to pay for lodging an Application.  However, according to
Article 50A of the Customs Act, the Applicant shall provide a security in the form of a monetary depositor in other forms deemed adequate by the Director of  Customs, sufficient to compensate the right holder,
the owner or importer of the goods for the damage or costs which may be derived from unjustifiedsuspension of customs clearance.
7. Please indicate provisions of laws and ordina nces which prescribe the "proceedings leading
to a decision on the merits of the case" stipul ated in Article 55 of the TRIPS Agreement. And
please summarize their contents.
Please refer to the attached overview of the Icelandic judicial system.
5
8. Please explain the specific procedure, if any, to be applied to the goods which are not
evident whether or not they infr inge intellectual property righ ts, in Article 55 of the TRIPS
Agreement.
There is no specific procedure in such cases. A final conclusion cannot be reached except before
the courts.
9. Please explain the responsibility that th e competent authorities and other related
authorities take to the right holders when they fail to suspend the release into free circulation of
goods which infringe intellectual property rights  with regard to the suspension based on the
Application or the Ex Officio Action stipul ated in Article 58 of the TRIPS Agreement.
If the competent authorities or other related authorities fail to suspend the release into free
circulation of goods in such cases, the authorities can be found liable to pay actual damages according to
general rules.
10. Please explain the responsibility that th e competent authorities and other related
authorities take to the right holders when they  examine goods which infringe intellectual property
rights and nevertheless release them into free ci rculation with regard to the suspension based on
the Application or the Ex Officio Action stip ulated in Article 58 of the TRIPS Agreement.
The responsibility of the competent authorities in such cases is based on the same legal
principles described in answer to question number 9.
11. Please explain the responsibility that th e competent authorities and other related
authorities take to the importer s when they suspend the release into free circulation of goods
which do not infringe intellectual property rights with regard to the suspension based on the
Application or the Ex Officio Action stipul ated in Article 58 of the TRIPS Agreement.
The responsibility of the competent authorities in such cases is based on the same legal
principles described in answer to question number 9.
12. Is the right holder informed of identities  of the importers and consignors when the
competent authorities "suspend" the goods which infr inge on intellectual property rights or which
                                                     
5 See Annex 2 below.IP/Q4/ISL/1
Page 4
are suspected to infringe intellectual property ri ghts, as well as the case where the right holder is
informed of identities of the importers and cons ignors stipulated in Article 57 of the TRIPS
Agreement?
Pursuant to Article 50A of the Customs Act, th e Director of Customs can on his own initiative
suspend the customs clearance of goods if he has received satisfactory evidence that an intellectual
property right is being infringed. He shall promptly dispatch a notification of his decision in writing tothe right holder, giving him a time limit of three weekdays from the receipt of the letter to make a
request for suspension of customs clearance according to paragraph 1 of Article 50A. If the right holder
does not within this time limit request suspension, the goods may be cleared through customs.
13. Please explain the measures to protect conf idential information in the course of the
inspection stipulated in Article 57 of the TRIPS Ag reement.  And please indicate provisions of laws
and ordinances which prescribe such measures.
There are no legislative provisions aiming to protect confidential information in the course of
inspection of detained goods. The competent authorities will be responsible for such measures depending
on the circumstances in each case.
14. Please explain the procedures of detentions and seizures to be ordered by the competent
authorities based on Articles 51 and 55 of the TRIPS Agreement.
Pursuant to Article 50A of the Customs Act, if a request for provisional measures is refused or a
court has ruled that there has been no infringement of an intellectual property right, the Director of
Customs shall revoke his decision on suspension of customs clearance. If a court has ruled that there is
infringement of an intellectual property right and the ruling does not stipulate the disposal of the goods,
the customs authorities may have the goods destroyed or disposed of in another manner without harm to
the right holder. If a ruling has been appealed, the destruction or disposal of goods shall be postponeduntil final conclusion is available.
15. Please explain the procedures to appeal aga inst any decisions ordered by the competent
authorities based on Articles 51 and 55 of the TRIPS Agreement.
