1 
  
 
 
 
 
 
LAW OF UKRAINE  
 
 
 On Efficient Management of Property Rights of Right  holders in the Sphere of Copyright 
and/or Related Rights  
 
 
This Law defines legal and organizational  principles of  collective management of property 
rights of copyri ght and/or related rights subjects in Ukraine.  
 
 
Section І  
 
GENERAL PROVISIONS  
 
 
Article 1. Terms and Definitions  
 
1. For the purpose  of this Law the terms are used in the following meaning:  
 
voluntary collective management means  collective management performed by  collective 
management organizations , registered in a manner prescribed by this Law , exclusively in regards to 
the copyright and (or) related rights  objects included in the catalogue of the respective collective 
management organization ; 
 
partnership agreement means  a written (electronic)  agreement that is concluded between 
accredited collective ma nagement organization exercising  mandatory collective m anagement and 
other accredited collective manag ement organization exercising  extended coll ective  management in 
the relevant sphere  on the payment of a due rights revenue share for the respectiv e category of the 
rightholders;  
 
rights representation agreement means  a written (electronic)  agreement between collective 
management organizations, including with  similar foreign organizations, under which one 
organization authorizes other organization  to exercise the manage ment of rights in  corresponding 
objects of copyright and (or) related rights ; 
  
rights revenue means  funds received by a  collective management organization from users or 
other collective management organizations in a form of remunerati on for the use of objects of 
copyright and (or) related rights  or deductions in benefit of the rightholders;  
electronic system of administrat ion means  an information and tele communication system 
that connects a  collective management organization with the rightholders and users  through the 
Internet network and ensures an  automation of record -keeping  of objects of property rights 
(including their  declaration by the rightholders), revenue accounting, distribution and payment of 
rights revenue by a  collective management organization;  
2 
  
administration fee means  funds deducted , credited or  withheld  by a collective management 
organization from the amount of ri ghts revenue or any other  revenue  not forbidden by the law , in 
order to cover the activity -related expenses of a  collective managem ent organization provided by 
this Law ; 
 
catalogue of collective management organization means  totality  of copyright and (or) related 
rights  objects, property ri ghts of which are managed by an  organization;  
 
collective management means  an activity on  collection, distribution and payment  of rights 
revenue to the rightholders performed in the interests of more than one rightholder on terms and in 
compliance with the principles foreseen  by this Law;  
 
user means  any legal entity, natural person or private entrepreneur who tak es any actions 
requiring the copyright and (or) related rights  subjects' consent under the Law of Ukraine “On 
Copyright and Related Rights” or who shall otherwise pay remuneration or deductions  to the 
rightholders ; 
 
unclaimed funds means  a share  of rights revenue that was  not distributed and/or paid within  
the term prescribed by this Law  due to the impossibil ity to identify the relevant copyright and (or) 
related rights  objects and ( or) a rightholder regarding such objects or due to  objective inability to 
locate  an identified rightholder and pay him the funds ; 
 
mandatory collective management means  collective management of property rights of 
objects of copyright and (or) related rights, whether they are include d or not in the catalogue of  
collective management organ ization exercised  by organizations accredited by the Institution  in the 
spheres specified by this Law ; 
 
collective management organization  means  a non -profit public association in a form of legal 
entity , registered with the Institution , founded solely by the rightholders and it s activities are 
directed at  collective mana gement of the property rights in  the copyright and (or) related rights  
objects ; 
 
rightholder  mean s a copyright or related rights  subjec t or any person other than a collective 
management organization  which under an agreement with the subject of copyright and (or) related 
rights or under the law is entitled to receive a share of the rights revenue;  
 
extended collective management  mean s collective management of p roperty  rights in  objects 
of copyright and (or) related rights , whether they are included or not in the catalogue of collective 
management organization (except for the cases when the corresponding rights were withdrawn by 
the rightholder  from a collective managem ent in the order  prescribed by this Law ) in the spheres  
determined by this Law, performed by organizations accredited by the Institution  in the spheres 
determined by this Law ; 
  
Institution  mean s a central executive body  that facilitates development and im plementation 
of the state polic y in intellectual property sphere ; 
 
collective management o rganiz ation member means a rightholder or association of  the 
rightholders or other collective management orga nization compliant with the requirements of 
membership in collective management organization and acquired the status of a member of the 
collective management organization in accordance with the rules of the law and the statute of the 
collective management organization.  
 3 
 Other terms shall be used herein in the meaning defined by the Law of Ukraine “ On 
Copyright and Related Rights” . 
 
Articl e 2. Ukrainian Legislation on Collective Management of Property Rights of Copyright 
and (or) Related Rights Subjects  
 
1. The legislation  in the sphere of collective management  of property rights of copyright and 
(or) related rights subjects  consists of the Constitution of Ukraine, the Civil Code of Ukraine, this 
and other laws, the bylaws passed on their basis regulating  the relations in th is sphere . 
 
Article 3. Application of the International Agreement Rules  
 
1. Should any current international agreement ratified by the Verkhovna  Rada of Ukraine  
establish any rules o ther than those contained in this law , the international agreement rules shall 
apply.  
 
Article 4. Powers of the Institution  
 
1. The Institution shall dev elop and implement the state  policy  in the sphere of protection of 
copyright and related rights  through the state supervision  of the operation  of collective man agement 
organizations  and performance of the following functions:  
 
1) facilitation of  registration  and accreditation  of collective management organization , the 
maintenance of Register  of Collective Management Organizations ;  
2) securing compliance of colle ctive management organizations with the requirements of 
this law ; 
3) appl ication of sanctions to collective management organizations  in a manner prescribed 
by this Law . 
4) receipt from the state authorities of information, documents and materials necessary  for 
performing collective management;  
5) provision of  methodical assistance to collective management organizations and 
specialized  associations and associations of users;  
6) analysis of compliance with the requireme nts of the legislation in the sphere of  collective 
management and monitoring of the activities of accredited collective management organizations , 
upon the results of which  the Institution publishes rele vant information on its website;  
7) facilitation of operation of electronic system of registra tion and  accounting in the sphere 
of copyright and (or) related rights . 
2. The Institution shall approve:  
1) an application form on accreditation and registration of a collective management 
organization ; 
2) a form of  annual report on activity of collective management organization ;  
3) an application form on introduct ion of modifications in the Register  of Collective 
Management Organizations ; 
4) a form of broadcasting organi zations’ report on the use of copyright and ( or) related rights  
objects.  
5) an order of functioning of electronic system of reg istration and accounting in the  sphere 
of copyright and (or) related rights  and authorization of electronic platforms .  
 
 
 
Section II  
 4 
 SPECIFIC FEATURES OF COLLECTIVE MANAGEMENT OF PROPRIETARY RIGHTS OF 
SUBJECTS OF COPYRIGHT AND (OR) RELATED RIGHTS  
 
Article 5. Basic principles of collective management of proprietary rights of subjects of 
copyright and  (or) related rights  
 
1. Collective management of proprietary  rights of subjects of  copyright a nd (or) related 
rights is exercised  by collective management organi zations registered by the Institution  in the order  
prescribed by this Law . 
Collective management organization shall be  a non -profit organization formed in the 
organizational and legal form o f a public association (a non -governmental  organization or  public 
union) with the status of a legal entity  sole type of activity of which is the fulfilment of the tasks 
and function s specified in Article 1 2 of this Law . 
Only rightholders may be the  founders of a  collective management organization.  
Founders and members of a  collective management organization may be natural persons - 
citizens of Ukraine, foreigners or stateless persons, as well as le gal entities under priv ate law.  
The collective management organizations may not have any restrictions or privileges 
depending on the type, citizenship, property status or professional membership of their founde rs or 
members.  
2. Collective management organization operation principles shall be : 
1) strict compliance with the interests of the rightholders - collective management 
organizations shall act in the best interests of the rightholders , effectively collect, distribute and pay 
rights revenue, shall not impose any obligations on the rightholders that are not objectively 
necessary for  protect ion of  their rights and interests and  effective manag ement of their property 
rights;  
2) equality – there shall be no privileges for certain categories of rightholde rs depending on 
their type (legal e ntities or natural persons), collective management organization  membership, 
participation or non -participation in the management of the organization, citize nship, residence, 
etc.; 
3) transparency – collective management organizations shall facilitate a free access of the 
rightholders, users and the public to informa tion on its activity defined by this Law ; 
4) accountability  — collective management organizations  shall report on their operation to 
the domestic and/or foreign rightholders in accordance with the procedure established by this Law ;  
5) efficient management — collective management organizations  shall facilitate collect ion, 
distribution and  payment of  rights revenue to the rightholders as quickly, efficiently and  accurately 
as possible and solely  with reasonable expenses.  
The expenses of collective management organization for the purchase of goods, works or 
services shall  meet the criterion  of management effectiveness, if carried out using the procedures 
stipulated by the Law of U kraine "On Public Procurement".  
3. The rightholders  as subjects of copyright and (or) related rights  shall have the right to 
entrust management of their proprietary rights  to colle ctive management organizations.  
The rightholders shall have the right to freely choose a collective management organization  
to manage their propert y rights, as well as to freely choos e which  particular property rights and in 
which particular objects of  copyright and (or) related rights  to assign  for management  with due 
regard of the specific features envisaged by this Law .  
Unless a collective management organization  has objectively ju stified r easons to deny 
management, it shall be  obliged to manage property rights of copyright and (or) related rights 
subjects  provided they fall within scope of its activity .  
4. Legal relations between collective management organizations  and rightholders arise and 
are exercised  on the basis of  the agreements on property rights’ management on a collective basis 
concluded in writing (electronic ) form , indicating particular copyright and (or) related rights  
objects, the rights to which are transf erred to management and their particular  types of use or under 
the law.  5 
 5. The righth olders, including those who  entered into the agreements on property rights’ 
management on a collec tive basis with the relevant collective management organization , shall be  
entitled to grant permission for non -commercial use of their own copyright and (or) related rights  
objects  at their discretion . 
6. The rightholders shall have the right to withdraw their property rig hts from management 
of a collective management organizat ion except for the cases foreseen by this Law . 
7. Collective management of property rights for the objects of copyright and (or) related 
rights is exercised in a form of  voluntary, extended and m andatory collective management.  
8. Collective management organizations  have the  right to manage proprietary copyright and 
(or) related rights  of foreign rightholders in the territory of Ukraine on general grounds specified in 
paragraph 4 Article 5 of this Law or on the basis of agreements with legal entities per forming 
collective ma nagement of property  rights of subjects of  copyright and (or) related rights in other 
countries (hereinafter - similar foreign organizations), including rights representation agreement s. 
Collective management organization s may entrust,  on the basis of agreements with similar 
forei gn organizations, management  of property rights of Ukrainian rightholders  on collective basis 
abroad , including rights representation agreement s. 
Collective management organization s may unite on a contractual b asis to carry out common 
tasks and conclude partnership agreements and rights representation agreements. Functions of 
extended and mandatory collective management cannot be transferred on the basis of partnership 
agreements or repre sentation of rights agreements.  
In the event that the functions of the acc redited collective management organization  include 
the conclusion of partnership agreements and (or) rights representation agreements, the relevant 
organization shall not ha ve the right to refuse other collective management organization s, including 
similar for eign organizations , conclusion  of the mentioned agreements.  
In the process of collective management of property rights of subjects of copyright and (or) 
related rights, the discrimination of the rig htholders , whose property rights are assigned to 
organizations on the basis of rights representation agreements , is unacceptable, in particular in 
regards to the tariffs setting, administration fee, conditions of collection s, distribution and payment 
of rights revenue . 
The content of the agreements that are concluded by a collective management organization 
with other collective management organizations, including similar foreign organizations, shall not 
contravene the requirements set by the laws of Ukraine on the protec tion of economic competition.  
9. Collective management organization s exercise powers in regards to  collecti ve 
management of proprietary rights of subjects of copyright and (or) related rights  in its own name in 
the interests of rightholders.  
10. Collective management organization s shall not have the right to : 
1) use in any way copyright and (or) related rights  objects, property rights of which are 
transferred to th em for management  on a collective basis ; 
2) entrust the exercise  of mandatory or ext ended co llective management to other collective 
management organization s or third parti es in the territory of Ukraine;  
3) be a  founder o r participant o f commercial entities . 
11. Collective management organization  shall  notify a  rightholder o n the  membership 
conditions  of collective management organization  and administration fee deductions before the 
beginning of cooperation therewith, excluding the cases of exercising collective management in the 
spheres  defined by paragraphs five and six of Artic le 12 of this Law . 
12. Collective management organization  shall not  have the right to unjustifiably withhold 
recogn ition of the rightholders as  members  of collective management organization .  
13. Collective management organization  shall  continuously provide  the rightholders and 
users  with a possibility to address it by the telecommunication means (telephone, e -mail, authorized 
electronic platforms , other means of communication), including during the exercise of their rights  
by them . 
 6 
 Article 6. Statut e of collective management organization and conditions of membership in 
collective management organization  
 
