Publication:
Latvijas Vēstnesis
, 106,
31.05.2017.
OP number: 
2017/106.1
Issuer: 
Saeima
Type: 
law
Adoption: 
18.05.2017.
Entry into force: 
14.06.2017.
The 
Saeima
1
 has adopted and
the President has proclaimed the following Law:
Law on Collective Management of 
Copyright
Chapter I
General Provisions
Section 1. Terms Used in this 
Law
The following terms are used in this Law:
1) 
dependent management entity 
- a legal person which 
is controlled by a collective management organisation
and is 
operating in Latvia. Within the meaning of this Law, the control 
is direct or indirect implementation of the control
on the basis 
of the Law or an agreement with voting rights, the right to 
appoint or revoke members of an administrative
body;
2) 
rights revenue 
- remuneration collected by a 
collective management organisation on behalf of holders of
copyright or related rights by managing their economic rights, 
including revenue from remuneration investments;
3) 
collective management agreement 
- an agreement by 
which a holder of copyright or related rights entrusts the
collective management organisation to manage on his or her behalf 
the economic rights of the holder of copyright or
related 
rights;
4) 
collective management organisation 
- a legal person 
which on the basis of the Law or an agreement is
entitled to 
manage economic rights of holders of copyright or related rights 
if its purpose of activity or one of the main
purposes of 
activity is the performance of such management in the collective 
interests of the represented holders of
copyright or related 
rights, and which is at least either controlled by its members or 
it is organised on a not-for-profit
basis;
5) 
online rights in musical works 
- reproduction rights 
and rights for communication to the public of the author of
a 
musical work necessary for the provision of online service, 
including making available to the public of the work, by
wire or 
otherwise, in such a way that it may be accessed from a place and 
at a time individually chosen by them;
6) 
independent management entity 
- a legal person the 
purpose of activity of which is profit earning and which on
the 
basis of the Law or an agreement is entitled to manage copyright 
or related rights of several holders if its purpose
of activity 
or one of the main purposes of activity is the performance of 
such management in the collective interests
of the represented 
holders of copyright or related rights, and which is not 
controlled by such holders;
7) 
representation agreement 
- an agreement whereby one 
collective management organisation mandates another
collective 
management organisation to manage the economic rights of the 
holders of copyright or related rights
managed by it;
8) 
management fees 
- the amounts for covering costs for 
collective management of the economic rights of
holders of 
copyright or related rights which a collective management 
organisation deducts or compensates from the
rights revenue.
Section 2. Purpose of the Law and 
Scope of Application
(1) The purpose of the Law is to create legal preconditions 
for efficient performance of collective management of
copyright 
and related rights.
(2) The Law governs activity of collective management 
organisations, independent management entities, and
dependent 
management entities by managing the rights of the holders of 
copyright and related rights in the collective
interests of the 
abovementioned holders of copyright or related rights, and also 
prescribes the procedures for
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23supervising the activity of 
collective management performers and special provisions for the 
settlement of disputes.
(3) The provisions of this Law shall be applied to dependent 
management entities insofar as they carry out the
activities 
characteristic to a collective management organisation. 
Regardless of what activities characteristic to a
collective 
management organisation are carried out by dependent management 
entities, the provisions of Section 14,
Paragraphs one, two, 
three, and four of this Law are applied to them, and their 
supervision is carried out in accordance
with the provisions of 
Section 64 of this Law.
(4) The provisions of Section 30, Paragraph one, Sections 36, 
37, and Section 38, Clauses 1, 2, 6, 7, and 8 of this
Law shall 
be applied also to independent management entities. Their 
supervision shall be carried out in accordance
with the 
provisions of Section 65 of this Law.
Chapter II
Basic Provisions of Collective Management of Economic Rights
Section 3. Collective Management of 
Economic Rights
(1) Holders of copyright or related rights may entrust only 
economic rights to be managed on a collective basis.
(2) The economic rights of the holders of copyright and 
related rights shall be managed only on a collective basis
in 
respect of:
1) a public performance, if it occurs in places of 
entertainment, cafes, shops, hotels, and other similar 
places;
2) lease, rental and public lending (except for computer 
programs, databases, and works of art);
3) retransmission (except for the rights of broadcasting 
organisations, irrespective of whether it is their own
broadcasting organisation rights or those which holders of 
copyright or related rights have transferred to the
broadcasting 
organisation);
4) reproduction for personal use;
5) reprographic reproduction for personal use;
6) resale of original works of visual art;
7) use of phonograms published for commercial purposes.
(3) Collective management in relation to the use of a 
copyright objects or other subject-matter indicated in
Paragraph 
two of this Section may be performed simultaneously only by one 
collective management organisation
established by each group of 
holders of copyright and related rights.
(4) A holder of copyright and related rights is entitled, in 
the case and scope specified in Section 6 of this Law, to
individually manage his or her rights in respect of the use of 
copyright objects or other subject-matter indicated in
Paragraph 
two, Clauses 1, 2, 3, and 7 of this Section, except for public 
lending.
(5) A licence issued by a holder of copyright or related 
rights himself or herself or a licence agreement entered into
in 
respect of the use indicated in Part two of this Section, and 
also in respect of the use of their rights the
management of 
which, according to a collective management agreement, is 
entrusted to a collective management
organisation is not in 
effect. This condition shall not apply to the case specified in 
Section 6 of this Law.
Section 4. Establishment of a 
Collective Management Organisation
(1) The Associations and Foundations Law shall govern the 
establishment of a collective management
organisation in Latvia, 
the activities, reorganisation, and liquidation thereof, insofar 
as it is not laid down otherwise in
this Law.
(2) A collective management organisation for collective 
management of economic rights of authors shall be
established by 
the authors.
(3) A collective management organisation for the collective 
management of related rights shall be established by
the holders 
of related rights.
Chapter III
Representation of Holders of Copyright or Related Rights
Section 5. Obligation to Represent 
Holders of Copyright or Related Rights and Entering into a 
Collective
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23Management Agreement
(1) A collective management organisation shall, upon request 
of a holder of copyright or related rights, enter into a
collective management agreement with him or her, undertaking to 
manage economic rights freely selected by the
holder of copyright 
or related rights in respect of his or her freely selected types 
of works and other subject-matter and
territory if:
1) the rights, works or other subject-matter to be managed, 
and also the territory where management is to be
carried out is 
within the field of activity of the collective management 
organisation;
2) there is no objectively justified reason for refusing to 
undertake carrying out of collective management.
(2) A collective management agreement shall be entered into in 
writing, indicating those economic rights and types
of works or 
other subject-matter which are entrusted by the holder of 
copyright or related rights to be managed by a
collective 
management organisation.
(3) In respect of the types of use of works and other 
subject-matter indicated in Section 3, Paragraph two of this
Law 
a collective management organisation is entitled to represent the 
holders of copyright and related rights without
entering into a 
collective management agreement. In such case the holders of 
copyright or related rights are entitled to
request that the 
collective management organisation disburses remuneration due to 
them according to the performed
distribution of rights 
revenue.
(4) Regardless of the basis of representation a collective 
management organisation shall apply similar provisions
to 
management of the rights of holders of copyright or related 
rights represented by it, including in respect of
determining the 
remuneration, management fees, collection, distribution of rights 
revenue, and disbursement of
remuneration.
Section 6. Non-commercial Use
(1) Upon entering into a collective management agreement, and 
also in the case indicated in Section 5, Paragraph
three of this 
Law the holder of copyright or related rights is entitled to 
issue licences for non-commercial use of his or
her works or 
other subject-matter even if the holder of copyright or related 
rights has entrusted the management of the
relevant economic 
rights to a collective management organisation or such rights are 
being managed only collectively.
(2) A collective management organisation shall develop 
conditions according to which the represented holders of
copyright or related rights may issue licences for non-commercial 
use of their works or other subject-matter. Such
conditions may 
not unjustifiably infringe and restrict the rights of the holders 
of copyright or related rights to issue the
licences referred to 
in this Section.
(3) A licence issued not complying with that referred to in 
Paragraph two of this Section is not valid.
Section 7. Termination of Collective 
Management
(1) A holder of copyright or related rights has the right to 
terminate a collective management agreement or
collective 
management of certain rights, works, or other subject-matter, in 
respect of freely selected territories by
notifying the 
collective management organisation thereof at least six months in 
advance, unless a shorter period of
time for notification is laid 
down in the agreement.
(2) A collective management organisation may provide for in a 
collective management agreement that termination
of the agreement 
or certain types of rights, works, or other subject-matter 
referred to in Paragraph one of this Section
shall enter into 
effect at the end of the relevant financial year.
(3) A collective management organisation shall continue to 
manage such rights revenue for the benefit of a holder
of 
copyright or related rights which are collected in the interests 
of such holder of copyright or related rights:
1) for a period of time before terminating the relevant 
collective management agreement or collective management
of 
certain types of rights, works, or other subject-matter;
2) according to licences which have been issued before the 
termination of the collective management agreement
or collective 
management of certain types of rights, works, or other 
subject-matter.
Section 8. Admission of the Members 
of a Collective Management Organisation
(1) A collective management organisation shall admit the 
holders of copyright or related rights and associations
thereof 
as its members, including other collective management 
organisations if they comply with the admission
provisions of the 
members specified in the articles of association of the 
organisation.
(2) The provisions for admission of members shall be 
objective, clear, and non-discriminating.
(3) A collective management organisation has a duty to admit 
as a its member every holder of copyright or related
rights 
represented by the organisation.