Pursuant to Article 26 of the Administrative Act No. 37 from 1993, a party to a case has the right
to complain to a higher authority about an administrative decision in order to have it revoked or varied.Decisions ordered by the Director of Customs based on Articles 51 and 55 of the TRIPS Agreement
would be reviewed by the Ministry of Finance.
16. Please explain the basis for calculating the s ecurity or equivalent assurance stipulated in
Article 53 of the TRIPS Agreement that the co mpetent authorities may require an applicant when
they suspend the release into free circulation.
The basis for calculation is an estimation of the expenses or damage the right holder may suffer
in case of illegal suspension.
17. Please explain who shall pay the cost of detentions based on Article 51 of the TRIPS
Agreement or destruction stipulated in Article 59 of the TRIPS Agreement.
The Minister of Finance can require the right holder to pay storage fees and the costs incurred by
the customs authorities due to the measures required.IP/Q4/ISL/1
Page 5
18. Please explain what kind of cases are regar ded as "the exceptional circumstances" in
which the competent authorities may allow re-e xportation of counterfeit trademark goods
stipulated in Article 59 of the TRIPS Agreement.
There are no legal stipulations on this, but the Director of Customs has the authority to
determine what cases shall be regarded as exceptional circumstances and is obliged to base his estimate
on fair and sound judgement in accordance with Article 12 of the Administrative Act.
19. Please indicate names of laws and ordinances and their provisions in which the suspension
of the release of goods which infringe intellectual property rights or which are suspected to
infringe intellectual property rights is prescri bed, as stipulated in Article 51 of the TRIPS
Agreement.
There are provisions concerning the suspension of the release of goods in Article 50A of the
Customs Act No.55/1987.
20. Please indicate which intellectual property rights are protected based on the Application
by a right holder.
Pursuant to Article 50A of the Customs Act, the suspension of customs clearance can be ordered
for all intellectual property rights.
21. Please explain kinds and contents of documents which shall be provided by the applicant to
lodge the Application.
The following is required:
(a) A written request for suspension of customs clearance and a commitment to pay the cost
derived from measures taken by the customs authorities;
(b) Adequate evidence that the intellectual property right is protected in Iceland, that he is
the holder of this right and that the importation of the goods will cause infringement of
his right. He must, furthermore, supply a sufficiently detailed description of the goods to
make them readily recognizable by the customs authorities;
(c) A security in the form of a monetary depo sit or in other forms deemed adequate by the
Director of Customs, sufficient to compensate the right holder, owner or importer of the
goods for the damage or costs which may be derived from unjustified suspension of
customs clearance.
22. Please explain the remedies which the judicial authorities order regarding a copyright and
other related rights, patents, industrial designs, trademarks and layout-designs (topographies) of
integrated circuits, including injunctions, damages, expenses, destruction or other disposal of
infringing goods and materials/implements for their production.
Please refer to Iceland's responses to the Checklist of Issues on Enforcement (IP/N/6/ISL/1), in
particular the reply to question 5.
23. Please explain whether the amount of damage s which judicial authorities order the person
who infringes intellectual property rights to pay th e right holder is adequate compensation for the
injury the right holder has suffered, and what cri teria and the way for calculation to decide the
amount for compensation.IP/Q4/ISL/1
Page 6
There is no data available on the amount of damages for infringement of intellectual property
rights. In deciding on the amount of compensation, a general basis for calculation of actual damages is
used. The damages should cover losses which can readily be proven to have been sustained and for
which the injured party should be compensated.
[Follow-up question from Japan]
With respect to Iceland's response to qu estion 23 from Japan on damages for the
infringement of intellectual property rights, Iceland states "in deciding on the amount of
compensation, a general basis for calculation of actual damages is used".  Please describe the
principle and the way for calculation of "actual damages", and please explain whether "actual
damages" include the intellectual property rights holder's lost profits, infringer's profits of the
unlawful utilization of the intellectual property righ ts or a reasonable royalty for utilization of the
intellectual property rights.
The general basis for the calculation of actual damages is that the intellectual property rights
holder shall get compensation for his loss, which can be sustained as directly referable to the
infringement.  If lost profits can be sustained they may be part of the damages.