1. Collective management organization  acts on the basis of its  statute  approved in accordance 
with the established procedure and with due regard of the  provisions  of this Law . 
2. The  statute  of collective management organization  shall establish proper and efficient 
mechanisms for the participation of members of collective management organization in its decision -
making procedures. Different collective management organization  member categories shall have a 
fair and balanced repres entation in such  decision -making procedures  of collective management 
organization .  
3. The statute of collective management shall  define : 
1) the objective  of the organization ’s activity  -  management  on a collective basis  of 
proprietary rights in objects of copyright and (or) related rights, without gaining profit;  
2) categories of rightolders , in whose interests the  organization  operates;  
3) conditions of  membership  in organization ; 
4) powers, procedure and pe riodicity of a general assembly ; 
5) founding procedure and powers of the organization’s executive and supervisory bodies;  
6) provisions on the prevention of conflicts of interest s of members of the organization’ s 
executive and supervisory bodies;  
7) reporting procedures of the organization’s executive and supervisory bodies;  
8) procedure of  appealing  the decisions  of the organization’s executive and supervisory 
bodies.  
         Statute  of collective management organization  may also define  procedure and conditions of 
remote decision -making  by members of organization’s supervisory body, conditions of rest riction 
of voting rights of a member of the organization at a general assembly , in ac cordance with 
paragraph five Article 7 of this Law  and other provi sions that are not contradictory to  the 
legislation.  
4. The  conditions  of membership in collective management organization  shall be published 
on the organization's website.  
The organization shall  apply the conditions  of membership objectively, transparently and 
without discrimination. Membership condition s shall include appropri ate and effective mechanisms 
of the participatio n of members in a  decision -making process  of the organization . 
In ca se of refusal in affiliation, the organization shall provide a written justification of the 
refusal.  
The organization maintains a register of its members and keeps it up -to-date.  
 
Article 7. General a ssembly  of collective management organization  
 
1. General assembly  of members  of collective management organization  (hereinafte r - 
General assembly ) is the supreme collegial management body  of a collective management 
organization , whose competence shall include  resolution of any issues of organization’s activity . 
2. General assembly  shall be held at least once a ye ar in the territory of Ukraine.  
The date and the agenda  of the ordinary general assembly  are determined by the supervisory 
or executive body of the collective management organization . 
Extraor dinary general assembly of collective management organization  is convened by  
executive or supervisory body of the organization or at the written request of not less than twenty 
percent of the overall number of members of organ ization . 
The executive body  of collective management organization shall publish information on the 
date, time, place and the agenda and the list of questions submitted for voting on the organization's 
website no later than twenty working days before  the date of the general assembly . 7 
 Collective management organization shall publish  the documents and draft documents 
necessary for decision -making on the questions of the agenda on its own website.  
3. The g eneral assembly  shall be deemed to be competent  if at least 50 percent of the overall 
number of members of organization who has  the right to vote participates  in it. 
The g eneral assembly  shall be deemed to be the one that has not taken place  if less than 50 
percent of the overall number of members of o rganization with  the right to vote participates  in it. In 
this case, the head of the supervisory or executive body sh all re -convene a general assembly  with 
the same agenda.  
Such re -convened general assembly  shall be scheduled  not earlier than in 14 days and not 
later than 3 0 days after the general assembly  that did not take place.  
Re-convened general assembly  shall be deemed to be competent if not less than 25 percent 
of the overall number of organization members who have the right to vote,  participates in it,  unless 
otherwise provided by the statute of collective management organization.  
4. The exclusive co mpetence of the general assembly  shall include:  
1) approval of the statute and changes to the statute;  
2) setting  the cond itions  of membership  in organization ; 
3) approval of draft  tariffs for conclusion of  agreements  with users ; 
4) approval of general  rules of  distribution  of rights revenue;  
5) approval of general rules of deduction of administration  fee, deductions for cul tural, 
social  and (or) educational purposes , as well as determining organization’s cost estimates;  
6) approval of general rules for the use of unclaime d funds ; 
7) appointment and dismissal of the auditor for audit ing; 
8) approval  of annual report on the activities  of collective management organization ; 
9) election and recall of the members of organization’s supervisory and executive bodies , 
including a director of organization, setting the conditions of  their material remuneration;  
10) hearing  and approval of  the reports of the organization’s supervisory and executive 
bodies;  
11) decision making on termination, liquidation and reorganization of the organization.  
Resolution of other  issues of collective management organization activity  may be delegated 
to supervisory or executive body  of collective management organization . 
5. All members of collective management organization shall have the right to  participate in 
the general assembly  and exercise their voting rights. In their sta tutes  collective management 
organizations  may establish restric tions on  collective management organization  member's 
participation and voting right based on o ne or both following criteria:  
1) duration of the  membership  in collective management organization ; 
2) amount of the remuneration paid or due  to the  member of collective management 
organization in the previous reporting period .  
These criteria sha ll be applied in a fair and reasonable  way.  
6. Each  collective management organization  member may appoint a representative and 
delegate their voting right thereto.  A collective management organization  member may represent 
another member of this organization at the general assembly , only if both of them are the 
rightholders of the same categ ory of property ri ghts. During the general assembly , for w hich the 
representative was  delegated powers, the representati ve acquires all rights of a collective 
management organization member that  delegated such powers and shall act in such member's 
interest s. The powers delegated to the representative shall be defined sep arately for each general 
assembly .  
7. The  general assembly  of members of accredited collective management organization shall 
be open . Any rightholder, regardless of whether he is a member o r were the royalties  collected in 
his favour  by this collective management organization , may attend such meeting without the right to 
vote. 
8. The statute may stipulate  an option of participation  in general assembly  of members of 
organization by means of  a video conference.  8 
 9. The minutes of general assembly of collective management organization shall be 
available  for familiarization to any  member  of collective management organization . 
10. Othe r matters in regards to holding general assembly  and the decis ion-making procedure 
shall b e established by the  statute  of collective management organization . 
11. The general assembly  adopt s decisions  by a simple majority of votes of members 
participating in general assembly.  
12. Voting at the general assembly is open . The general assembly  voting procedure is 
established by the general assembly  itself.  
 
Article 8. Supervisory b ody of collective management organization  
 
1. Collective management organization  shall establish a supervisory body  to perform an  on-
going monit oring of activity  of organization , management of organization , as well as collective 
management and  exercise of the powers delegated by the gen eral assembly .  
The supervisory body ’s competence is defined  by the  statute  of collective management 
organization  and this Law.  
The competence of the supervisory body shall include : 
1) approval of general principles and rules  of risk management  of collective management 
organization ; 
2) control over the  execution of the decision s of the general assembly by the executi ve body;  
3) approval of any real estate purchase  by collective management organization , sales or 
mortgage  contracts ; 
4) approval of agreements on obtaining a credit by collective management organization  and 
securing credit obligations ; 
5) auditing  a financ ial activity of collective management organization ; 
6) convening general assembly  of collective management organization and preparations for 
the holding of general assembly ; 
7) preparations of the proposals to  the agenda of general assembly  of collective management 
organization,  as well as proposals to include items to the agenda that were submitted  by the 
collective management organization  members  in a form of proposals ; 
8) complaint review and conflict resolution  between collective managem ent organization 
and the rightsholder s in whose interests the organization operates;  
9) making proposals on  financial and economic activities  of collective management 
organization . 
The statute of collective management organization may foresee other functio ns that belong 
to the competence of supervisory body  of collective management organization . 
2. Various  categories of  rightholders , who are members of collective management 
organization, shall be represented at the supervisory body in a fair and balanced  way. 
The supervisory body may consist of third parties who are not collective management 
organization  members, but whose professional experience enables them to fulfil supervisory 
functions. The number of third parties in the supervisory body can not  exceed the number of the 
collective management organization members represented therein.  
The supervisory body cannot consist of t he members of executive body of collective 
management organization and persons being  in employment relationship  with th is organization . 
3. The executive and supervisory bodies shall annually report to  the general assembly  of 
members of collective management organization . 
The executive and  supervisory body members shall annual ly report to the general assembly 
of collective managem ent the following information:  
(a) on any interests in the collective management organisation;  
(b) on any remuneration received in the preceding financial year from the collective 
management organisation in any form, including benefits in kind;  
(c) on any amounts received in the preceding financial year as a rightholder from the 
collective management organisation;  9 
 (d) on absence or presence of actual or potential conflict between any personal interests and 
those of the collective management organisation or between any obligations owed to the collective 
management organisation and any duty owed to any other natural or legal person.  
4. The meetings convened at least once a quarter  is an organizational form work  of the 
supervisory body . Extraordinary meetings may be convened at the request of half of the supervisory 
body members, as we ll as at the request of the executive body  of collective management 
organization . 
The supervisory body meeting shall be deemed to be competent if at least fifty per cent of 
the tot al number of the supervisory body  members are present at the meeting.  
5. The supervisory body decisions shall be documented by minutes, copies of which  shall be 
provided to the collective management organization  members upon their request.  
 