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23(4) If a member candidate fails to comply with any of the 
requirements laid down for members specified in the
articles of 
association, fails to comply with the admission provisions for 
members or has been previously excluded
from the collective 
management organisation for infringement of the articles of 
association, the collective
management organisation may take a 
justified decision to refuse to admit the member and issue the 
decision taken to
the member candidate in writing.
Section 9. Electronic 
Communication
A collective management organisation shall ensure that its 
members and represented holders of copyright or
related rights 
may communicate with the collective management organisation using 
electronic means of
communication.
Section 10. Accounting of Members or 
Represented Holders of Copyright or Related Rights
A collective management organisation shall conduct a register 
of its members, holders of copyright or related
rights 
represented on the basis of an agreement and of those holders of 
copyright or related rights represented on the
basis of the Law 
to whom such organisation has disbursed remuneration, and entries 
shall be updated in the
abovementioned register on a regular 
basis. The collective management organisation shall indicate the 
given name,
surname, and contact details for communication with 
the relevant holder, and also other data of significance for
managing the economic rights of holders of copyright or related 
rights in the relevant register of the holders of
copyright or 
related rights represented thereby on the basis of the Law or an 
agreement.
Chapter IV
Administration and Internal Supervision of a Collective 
Management
Organisation
Section 11. Prohibition of Member 
Discrimination in Administration of a Collective Management
Organisation
A collective management organisation shall ensure that its 
members have the right to participate in administration
of the 
organisation without any direct or indirect discrimination. 
Different groups of holders of copyright or related rights
shall 
be ensured with fair and balanced participation in administration 
of the organisation.
Section 12. Competence of the 
Meeting of Members
(1) In addition to that provided for in the Associations and 
Foundations Law the competence of the meeting of
members shall 
include the following issues:
1) the election and withdrawal of the council members, 
evaluation of their work results, approval of remuneration
and 
other economic benefits;
2) the election and withdrawal of the members of the executive 
board;
3) the evaluation of the results of the members of the 
executive board, approval of their remuneration and other
economic benefits;
4) the appointment and withdrawal of an auditor;
5) the approval of an annual transparency report;
6) the approval of general regulations for the distribution of 
rights revenue (Section 20);
7) the approval of general regulations for rights revenue not 
to be disbursed (Section 23);
8) the approval of general investment regulations for rights 
revenue;
9) the approval of general regulations regarding deductions 
from rights revenue, including regarding management
fees and 
deductions for the provision of social, cultural and educational 
services (Section 24);
10) the approval of risk management general regulations;
11) the approval of any acquisition, alienation and mortgage 
transactions of immovable property;
12) the approval of mergers and alliances, the setting-up of 
entities, and the acquisition of other entities or shares
in 
other entities;
13) the approval of taking out loans, granting loans, or 
providing security for loans, including guarantees;
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2314) the approval of conditions in respect of the rights of 
holders of copyright or related rights represented by the
collective management organisation to issue licences for 
non-commercial use of their works and other subject-matter.
(2) The meeting of members may delegate the powers referred to 
in Paragraph one, Clauses 2, 3, 4, 10, 11, 12,
13, and 14 of this 
Section to the council of the collective management 
organisation.
Section 13. Convening a Meeting of 
Members and Participation of Members in the Meeting
(1) A collective management organisation shall convene a 
meeting of members at least once a year.
(2) A collective management organisation shall provide the 
procedures in its articles of association by which its
members 
who do not participate in the meeting of members onsite may 
participate in the meeting of members and
exercise their rights 
using electronic means of communication.
(3) Members of a collective management organisation are 
entitled to participate in a meeting of members with the
intermediation of the authorised representative, unless it does 
not cause a conflict of interests. The proxy issued to
the 
representative shall be valid for the relevant meeting of 
members. The representative has a duty to vote according
to the 
instructions of the principal. The collective management 
organisation may specify restrictions in the articles of
association for the number of the authorisations of those members 
who are represented by one authorised
representative.
Section 14. Inadmissibility of a 
Conflict of Interests of a Member of the Executive Board
(1) The executive board of a collective management 
organisation shall administer and represent the collective
management organisation in the interests of holders of copyright 
or related rights represented by it.
(2) A member of the executive board, upon performing his or 
her obligations, is prohibited to be in a conflict of
interests.
(3) A member of the executive board is in a conflict of 
interests if he or she must take a decision or participate in
decision-making, or must carry out other activities related to 
the position of the member of the executive board which
affect or 
may affect personal or economic interests of such member of the 
executive board, his or her relatives or
transaction partners. 
Within the meaning of this Section a father, mother, grandmother, 
grandfather, child, grandchild,
adoptee, adopter, brother, 
sister, step-sister, step-brother, spouse shall be regarded as 
relatives. Within the meaning
of this Law, natural persons or 
legal persons, or associations of natural and legal persons 
established on the basis of
an agreement which have entered into 
transactions with the member of the executive board the amount of 
which
exceeds 20 minimum monthly salaries shall be recognised as 
transaction partners.
(4) A collective management organisation shall determine the 
procedures by which the conflict of interests of its
member of 
the executive board shall be prevented. In respect of a conflict 
of interest which cannot be prevented due
to objective reasons, 
the collective management organisation shall determine the 
procedures by which such conflict of
interests is determined, 
discovered, and managed, including terminated, which ensure that 
the conflict of interests
does not harm the lawful interests of 
holders of copyright and related rights represented by the 
collective management
organisation.
(5) Each member of the executive board shall provide an annual 
report to the meeting of members where
information regarding the 
following is included:
1) all its interests in the collective management 
organisation;
2) remuneration or benefits of any other kind which he or she 
has received in the previous financial year from the
collective 
management organisation;
3) remuneration which he or she has received in the previous 
financial year from the collective management
organisation as a 
holder of copyright or related rights;
4) actual or possible conflict between personal interests and 
interests of a collective management organisation or
between 
obligations against a collective management organisation and 
obligations against third parties.
Section 15. Council of a Collective 
Management Organisation
(1) The council of a collective management organisation is the 
supervisory body of the collective management
organisation which 
represents the interests of members in the time period between 
meetings of members and within
the framework laid down in this 
Law and the articles of association supervises activities of the 
executive board of the
collective management organisation.
(2) The council shall consist at least of three members. The 
collective management organisation shall ensure fair
and balanced 
participation in the council for the represented groups of 
holders of copyright or related rights.
(3) A natural person with a capacity to act may be a member of 
the council. The member of the council may not be
a member of the 
executive board of a collective management organisation, a person 
who has entered into an 
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23employment agreement with the collective 
management organisation, or a member of the executive board or of 
the
council of a dependent management entity. The articles of 
association may also provide for other restrictions for the
member of the council.
(4) The council shall be elected for a period of time which is 
not longer than three years. Members of the council
shall be 
elected and withdrawn by a decision of the meeting of members. A 
member of the council has no right to
transfer his or her powers 
to the third parties. Members of the council shall elect a 
chairperson of the council from
amongst them.
(5) A member of the council may leave the position of the 
member of the council at any time by submitting a
notification 
thereof to the collective management organisation. If the member 
of the council leaves the position, a
meeting of members shall 
elect a new member of the council for the remaining term of 
office of the council. The
procedures for appointing a temporary 
member of the council who is acting until the meeting of members 
shall be
determined in the articles of association of the 
collective management organisation if the council is not capable 
to
take decision without appointing a temporary member of the 
council.
(6) The council shall have a quorum if more than half of the 
council members are present at its meeting. The
council shall 
take decisions with a majority vote of the persons present.
(7) The council has the following powers and tasks:
1) the powers which have been delegated thereto by the meeting 
of members;
2) to supervise the activity and fulfilment of the obligations 
of the members of the executive board of the collective
management organisation;
3) to supervise the delegation of functions of the collective 
management organisation to dependent management
entities, 
including to supervise the activities of the executive board of 
the collective management organisation in
respect of control of 
dependent management entities.
(8) The council has the following rights:
1) at any time to request a report from the executive board on 
the situation of the collective management
organisation and 
become familiar with all activities of the executive board;
2) to examine the documents of the collective management 
organisation;
3) to convene a meeting of members or to assign the executive 
board to convene it, if it is necessary in the
interests of the 
collective management organisation.
(9) The council shall organise meetings on a regular basis and 
provide a report to the meeting of members at least
once a year 
on its activity, including inform of decisions which are taken in 
respect of the issues delegated to the
council during the time 
period between meetings of members.
(10) Each member of the council shall, once a year, provide a 
report to the meeting of members, including therein
the 
information indicated in Section 14, Paragraph five of this 
Law.
Chapter V
Rights Revenue
Section 16. Duty of Care
A collective management organisation shall manage rights 
revenue, including collect, store, invest, distribute them
and 
disburse remuneration with care of an honest and decent 
manager.
Section 17. Separate Accounting of 
Rights Revenue
A collective management organisation shall separate in its 
accounting records:
1) rights revenue;
2) any own assets and income earned from such assets, 
management fees, or other activities.
Section 18. Investments of Rights 
Revenue
(1) Upon investing rights revenue, a collective management 
organisation shall comply with the general investment
regulations 
and general risk management regulation, and also take into 
account the following provisions:
1) investments shall be made only in the interests of the 
represented holders of copyright or related rights;
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232) the strategies which in conformity with the information 
provided by an investment attractor or investment
management 
company ensure investment safety, quality, liquidity, and 
profitability, shall be selected;
3) investments shall be sufficiently diversified in order not 
to allow excessive relying on any asset and prevent risk
accumulation in the portfolio of investments.