There are special provisions in some of the intellectual property rights laws regarding
infringement profits.  Among those is Article 43.2 of the Icelandic Trade Mark Act, which provides for a
reasonable remuneration which may not exceed the infringer's assumed profit as a result of theinfringement.  A similar provision can be found in Article 37.2 of the Design Protection Act.  These
provisions relate to profit from an infringement even though such was neither done on purpose nor
through negligence.  In Article 56.3 of the Copyright Act the injured party may be awarded
compensation payable by the person who has infringed his rights, even if this was done unknowingly:
such compensation may, however, not exceed the profit gained by means of the offence.
24. Please explain whether the amount of damage s which judicial authorities order the person
who infringes intellectual property rights to pay the right holder includes investigations expense
and appropriate attorney's fees.
The amount of damages which judicial authorities order the person who infringes intellectual
property rights to pay the right holder does not include investigations expense or attorney fees. Attorneyfees are decided specifically with regard to the extent of the case. Attorney fees include charges made by
translators and other professionals for services they have rendered in the course of preparing and trying a
case.
25. Please describe to what extent the amount of damages have been estimated by courts since
1 January 1996.  Please explain whether the amount of damages is adequate compensation for theinjury the right holder has suffered, and how such civil procedures are consistent with Article 45
of the TRIPS Agreement.
It is not possible to provide data on the amount of damages.
26. Please explain the kinds and amounts of penalties (imprisonment or fines) in criminal
cases.  Please also explain whether these penalties are consistent with Article 61 of the TRIPS
Agreement which requires provisions for a sufficient deterrent, consistently with the level of
penalties applied for crimes of a corresponding gravity.
Please refer to Iceland's responses to the Checklist of Issues on Enforcement (IP/N/6/ISL/1).  All
measures in Article 61 of the TRIPS Agreement are available in Icelandic legislation.IP/Q4/ISL/1
Page 7
III. REPLIES TO QUESTIONS POSED BY THE UNITED STATES
1. Please provide statistical information related  to civil copyright, trademark, geographical
indication, industrial de sign, patent, integrated circuit layout design, and trade secret enforcement
for each of the years 1996 and 1997, including the number of cases filed;  injunctions issued;
infringing products seized;  infringing equipment seized;  cases resolved (including settlement);
and the amount of damages awarded.
See reply to question 2 below.
2. Please provide statistical information relat ed to criminal enforcement in the area of
copyright piracy and trademark infringement fo r each of the years 1996 and 1997, including the
number of raids, prosecutions, convictions, and th e amount of fines and/or jail terms (including
whether the fines were paid and wh ether the jail term was actually  served or was suspended) and
any other information establishing that your criminal system operates effectively to deter
copyright piracy and trademark counterfeiting.
Iceland is unable to provide this extensive data;  such has never been compiled.  With Iceland's
limited resources, data collection of this kind has not been given priority.  The matter will, however, be
given consideration.
3. Please confirm whether courts in Iceland h ave the authority to order the destruction of
materials and implements of infringement as required by Article 46.
The courts in Iceland have this authority.  Reference is made to Iceland's response to the
Checklist of Issues on Enforcement (IP/N/6/ISL/1), question 5(c).
4. Please confirm whether the provisional measures required by Article 50 may be ordered
without notice to the defendant.
The main rule is that provisional measures may only be ordered if notice is given to the
defendant.  However, if it is established that relevant evidence may be impaired or that the interests of a
right holder may be damaged on account of delay caused by notice to the defendant, provisional
measures can be ordered without such notice.
This is stipulated in the Act on Execution of Judgement No. 90 from 1989 and the Act on
Attachment and Injunction No. 31 from 1990.IP/Q4/ISL/1
Page 8
ANNEX 1
Article 50A of the Customs Act No. 55/1987
When there is suspicion that importation of goods is taking place involving infringement of
intellectual property rights, the director of customs is authorised upon request by the right holder to
suspend customs clearance of the goods while the right holder seeks provisional measures form
competent authorities and following that initiates ju dicial proceedings. Authorization by the director of
customs is subject to the following conditions:
(a) that the right holder submits to the director of customs a written request for suspension
of customs clearance and commits himself to pay the cost derived from measures taken
by the customs authorities;
(b) that the right holder provides adequate evidence that the individual property right is
protected in this country, that he is the holder of this right and that the importation of the
goods will cause infringement of his right, he must, furthermore, supply a sufficientlydetailed description of the goods to make them readily recognizable by the customs
authorities;
(c) that the right holder provides a security in the form of a monetary deposit or in other
form deemed adequate by the director of cu stoms, sufficient to compensate the right
holder, owner or importer of the goods for the damage or costs which may be derivedform unjustified suspension of customs clearance.