Article 9. Executive body of collective management organization  
 
1.  An individual or collegial executive body  operates at collective management 
organization . 
The procedure of establishment of executive body , its competence  and the requirements to  
the candidates for the position of a member of the  executive body shall be fo reseen by the statute of 
the collective management organization.   
2. The executive body reports to  the general assembly and is controlled by the  supervisory 
body  of collective man agement  organization . 
3. The executive body in its activities is guided by the law of Ukraine, the statute , the 
decisions of  general assembly  and s upervisory body of collective management organization . 
 
Article 10. Provision of t ransparency of operation of collective management o rganization  
 
1. Collective management organizations  shall be obliged to publish and update the following 
information on their websites:  
1) the statute ; 
2) the conditions of membership in collective management organization  (if not regulated by 
the statutes) ; 
3) the procedure  of withdrawal of r ights from management of organization ; 
4) the mo del license agreements and drafts  of preliminary tariffs approved  by the collective 
management organization ; 
5) information on  the members of executive and supervisory bodies of collective 
management organization ; 
6) principles and procedure of the distribution of rights revenue ; 
7) procedure of  the deduction  from the collected rights revenue of administration fee as well 
as the amount s that may be directed for the cultural, social and/or training purposes;  
8) the list of the agre ements concluded with other collective management organizations  
including similar foreign organizations and the names of such organisations;  
9) the proce dure of consideratio n of complaints between such collective management 
organization and other collective management organization s, users, and rightholders;  
10) the annual report on the  activities  of organization ; 
11) t he list of the copyright and (or) related rights  objects, the rig hts for  which were  
withdrawn from the  management of organization in accordance with the procedu re established by 
Article 1 3 of this law ; 
12) general principles of the u se of the unclaimed funds ; 10 
 13) the list of unidentified copyright and (or) related rights  objects and the list of objects 
with contradictory information on the rightholders.  
2. Collective management organizations are obliged to take measures to ensure efficient and 
transparent operation of the organisation ’s executive  body . In particular,  executive  body  of the 
collective management organization  shall annual ly report to the general assembly  on its interests in 
the collective management organization ; the remuneration amounts received for its activ ities during 
the reporting period ; remuneratio n amounts received from such collective management organization  
as a rightholder (if this is the case ); existing or potential conflic ts of interest s between the 
managerial duties in relation to the collective management organization  and its  duties in relation to 
any other natural person or legal entity.  
3. Collective management organizations  shall provide an Institution  with the following 
information : 
1) about the  changes  introduced to the statutes  - within 5 working days  after formalization of 
introduction of corresponding changes  in accordance with the law;  
2) about agreements with the rightholders on property rights management on a collective 
basis  - annually before  April 1 following the reporting year;  
3) about the conclusion of bilateral or multilateral agreements with other collective 
management organization s or their  associations, including  with similar foreign organizations  - 
annually before April 1, following the reporting year;  
4) about annual balance sheet  and the organization's supervisory body report – annually 
before April 1, following the reporting year;  
5) about annual report in the form in accordance with the law – annually before  April 1, 
following the reporting year;  
6) about audit findings – within 5 working days after the completion of the audit conclusion;  
7) about the g eneral assembly  convening (date , time, place and agenda, drafts of documents 
and agenda decisions) – not less than  14 days prior to the the g eneral assembly  convenin g; 
8) about decisions approved by the g eneral assembly  - within  5 working days from the date 
of their entry into force;  
9) about persons authorized to represent an organization (executives) - within 10 working 
days after the election (appointment) or dismissal takes p lace;  
10) about the organization location, telephone numbers - within 5 working days since the 
day of respective  changes.  
4. The collective management organization  carries out expenses for the purchase of goods, 
works or services in an order and using the  procedures established by the Law of Ukraine "On 
Public Procurement".  
Responsibility for the ine ffective use of funds by the collective management organization  
lies with its executive body.  
 
Article 1 1. Annual report on activity of collective management o rganization  
 
1. Annually before 1st of April following the report ing year , the collective management 
organization  shall publish its annual report on its website  and facilitate a free access to it for the 
period of five years upon its publication. One copy of the annual report shall be sent to the 
Institution ’s address  by 1st of April of the next year.  
2. The information presented  in the annual report on the activity of collective management 
organization is subject to audit  in accordance with the procedure e stablished by law. The audit 
report shall  be an integral annex to the  annual report  on the activity of collective management 
organization  and shall be published together therewith.  
3. Annual report of collective management organization shall contain in par ticular the 
following information  (as of  the beginning and the end of the reporting period):  11 
 1) bi - and multilateral agr eements concluded with other collective management 
organization s, including the similar foreign organizations (names of the contractual parties, the 
effective date, the period of validity, and subject of the agreement);  
2) collected by collective management organization rights revenue  with the breakdown by  
category of rights  and sphere of use of rights , on the use of such revenue  (distribution to the 
rightholders, payment to other collective management organization s, use for other purposes);  
3) relations with other collective management organization s, including similar foreign 
organizations, namely:  
amounts received from other col lective management organizations and amounts paid to 
other collective management organization s, along with the breakdown  by category of rights , by 
sphere of use of rights , by organization;  
amounts deducted as management fees and other d eductions from right s reven ue, paid to  
other collective management organizations , with the breakdown  by rights category, sphere of use of 
rights, by organization;  
amounts deducted as management fees and other deductions from rights revenue, by made 
other collective management  organizations, with the breakdown by rights category, sphere of use of 
rights, by organization  
sums payable to other collective management organization s and distributed directly to  
rightholders, with breakdown  by rights category and by organization;  
4) distribution and  payment  of the rights revenue by collective management organization , 
namely:  
total amount , distributed in favor  of rightholders, with breakdown  by rights category and 
sphere of use of rights ; 
total amount , paid to the rig htholders, with th e breakdown by rights category and sphere of 
use of rights ; 
the total amount of  collected, but not distributed or not paid to rightholders  funds, with the 
breakdown  by rights category and sphere of use of rights  and indication of  the financial year in 
whic h such  funds were collected;  
5) in case of existence of undistributed, unpaid funds  — information on the reasons of such 
situation  and about the measures  which the collective management organization  took to find and 
identify the right holder  to whom these f unds shall be distributed ; 
6) us e of the amounts retained by collective management organization  with reasoning and 
calculations, in particular:  
all operating and financia l expenses made by organization, with the breakdown  by rights 
category managed by the organization. When the expenses are indirect and can not be assigned to 
any of the rights category then the reasoning of such expenses shall be given;  
operatio nal and financial expenses solely in the part of rights manage ment  per se with the 
breakdown  by category of rights managed by the organization. When the expenses are indirect and 
can not be assigned to any of the rights category then the reasoning of such expenses shall be given;  
operational and financial expenses re lated to other than the rights management  services ; 
resources used to cover expenses;  
amounts of material remuneration, provided to the persons indicated in Articles 8 and 9 of 
this Law, in the reporting period;  
deductions from r ights rev enue, with the br eakdown  by rights categories and spheres of uses 
of rights, as well as the purpose s of such deductions;  12 
 7) cases when users were  denied agreements;  
8) the organizational and  legal form and structure  of organization . 
Apart from the above information, in o rder to ensure transparency, collective management 
organization  may also include other information into its annual report.  
 
If any sha re of the collected funds  to be used for cultural, social , training purposes, the 
annual report should also include a spe cial report with detailed information on the specific aims and 
indication of the amounts used for each area.  
 
Article 1 2. Functions of collective management organization and spheres  of rights 
management  
 
1. On  its behalf and in the interests of  the rightholders, the collective management 
organization s shall  perform the following functions : 
1) conclude agreements with users on authorising the use of the copyright and (or) related 
rights  objects and agreements on payment  of remuneration (deductions)  for the use of the copyright 
and (or) related rights  objects;  
2) conclude agreements on partnership , agreements on representation of rights  with other 
collective management organization s; 
3) collect, distribute and pay rights revenue to the rightholders;  
4) file lawsuits on behalf of the rightholders to defend their property rights in accordance 
with the statutory powers and instructions of the rightholders  and take other actions envisaged by 
law and the instruction of the rightholders necessary for the pr otection of  copyright and (or) related 
rights  of the rightholders in whose interests the organization operates;  
5) facilitate maintenance of registries of rightholders , registry of  copyright and (or) related 
rights  objects ,  property rights in which are managed by the organi zation;  
6) monitor the lawful use of th e copyright and (or) related rights  objects in accordance with 
the spheres of management of rights, in regards to which the organization is registered , and in 
relation to the copyright and (or) related rights  objects , property rights in which are assigned to 
them for management;  
7) perform other functions defined by this Law and the Statute . 
2. Collective management organization  shall prov ide information on the grounded  inquiries 
and react to the complaints made by the rightholders, other collective management organization s 
and users as soon as possible, but not later than 15  calendar days since the day  of the receipt of  the 
inquiry . 
3. The collective management organizations  shall not have the right to  conduct 
enterprenerueal activities  and shall conduct only economic activities without the pu rpose of 
obtaining profit that  contributes to the achievement of their statutory  objectives.  
Collected  rights revenue , the unclaimed funds and  any other funds  of the organization  shall 
be separately accounted for on the accounts of collective management organization . 
Collective management organizations shall have the right to initiate  hosting  of concerts, 
recitals, and other cultural events as well as make propositions to respective authoritites to hold 
national patriotic events aimed at popularization of national creative works.  13 
 4. Voluntary collective management  of property copyright and (o r) related rights  may be 
exercised in any spheres  of rights manage ment, except for those where  extended and mandatory 
collective management  is exercised . 
5. Extended collective management  extend s to the entire t erritory of Ukraine and is 
exercised  in respe ct of the property r ights of all rightholders of the relevant category in the spheres  
for which the organization is accredited, including those who did  not enter  into an agreement for 
copyright and (or) related rights  objects management with an accredited organization  and regardless 
of the manner  in which the rightholders chose  to manage  their rights.  
Extended collective management  foresees  the right of the rightholders to withdraw in whole 
or in part, their respective  rights to copyright and (or) related rights  objects from management of  an 
accredited organization in the manner prescribed by this Law.  
Extended collective management  of copyright and (or) related rights  objects is exercised 
exclusively in the following spheres : 
1) public performance of musical non -dramatic works with and without lyrics , including 
those works included in audiovisual works;  
2) public broadcasting  of musical non -dram atic works with and without lyrics , including 
those works included in audio visual works, except for cable retransmission;  
3) the right to an equitable remuneration , joint for  performers and producers of phonograms 
(videograms), for the public performance of phonograms and recorded performances  in them, or  
public demonstration of videograms and recorded performances in them , published for commercial 
use; 
4) the right to an equitable remuneration , joint for performers and producers of phonograms 
(videogram s), for public broadcasting of phonograms and recorded performances in them, 
videograms and recorded performances in them, published for commercial use, except for cable 
retransmission;  
This list of spheres  of collective management, in which extended collective management  is 
exercised , defined by this paragraph,  is exhaustive.  
 