(2) A collective management organisation is entitled to invest 
rights revenue in a deposit account in a credit
institution.
(3) A collective management organisation is entitled to invest 
the rights revenue in government securities if such
decision is 
approved by its council.
(4) On the basis of the opinion of a sworn auditor, the 
meeting of members of a collective management
organisation may 
take a decision to carry out investments of other type.
Section 19. Use of Rights 
Revenue
(1) A collective management organisation is entitled to use 
rights revenue only for the following purposes:
1) for distribution and disbursement to the holders of 
copyright or related rights represented by it and other
collective management organisations according to representation 
agreements;
2) for covering management fees;
3) for deductions for the provision of social, cultural or 
educational services;
4) for use according to the general regulations for the use of 
rights revenue not to be disbursed.
(2) Until distribution of rights revenue a collective 
management organisation is entitled to invest them in conformity
with the provisions of Section 18 of this Law.
Section 20. General Regulations for 
the Use of Rights Revenue
(1) General regulations for the use of rights revenue shall 
provide for the procedures for regular, decent and precise
distribution of such revenue, including by determining the 
obligation to disburse remuneration to all holders of
copyright 
or related rights in proportion to the use of their works and 
other subject-matter, unless it is otherwise
provided for in this 
Law or the Copyright Law.
(2) It may be intended in the general provisions for use of 
rights revenue that remuneration to represented holders
of 
copyright or related rights or other collective management 
organisations shall not be distributed and disbursed in
proportion to the use of theirs works or other subject-matter if 
expenditure for such distribution or disbursement is
equal or 
more than the amount of remuneration to be disbursed. In such 
cases the collective management
organisation is entitled to use 
other distribution methods.
Section 21. Time Periods for 
Distribution of Rights Revenue and Disbursement of 
Remuneration
(1) A collective management organisation shall distribute 
rights revenue and disburse the remuneration to the
holders of 
copyright or related rights represented by it without delay, 
however not later than nine months after the end
of the financial 
year in which the rights revenue has been collected.
(2) If the user has failed to submit reports within the due 
date for use of works or other subject-matter or a
collective 
management organisation cannot identify the holder of copyright 
or related rights, or if information regarding
reference of works 
or other subject-matter to a certain holder of copyright or 
related rights is not sufficient, or there are
other objective 
obstacles, the time period for disbursement of remuneration is 
extended until rectification of the
relevant circumstances.
(3) A collective management organisation shall indicate 
separately in its accounting records a remuneration which
cannot 
be disbursed within the time period specified in this Section 
because the holder of copyright or related rights
cannot be 
identified or located.
Section 22. Identification and 
Searching of Holders of Copyright or Related Rights
(1) If remuneration cannot be disbursed within the time period 
specified in Section 21 of this Law because the
holder of 
copyright or related rights cannot be identified or located, the 
collective management organisation shall carry
out measures in 
order to identify or locate a holder of copyright or related 
rights if expenditure for the performance of
relevant measures is 
commensurate with the amount of remuneration to be disbursed.
(2) Within three months after the end of the time period 
referred to in Section 21, Paragraph one of this Law the
collective management organisation shall inform the holders of 
copyright or related rights represented on the basis of
the 
collective management agreement, members, and other collective 
management organisations with which it has
entered into 
representation agreements on the works or other subject-matter 
the holders of copyright or related rights
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23of which have not been 
identified or located. The collective management organisation 
shall provide all the information
at its disposal which may help 
to identify the holder of copyright or related rights, 
including:
1) the name of the work or other subject-matter;
2) the name or title of the holder of copyright or related 
rights which is to be identified or located;
3) the name or title of the publisher or producer of the 
relevant work or other subject-matter.
(3) If the holder of copyright or related rights cannot be 
identified or located, the collective management
organisation 
shall, within one year after the end of the time period referred 
to in Paragraph two of this Section, publish
the relevant 
information on its website.
Section 23. Rights Revenue not to be 
Disbursed and Limitation Period
(1) Rights revenue shall be recognised as non-disbursable if 
the holder of copyright or related rights to whom
remuneration is 
due has not been identified or located within three years after 
the end of the financial year in which the
rights revenue have 
been collected, and the collective management organisation has 
taken measures in accordance
with Section 22, Paragraph one of 
this Law in order to identify or locate the holder of copyright 
or related rights.
(2) If a holder of copyright or related rights is not 
identified or located within the time period specified in 
Paragraph
one of this Section, his or her claims to disburse 
remuneration shall expire within three years after the end of the
financial year in which the rights revenue have been 
collected.
Section 24. Management Fees and 
Other Deductions
(1) Management fees and other deductions from the rights 
revenue, and also the maximum amount of such
deductions and the 
procedures for performance thereof shall be determined by the 
meeting of members of the
collective management organisation.
(2) Management fees shall be commensurate and their amount may 
not exceed the justified and documented
expenditure which have 
arisen for the collective management organisation upon managing 
economic rights of the
holders of copyright or related rights 
according to the regulations approved by the meeting of members 
of the
collective management organisation.
(3) The collective management organisation may provide social, 
cultural or educational services in the interests of
the 
represented holders of copyright or related rights, and also in 
conformity with the objectives and tasks thereof,
financing them 
from the rights revenue. Such management shall be carried out 
according to the procedures and
regulations approved by the 
meeting of members of the collective management organisation.
Chapter VI
Collective Management of Economic Rights on Behalf of Other 
Collective
Management Organisation
Section 25. Basis for Representation 
and Special Provisions
(1) One collective management organisation is entitled to 
manage economic rights of holders of copyright or
related rights 
represented by another collective management organisation on the 
basis of the Law or a representation
agreement.
(2) Only one collective management organisation without 
authorisation of another collective management
organisation shall 
manage economic interests of the holders of copyright or related 
rights in respect of each of the
following types of use of works 
or other subject-matter:
1) public lending;
2) reproduction for personal use;
3) reprographic reproduction for personal use.
Section 26. Payments and 
Deductions
(1) The collective management organisation has an obligation 
to distribute rights revenue and disburse
remuneration due to 
another collective management organisation.
(2) Deductions from the remuneration to be disbursed to 
another collective management organisation, except for
the 
management fees, shall be permissible only upon a consent clearly 
expressed by the relevant collective
management organisation.
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23(3) The rights revenue due to another collective management 
organisation shall be distributed and remuneration
shall be 
disbursed without delay, however not later than nine months after 
the end of the financial year in which the
rights revenue was 
collected, unless objective reasons relating in particular to 
reporting by users, identification and
location of holders of 
copyright or related rights, or matching of information related 
to works or other subject-matter
with the holders of copyright or 
related rights preclude from meeting the abovementioned 
deadline.
(4) The collective management organisation shall disburse the 
remuneration referred to in Paragraph three of this
Section to 
the holders of copyright or related rights represented by it 
without delay, however not later than six months
after receipt of 
the remuneration, unless objective reasons relating in particular 
to reporting by users, identification of
holders of copyright or 
related rights, or matching of information related to works or 
other subject-matter with the
holders of copyright or related 
rights preclude from meeting the abovementioned deadline.
Section 27. Obligation to Provide 
Information to a Represented Collective Management 
Organisation
(1) A collective management organisation shall, not later than 
12 months after the end of the financial year, provide
information, using electronic communication, to the collective 
management organisation on behalf of which it manages
economic 
rights of the holders of copyright or related rights on the basis 
of the representation agreement on the
following in the previous 
financial year:
1) the rights revenue calculated on the basis of the 
representation agreement which is due to the represented
collective management organisation according to the information 
which is the basis for distribution, arranging the
information to 
be provided in conformity with the managed rights and types of 
use;
2) the remuneration disbursed on the basis of the 
representation agreement to the represented collective
management 
organisation according to the information which is the basis for 
distribution, arranging the information to
be provided in 
conformity with the managed rights and types of use;
3) management fees made and their content;
4) deductions made for other purposes and their content;
5) authorisations issued to and refused for users for the use 
of such works or other subject-matter to which the
representation 
agreement applies;
6) the decisions taken by the meeting of members which apply 
to the management of economic rights according to
the 
representation agreement.
(2) In addition to the information indicated in Paragraph one 
of this Section the collective management organisation
shall 
provide data on the calculated rights revenue on the basis of the 
representation agreement which is due to the
represented 
collective management organisation according to the information 
which is the basis for distribution and
has not been disbursed 
yet.
Chapter VII
Relations with Users of Works and Other Subject-matter
Section 28. Obligation to Enter into 
a Licence Agreement
(1) Upon request of a user a collective management 
organisation shall enter into a licence agreement with him or
her, issuing an authorisation for the use of works or other 
subject-matter of the holders of copyright or related rights
represented by the collective management organisation. If the 
holders of copyright or related rights represented by the
collective management organisation do not possess exclusive 
rights, however, have the right to remuneration, the
collective 
management organisation shall enter into the agreement upon 
request of the users in which the procedures
for disbursing the 
remuneration shall be determined.
(2) The collective management organisation has the right to 
offer different provisions of a licence agreement for
providers 
of new type online services if such decision is approved by its 
council. Within the meaning of this Law such
online service shall 
be regarded a new type online service which has been available in 
the European Union Member
States or European Economic Area states 
for less than three years.