If satisfactory evidence has been presented, the director of customs is authorized to suspend
customs clearance of the goods for a period not exceeding 10 weekdays. He shall promptly notify both
the right holder and the owner of the goods or importer of his decision. If the right holder has not within
the aforementioned time limit initiated proceedings with  the competent authorities to seek his right and
notified the customs authorities thereof in writing, the consignment may be cleared through customs.
The aforementioned time limit may be extended for 10 days when special circumstances apply.
The director of customs can on his own initiative suspend the customs clearance of goods in
respect of which he has acquired satisfactory evidence than an intellectual property right is being
infringed. He shall promptly dispatch a notification of his decision in writing to the right holder, givinghim a time limit of three weekdays from the receipt of the letter to make a request for suspension of
customs clearance according to paragraph I. If the right holder does not within this time limit request
suspension, the goods may be cleared through customs.
If a request for provisional measures is refused or a court has ruled that there has been no
infringement of an intellectual property right, the director of customs shall revoke his decision onsuspension of customs clearance. If a court has ruled th at there is infringement of an intellectual property
right and the ruling does not stipulate the disposal of the goods, the customs authorities may have the
goods destroyed or disposed of in another manner without harm to the right holder. If a ruling has been
appealed, the destruction or disposal of goods shall be postponed until final conclusion is available.
Small quantities of goods contained in travellers' personal luggage or sent in small consignments
are excluded from the provisions of this Article, provided the importation is of non-commercial nature.
Goods which have been marketed in another country by the right holder or with his approval and goodsin transit are also excluded.IP/Q4/ISL/1
Page 9
In regulations, the Minister shall issue further provisions concerning the suspension of customs
clearance. He can also require the right holder to pay storage fees and the costs incurred by the customs
authorities due to the aforementioned measures. The Minister can stipulate that the aforementioned
provisions shall apply to the exportation of goods.IP/Q4/ISL/1
Page 10
ANNEX 2
The Icelandic judicial system
I. GENERAL
The Icelandic courts may be divided into the following three categories:
(a) district courts, which are courts of first instance;
(b) the Supreme Court, which is the court of appeal for the whole country;(c) special courts, which are mostly courts of first and only instance.
The Icelandic constitution contains only few pr ovisions concerning the courts and judicial
procedure.  It does, however, state that the courts are to administer one of the three branches of state
power, and that they shall be competent to determine the legality of the acts and decisions of the
administrative authorities.  The constitution requires th at the judicial system be determined by law, and
some basic principles are also set forth regarding the independence of the judges.  It also contains rules
preventing the individual from being deprived of his freedom for more than a short period without beingbrought before a judge.  While the constitution does not contain a great deal of material on these matters,
the Icelandic judicial system is also based on principles stated in international agreements on human
rights to which the country is a party.
On 1 July 1992, new comprehensive legislation came into force in Iceland on the judicial system
at the first-tier level.  Compared with the previous legislation in this area, this entailed a fundamental
revision.  The chief difference is that not a complete distinction is drawn between the functions of the
representatives of the executive and the judiciary.  Until 1 July 1992, district commissioners outside the
capital Reykjavik carried out both judicial and executive functions.  This could result in the same official
dealing with a criminal case in the capacity of a chie f of police and a judge.  This arrangement originates
from the age of absolutism when all aspects of state power were united in a monarchy.  The maininnovation in the new legislation is that judicial power in both civil and criminal cases was transferred
from the district commissioners to eight newly-establis hed district courts.  The regional functions of the
executive are now divided between 27 district commissioners.  In conjunction with the transfer of
judicial power away from the district commissioners , many other functions or judicial acts which the
district commissioners had carried out in their capac ity as judges, were redefined as administrative acts.