One accre dited organization shall be  designated  for each sphere of extended collective 
management on the condition of absence of any conflicts  of interest s between the main category of 
rightsholders in whose interests the organization operates and other cate gories of rightsholders in 
favor of which rights revenue  in the relevant sphere of extended  collective management shall be 
collected. In case of the existence of the specified conflict of interest, the Committee  shall, 
according to the criteria and procedure specified in paragraphs  from four to ten of Ar ticle 15 of this 
Law, designate  an additional accredited organization for this sphe re among the organizations that  
conduct activities mainly in the interests of the corresponding other category of the  rightholders. 
The legal status of an additional accredited organization means that this organization has no right to 
independently collect rights revenue from the  users in the relevant sphere , but at the same time has 
the power to demand and obtain from a n accredited organization the share of rights revenue  in this 
sphere  that belongs to the category of the rightholders, in the interests of which an additional 
accredited organization operates, for further distribution and payment of such share to the 
right holders of this category. The rightholders of the relevant category shall have the right to 
withdraw their rights from an additional accredited organization in accordance with the extended 
collective management . 14 
 One collective management organization  may be a ccredited to exercise  extended collective 
management in several spheres  in relation to several categories of rightsholders, provided that there 
are no conflicts of interest s between the different categories of rightholders.  
6. Mandatory collective  management  extends to the entire territory of Ukraine and is 
exercised  in respect of the property rights of all rightholders in th e relevant category in the spheres  
for which the organization is accredit ed, including those who did not enter  into an agreem ent on  
management of copyright and (or) related rights  objects with an accredited organization and 
regardless of the manne r in which the rightholders chose  to manage their rights.  
Mandatory collective management  is exercised in the following spheres : 
1) resale right in respect to the works of fine arts;  
2) reprographic reproduction of works and their parts (excerpts);  
3) reproduction for home and private  purposes of works, performances recorded  in 
phonog rams, videograms, their copies , as well as audiovisu al works and their copies;  
4) cable retransmission of copyright and (or) related rights  objects, except for the rights of 
broadcasting organizations in relation to their own programs (broadcasts).  
This list of the spheres of collective management, in  which  mandatory collective 
management is exercised, defined by this paragraph, is exhaustive.  
For each sphere of  mandatory collective management  one ac credited organization shall be 
designated . 
One collective management organization  can be a ccredited to exercise mandatory collective 
management in several spheres , as well as simult aneously with the exercise  of exte nded collective 
management . 
Mandatory collective management  does not foresee  the withdrawal by the rightholder, in 
whole or in part , of his propert y rights from the manage ment of  the accredited organization.  
 
Article 1 3. Declaration of property rights . Withdrawal  of property rights from management of 
collective management o rganization  
 
 
1. Declaring of property rights by the rightholder s is exercised  in order to identify the 
copyright and (or) related rights  objects.  
2. When declaring the property rights, th e rightholder shall provide  informat ion about the 
object, which allows  to reliably distinguish it from other copyright and (or) related rights  objects of 
the rightholder and third parties.  
3. Collective management organizations  shall set  rules for declaring prope rty rights that they 
administer  and k eep register of copyright and (or) related rights  objects transferred  to th eir 
management.  
4. Dec laring shall be conducted  in written or  electronic form ( in the electronic  system  of 
administration ) in t he manner established by the collective management organization . 
5. Declaration and  inform ation related to declaring  of property rights  shall  be kep t throughout 
the term of the collective management organization  operation . 
6. The rightholders are responsible for the accuracy of the information they provide when 
declaring their copyright and (or) related rights  objects.  
7. The collective management organization shall  immediately suspend the payment of the 
corresponding shares of rights revenue distributed in connection with the use of the copyright and 15 
 (or) related rights  object and to notify the declarants who declared t heir rights to this object in the 
event that:  
 
1) collective management organization  received information that does not allow to reliably 
distinguish one object of property rights from the other objects of property rights of this 
rightholder and / or third pa rties;  
2) information about property rights received by organization from diff erent rightholders 
about  the same object of property rights contains contradictory information regarding the 
rightholders.  
The notice of identified deficiencies in the information s hall be sent to all persons who have 
declared their property rights to the correspon ding object of property rights.  
Collective management organization  shall resume  the payment s of rights revenue suspended in 
connection with contradictory inf ormation only after the receipt of  new declarations that eliminate 
contradictions, as well as in the case of obt aining a court decision that  entered into force and 
eliminates  contradictions regarding the circle of the rightholders in  the disp uted object of property 
rights.  
8. The rightholders shall have the right, on the basis of a written application, to demand the 
withdrawal of their right s from the management of collective management organization , the 
termin ation of actions in regards to  granting permissions for t he use o f their copyright and (or) 
related rights  objects, actions in regards to collection of  remuneration for the use of their copyright 
and (or) related rights  objects (hereinafter – withdrawal  application). Withdrawal  application  shall 
indicate the rig hts that are withdrawn from the management of the organization and the list of 
copyright and (or) related rights  objects.  
The rightholders shall indicate the list of objects in respect of which the application is filed and 
the legal grounds for acquiring p roperty rights to these objects  in withdrawal application.  
9. In  case of submission by the righth olders to collective management organization  of a 
withdrawal application  regarding their copyright and (or) related rights  objects, the collective 
management organization  shall, within six months from the date of receipt of these applications, 
pay to the rightholders who filed applications the due remuneration; to make appropriate 
amendments to the agreements with users, to t erminate the management of these copyright and (or) 
related rights  object s (termination of activities on  granting permissions for the use o f these 
copyright and (or) related rights  objects, actions on  collecting remuneration for use of these 
copyright and (or) related rights  objects, actions on appeals to the court on the protection of the 
rights of the rightholders in respect of these objects, etc.) and to plac e information on such 
withdrawal  with the list of  the owners who made such withdrawal and the lis t of copyright and (or) 
related rights  objects in regards to which the withdrawal took place on its website.  
10. Filing of  withdrawal application shall not be allowed and the collective management is 
obligatory in the case of exercise of mandatory collecti ve management in accordance with this Law . 
11. Subject to compliance by the rightholders with the withdrawal procedure provi ded for in 
this Article, collective management organization  shall not  have the right to refuse the withdrawal of 
rights from managem ent. 
12. The rightholders may also withdraw their rights from management of an organization 
accredited for the exercise of extended collective  management  of rights . In such case, in the 
territory of Ukraine, the management of rights withdrawn  from collecti ve management may be 
exercised  by the rightholder.  16 
 13. If the part of the rights revenue, that was due to  the rightholder before the filing of the  
withdrawal applicati on, was received by collective management organization  after the expiration of  
the term s pecified in paragraph nine  of this Article, the organization shall  notify the rightholder 
within a month an d take all possible measures to pay  the money due to him.  
 
Article 1 4. Rights of the rightholders in relationship  with the collective management 
organization  
 
1. The rightholders who  acquired t he status of a member of collective management 
organization  shall have the right:  
1) to pa rticipate in the general assembly of collective management organization  in accordance 
with the provisions of Article 7 of this Law;  
2) to participate in the activity of the supervisory or executive body  of collective management 
organization  in accordance with the provisions of Articles 8  and 9  of this Law;  
3) to receive from the collective management organizations  information about the management 
of their property rights, the amount s of collected rights revenue  and accrued for them share of rights 
revenue, as well as the amount of remuneration for management  retained by collective management 
organization ; 
4) to receive their respective share of rights revenue;  
5) to contact the organization with the help of telecommunication facilities (telephone, e -mail, 
authorized electronic platforms, other means of commun ication);  
6) to withdra w from the management of collective management organization  their property 
rights in accordance with the procedure provided for in Article 1 3 of this Law;  
7) to terminate membership in collective management organization ; 
 
2. The righ tholders who have not acquired t he status of a member of collective management 
organization  shall have the rights provided for in sub -paragraphs  1-6 of paragraph  one of this 
article.  
 