Section 29. Entering into an 
Agreement with an Association of Users
Upon a request of an association of users, a collective 
management organisation shall enter into agreement with it
on the 
use of works or other subject-matter of the holders of copyright 
or related rights represented by the collective
management 
organisation.
Section 30. Entering into an 
Agreement
(1) A collective management organisation shall reply without 
undue delay to requests from a user or alliance of
users for 
entering into an agreement and inform of all the data needed for 
the collective management organisation to 
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23users for 
entering into an agreement and inform of all the data needed for 
the collective management organisation to
enter into the 
agreement. After receipt of such data the collective management 
organisation shall immediately offer to
the user or alliance of 
users to enter into the agreement or to refuse to enter into the 
agreement, indicating
substantiated arguments.
(2) A fair remuneration shall be determined in the agreement 
for use of works or other subject-matter.
Section 31. Payment of Remuneration 
with a Condition
(1) If a collective management organisation and a user have 
agreed on the provisions of a licence agreement,
except for the 
issue of the amount of remuneration, because there is a dispute 
between the parties over the
substantiation of the amount of 
remuneration specified by the collective management organisation, 
an authorisation to
use the works of holders of copyright 
represented by the collective management organisation shall be 
recognised as
received if the user carries out the following 
activities in relation to the remuneration in order to receive 
it:
1) pays without any condition to the collective management 
organisation in such amount which the user considers
as 
substantiated;
2) in the amount which the user does not recognise as 
substantiated, pays to the collective management
organisation 
with a condition that the remuneration is to be refunded to him 
or her if it is recognised as overpaid in
accordance with the 
provisions of this Section.
(2) An authorisation to use the works of holders of copyright 
represented by the collective management
organisation shall be 
recognised as received at the time when the user has met both 
conditions provided for in
Paragraph one of this Section. The 
user shall use the works according to the provisions of the 
licence agreement.
(3) The collective management organisation is entitled not to 
repay the remuneration paid with a condition if:
1) the user has recognised in writing the rights of the 
collective management organisation not to repay the
remuneration 
paid with a condition - in full amount of the remuneration paid 
with a condition;
2) the collective management organisation and the user have 
agreed in writing on the right of the collective
management 
organisation not to repay the remuneration paid with a condition 
in such amount as to which the parties
have agreed;
3) the right of the collective management organisation to 
remuneration which exceeds the remuneration paid
without a 
condition by the user has been recognised by the judgment of a 
court or court of arbitration which has
entered into effect - in 
its exceeded amount;
4) the user is dead or has been liquidated, and he or she does 
not have any successor in rights and obligations - in
full amount 
of the remuneration paid with a condition;
5) legal proceedings or process of court of arbitration in a 
dispute over the justification of the amount of
remuneration 
specified by the collective management organisation have not been 
initiated within two years since
payment of the remuneration with 
a condition or if it has been paid in parts, from the payment of 
the first part - in full
amount of the remuneration paid with a 
condition.
(4) The remuneration which, in accordance with Paragraph three 
of this Section, the collective management
organisation is not 
entitled not to refund shall be recognised as overpaid and the 
collective management organisation
shall immediately repay it to 
the user. The user is entitled to receive the remuneration paid 
with a condition also in
case if the collective management 
organisation is liquidated and it has no successor in rights and 
obligations.
(5) The user shall inform the collective management 
organisation in writing before payment of the remuneration in
what amount he or she will pay the remuneration with the 
condition indicated in Paragraph one, Clause 2 of this
Section. 
The collective management organisation shall, immediately after 
receipt of the notification of the user in
writing, provide the 
information necessary for making the payment. The collective 
management organisation shall
keep the remuneration paid with a 
condition in a separate deposit account in a credit institution 
until the time when any
of the cases referred to in this Section 
sets in, and it is entitled not to repay the remuneration paid 
with a condition or
it has an obligation to disburse it, fully or 
partly, to the user.
(6) The right to bring an action for the substantiation of the 
amount of the remuneration laid down by the collective
management 
organisation shall expire within the time period laid down in 
Paragraph three, Clause 5 of this Section.
(7) The provisions of this Section shall be also applied in 
case if the collective management organisation and the
user 
cannot reach an agreement on the remuneration to be paid 
indicated in Section 51, Paragraph three or Section
52, Paragraph 
one of the Copyright Law.
Section 32. Determination of the 
Rates for Remuneration
(1) A collective management organisation shall determine the 
rates for remuneration to be collected for the use of
works or 
other subject-matter managed by it. The rates for remuneration 
shall be determined, taking into account the
10
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23fact that the 
holders of copyright or related rights represented by the 
collective management organisation have the
right to receive fair 
remuneration for the use of their works or other 
subject-matter.
(2) Upon determining the rates for remuneration, the 
collective management organisation shall take into account:
1) direct commercial benefit which is obtained by the user of 
the work or other subject-matter as a result of the
relevant 
use;
2) the purpose, amount and significance of the use of the work 
or other subject-matter depending on the type of
use within the 
scope of economic activity or other activity;
3) the economic value of services provided by the collective 
management organisation;
4) the financial resources invested in the creation or 
establishment of the work or other subject-matter, and other
values characterising the economic validity of remuneration.
(3) The rates for remuneration may be determined also on the 
basis of other objective criteria not referred to in
Paragraph 
two of this Section, including the criteria of indirect 
commercial or non-financial benefit which are
sufficiently clear 
and application of which is not related to incommensurate 
management fees of the collective
management organisation.
(4) The collective management organisation shall inform the 
relevant users of the criteria used for determination of
the 
rates for remuneration.
(5) Upon assessing the justification of the rate for 
remuneration, the court shall take into account the limit values
of the amount of use of works or other subject-matter specified 
by the collective management organisation.
Section 33. Obligation of Users to 
Provide Information
(1) Upon request of a collective management organisation the 
user shall provide information regarding the use of
such works or 
other subject-matter in respect of which the collective 
management organisation manages the
economic rights of holders of 
copyright or related rights. The collective management 
organisation is entitled to request
only such information which 
is necessary for efficient collection, distribution of rights 
revenue, and disbursement of
remuneration to holders of copyright 
or related rights. The obligation to provide information shall 
not apply to users
which are consumers within the meaning of the 
Consumer Rights Protection Law, and also in case if the provision 
of
information is related to incommensurately large expenses 
compared to the amount of remuneration to be paid.
(2) The collective management organisation and the user shall 
agree on the time periods and type of provision of
the 
information specified in Paragraph one of this Section. If there 
is no such agreement, the user shall provide
information within 
such time period that the collective management organisation 
could comply with the time period
specified in Section 21, 
Paragraph one of this Law. In such case the collective management 
organisation shall inform
the user of the time period within 
which he or she must provide the information specified in 
Paragraph one of this
Section.
(3) Upon taking a decision on the type of provision of the 
information, the collective management organisation and
the user 
shall comply with the voluntary standards of the sector as much 
as possible.
Section 34. Electronic 
Communication
A collective management organisation shall ensure that the 
user may communicate with this organisation also with
a view to 
provide the information specified in Section 33, Paragraph one of 
this Law, using electronic means of
communication.
Chapter VIII
Provision of Information and Reports
Section 35. Information to be 
Provided before Entering into a Collective Management 
Agreement
(1) A collective management organisation shall, before 
entering into a collective management agreement, explain
to the 
holder of copyright or related rights the information related to 
the collective management agreement and
entering into it, and 
also inform the relevant holder of:
1) the rights of the holder of copyright or related rights 
specified in Sections 5, 6, and 7 of this Law, including the
conditions referred to in Section 6 of this Law;
2) the management fees and other deductions from rights 
revenue and their amounts.
(2) The collective management organisation shall indicate in 
its articles of association the rights of holder of
copyright or 
related rights specified in Sections 5, 6, and 7 of this Law.
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23Section 36. Information to be 
Provided to the Represented Holders of Copyright or Related 
Rights
A collective management organisation shall, not later than 12 
months after the end of the financial year, provide
information 
to each holder of copyright or related rights to whom it has 
disbursed the remuneration in the previous
financial year 
regarding:
1) the contact information of the holder of copyright or 
related rights which he or she has allowed for the collective
management organisation to use for identification and location of 
the holder of copyright or related rights;
2) rights revenue calculated in the previous financial year 
for the holder of copyright or related rights;
3) remuneration which the collective management organisation 
has disbursed to the holder of copyright or related
rights in the 
previous financial year with a breakdown by the managed rights 
and types of use;
4) the period of time in which the use has occurred for which 
remuneration has been calculated and disbursed to
the holder of 
copyright or related rights;
5) deductions carried out in the previous financial year for 
covering management fees;
6) deductions which have been carried out in the previous 
financial year for the purposes not related to
management fees, 
including deductions for covering social, cultural or educational 
services;
7) all rights revenue calculated but not disbursed to the 
holder of copyright or related rights.
Section 37. Information to be 
Provided upon a Request Regarding Works and Other 
Subject-matter
(1) Upon receipt of a request of the holder of copyright or 
related rights, the user or the collective management
organisation represented on the basis of the representation 
agreement, the collective management organisation shall
electronically provide free of charge information regarding the 
works or other subject-matter, the rights, and the
covered 
territories managed by it directly or under a representation 
agreement.
(2) If the collective management organisation cannot determine 
the works or other subject-matter managed by it
due to its field 
of activity, the relevant organisation shall, upon receipt of the 
request referred to in Paragraph one of
this Section, provide the 
information to the requester regarding the types of works or 
other subject-matter, the rights,
and the covered territories 
managed by it.