They were considered by their nature to be far more of the order of ordinary executive or administrative
functions than judicial functions.  This applied to measures taken to enforce civil judgements, i.e.
compulsory possession of property, auctions in execution and the settlement of estates.  The district
commissioners, as agents of the executive, now discharge these functions, and the special courts
responsible for them under the old system have been abolished.
The eight judicial districts in the country vary greatly in size and population.  The general rule is
that the district courts are responsible for all judicial cases which do not fall under the jurisdiction of
special courts according to special rules.  Very few cases are reserved for treatment by special courts, so
in practice almost all cases, both civil and criminal, begin in the district courts.  In addition, these courts
deliver rulings on bankruptcy and insolvency proceedings and the public settlement of estates and
resolve disputes arising from the enforcement of civil judgements by the district commissioners.  Which
district court is to deal with each case depends on the rules on legal venue, which vary as regards civilcases, criminal cases and cases in connection with the enforcement of civil judgements and the
settlement of estates.IP/Q4/ISL/1
Page 11
Rulings and judgements by the district courts may be appealed to the Supreme Court if this is
done within the prescribed period and the conditions are met regarding minimum interests and monetary
amounts involved in civil cases.  There are no restrictions as to the types of criminal cases that may be
appealed to the Supreme Court.  The Supreme Court assesses both questions of law and questions of fact
in civil and criminal cases, and also the penalties in criminal cases.  The Supreme Court is able to review
the rulings of all Icelandic courts, with the exception of those of the High Court of State and decisionstaken on the merits of cases by the Labour Court.  Juries are not used in the handling of judicial cases in
Iceland, neither in the district courts nor in other parts of the judicial system.
There is no constitutional court or administrative court in Iceland.  The ordinary courts have
taken the view that they have the right to assess whether laws are materially unconstitutional, even
though their powers in this field are not expressly stat ed in the constitution itself.  If, for example, the
courts consider that a statutory provision violates the constitutional provisions on human rights, they
ignore it in their judgements.  However, Icelandic courts do not have the authority to rescind lawsformally, even though they are considered to be unconstitutional.
Under Article 60 of the Constitution, the courts are to rule on the extent of the power of
administrative authorities.  Thus, it is possible to refer decisions by the authorities to the courts with a
request that they be declared invalid.  The courts do not reassess the independent views involved in an
administrative decision, but are able to determine wh ether the authority involved followed the correct
procedure and whether the views on which the decision is based are lawful.  In the event of a flaw in the
procedure adopted by the authorities, the courts can invalidate the decision and require the authorities to
take the decision again on a lawful basis.
The district commissioners are chiefs of police, with the exception of the district commissioner
of Reykjavik district, in which there is a separate chief of police.  In addition to the ordinary police force,which is under the command of the chief of police in each administrative area, there is also the State
Criminal Investigation Police.  This force is responsible for the investigation of serious offences,
possibly in conjunction with the ordinary police.  The Criminal Investigation Police is under the
command of a separate director.
Chiefs of police investigate criminal cases, and can conclude minor cases with an out-of-court
settlement with the accused person.  They also act as the prosecution in minor criminal cases and bring
these before the district courts.  The supreme representative of the state as the prosecuting party is the
Director of Public Prosecutions, who is appointed by the President, acting on the recommendations of
the Minister of Justice.  The Directorate of Publ ic Prosecutions employs prosecutors who appear as
advocates on behalf of the prosecution.  The Director of Public Prosecutions does not direct the work ofthe police, though he is able to initiate investigatio ns by the police of criminal cases.  As the supreme
representative of the prosecution, he does however have the power to instruct and supervise police chiefs
when they act on behalf of the prosecution.  In cases in which the chiefs of police do not act on behalf of
the prosecution, the Director of Public Prosecutions is sent the evidence in the case after investigation
has taken place, and it is his responsibility to take a decision on whether to prosecute.
There are various rules as to who is able to act as an advocate for the prosecution.  When the
prosecution is in the hands of the Director of Public Prosecutions, he himself, or a legally-qualifiedmember of his staff, may plead the case, or else he can assign a chief of police or an advocate to do it.