Section ІІІ  
  
REGISTRATION AND ACCREDITATION OF COLLECTIVE MANAGEMENT 
ORGANIZATIONS  
 
Article 1 5. Registration  of collective management organizations   
 
1. A legal  entity intending to perform  functions  of collective management organization shall , 
after its state registration,  apply to the Institution for  collective management organization 
registration.   
2. A legal entity  may be included  into the Register  of Collective Management Organizations  
in case it complies with the foll owing requirements:  
1) it is registere d as a public association with the legal entity status in accordance with the 
procedure established by law;  
2) the founders of organization  are exclusively the right holders;  
3) it is a non -profit organization;  
4) the  subject of the organization's activity is collective management of property rights of 
copyright and (or) related rights subjects;  17 
 5) the  statute , other consti tuent documents and  internal rules  of organization  comply with 
the requirements of this Law and o ther laws and regulations of Ukraine;  
6) it has not less than one fulltime  employee with no less than two -year experience  in the 
field of copyright or related rights necessary for collective management organization  to fulfill  its 
functions;  
7) it has wr itten statements from the right holders about the intentio n to entrust the 
organization with  manage ment of  their rights;  
8) it has a current account in a bank;  
9) it has its own website containing information in accordance wit h the requirements of this 
Law.  
3. To be included  into the Register  of Collective Management Organizations , a lega l entity 
shall attach to the application for  registration of collective management organization , submitted to 
the Institution , the following documents:  
1) copies of the statute , consti tuent documents and  internal rules  of the organization ; 
2) extract from the Unified State Register of Legal Entities, Individual Entrepreneurs and 
Public Associations;  
3) a copy of the do cument confirming the non-profit status  received by organizat ion; 
4) a copy of  the certificate confirming the set up  bank accounts;  
5) basic information about the founders, members of th e supervisory and executive bodies 
and employees  of the legal entity, submitted in accordance with  the form approved by the 
Institu tion; 
6) copies of right holders ’ written statements of the intention to entrust their rights 
management to the legal entity;  
7) information about the domain name, structure and content of the organization's web site.  
The specified information and documents  shall be certified in the manner prescribed by law.  
Requesting other documents for inclusion of a legal  entity in State registry of collective 
management organizations  shall not be allowed.  
 4. The application  for registration of collective management organization  together 
with the information and documents confirming the legal entity compliance with th e requirements 
specified in paragraph 2  of this Article shall be submitted to the Institution directly or thro ugh the 
Unified State Portal of Administrative Services in accordance with the Law of Ukraine “On 
Administrative Services” . 
Responsibility for the veracity  of the information and documents submitted for the 
registration of collective management organizatio n and the information specified therein is borne by 
the head of a legal entity.  
The documents subm itted to the Institution for collective management organization  
registration shall not be returned and shall be kept by the Institution.  
5. The In stitution sh all consider the collective management organization  registration  
application within 15 working days after the legal entity submits all necessary documents. The 
Institution shall examine all documents submitted by the legal entity and shall decide on the 
collective management organization  regis tration or on the denial of the  registration.  
6. The grounds to deny legal entity registration as a collective management organization  are 
the following : 
a) non -conformity with the requirements specified in paragraph 2  of this Article;  
b) submission of an incomplete list of documents or the docu ments containing false  
information;  
c) submission of the statute  that is not compliant  with the law;  
d) submission of an application until the end of one calendar year from the date of 
cancellation of the legal entity’s  collective management organization  registration  by a court 
decision.  18 
 In case of  denial of  collective management organization  registration, the Institution shall 
notify the legal entity in a written form within 10 working days after the  decision  on denial was  
made and shall provide a copy of the decision  on denial of registration .  
After eliminating the causes of  the decision  on denial of registration , the relevant legal entity 
may re -apply for collective management organization  registration, submit  the documents specified 
in paragraph  three  of this Article, as well as, at the will of the legal entity, may submit other 
information and documents confirming legal entity compliance with the requirements specif ied in 
paragraph two  of this Article.  
The decision on denial of collective management organization  registration may be appealed 
in court in accordance with the law.  
7. In case of compliance of the legal entity with the requirements of paragraph two of this  
Article and  submission of the full list of doc uments in accordance with paragraph three  of this 
Article,  the Institution shall make a decision on registration of  collective management organization . 
 
 A legal entity acquires the collective management organization  status as a result of its 
registratio n by the Institution in the Register  of Collective Management Organizations  exclusively 
in the spheres  specified in the Register regarding this legal entity.  
 
Article 16 . Accreditation of collective managem ent organizations  
1.  The accredited collective management organization  shall be designated  by an open 
competition organized by the Institution and conducted by the regular collective management 
organization  accreditation committee (hereinafter - the accre ditation committee) in the manner 
prescribed by this Law.  
The p rocedure of formation,  term of powers and procedural principles of the accreditation 
committee shall be defined by the accreditation committee regulations approved by Institution.  
2. The accreditation committee shall consist of the fo llowing members:  
  the Institution head (or his deputy) - the committee  chairman;  
from the Institution - 1 person ; 
from the central executive body, that ensures culture and arts state policy - 1 person;  
from  the National Council of Ukraine on Television and Radio Broadcasting - 1 person;  
from public associations, associations representing users - 1 person;  
from public associations, associations, creative unions representing the rightholders - 1 
person;  
from i nternational  organizations  in the sphere of copyright or from international organizations in the 
sphere of related rights organizations -2 person s who take part in the review of the matters 
according to their competence . 
Members of the accreditation commit tee, delegated by international copyright and (or) 
related rights societies,  may participate in  activity  of the committee by means of  a videoconference.  
The accreditation committee members should act on the principles of impartiality, absence  
of conflict o f interest s and c ollegiality in decision -making.  
The accred itation committee  members are approved by the order of the Head of the 
Institution . 
3. The a ccreditation committee decisions that are considered at the accreditation  committee 
meetings shall be taken by a simple majority  of votes  in the presence of not less than two thirds of 
its members.  
The adopted decision shall be documented in the minutes . 
In the case individual committee  members participate in voting by means of 
videoc onference, this fact i s documented in the minutes . 
The meetings of the ac creditation committee are open.  19 
 4. The Institution shall publish on its website an announcement of the beginning of open 
competition no later than 30 calendar days be fore the end of the receipt of applicat ions. 
The announcement must  indicate the sphere of accreditation , term of submission of the documents  
and date of the meeting of accreditation commit tee. 
 
5.  Collective management organizations  are allowed to participate in competition on 
designation of accredited organization if compliant with  the following requirements:  
The sphere of activity of organization , specified in the  Register  of Collective Management 
Organizations , corresponds to the sphere of  accreditation;  
activity of the organization is performed  in the whole territory o f Ukraine. The organization 
has isolated subdivisions or persons who under the relevant agreements are authorized to conduct 
negotiations on the conclusion of contracts on behalf of collective management organization  in the 
majority of  regions  of Ukraine ; 
has qualified staff with no less than two years of experience in the copyright or related rights 
sphere necessary  to fulfil collective management organization  functions;  
has maintenance supplies  and software  necessar y to fulfil collective management functions  
(computers , printer, copy machine,  software that enables identification of  the copyright and (or) 
related rights  objects and distribution  of the collected r emuneration, as well as registration and 
identification of the rightholders, Internet access, telephone, fax, equipped desks etc);  
has the premises necessary to loc ate its staff and equipment to fulfil collective management 
organization  functions which is owned or leased . 
6.  Collective management organization may be accredited in relevant sphere  if it is 
representative, namely : 
it has agreeme nts with significant number of rightholders – Ukrainian  residents, who,  in 
order prescribed by this Law , declared their rights on the  objects of copyright and  (or) related rights  
(in respect of the given category of rights of the given category of rightholders  that organization 
plans to administer ) which are ac tually being used in Ukraine;   
it has representation agreements with similar  foreign organizations , agreements with foreign 
rightholders (in respect of the given category of rights of the given category of rightholders  that 
organization plans to administer ) that  foresee the management of the biggest quantity  of rights  that 
belong to the non -residential rightholders in  objects of co pyright and related rights that are actually 
being used in the territory of Ukraine . 
When determining representativeness of the collective management organizatio n the 
quantitative indicator of  uses of certain category of the objects of copyright and (or) related rights 
for the previous calendar year  in the territory of Ukraine shall be taken into account. This indicator 
may be determined, in particular, by the frequency of broadcasts  of the obj ects of copyright and (or) 
related rights from the catalogue of the organization under the certain category on the national TV 
and Radio broadcasting, taking into account the territorial category of the broadcast. The frequency 
of broadcasting  is determine d on the basis of the reports  on the use of objects of copyright and 
related rights  from  TV and Radio broadcasters for the previous calendar ye ar provided to the 
Institution.  
7. The collective management organization that participates in the competition on  
designation of the accredited collective management organization shall submit to t he Institution an 
application in  the established form, which specifies the sphere in respect of which the organization  
plans to exercise  extended and (or) m andatory collective management.  
The following shall be enclosed to t he app lication : 
1) a list of the rightholders with whom  the organization concluded the agreements, 
indicating their rights to the objects of copyright and (or) related rights (according to the 
sphere in respect of which the application is submitted);  
 
2) information about the actual number  of use s of objects of copyright and (or) related 
rights in the territory of Ukraine regarding which the organization conc luded agreements 
with the right holders (along w ith supporting documents);  20 
  
3) copies of the agreements concluded by the organization with similar foreign 
organizations that manage the rights in type of object of copyright and (or) related 
rights , in accordance with the sphere , in respect of which the appl ication is submitted;  
 
4) information on membership or cooperation with international  associations  of collective 
management organizations, international  associations of rightholders in the sphere, in 
the which the application is filed;   
 
5) information about the  separated divisions of the organization or persons authorized by 
the relevant agreements to conduct negotiations on the conclusion of agreements on 
behalf of the collective management organization;  
 
6) information confirming the ownership of the organization  on the premises, or the right 
to use the premises;  
 
7) information about the maintenance supplies  and qualified personnel of the organization;  
 
The said documents shall  be certified in accordance with the procedure established by the 
legislation.  
8. The appl ication for accreditation of the collective management organization and the 
information and documents attached thereto shall b e submitted to the Institution.  
Responsibility for the veracity  of the submitted information and documents and the 
information contained therein is borne by the head of the legal entity . 
 
Documents submitted to the Institution shall not be returned  and remain in the Institution.  
 
9. Based on the results of the competi tion, the Institution places on its web site a decision on 
the accreditation of the coll ective management organization.  
The decision taken may  be appealed to the Institution by other organizations that took part 
in the competition within five working days from the date of such disclosure of the decision . 
Complaints shall  be reviewed within 15 days of their receipt.  
The decision on accreditation of the collectiv e management organization shall  be approved 
by the order of the Institution.  
10. If after the anno uncem ent of the accreditation competition  only one collective 
management organization applie s for participation, it shall  not constitute a ground for cancellation 
or postponement of the competition.  
In the event that none of the organizations intending to be accredited in a particular sphere  
complies  with the requirements of this Law or when no organization applies for accreditation in a 
particular sphere, it  is considered that collective management of rights of objects of copyright and 
(or) related rights is not exercised in this sphere . In this case, the competition is considered to be 
open to all willing organizations until the decision on the accreditation of the collective 
management organization is taken.  
11. Information on the accreditation of the col lective  management organization shall be 
included  in the Register of collective management organizations.  
12. The term of accreditation of the colle ctive management organization shall constitute  
three years.  
Four months before the end of the accreditation period of the collective management 
organization, the Institution announces a new open competition.  
 
 
 
 21 
 Article 1 7. Register of Collective Management O rganizations  
 
1. The Institution is a holder and administrator and ensures the maintenance of the Register 
of Collective Management O rganizations, to which it s hall provide an  access on the free and 
permanent basis online for any persons. The technical maintenance of the operation of the specified 
register shall be performed  by the Institution.  
At the request of the a pplicant, the Institution shall  provide a n excerpt on a free of cha rge 
basis from the Register of Collective Management O rganizations within three working days from 
the date of receipt of  the corresponding application.  
The procedure for kee ping the Register of Collective Management O rganization s and the 
form of extract from it shall be  approved by the Institution.  
Intellectual Prop erty Rights of the Register of C ollective Management Organizations belong  
to the Institution.  
 