(3) The collective management organisation shall provide the 
information specified in Paragraphs one and two of
this Section 
within a reasonable period of time, however, not later than 
within 30 days after the day of receipt of the
request.
Section 38. Disclosure of 
Information to the Public
A collective management organisation has an obligation to post 
the following information on its website and to
update it not 
later than within 30 days after the day of making changes:
1) its articles of association;
2) standard licensing contracts, rates for remuneration, 
including discounts specified by the collective
management 
organisation, and justification for determination of the size of 
rates for remuneration;
3) agreements with alliances of users;
4) the list of given names, surnames, and positions of the 
members of the council and executive board of the
collective 
management organisation;
5) the conditions indicated in Section 6 of this Law;
6) general regulations for distribution of rights revenue and 
other provisions for distribution of remuneration;
7) general regulations regarding deductions from rights 
revenue, including regarding management fees and
deductions for 
the provision of social, cultural and educational services;
8) general regulations for rights revenue not to be 
disbursed;
9) information regarding representation agreements, including 
the name of the contracting party and the type of use
of such 
work or other subject-matter in relation to which the agreement 
has been entered into;
10) information regarding the complaint handling and dispute 
resolution procedures (Section 66);
11) annual reports.
12
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23Section 39. Annual Transparency 
Report
(1) A collective management organisation shall, not later than 
eight months after the end of the financial year,
prepare and 
post on its website an annual transparency report on the relevant 
financial year.
(2) The information indicated in Annex to this Law and the 
report indicated in Paragraph three of this Section shall
be 
included in the annual transparency report.
(3) The collective management organisation shall prepare a 
report on the use of amounts deducted for social,
cultural or 
educational services in the previous financial year, including 
the information indicated in Paragraph 3 of
Annex to this Law in 
the report.
(4) The accounting information included in the annual 
transparency report shall be audited by a sworn auditor. The
audit report, including any notes regarding it, shall be included 
in full in the annual transparency report.
(5) The collective management organisation shall ensure that 
the annual transparency report, including the report
indicated in 
Paragraph three of this Section and the auditor report indicated 
in Paragraph four of this Section, remain
available to the public 
on the website of this organisation for at least five years after 
posting thereof.
(6) The information referred to in Paragraphs 1.5 and 1.7 of 
Annex to this Law regarding the dependent
management entity shall 
be posted by the entity itself on its website.
Chapter IX
Basic Regulations Regarding Multi-territorial Licensing
Section 40. Scope of Application
(1) The provisions of Chapters IX and X of this Law shall be 
applied only for multi-territorial licensing of online
rights in 
musical works which is carried out by collective management 
organisations.
(2) Within the meaning of this Law, multi-territorial 
licensing is issuing of a licence in respect of more than one
European Union Member State or European Economic Area state.
(3) The provisions of Chapters IX and X of this Law shall not 
be applied if the collective management organisation
issues a 
multi-territorial licence for online rights in musical works to a 
broadcasting organisation for which it is
necessary in order to, 
concurrently with initial broadcasting or after it, to 
communicate to the public its radio or
television programmes or 
to make them available for the public by wires or other way so as 
these programmes may
be accessed at an individually selected 
place and at an individually selected time, and also any other 
online materials
which supplement the initially broadcasted 
programme and which have been created by the broadcasting 
organisation
or which have been created for its needs, including 
previews of the initially broadcasted programme.
(4) The provisions of Section 28, Paragraph one, Sections 29 
and 31 of this Law shall not be applied, if the user or
alliance 
of users wants to receive a multi-territorial licence for online 
rights in musical works.
Section 41. Requirements Laid down 
for Collective Management Organisations in Multi-territorial 
Licensing
(1) A collective management organisation which issues 
multi-territorial licences for online rights in musical works
shall process the necessary data electronically, ensuring:
1) the ability to identify, wholly or in part, the repertoire 
represented by it;
2) the ability to identify accurately, wholly or in part, with 
respect to each relevant territory, the rights and their
corresponding holders of copyright for each musical work or share 
therein which the collective management
organisation is 
authorised to represent;
3) use of unique identifiers for identification of holders of 
copyright and musical works, taking into account, as far
as 
possible, voluntary industry standards and practices developed at 
international or European Union level;
4) use of adequate means for identification and resolving in a 
timely manner of inconsistencies in data held by
other collective 
management organisations granting multi-territorial licences for 
online rights in musical works.
(2) Within the meaning of Chapters IX and X of this Law, the 
repertoire shall be works in respect of which the
collective 
management organisation manages copyright.
Section 42. Obligation to Represent 
Another Collective Management Organisation
(1) A collective management organisation which issues or 
offers to issue multi-territorial licences for online rights
in 
musical works on behalf of at least one other collective 
management organisation upon request of such collective
management organisation which does not issue and does not offer 
to issue such licences, has an obligation to enter
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23into a 
representation agreement with it. The obligation to enter into a 
representation agreement shall apply only to
such online rights 
in musical works in respect of which the collective management 
organisation already issues or
offers to issue multi-territorial 
licences.
(2) The collective management organisation shall, immediately 
after receipt of the request indicated in Paragraph
one of this 
Section, provide an answer in writing in which it informs 
regarding the main provisions according to which it
issues or 
offers to issue multi-territorial licences for online rights in 
musical works, including the nature of the
exploitation, all 
provisions which relate to or affect the licence fee, the 
duration of the licence, the accounting periods,
and the 
territories covered.
(3) It may not be provided for in the representation agreement 
indicated in Paragraph one of this Section that multi-
territorial 
licences for online rights in musical works may be issued or 
offered to be issued on behalf of the authorising
collective 
management organisation only by an authorised collective 
management organisation. Such provision is not
in effect from the 
time of entering into the agreement, but the agreement shall 
remain in effect if it may exist also after
exclusion of the 
relevant provision.
Section 43. Obligation of the 
Authorising Collective Management Organisation to Provide 
Information
(1) The authorising collective management organisation shall 
provide such information to the authorised collective
management 
organisation regarding the musical works managed by it which is 
necessary for the issuing of the
relevant multi-territorial 
licences for online rights.
(2) If the information indicated in Paragraph one of this 
Section is non-sufficient or provided in such a way that the
authorised collective management organisation is prevented from 
performing the requirements laid down in Chapters
IX and X of 
this Law, the authorised collective management organisation has 
the right:
1) to request the authorising collective management 
organisation to cover the substantiated costs incurred as a
result of performance of the requirements indicated in Chapters 
IX and X of this Law;
2) to exclude such works from the represented repertoire 
regarding which the information provided is non-sufficient
or 
cannot be used.
(3) The authorising collective management organisation shall 
inform its members and holders of copyright
represented on the 
basis of agreements on provisions of the representation 
agreement, including regarding the term of
the agreement and the 
costs for services provided by the authorised collective 
management organisation.
Section 44. Management on the Basis 
of a Representation Agreement
(1) The authorised collective management organisation shall 
manage the repertoire represented by the authorising
collective 
management organisation, applying the same provisions as for its 
own represented repertoire.
(2) The authorised collective management organisation in all 
offers to online service providers shall include the
repertoire 
represented by the authorising collective management 
organisation.
(3) Management fees for a service which the authorised 
collective management organisation provides to the
authorising 
collective management organisation may not exceed the costs which 
have justifiably incurred for the
authorised collective 
management organisation.
Section 45. Availability of 
Multi-territorial Licensing for Online Rights in Musical 
Works
A collective management organisation which does not issue 
multi-territorial licences for online rights in musical
works and 
has not entered into a representation agreement indicated in 
Section 42, Paragraph one of this Law shall
ensure the 
possibility of the holders of copyright represented by it to 
revoke the proxy provided to the collective
management 
organisation in the part which authorises to issue 
multi-territorial licences for online rights in musical
works. 
The collective management organisation shall, after revocation of 
such proxy, continue to manage the online
rights in musical works 
of the relevant holders of copyright in respect of the territory 
in which it already carries out the
indicated right management 
unless the holder of copyright has requested to terminate such 
management.
Chapter X
Exchange of Information Regarding Multi-territorial Licences and 
Distribution of
Rights Revenue
Section 46. Obligation to Provide 
Information Regarding Repertoire and Online Rights
(1) A collective management organisation shall, after receipt 
of a request with the intermediation of electronic
means of 
communication, provide the updated information to online service 
providers, holders of copyright, and other
collective management 
organisation regarding:
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231) the musical works it represents;
2) the online rights it manages, wholly or in part;
3) the territories covered.
(2) The collective management organisation shall carry out the 
necessary activities in order to protect data
accuracy and 
integrity, to control their repeated use, and to protect the 
trade secret.
Section 47. Correction of 
Information
(1) A collective management organisation shall determine the 
procedures by which online service providers,
holders of 
copyright and other collective management organisations may 
request to correct the information to which
the requirements laid 
down in Section 41, Paragraph one of this Law apply, and also the 
information which is indicated
in Section 46, Paragraph one of 
this Law.
(2) If the request is justified, the collective management 
organisation shall immediately correct the relevant
information.
(3) The collective management organisation shall ensure the 
possibility for the holders of copyright represented by
it to 
submit electronically the information regarding their musical 
works, corresponding online rights and territories in
respect of 
which the holders of copyright have entrusted the collective 
management organisation to carry out the
management of the 
abovementioned rights. For the provision of such information, the 
collective management
organisation and the holders of copyright 
shall take into account, as far as possible, voluntary industry 
standards or
practices regarding the exchange of data developed 
at international or European Union level.