When a chief of police acts on behalf of the prosecution, he himself or a member of his staff pleads the
case.  In cases before the Supreme Court, the Direct or of Public Prosecutions, a prosecutor employed by
the directorate or an advocate chosen by the Director of Public Prosecutions pleads the case for the
prosecution.IP/Q4/ISL/1
Page 12
During the investigation of a criminal case by the police, the police are obliged to grant a request
by an accused person who has been arrested for a person to be appointed to guard his legal interests.After the initiation of judicial proceedings in a criminal case, the judge is obliged to appoint a defence
counsel for an accused person in accordance with his own wishes.  As a general rule, only advocates
may be appointed to guard the legal interests of accused persons or to act as defence counsels.
Furthermore, an accused person may engage an advocate to act as his representative in a criminal casewithout any special process of appointment, in which ca se he does this at his own expense.  In criminal
cases, the state pays the fees of a person who guards the legal interests of an accused person or acts as
his defence counsel.  On the other hand, an accused person may be ordered to pay the legal costs in a
criminal case if he is convicted of the offence, the costs of his defence being part of these costs.  Thus,
the state is able to reclaim the cost of legal aid to the defendant in a criminal case.
The parties in a civil case may plead their own cases at both judicial levels, and the same applies
to the representatives of parties who are not individuals.  In practice, however, this is rare, so the generalrule is that advocates appear on behalf of both parties.
There is no general right of access to legal aid at the state's expense in civil cases.  A state-
funded legal aid may be applied for, and is provided by the Ministry of Justice for either plaintiff or
defendant on the recommendation of a special committee.  Legal aid may only be granted to cover the
cost incurred by the party himself as a result of civi l court proceedings.  In order to qualify for legal aid,
the party's case must justify the granting of aid, and either the party must be of limited financial means orelse the case must concern extremely important interests for him or have substantial general significance.
Because of the changes made in the Icelandic judicial structure on 1 July 1992, statistics on
judicial matters from earlier periods cannot be used to give a picture of the number of legal cases.  Final
statistics giving the number of judicial cases in I celand for the twelve months since 1 July 1992 were not
available at the time of writing.
About 75% of the civil cases brought in Iceland are heard by the Reykjavik District Court.
Between 1 July 1992 and 30 June 1993, 9,796 civil cases were brought before the Reykjavik District
Court.  Of these, 949 cases, or just under 10%, were defended.  Just under 45% of the criminal caseswhich come to court are brought before the Reykjavik District Court.  In the period 1 July 1992 to
30 June 1993, 617 criminal cases were brought before the court.
In 1992, appeals to the Supreme Court were lodged against 240 judgements in civil cases and 81
in criminal cases.  In the same year, appeals were lodged against 75 rulings by the district courts in civil
cases and 37 in criminal cases.  In 1992, the Supreme Court delivered 366 judgements in appeals and
other cases, while 46 cases in the Supreme Court were dropped.
II. THE INDIVIDUAL COURTS
The last few years have seen a tendency to reduce the number of special courts in Iceland.
Beside the District Courts, there are now two other courts of first instance:  the Labour Court and the
Court of State.  A description of the various types of courts follows below.
1. District Courts
District Courts judge in all civil and criminal cases at the first judicial level, unless special rules
entail some other arrangement.  District Courts deliver rulings in cases of dispute arising from the
actions of district commissioners in the course of execution of civil judgements, and take decisions
regarding debt moratoriums, compositions, bankruptcy and insolvency proceedings and the settlement ofIP/Q4/ISL/1
Page 13
estates.  They also appoint administrative receivers to carry out bankruptcy and insolvency proceedings
and the public settlement of estates, and make rulings in cases of dispute arising from the actions of
administrative receivers.
The District Courts are staffed by legally qualified District Court judges.  There are presently 38
District Court judges in the country.  In the smallest districts the courts have only one judge.  In the
District Court of Reykjavik, which is by far the largest, there are 21 judges.  The courts are also staffed
by thirteen legally qualified deputies.  Five of them are employed in the District Court of Reykjavik.