Article 1 8. Intro ducing  amendments to the Register of Collective Management 
Organizations  
 
1. Changes to the R egister of Collective Management O rganizations shall be made in the 
following cases:  
 
1) changes in the name of a legal entity (if the change is not related to the  reorganization of 
a legal entity);  
2) changes in th e location of the legal entity.  
In case the grounds  for introducing amendments to the Register of C ollective  Management 
Organizations emerged , the collective management organization shall be  obliged to su bmit to the 
Institution an application of amendments with the supporting documents or their  notarized copies 
confirming  the indicated changes  within 10 working days from the day such ground emerged . 
2. Changes to the Register of Collective Management O rganizations shall be made within 
three working days from the day the respective application is submitted on a free of charge basis.  
 
Article 1 9. Cancellation of registration and accreditation of collective management 
organization  
 
1. Registration of a col lective managemen t organization can be canceled:  
1) by application of collective management organization;  
2) in case of termination of the organization as a legal entity in accordance with th e 
procedure established by law;  
3) in the case of d epriving the o rganization of non -profit status ; 
4) upon Institution’s decision on cancellation of a registration due to violation by collective 
management organization of the requirements of this Law.  
Institution’s decision on cancellation can be contested in the courts.  
2. Accreditation of the collective management organization can be canceled:  
1) by application of coll ective management organization;  
2) in case of cancellation of registration of coll ective management organization;  
3) upon Institution’s decision on  cancellation of a registration due to violation by collective 
management organization of the requirements of this Law.  
Institution’s decision on cancellation can be contested in the courts.  
3. The application for cancellation of registration, the applicat ion for cancellation of 
accreditation submitted by the collective management  organization shall be considered by the 
Institution within three working days from the date of its receipt to the address of the Inst itution.  
The Institution makes a decision on c ancellation of registration , accreditation upon 
application of collective management organization , certified copy of which shall  be sent to the 
organization within one business day from the day of its adoption. On t he day of adoption of a 22 
 decision , the collective management organization shall  be excluded from the Register of Collective 
Management O rganizations. Information about cancellation of registrati on, accreditation shall  be 
made public  on the official web site of t he Institution on the Internet.  
In the event of a decision to cancel registration , accreditation upon application of the 
collective management organization, registration , accreditation is deemed to be canceled from the 
date of the adoption of a decision . 
4. Within 90 calendar days from the date of sending the certified  copy of the decision on 
cancellation of the registration , accreditation, the organization whose registration , accreditation was  
canceled shall distribute and pay the previously received rights  revenue  to the right holders. The 
remaining amounts of unpaid revenue  shall be transferred by the organization to a new collective 
management organization that  will exercise  activities in the same sphere , provide this organization 
with information about concluded agreements with users (wit h details of the agreement,  duration , 
the name of the legal enti ty, its location (surname, name , patronymic, place of residence of an 
individual - entrepreneur), contact phone numbers) as well as other information necessary for 
further distribution and payment of this revenue  in accordance with the Law in the sphere of 
copyright and related rights. The information should be certified by the signature of th e official of 
the organization.  
During specified  period, the organization shall  notify the persons with whom agreements on 
the use of copyright and (or) related rights objects are concluded,  on the termination of agreements . 
Within three working days from the date of expiration of the specified period, the 
organization shall provide the Institution with a report on compliance with the requirements 
provided for by this paragraph.  
5. If the organi zation is terminated as a legal entity in accordance with the procedure 
established by law, the procedure of distribution and payment  of remuneration  upon the 
accreditation cancellation shall be  observed in accordance with  Ukrainian legislation.  
6. If the organi zation fails to fulfil the requirem ents established by paragraph four  of this 
Article,  the Institution shall address the law -enforcement bodies.  
7. If the organi zation violates the copyright and  (or) related rights legislation  requirements, 
includin g of this Law , the Institution shall have the right to cancel registration and accreditation of 
such organization . 
8. The registration cancellation and exclusion of the  Register of collective management 
organization  shall result in the termination of the right to operate as a collective management 
organization .  
9. The accreditation cancellation deprives  a collective management organization  of the right 
to exercise  extended  or mandatory c ollective management in the sp here in which  the or ganization 
was accredited and shall constitute a  basis for initiating a ne w procedure of accreditation of 
collective management organization  in the relevant sphere . 
 
Section ІV  
 
COLLECTION, DISTRIBUTION AND PAYMENT OF RIGHTS REVENUE  
 
Article 20. Relationship with users, collection of remuneration and deductions  from users  
1. Collective  management organizations shall build their relationship with users  on the 
principles of impartiality, fairness, reasonable ness of  tariffs and free access to  information. The 23 
 conditions of  granting licenses for the use of objects of copyrigh t and (or) related rights shall  be 
based on objective and non -discriminatory criteria.  
The collection  of remuneration  by collective management or ganizations from users is 
carried  out in accordance with the sphere  in which the collective management organization is 
registered and/or accredited and entered into the Register  of Collective Management Organizations . 
The remuneration collection (deduction s) is carried out by collective management 
organizations on the basis and within the limits of the powers received from the rightholders  and / 
or collective management organizations and /or similar foreign organizations on the basis of 
agreements concluded  in writing  (electronic form)  or provided by this law.  
2. Tariffs that are proposed to be used in user agreements shall be objective and reasonable , 
taking into account, in particular, economic value of use of objects of copyright and (or) related 
rights in economic activity, nature and extent of the use of objects of copyright and (or) related 
rights, type of user activity, financial and economic ind icators of the market where the mentioned 
objects are used . 
Drafts of preliminary  tariffs are determined at the general assembly  of the collective 
management organization and are set as a fixed amount or as a percentage of proceeds  received by 
users in reg ards to direct use of objects of copyright and (or) related rights excluding the expenses 
payments for purchasing (acquiring) rights to such objects of copyright and (or) related rights , or 
percentages of the cost of equipment and material carriers, using which it is possible to perform 
reproduction of objects of copyright and (or) related rights, separa tely for each category of users . 
Within 10 working days since the preliminary draft tariffs are determined the collective 
management organization shall make  the draft of preliminary tariffs publicly available by:  
publishing on the organization's web site;  
sending to the Institution;  
sending it together with an offer to participate in negotiations on tariffs setting, to 
specialized associations and associations of users in the relevant category, as well as separately to 
users who according to the data of the collective management organ ization in the previous 
accounting period paid not less than 1% of the overall rights  revenue  collected by the collective 
management organizat ion for this category of users.  
Institution within 10 working days since the draft tariffs are received from the c ollective 
management organization shall publish on its website information on beginning of n egotiations on 
tariffs setting.  
Within thirty calendar days from the date of the publication of the draft tariffs, the 
Institution shall register the representative s of the specialized associations and associations of users 
in the relevant category, as well as users who expressed their willingness t o take part in the 
negotiations.  
 
Within 10 working days after the date of completion of registration of the participants of the 
negotiations, the collective management organization submits to the Institution, and the Institution 
publishes information on the dat e and place of the negotiations. Institution performs  mediation 
during negotiations.  
Negotiations on fi nal tariffs setting shall be finished  no later than within 30 calendar days.  
In the event that the parties in the course of negotiations have not agreed on final tariffs 
setting, the collective management organization shall apply for a period of up to six months the 
temporary tariffs, the amount of which shall be approved by the Cabinet of Ministers of Ukraine.  
In the event that the parties have not agreed on the final tariff within six months, such tariff 
shall be determined by the court. Appeal to a court  does not relieve the user of the obligation to 
continue to pay remuneration at a temporary tariff until the court decision becomes effective.  
The court's final tariffs are applied from the moment of appeal to the court.  24 
 3. Users, before the beginning of u se of objects of copyright and (or) related rights in their 
activities, except for the cases stipulated by this Law and the Law of Ukraine "On Copyright and 
Related Rights", shall conclude an agreement on the use of objects of copyright and (or) related 
rights with the collective management organization, managing copyright and (or) re lated rights in 
the relevant sphere . The procedure of a court appeal of temporary or final approved tariffs published 
by the Institution cannot be a reason for users to avoid f rom concluding an agreement . In the event 
that the agreement between the user and the collective management organization is concluded on 
the basis of the temporary tariff, it shall be renewed (by signing a new agreement or concluding an 
additional agreemen t by the parties) after the Institution has published the final approved tariff.  
In case of conclusion of the agreement between the user and the accredited collective 
management organization and fulfillment of obligations stipulated by this agreement, the user is 
released from any other claims regarding this category of rights, the type of object of copyright and 
(or) related rights and the type of its  use in accordance with the sphere  of accreditation of this 
collective management organization with which  it has an agreement, except for the objects of 
copyright and (or) related rights which are not covered by the agreement which is indicated in the 
website of the given organization. In case of receipt  of such claims they are solved by collective 
management  organizations.  
4. Users shall pay to collective management organizations , with which they have contractual 
relationship, remuneration in the amount and within the terms provided for by such agreement . At 
the request of the collective management organizati on and, if provided by the terms of the 
agreement concluded with the collective management organization, users shall provide the 
organization with an accurate list of used objects of copyright and (or) related rights. The list  of 
documents  and the procedur e of reporting is determined by an agreement on the use of copyright 
and (or) related rights objects, which in certain cases may include the obligation of users to provide 
documented information, including statistical reporting, on profit received from the  type of activity 
in the process of which the direct or indirect use of the objects of copyright and (or) related rights 
was carried out.  
Broadcasting companies submit reports to the collective management organization in the 
form approved by the Institutio n.  
The release of user from the obligation to submit reports to the collective management 
organization on the use of objects of copyright and (or) related rights is allowed in the event that the 
user is not able to provide the relevant report and if the r elevant arrangements were reached  with 
that organization, provided that the collective management organization takes responsibility for the 
fair distribution of the collected remuneration without the user's report and the user's reimbursement 
of reasonable  expenses incurred by the organization for obtaining such information.  
5. The collective management organization shall not have the right to unreasonably refuse 
the user to enter into an agreement. The collective management organization shall provide 
infor mation to the user's requests, to inform on the documents necessary for the conclusion of the 
agreement, or about circumstances that make it impossible to conclude an agree ment. After 
receiving such documents by the organization or eliminating circumstances that made it impossible 
to conclude an agreement, such an agreement shall be concluded  between the organization and the 
user in the shortest possible time frame . 
 
 
Article 2 1. Distribution of r ights revenue, deduction of administration fee and other 
payments  
 
1. Collective management organizations shall distribute rights revenue in proportion to the 
actual use of  the corresponding objects of copyright and (or) related rights, which is determined  on 25 
 the basis of information received from users or otherwise  in accordance with paragraph 4 Article 20 
of this Law . 
In cases where the specificity of the use of objects of property rights does not allow 
obtaining  credible users’ reports, collective manage ment organizations in order to perform fair 
distribution of collected rights revenue in t heir own rules, approved at the general assembly,  may 
determine other sources of information on the actual use o f objects of property rights.   
In order to clarify the  information on the actual use of objects of property rights collective 
management organization shall have the right to submit requests to the Institution on the public 
broadcast ing of objects of property rights by broadcasting organizations for the previo us calendar 
year. The relevant information is formed on the basis of the reports of the broadcasting 
organizations provided to the Institution.  
 