Section 48. Supervision of Use
A collective management organisation shall carry out 
supervision on how online service providers who have
obtained a 
multi-territorial licence for online rights in musical works 
issued by it use the granted rights.
Section 49. Reports on Actual Use of 
Online Rights in Musical Works
(1) A collective management organisation shall ensure a 
possibility for online service providers to electronically
provide reports on actual use of online rights in musical works. 
Online service providers have an obligation to
accurately draw up 
the abovementioned reports and submit them to the collective 
management organisation.
(2) The collective management organisation shall offer at 
least one method for provision of the reports indicated in
Paragraph one of this Section where the voluntary industry 
standards or practices for electronic exchange of such
data 
developed at international or European Union level are taken into 
account.
(3) The collective management organisation may refuse to 
accept a report of the online service provider if it is not
submitted using the method provided for in Paragraph two of this 
Section.
Section 50. Settlement of Accounts 
with Online Service Providers
(1) A collective management organisation shall, after receipt 
of the report on the actual use of online rights in
musical 
works, immediately issue an invoice to the online service 
provider, except for the cases when it is not
possible due to the 
fault of the online service provider.
(2) The collective management organisation shall issue an 
invoice and send it to the online service provider in
electronic 
form by offering at least one payment method which conforms to 
the international or European Union
voluntary industry standards 
or practices. The online service provider is not entitled to 
refuse to accept invoice which
has been prepared in conformity 
with such standard or practice.
(3) Upon issuing an invoice, the collective management 
organisation shall indicate musical works therein, the
corresponding online rights which are licensed in conformity with 
the requirements laid down in Section 41, Paragraph
one of this 
Law, and the actual use of the abovementioned rights, insofar as 
it is possible on the basis of the
information provided by the 
online service provider and format used for provision of such 
information.
(4) The collective management organisation shall determine the 
procedures by which the online service provider
may contest the 
invoice issued to him or her, including the case when the online 
service provider has received
invoices from several collective 
management organisations on the same online rights in a 
particular musical work.
Section 51. Distribution of Rights 
Revenue
(1) A collective management organisation shall distribute the 
rights revenue collected within the framework of
multi-territorial licensing of online rights in musical works and 
shall immediately disburse the remuneration to holders
of 
copyright in accordance with the general regulations for the 
distribution of rights revenue.
(2) Upon disbursing the collected rights revenue, the 
collective management organisation shall inform the relevant
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23holders of copyright regarding:
1) the period of time during which the use took place for 
which remuneration is due to the holders of copyright and
the 
territories in which the use took place;
2) the deductions made from the collected rights revenue and 
the remuneration distributed by the collective
management 
organisation for each online rights in any musical work which the 
holders of copyright have authorised
the collective management 
organisation, wholly or in part, to represent;
3) the rights revenue collected by it for holders of 
copyright, the deductions made, and the remuneration distributed
by the collective management organisation in respect of each 
online service provider.
(3) If the collective management organisation manages online 
rights in musical works on the basis of a
representation 
agreement, it shall immediately distribute rights revenue and 
disburse remuneration to the authorising
collective management 
organisation, and also provide the information referred to in 
Paragraph two of this Section
thereto. The authorising collective 
management organisation shall be responsible for further 
distribution and
disbursement of the received remuneration and 
provision of information to holders of copyright, unless the 
authorising
collective management organisation and the authorised 
collective management organisation have agreed otherwise.
Chapter XI
Supervision of Activities of Collective Management 
Organisations
Section 52. Supervisory 
Authority
The activities of collective management organisations shall be 
supervised by the Ministry of Culture.
Section 53. Purpose of Supervision 
and Field of Application Thereof
(1) The purpose of supervision of the activity of a collective 
management organisation is to ensure lawfulness,
transparency, 
efficiency of its activities and conformity with lawful interests 
of the holders of copyright and related
rights represented by 
such organisations.
(2) The Ministry of Culture shall supervise the conformity of 
the activity of collective management organisations
with this 
Law, the Copyright Law, and laws and regulations issued on the 
basis of the abovementioned laws.
(3) If the Ministry of Culture finds that the activities of a 
collective management organisation might not be in line
with 
other laws and regulations, it shall inform the authority which 
supervises the conformity to the relevant laws and
regulations, 
and, if there is no obvious reason to believe that it could 
disturb the detection and prevention of the
possible infringement 
- also the council of the collective management organisation.
(4) If a collective management organisation operating in 
Latvia is established in another European Union Member
State or 
European Economic Area state, the Ministry of Culture shall 
supervise the conformity of activities of the
relevant 
organisation with the legal norms of the other Member State by 
which the requirements laid down in Directive
2014/26/EU of the 
European Parliament and of the Council of 26 February 2014 on 
collective management of
copyright and related rights and 
multi-territorial licensing of rights in musical works for online 
use in the internal market
are transposed. The Ministry of 
Culture shall implement such supervision insofar as the 
information necessary for the
performance of supervision is 
freely available or obtaining thereof is not related to 
incommensurate expenses.
Section 54. Authorisation for 
Performance of Collective Management of Economic Rights
(1) A collective management organisation may perform 
collective management of economic rights only after
obtaining an 
authorisation from the Ministry of Culture.
(2) A collective management organisation which operates in 
Latvia but is established in another European Union
Member State 
or a European Economic Area state shall obtain the authorisation 
referred to in Paragraph one of this
Section only in case if such 
organisation wants to manage economic rights of holders of 
copyright or related rights in
respect of the types of use 
indicated in Section 3, Paragraph two of this Law, and also if it 
wants to manage the right
to remuneration referred to in Section 
48, Paragraph twelve or Section 53, Paragraph three of the 
Copyright Law or the
rights referred to in Paragraph 6 of 
Transitional Provisions of the Copyright Law.
Section 55. Issue of an 
Authorisation
(1) The Ministry of Culture shall issue an authorisation on 
the basis of a written submission of a collective
management 
organisation only in respect of the economic rights or the type 
of use indicated therein. The relevant
collective management 
organisation shall append the following to the submission:
1) its articles of association;
2) information regarding the given name, surname, and position 
of the members of the council;
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233) a notification of the number of represented holders of 
copyright or related rights or of the number of those
holders of 
copyright or related rights which have become members of the 
organisation or have confirmed in writing
their intention to 
entrust the management of their economic rights to the 
organisation, and also of its managed rights
or rights for which 
the holders of copyright or related rights have confirmed their 
intention to entrust the management
thereof to the 
organisation;
4) the activity plan for the following three full financial 
year from which conclusions can be drawn regarding the
planned 
revenue and expenditure, and also regarding the structure of the 
collective management organisation;
5) other documents which the Ministry of Culture requests 
within 30 days after receipt of the submission, providing
a 
substantiation, and which are necessary for assessment of the 
circumstances referred to in Paragraph three, Clause
3 of this 
Section.
(2) The information indicated in Paragraph one of this Section 
may not be provided and documents may not be
appended to the 
submission for obtaining an authorisation if the relevant 
information and documents are already at the
disposal of the 
Ministry of Culture or they are available on the website of the 
collective management organisation and
this organisation confirms 
the accuracy of the information or documents available on the 
website.
(3) The Ministry of Culture shall issue an authorisation to 
the collective management organisation if:
1) the articles of association thereof conform to this 
Law;
2) the collective management organisation represents or will 
immediately after obtaining the authorisation represent
a 
significant number of authors or performers, phonogram producers, 
and other holders of related rights;
3) the collective management organisation is able to carry out 
efficient management of particular rights or type of
use and 
fulfil the requirements laid down for collective management 
organisations in this Law;
4) the relevant collective management is not ensured by 
another collective management organisation.
(4) The Ministry of Culture shall refuse to issue an 
authorisation in the following cases:
1) at least one of the assessment criteria laid down in 
Paragraph three of this Section is not fulfilled;
2) the collective management organisation has not submitted 
one or several documents indicated in Paragraph one
of this 
Section but the provisions of Paragraph two of this Section do 
not apply to them;
3) the collective management organisation has submitted 
documents which contain false information.
(5) The assessment criteria specified in Paragraph three, 
Clause 4 of this Section need not be applied if a decision
to 
revoke the authorisation issued to another collective management 
organisation has been taken and in accordance
with Section 56, 
Paragraph three of this Law later entering into effect of such 
revocation has been specified and the
decision cannot be 
contested.
Section 56. Revocation of 
Authorisation
(1) The Ministry of Culture may revoke the authorisation 
issued by it in the following cases:
1) the basis for refusal referred to in Section 55, Paragraph 
four, Clause 1 or 3 of this Law was not known to the
Ministry of 
Culture at the time of issue of the authorisation or occurred 
after the issue of the authorisation, and the
relevant deficiency 
cannot be eliminated or it has not been eliminated within the 
period of time specified by the
Ministry of Culture;
2) the collective management organisation does not terminate 
the violation of the laws and regulations after receipt
of the 
decision of the Ministry of Culture or fails to carry out the 
activities specified by the Ministry of Culture within
the period 
of time specified in the decision in order to prevent the 
influence of the violations, or repeatedly violates the
laws and 
regulations within a year after receipt of the decision of the 
Ministry of Culture.