District Court judges are appointed permanently by the President of Iceland in accordance with
recommendations by the Minister of Justice;  prior to this, an independent committee gives a non-
binding opinion on applicants for the position of judges.  Judges in courts with more than one judge elect
among themselves a president of the court for a term of six years.  Legally qualified deputies are
authorized by the Minister of Justice to execute judicial functions entrusted them by the president of a
court, or by a District Court judge where there is only one judge in the court.  The president of the court
determines the deputy's responsibilities and decides under which District Court judge he is to work at
any given time.
The general rule is that one judge handles each case before the District Court.  A judge may
however, with the approval of the president of the court, appoint two other District Court judges to sit on
a case if it is extremely voluminous or particularly important in terms of general considerations.Secondly, a judge may appoint two specialists, without qualifications in law, to judge the case with him
when the resolution of the case depends on specialized knowledge in a field other than law;  these
specialists share in the treatment and resolution of the case in all its details.
Appeals against judgements delivered by the District Courts may be lodged with the Supreme
Court;  certain rulings made in the course of the proceedings in the District Courts may be appealed to
the Supreme Court by a summary procedure.
2. The Labour Court
The Labour Court judges cases involving actions concerning infringements against labour law,
actions for compensation arising from such infringements and disputes in connection with wages and
terms agreements.  In addition, the majority of the court may decide to judge other cases concerning thelabour relations between employers and workers if the parties have agreed to put the case before the
Labour Court.
The Labour Court sits in Reykjavik.  It consists of five judges appointed for terms of three years.
The Supreme Court appoints the president of the cour t and one other judge.  The Minister of Social
Affairs appoints one judge from a group of three nom inated by the Supreme Court.  Finally the opposing
members of the labour market appoint one judge each;  their identities vary according to what parties are
involved in the dispute.  The judges in the Labour  Court are not employed in full-time positions;  the
volume of their work for the court varies according to the number of cases received.
Some rulings of the Labour Court regarding procedural matters may be appealed to the Supreme
Court, but there is no appeal against the Labour Court' s judgements.  It is thus the first and only judicial
level in its field.IP/Q4/ISL/1
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3. The Court of State
Provision for the Court of State is in Article 14 of the Constitution.  The Court of State judges
cases which the Althing (Parliament) decides to bring against ministers in connection with the execution
of their duties.  Fifteen judges sit in the Court of St ate.  They are the five judges of the Supreme Court
who are of longest standing, the President of the Reykjavik District Court, the Professor of
Constitutional Law at the University of Iceland and eight persons elected by the general assembly of the
Althing by proportional representation for terms of six years.
The President of the Supreme Court is automatically President of the Court of State.  No cases
have yet been prosecuted before the Court of State, so it has never been convened.
Judgements by the Court of State may not be appealed to the Supreme Court.
4. The Supreme Court of Iceland
The Supreme Court is the sole court of appeal.  It sits in Reykjavik.  Eight judges, appointed on
a permanent basis by the President of Iceland, serve in the court.  The Supreme Court judges elect
among themselves the president of the court for a term of two years.  The number of judges involved inthe handling of each case varies between three, five  and seven according to the nature and importance of
the case.  The court functions in two chambers.
In only one category of cases is the Supreme Court the first and only judicial level;  these are
cases in which claims are presented for compensation arising from the actions of judges.
Appeals brought before the Supreme Court are of two types:  against judgements in civil or
criminal cases, and against certain rulings taken by a judge during court proceedings.  Appeals may also
be lodged against the conclusions of judicial cases which vary according to the category of the case and
the type of appeal.  The right of appeal is also lim ited with respect to the interests involved in the case,
and it depends on whether the case was defended at the lower judicial level.  Limitations of this type
apply to a greater extent in civil than in criminal cases.
The right to appeal in criminal cases does not depend on minimum sums of fines or the types of
offence.  An appeal may be lodged regarding a criminal  case in its entirety, calling for the review of all
of the following:  the determination of guilt (or innocence), i.e., whether the defendant committed the
offence with which he is charged;  the application of penal provisions and the determination of the
penalty.  It is also possible to appeal only against the part of the case concerning the application of penal
provisions or the determination of the penalty.
The Supreme Court is the highest court in Iceland and its rulings are final.
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