Rights revenue distribution in the spheres covered by mandatory collective management is 
carried out taking into account the percentage ratio between the different categories of the 
rightholders, stipulated by law.  
2. The frequency of rights revenue distribution provided by the Statute of the collective 
management  organization shall be at least once a year.  
Collective management  organizations shall make such  distribution and payment to the 
rightholders, including in benefit o f rightholders represented by other collective management 
organization , as soon as possible, but not later than nine months after the end of the fiscal year in 
which the rights revenue was collected, in the absence of objective reasons  (in particular, non -
provision  of reports by users, non-identification of rights, the r ightholders or the non-conformity  of 
information about works and other objects related to rightholders ) that may prevent collective 
management organization from being on schedule.  
The accredited collective management organization distributes the share of right s revenue to 
the rightholders it represents and forwards other shares for distribution and payment to the 
collective management organizations representing the interests of other relevant categories of 
rightholders.  
In case of transfer of funds from the col lective management organization accredited for 
mandatory or ext ended collective management, other collective management organization shall 
distribute and pay those amounts due to the rightholders as soon as possible but not later than six 
months after thei r receipt, in the absence of objective reasons (in partic ular, non -provision of the 
reports by users, non-identification of rights, the r ightholders or the non-conformity  of information 
about works and other objects related to rightholders ) that may prevent  collective management 
organization from being on schedule.  
3. If it is not possible to distribute the amounts due to  the right holders within the period 
specified in this Article for the reasons of inability to identify the right holders  and their location and 
in the absence of grounds for applying the exception to keep this deadline, such amounts shall be 
indicated in collective management organization  accounting records on a separate account 
(subaccount).  
4. The collective management or ganization  shall take all necessary measures to determine 
the rightholders, their location and contact information. In particular, it is obliged to inform its own 
members as well  as other collective management organization s with which  it concluded the rele vant 
agreements, about the property rights objects concerning which there were difficult ies in 
identification and right holders searching  within three months from the day of expiration of the time 
limit set for distribution . 
The information spe cified in the  first sub -paragraph of this paragraph , if available, shall 
include the following:  
work or other object title;  
right holder ’s name / title;  
respective publisher’s or producer’s name/title;  
any other available relevant information that may help to identify  the rightholder.  26 
  
The collective management organization  should also check the information of the registry of 
rightholdres, registry of objects of copyright and (or) related rights and the information provided 
during the property rights declaration and use other available registers and information open 
sources.  
5. In the  event identification and right holders searching is not successful, within six months 
after the expiration  of perio d specified in the  paragraph  four of this Article , collective management 
organization  publishes on its web site information about the copyright and/or related rights objects 
in regard s of which difficulties in  right holders identification and searching arose, indicating all 
possible information about the copyright and (or) relat ed rights objects  that may help to identify  the 
right holders.  
6. If none of the specified actions  helped to identify the right holders, define  their location 
and pay them due  rights revenue, as well as if the identified right holders by certain act ion or 
inaction  of such persons or due to other reasons, ( in particular, rightholders   avoiding from 
conclud ing an agreement with collective management organization , failure to provide relevant bank 
details )), collective management organization  is not able to pay them respective share s of 
distributed rights revenue, three years after the end of the fiscal year in which such revenue was 
collected, the respective shares of rights revenue  shall be recognized as unclaimed  funds and 
directed to the d evelopment of Ukrainian culture. The Cabinet of Ministers of Ukraine approves the 
procedure and conditions of transfer of corresponding funds  by collective management organization  
to a state institution that performs special functions in promoting national  and cultural development 
of Ukraine.  
7. Collective management organization s shall have the right to withhold from the sum of the 
collected rights revenue the amount of administration fee. The deductible amounts of administration 
fees shall not exceed the maximum amounts provided by this Law.  
8. In the event that the collected  share of rights revenue i s payable directly to the 
right holder, the maximum amount of administration fee may not exceed 20 percent of the amount 
collected  in favor of the right holder.  
9. If the distributed share of rights revenue is paid to the collective management organization 
on the basis of the agreement concluded between the organizations, the aggregate maximum amount 
of the administration fee of all collective management organiza tions involved in the process of 
payment of t he share of revenue  to the right holder can not exceed 25 percent of the amount 
collected  in favor of the right holder.  
In of  case extended  collective management, a larger share  of the aggregate maximum 
amount  of administration fee may belong to the organization that collected the corresponding rights 
revenues from users - provided that in the agreement of representation of rights concluded with the 
organization to which the collected rights revenue is transferred in favor o f right holders, the size of 
this share is agreed and the transfer of funds is carried out with the provision of comprehensive and 
objective data, on the basis of which the distribution of rights revenue w as made to rightholders.  
In case of mandat ory collective management, the share of the  aggregate maximum amount 
of the administration fee of an organization accredited  for the management in  this sphere  can not 
exceed one third  of the aggregate maximum amount of administration fee of all collective 
management organizations that participate in the process of paying a share of the rights revenue  to 
the right holder.  
10. In addition to deducting the administration fee, the collective management  organization , 
in accordance with the procedure established b y this Law and the statute  of the organization, may 
make other deductions from the collected rights revenue, but not more than 15 percent of the 
amount of collected rights revenue.  
Such additional deductions shall be directed to the creation of special fun ds of the collective 
management organization for the provision of social, cultural or educational services  to its members 
and other right holders or in the interests of the creative community (including implementation of 
informational and educational measur es on public awareness and respect for intellectual property, 
the need for its protection, etc.) 27 
  
Article 2 2. Payment of collected and distributed rights revenue  
 
1. Payment of the share of rights revenue by collective management organization  to the 
rightholder shall be  carried out in accordan ce with completed distribution.  
Any payments to rightholders, collective management organization s, other legal enti ties prior 
the distribution shall be  prohibited.  
2. Collected and distributed rights revenue shal l be transferred by collective management 
organization  to its members, other rightholders who are not members of collective management 
organization  and in whose favor the rights revenue  was collected by  the organizatio n, collective 
management organization s with whom it has   rights representation agreements, on ongoing  basis , 
but not later than within six months from the end of the fiscal year during which such rights revenue  
was colle cted, except in cases of emergence of remuneration  that cannot be distribu ted. 
In case of impossibility to identify who owns a share of collected rights revenue and to pay it 
in du e time provided by this paragraph, collective management organization  shall inform its 
members and other collective management organization s within th ree months from the day of the 
expiration of the six -month period specified by this part, with which it has entered into rights 
representation agreements , on copyright and (or) related rights  objects, concerning which there were 
difficulties with the ident ification  and search of the rightholder.  
The collective management organization  shall  take all necessary measures  to identify the 
rightholder and his location. In case of  absence of positive results in identifying and search ing of 
the rightholder  from the implementation of previous actions, collective management organization  
within three months after the expiration of the three -month period specified by this paragraph  shall 
make public the information about copyright and (or) related rights  object s on the Internet on its 
web-site concern ing which the difficulties  with the identification and search of the rightholder  
arose . Such information shall include (if available ): the title of the copyright and (or) related rights  
object; the name of the right holder; the name of the publisher concerned; any other available 
information that may help to identify the righ tholder.  
3. The collective management organization  that received  the rights revenue from  other 
collective management organization  on the basis of  the a greement shall  pay the share of revenue  to 
its members in no  later than six months from the date of receipt of such rights revenue . 
4. At lea st once a year, collective management organization  that collected the rights revenue 
shall  notify the rightholders, to whom share of rights revenue  is paid or planned to be paid , on its  
amount , type of relevant copyright and (or) related rights  objects and duration  of their use (if such 
information is available), about the amount of administration fee reta ined by collective management 
organization . 
At least once a year, the co llective management organization that collected the rights revenue 
under t he representation agreement shall  notify collective management organization  in whose favor 
the rights revenue  was collected, about the amount of collected remuneration , type of relevant 
copyright and (or) related rights  objects and the duration of their use (if such information is 
available) , the amount of  administration fee retained by collective management orga nization , the 
number of concluded agreements with users, the number of cases of refusal to conclude agreements 
with users.  
Article 2 3. Procedure of  collection and distribution of  remuneration for reprographic 
reproduction of works and private copying  
 28 
 1. Remuneration for reprographic reproduction of works shall be collected from producers and 
(or) importers of equipment and material carriers, with the use of which the reprographic 
reproduction of works can be made.  
The remuneratio n for reproduction of work s shall  be paid in the form of deductions 
(percentages) of the cost of equipment and / or material carriers, which can  be used for such 
reproduction.  
2. The remuneration for private copying (reproduction at home and for personal purposes of 
works and perfo rmances recorde d in phonograms, videograms, as well as  audiovisual works) shall 
be collected from producers and (or) importers of digital, analogue and other equipment and 
material carriers, with the use of which such reproduction can be performed, under t he conditions 
provided by the Law of Ukraine "On Copyright and Related Rights."  
 
The remuneration for private copying  shall  be paid in the form of deductions (percentages) of 
the cost of equipment and / or material carriers, which can be used for  such repr oduction, except 
for: 
1) professional equipment and / or material carriers not intended for use at home;  
2) equipment and  material carriers, exported outside  the customs territory of Ukraine;  
3) equipment and material carriers, imported by an individual on  the customs territory of 
Ukraine exclusively for personal purposes and  without a commercial purpose.  
3. Manufacturers of equipment and (or) material carriers spec ified in this clause shall pay 
deductions to the authorized collective management organizatio n within 30 calendar days after the 
sale of equipment an d / or material carriers.  
Importers of equipment and / or material med ia specified in this article shall pay deductions to 
the accredited collective management organization  in the relevant sphere within 30 calendar days 
after the customs clearance of equipm ent and / or material carriers.  
Manufacturers and importers of relevant equipmen t and / or material carriers shall provide the 
accredited collective management organizatio n in the relevant sphere  of management with 
documented data on the number of equipment and (or) material carriers manufactured or imported 
into the territory of Ukraine. The Institution and accredited collective management organization  
shall have the rig ht to request such data.  
4. The collected rights revenue by collective management organization  after the retention of 
the administration fee in the manner prescribed by paragraph  seven of Article 2 1 of this Law shall 
be distributed in the proportions speci fied in paragraphs five and  six of this article.  
5. Twenty five  percent of the remuneration collected for the  reprographic  reproduction of  
works shall be directed to  the development of Ukrainian culture. The procedure and co nditions for 
the transfer by an  accredited collective management organization  of the corresponding funds to a 
state i nstitution that performs special functions in promoting the national -cultural development of 
Ukraine shall be approved by the C abinet of Ministers of Ukraine.  
The remaini ng amount of the remuneration collected by accredited organization for 
reprographic reproduction of works indicated in sub -paragraph one of this paragraph, shall be 
distributed for the following categories of rightholders in the respective shares : 
authors  of works of science, fiction - 50 percent;  
authors of fine  art, photographic and other similar works - 10 percent;  
publishers - 40 percent.  
6. Twenty five  percent of the remuneration collected for private c opying shall be directed to  
the development of Uk rainian culture. The procedure and conditions of  the transfer by a n accredited 29 
 collective management organization  of the corresponding funds to a state i nstitution that performs 
special functions to promote the national -cultural development of Ukraine shal l be approved by the 
Cabinet of Ministers of Ukraine.  
The remaining amount of rights revenue  collected for private copying  specified in the sub -
paragraph one of this paragraph shall be distributed in equal proportions for the follow ing 
categories of righth olders:  
1) per sons holding proprietary rights i n musical works and (or) texts to them;  
2) per sons holding proprietary rights i n audiovisual works;  
3) authors and performers of an audi ovisual work or their heirs ; 
4) persons holding  proprietary rights on phonograms and videograms and (or) the executions in 
them;  
5) performers of works recorded in phonograms (videograms) or their heirs.  
 