(2) If several authorisations for the performance of 
collective management of economic rights have been issued to
a 
collective management organisation, the revocation indicated in 
Paragraph one of this Section shall apply to the
authorisation to 
which the basis for revocation is related. If the basis for 
revocation of the authorisation applies to
several or all 
authorisations issued to the relevant collective management 
organisation, each authorisation shall be
revoked by a separate 
decision.
(3) If it is necessary for the protection of rights or lawful 
interests of holders of copyright or related rights or users,
the 
Ministry of Culture may, by revoking the authorisation, determine 
later entering into effect of such revocation, and
also the 
procedures by which a collective management organisation shall 
complete performance of collective
management and transfer 
information necessary for ensuring continuity of such management 
to the Ministry of Culture
or other collective management 
organisation indicated by it.
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23Section 57. Notification Regarding 
Performance of Collective Management of Economic Rights
If a collective management organisation in accordance with 
Section 54 of this Law does not need an authorisation
for the 
performance of collective management of economic rights, it 
shall, immediately after commencement of
collective management of 
economic rights, notify the Ministry of Culture if:
1) it is established in another European Union Member State or 
European Economic Area state and operates in
Latvia;
2) it is established in Latvia and operates in another 
European Union Member State or European Economic Area
state.
Section 58. Disclosure of 
Information to the Public Regarding Issue or Revocation of an 
Authorisation
The Ministry of Culture shall publish information regarding an 
authorisation issued for the performance of collective
management 
of economic rights and regarding the notification indicated in 
Section 57 of this Law in the official gazette
Latvijas 
Vēstnesis
 after taking of the decision or receipt of the 
notification. The Ministry of Culture shall publish
information 
regarding revocation of the authorisation in the official gazette 
Latvijas Vēstnesis
 after the end of the time
period for 
appealing thereof.
Section 59. Performance of 
Collective Management of Economic Rights without an 
Authorisation
If a person carries out collective management of economic 
rights without obtaining an authorisation necessary for
its 
performance or without provision of the notification indicated in 
Section 57 of this Law to the Ministry of Culture, it
is not 
entitled to request performance of any obligations on the basis 
of the abovementioned rights and bring any
relevant claims, and 
also may not be recognised as a victim in the administrative 
violation case or criminal case in
relation to infringement of 
the rights referred to in this Section.
Section 60. Rights of the Ministry 
of Culture within the Framework of Supervision
(1) The Ministry of Culture has the following rights within 
the framework of supervision:
1) to take a decision by which a lawful obligation is imposed 
on a collective management organisation to
discontinue 
infringement of laws and regulations and to carry out activities 
in order to rectify impact of the
infringement by determining a 
time period for the performance of such activities;
2) to request that the collective management organisation 
provides information regarding its activities, and also
presents 
any documentation, including agreements entered into, reports 
provided to holders of copyright or related
rights, 
correspondence documentation, minutes of meetings of members and 
board meetings, and council meetings;
3) to participate in meetings of members and meetings of the 
executive board and council of collective
management 
organisations as its representative in the status of 
observer;
4) to attract a sworn auditor for the performance of 
supervision.
(2) The Ministry of Culture is entitled to prohibit a person 
who carries out collective management of economic
rights without 
the authorisation necessary for the performance thereof or 
without provision of the notification indicated
in Section 57 of 
this Law to the Ministry of Culture, to carry out collective 
management of the rights of holders of
copyright or related 
rights.
(3) If there is information at the disposal of the Ministry of 
Culture that a person who has not obtained an
authorisation for 
the performance of collective management of economic rights 
operates in a way that he or she has to
obtain the authorisation 
indicated in Section 54 of this Law, the Ministry of Culture is 
entitled to request that the
relevant person submits information 
and documents necessary for the verification of necessity of the 
authorisation.
(4) If the lawful obligation specified by the Ministry of 
Culture is not fulfilled, it may carry out forced execution of
the lawful obligation in accordance with the procedures laid down 
in the Administrative Procedure Law, insofar as it is
not 
otherwise provided for in this Law.
(5) An addressee shall be warned in writing about the forced 
execution of the lawful obligation. The warning may
not be 
appealed.
(6) The provisions of Paragraph one of this Section shall not 
be applied to collective management organisations
which have been 
established in another European Union Member State or a European 
Economic Area state.
Section 61. Obligations of a 
Collective Management Organisation
A collective management organisation has an obligation:
1) to discontinue infringement of the laws and regulation 
within the time period specified in the decision of the
Ministry 
of Culture and to carry out the activities specified in the 
decision in order to prevent the influence of the
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23infringement;
2) to provide the Ministry of Culture with information 
requested thereby without delay, but not later than within 15
days after request is received, unless a longer period of time 
for providing information is indicated in the relevant
request;
3) to inform the Ministry of Culture of the date and time of 
occurrence of the meeting of members, the meeting of
the 
executive board and council of the organisation at least seven 
days in advance, but if the date of occurrence of
the meeting of 
the executive board is not known within the abovementioned period 
of time for objective reasons - as
soon as it becomes known, but 
not later than one day before the meeting of the executive 
board;
4) to ensure a possibility for the representative of the 
Ministry of Culture to participate in the meetings of members,
using electronic means of communication;
5) to co-operate with the sworn auditors referred to in 
Section 60, Paragraph one, Clause 4 of this Law and provide
them 
with all the necessary information.
Section 62. Implementation of 
Supervision in Relation to Collective Management Organisations 
which have
been Established in another European Union Member 
State or European Economic Area State
(1) If a collective management organisation which is 
established in another European Union Member State or
European 
Economic Area state infringes legal norms in Latvia by which the 
requirements of Directive 2014/26/EU of
the European Parliament 
and of the Council of 26 February 2014 on collective management 
of copyright and related
rights and multi-territorial licensing 
of rights in musical works for online use in the internal market 
are transposed, the
Ministry of Culture shall send information 
regarding infringement to the supervisory authority of the 
relevant Member
State.
(2) In the case of the established infringement the Ministry 
of Culture is entitled to send information also to the
expert 
group which is established in accordance with Article 41 of 
Directive 2014/26/EU of the European Parliament
and of the 
Council of 26 February 2014 on collective management of copyright 
and related rights and multi-territorial
licensing of rights in 
musical works for online use in the internal market.
Section 63. Provision of Information 
to Supervisory Authorities of other European Union Member States 
or
European Economic Area States
(1) The Ministry of Culture is a communication authority in 
relation to a request for information by another
European Union 
Member State or European Economic Area state regarding issues 
which are related to the application
of such legal norms which 
are arising from Directive 2014/26/EU of the European Parliament 
and of the Council of 26
February 2014 on collective management 
of copyright and related rights and multi-territorial licensing 
of rights in
musical works for online use in the internal 
market.
(2) If the Ministry of Culture receives a request of a 
supervisory authority of another European Union Member State
or 
European Economic Area state to carry out supervision measures in 
respect of a collective management
organisation which is 
established in Latvia regarding the activities carried out in the 
relevant Member State, the
Ministry of Culture shall provide a 
justified reply to such supervisory authority within three months 
after the day of
receipt of the request.
Section 64. Supervision of 
Activities of Dependent Management Entities
(1) The provisions of this Chapter shall be applied for the 
supervision of the activities of dependent management
entities, 
except for that laid down in Sections 54, 55, and 56 of this 
Law.
(2) The dependent management entity shall notify regarding 
commencement of collective management of
economic rights in 
accordance with Section 57 of this Law.
Section 65. Supervision of 
Activities of Independent Management Entities
(1) The provisions of Sections 52, 53, 60, 61, 62, and 63 of 
this Law with corresponding changes shall be applied
to the 
supervision of the activities of independent management entities, 
except for the provisions of Section 60,
Paragraph one, Clause 3 
and Section 61, Clause 3.
(2) An independent management entity which operates in Latvia 
shall notify regarding commencement of collective
management of 
economic rights in accordance with Section 57 of this Law. If 
such notification is not submitted, the
provisions of Section 59 
and the relevant provisions of Section 60 of this Law shall be 
applied.
Chapter XII
Examination of Complaints and Disputes
Section 66. Examination of 
Complaints in a Collective Management Organisation 
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23Section 66. Examination of 
Complaints in a Collective Management Organisation
(1) A collective management organisation shall determine the 
procedures by which it examines the complaints of
holders of 
copyright or related rights, its members and collective 
management organisations represented on the basis
of the 
representation agreement within one month, including the 
complaints regarding:
1) the commencement or termination of right management;
2) the preconditions for participation in the collective 
management organisation;
3) the management of rights revenue, including performance of 
deductions.
(2) If the period of time specified in Paragraph one of this 
Section cannot be complied with for objective reasons,
the 
collective management organisation may extend it for a period of 
time not longer than four months from the day of
receipt of the 
complaint, notifying the submitter thereon.
(3) The collective management organisation shall reply to the 
complaints referred to in Paragraph one of this
Section in 
writing. If the collective management organisation refuses a 
complaint, it shall indicate the justification for
such 
refusal.
Section 67. Submission of the 
Notification on Possible Violation of the Law to the Ministry of 
Culture
(1) Members of a collective management organisation, holders 
of copyright or related rights, users, collective
management 
organisations, and other interested persons have the right to 
notify the Ministry of Culture of the
activities or circumstances 
which the submitter considers to be infringement of this Law.
(2) Examination of the notification referred to in Paragraph 
one of this Section shall be governed by the Law on
Submissions, 
unless it is otherwise provided for in this Law.
(3) The Ministry of Culture shall, after receipt of the 
notification referred to in Paragraph one of this Section,
assess 
the information provided therein regarding a possible violation 
of this Law and, where necessary, carry out
measures for the 
supervision of the activities of the collective management 
organisation in conformity with the
provisions of Chapter XI of 
this Law.
Section 68. Settlement of Disputes 
in Issues Regarding Multi-territorial Licensing of Online Rights 
in
Musical Works
Anyone has the right to apply to a mediator in accordance with 
the procedures laid down in Chapter X.
1
 of the
Copyright Law in order to settle a dispute between a collective 
management organisation which is established in
Latvia and which 
issues or offers to issue multi-territorial licences for online 
rights in musical works, and an online
service provider, holder 
of copyright or related rights or another collective management 
organisation, insofar as the
rights or obligations of the 
abovementioned parties are infringed in the relevant dispute in 
accordance with the
provisions of Section 28, 30, 32, or 34 or 
Chapter IX or X of this Law.
Transitional Provisions
1. Compensations which a collective management organisation 
has collected through a court on the basis of
Section 69, 
Paragraph one, Clause 4 of the Copyright Law (in the wording 
until 28 February 2007) shall be recognised
as rights revenue 
within the meaning of this Law.
2. Economic rights of holders of copyright in respect of 
retransmission which is not carried out by cables shall be
managed only collectively from 1 January 2018. The collective 
management organisation is entitled to obtain an
authorisation 
for the performance of such management also before the date 
specified in this Paragraph. The
authorisations for the 
performance of collective management in respect of retransmission 
issued to collective
management organisations in accordance with 
Section 15, Paragraph one of the Copyright Law shall become 
invalid
from 1 January 2018. The agreements on retransmission 
entered into by the collective management organisations
until the 
abovementioned date shall remain in effect and the collective 
management organisation shall manage the
rights revenue collected 
on the basis thereof in accordance with the provisions of this 
Law. The agreements entered
into by holders of copyright with 
which economic rights in respect of retransmission which is not 
carried out by cables
have been transferred or licensed to third 
parties by 1 January 2018 shall remain in effect.
3. The meeting of members may delegate the issue indicated in 
Section 12, Paragraph one, Clause 14 of this Law
to the council 
of the collective management organisation only after it has been 
initially decided on the merits by the
meeting of members.
4. Authorisations which have been issued to collective 
management organisations in accordance with Section 67,
Paragraph 
one of the Copyright Law remain in effect and are equalled to the 
authorisations issued in accordance with
the requirements of 
Section 55 of this Law.
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235. The amendments to the articles of association of a 
collective management organisation which are necessary in
order 
to ensure the performance of the requirements laid down in this 
Law shall be made within a reasonable period of
time, however, 
not later than until 31 December 2017.
6. Collective management organisations shall, by 31 December 
2017, inform holders of copyright or related rights
represented 
on the basis of agreements on the rights of the holder of 
copyright or related rights specified in Sections
5, 6, and 7 of 
this Law, including the conditions referred to in Section 6 of 
this Law or their absence.
7. Sections 27 and 36 of this Law shall be applied for the 
first time in relation to the financial year which begins
after 
31 December 2017.
8. The annual reports indicated in Section 14, Paragraph five 
and Section 15, Paragraph ten of this Law shall be
provided for 
the first time in relation to the financial year which begins 
after 31 December 2016.
9. The annual transparency report indicated in Section 39 of 
this Law shall be provided for the first time in relation
to the 
financial year which begins after 31 December 2017.
10. The collective management organisation shall post the 
information indicated in Section 38 of this Law, insofar
it 
should not be made public in accordance with Section 66, 
Paragraph six of the Copyright Law, on its website not
later than 
by 31 December 2017.
Informative Reference to European 
Union Directives
This Law contains legal norms arising from Directive 
2014/26/EU of the European Parliament and of the Council of
26 
February 2014 on collective management of copyright and related 
rights and multi-territorial licensing of rights in
musical works 
for online use in the internal market.
 
Law on Collective Management of 
Copyright
Annex
Information to be Included in the 
Annual Transparency Report
1. The following shall be included in the annual transparency 
report referred to in Section 39 of this Law:
1.1. an annual account comprising a balance-sheet and an 
income and expenditure account for the financial year;
1.2. a report on the activities in the relevant financial 
year;
1.3. information on refusals to grant authorisations for the 
use of the works or other subject-matter;
1.4. a description of the structure of the collective 
management organisation;
1.5. information on dependent management entities of a 
collective management organisation, including the
information 
indicated in Paragraphs 1.2, 1.3, and 1.4 of this Annex with the 
relevant changes;
1.6. information on the total amount of remuneration paid to 
the members of the council and executive board of the
collective 
management organisation in the previous year, and on other 
benefits granted to such persons;
1.7. the financial information referred to in Paragraph 2 of 
this Annex regarding a collective management
organisation and its 
dependent management entities;
1.8. a report on the use of any amounts deducted for the 
purposes of social, cultural and educational services,
containing 
the information referred to in Paragraph 3 of this Annex.
2. The following financial information shall be included in 
the annual transparency report:
2.1. regarding rights revenue per category of rights managed 
and per type of use (broadcasting, online, public
performance, 
etc.), including information on the income arising from the 
investment of rights revenue and the use of
such income (whether 
it is distributed to holders of copyright or related rights or 
other collective management
organisations, or otherwise 
used);
2.2. regarding the cost of rights management and other 
services provided by the collective management
organisation to 
holders of copyright or related rights and members, 
especially:
2.2.1. all operating and financial costs, with a breakdown per 
category of rights managed. If costs are indirect and
cannot be 
attributed to one or more categories of rights, an explanation of 
the method used to allocate such indirect
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23costs to the rights 
shall be provided;
2.2.2. operating and financial costs related to management of 
rights, including expenses for management, with a
breakdown per 
category of rights managed. If costs are indirect and cannot be 
attributed to one or more categories of
rights, an explanation of 
the method used to allocate such indirect costs to the rights 
shall be provided;
2.2.3. operating and financial costs with regard to services 
other than the management of rights, but including
social, 
cultural and educational services;
2.2.4. resources used to cover costs, and also information on 
the amount in which the costs are covered from
rights revenue, 
own property, and other means;
2.2.5. deductions made from rights revenues, with a breakdown 
per category of rights managed and per type of
use and the 
purpose of the deduction (costs related to the management of 
rights and costs related to provision of
social, cultural or 
educational services, etc.);
2.2.6. part of the management costs of economic rights and 
costs of such services which are provided by the
collective 
management organisation to holders of copyright or related rights 
and members (expressed as the
percentage) in relation to the 
rights revenue in the relevant financial year, per category of 
rights managed. If costs are
indirect and cannot be attributed to 
one or more categories of rights, an explanation of the method 
used for allocation
such indirect costs shall be provided;
2.3. regarding remuneration due to holders of copyright or 
related rights, especially:
2.3.1. the total remuneration calculated for holders of 
copyright or related rights, with a breakdown per category of
rights managed and type of use;
2.3.2. the total remuneration paid to holders of copyright or 
related rights, with a breakdown per category of rights
managed 
and type of use;
2.3.3. the frequency of payments, with a breakdown per 
category of rights managed and per type of use;
2.3.4. the total remuneration not yet calculated for holders 
of copyright or related rights, with a breakdown per
category of 
rights managed and type of use, indicating the financial year in 
which the remuneration was collected;
2.3.5. the total remuneration calculated but not yet disbursed 
to holders of copyright or related rights, with a
breakdown per 
category of rights managed and type of use, indicating the 
financial year in which the remuneration was
collected;
2.3.6. the reasons for the delay, if the collective management 
organisation has not carried out distribution of rights
revenue 
and disbursement of remuneration within the deadline indicated in 
Section 21, Paragraph one of this Law;
2.3.7. the total amount of non-disbursable remuneration, along 
with an explanation of its use;
2.4. regarding relationships with other collective management 
organisations, especially regarding:
2.4.1. amounts received from other collective management 
organisations and amounts disbursed to other
collective 
management organisations, with a breakdown per category of 
rights, per type of use, and per collective
management 
organisation;
2.4.2. management fees and other deductions from the rights 
revenue due to other collective management
organisations, with a 
breakdown per category of rights, per type of use, and per 
collective management organisation;
2.4.3. management fees and other deductions from the amounts 
disbursed by other collective management
organisations, with a 
breakdown per category of rights and per collective management 
organisation;
2.4.4. amounts distributed directly to holders of copyright or 
related rights represented by other collective
management 
organisations, with a breakdown per category of rights and per 
collective management organisation.
3. The following information shall be included in the report 
indicated in Section 39, Paragraph three of this Law:
3.1. information regarding the amounts deducted for the 
purposes of social, cultural and educational services in the
financial year, with a breakdown per type of purpose and, for 
each type of purpose, with a breakdown per category of
rights 
managed and per type of use;
3.2. an explanation of the use of the amounts indicated in 
Paragraph 3.1 of this Annex, with a breakdown per type
of 
purpose, indicating separately the costs of managing amounts 
deducted to fund social, cultural and educational
services and 
amounts actually used for the provision of the abovementioned 
services.
The Law has been adopted by the 
Saeima
 on 18 May 
2017.
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23© Oficiālais izdevējs "Latvijas Vēstnesis"
President R .Vējonis
Riga, 31 May 2017
 
1
 The Parliament of the Republic of 
Latvia
Translation © 2018 Valsts valodas centrs (State 
Language Centre)
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