Article 2 4. The Procedure of  Distribution of Remune ration for the Cable  Retransmission  of 
copyright and (or) related rights  objects  
 
1. Funds collected for cable retransmission  of the copyright and (or) related rights  objects shall 
be distributed among authors, performers, producers of phonograms , videograms or their heirs 
(legal successors). U nless otherwise provided in the agreements between collective management 
organization s, funds for cable retransmission of objects of copyright and (or) related rights shall be 
distributed as follows :  
to the authors or their heirs  or to persons to whom the authors or their heirs transferred their 
property copyright - 50 per cent; 
to the performers or their heirs  or persons to whom property related rights of  performances 
were lawfully  transferred - 25 percent ; 
 to the producers of ph onograms , videograms or the ir heirs  or persons to whom the property 
related rights on phonograms , videograms  were lawfully  transferred - 25 percent.  
The collected funds shall be paid (transferred) to these persons directly or throug h their 
attorney, or through a  collective management organization . 
 
Section V  
 
STATE SUPERVISION OVER THE ACTIVITIES OF COLLECTIVE MANAGEMENT 
ORGANIZATIONS AND MEDIATION IN NEGOTIATIONS AND IN CONFLICT 
RESOLUTION  
 
Article 2 5. Procedure of the implementation of state supervision over the activities of 
collective management organization s 
1. The Institution shall exercise state supervision over the activities of collective management 
organization s included in the Register of collective managem ent organization  by obtaining 
information, analyzing submitted documents and conducting unschedule d state supervision 
activities.  30 
 Planned measures of state supervision concerning collective management organization s shall 
not be carried out.  
2. The grounds for carrying out unscheduled state supervision measures are  as follows : 
1) submission by collective management organization  of a written application to the Institution 
for the implementation of state supervision mea sures at the request of this collective m anagement 
organization ; 
2) the detection and confirmation of the unreliability of data contained in documents, 
statements  submitted by collective management organization  to the Institution;  
3) verifi cation of fulfillment  of the requirements  by collective management organization  
specified by the Institution  in the warning ; 
4) receipt  by the Institution  of a substan tiated appeal from a physical  or legal person about 
violation of its legal rights  by a collective management organization . The rig htholder shall  provi de 
evidence of appeal to the collective management organization  regarding this  issue and that it was 
not resolved through the dispute resolution  procedure established by such collective management 
organization ; 
5) failure to submit the documents, within the es tablished time limit, by the collective 
management organization  to the Institution, the obligation  and submission terms of wh ich are 
determined by this Law;  
6) in case of non -fulfillment of requirements regarding  the transparency of  the organization's 
activiti es in accordance with this Law.  
3. Detection  during the implementation of unscheduled state supervision measures regarding 
collective management organization  of non -conformity  of the statements and documents , submitted 
for registration or accreditation of collective management organization , to the requirements of this 
Law shall be deemed as grounds for the cancellation of registration or accreditation, respectively.  
4. In case of revealing during the implement ation of unscheduled state supervision of the 
violations of the legislation in the field of intellectual property by collective management 
organization , the Institution sh all apply sanctions to collective management organization foreseen 
by this Law . 
In ca se of detection of violations of the legislation on intellectual property containing the 
evidences of a criminal offense, the Institution shall immediately inform the relevant b ody of pre -
trial investigation.  
5. Collective management organizations  shall no t obstruct the performance by the Institution of 
the functions of state supervision and shall provide the Institution with the information necessary 
for the exercise of state supervision.  
6. In t he event of violation by collective management organization  of the requirements of the 
legislation of Ukraine in the field of copyright and (or ) related rights, including a refusal to carry 
out the negotiation pr ocedures specified in Article 22  of this Law, the Institution  shall make a  
decision on imposing  sanctions  on collective management organization in the form of a warning . 
The organization, which  received the warning, shall be  obliged to eliminate the violati ons 
specified within period  specified in the warning and shall notify about it the Institution in writing.  
7. In case of non -fulfillment or improper fulfillment of the requ irements specified in the 
warning  of the I nstitution and (or) continuation  of violation of the copyright and related rights 
legislation  specified in the warn ing, the Institution shal l make a decision on  cancellation  of 
accreditation and/or registration of such organization and the exclusion of such organi zation from 
the Register of Collective Management Organizations . 31 
 The grounds for making a decision  with regard to the cancellation  of the accreditation of the 
collective management organization  also shall be the substantiated appeal of the rightholders to the 
Institution, which specifies the fa cts of withdrawal  from the management of the accredited  
collective management organization  of a significant scope of property rights, which led to the non -
compliance of this organization with the criterion of substantial repre sentativeness determined in 
paragraph  seven of Article 1 6 of this Law as well as  an appeal of a legal entity for which th ere are 
valid grounds for believing that it is compliant with  the criteria specified in paragraph  seven of 
Article 1 6 of this Law and will be able to perform the functions of the accredited  collective 
management organization  in the sphere,  in which a collective management organization  already 
exercises collective management, in relation to  which  the applications on cancell ation of the 
accreditation are submitted.  
In case of  a decision made by the Institution to cancel the accreditation of the organization a 
corresponding entry shall be included in the Register of Collective Management Organization s. 
In case of  a decision made by the Institution  to cancel the accreditation and / or registration  of 
the organization, it shall be excluded from the Register of collective management organization s. 
Information about cancellation of registration and  (or) accreditation shall be published on 
official web site  of Institution . 
Institution’s decision on cancellation of accreditation and (or) registration can be contested  in 
the courts.  
 
Section VI  
FINAL AND TRANSITIONAL PROVISIONS  
 
1. This Law shall come into force on the next da y upon its publication  and shall apply to the 
legal relations that have emerged after it comes into force. In regards to  the functioning of 
electronic system of registration and accounting of copyright and related rights the Law shall come 
into force on the 1st of July, 2019.  
2. Certificates of registration of collective management organizations, on designation of 
collective management organizations as authorised organisations, on authorization of collective 
management organizations, issued before the ent ry into force of this Law shall become invalid nine 
months after this Law comes into force, and in the spheres according to which the law foresees 
exercise of extended or mandatory collective management - after the announced by the Institution in 
accordance with paragraph four of A rticle 1 5 of this Law end date of admission of applications to 
participate in the competition on accreditation in the respective sphere . 
After the certificates of  collective management organization s registration, the collective 
management organization s des ignation  as authorised organi zations,  collective management 
organization s authorisation  become invalid, the legal entities that h ave not been included to the  
Register of Collective Management Organizations,  in the manner prescribed by this Law, shall take 
actions provided by paragraph four of Article 18 of this Law .  
3. Three month s after this Law comes into force, the Institution shall start receiving 
applications from the interested legal entities on registration of colle ctive management 
organizations.  
Five month s after this Law comes into force, the Institution shall announce co mpetitions for 
the designation  of accredited collective manag ement organizations in the spheres foreseen by sub -
paragraphs six and seven of paragraph five and sub -paragraphs thre e and six of paragraph six of 
Article 11 of this Law and  shall start accepting relevant applications from collective management 
organizations as announced on its official website.  32 
 Fourteen months after this Law comes into force, the Institution shall annou nce competitions 
for the designation of accredited collective management organizations in the spheres foreseen by 
sub-paragraphs four and five of paragraph five and sub -paragraphs four and five of paragraph six of 
Article 11 of this Law and shall start acc epting relevant applications from collective management 
organizations as announced on its official website.  
4. Within fourteen months from the date of entry into force of this Law the Institution shall 
take measures to bring collective management of the pr operty copyright exercised by the State 
Organization Ukrainian Agency of Copyright and Related Rights (hereinafter - UACRR) in 
compliance with the requirements of this Law. The Institution shall:  
1) within three months from the date of entry into force of this Law, organize the convening 
of a meeting of delegates from the number of rightholders – physical persons who entrusted 
UACRR with the management of their respective proprietary copyright. The following shall have 
the right to participate in the specif ied meeting of delegates:  
a) persons delegated by all -Ukrainian creative unions that were granted with a national 
status by the Cabinet of Ministers of Ukraine (together not more than 33 delegates);  
b) persons  who according to the Statute of UACRR in the current version as of January 1, 
2018, have the status of a member of the Council of Authors (together not more than 5 delegates);  
c) persons selected on the basis of the results of the rating voting conducted by the 
Institution, who are the authors and have valid agreements with UACRR on management of their 
respective property copyright as of the date of entry into force of this Law, in a quantity not 
exceeding 11 persons.  
The procedure for such rating voting s hall be proposed by UACRR and approved by the 
Institution simultaneously with the approval by the Institution of the minimum number of works 
and the maximum number of authors of the corresponding types of works for the purposes of rating 
voting stipulated by this sub -paragraph.  
The Institution shall approve and publish a list of participants in the meeting of delegates on 
the official website of the Institution.  
2) after the adoption by the meeting of delegates of a decision on registration of a non -
govern mental organization whose purpose is collective management of rights - provide 
methodological and organizational support in the implementation of registration of a non -
governmental organization, registration of collective management organization;  
3) togeth er with UACRR, address the individuals (including rightholders, other collective 
management organizations, including similar foreign organizations, international associations), with 
whom UACRR had agreements, with a proposal to replace the aforementioned n on-governmental 
organization as a party of the agreement instead of UACRR;  
4) ensure the transfer of data, information, including databases that belong to UACRR and 
are objectively necessary for the exercise of collective management to the aforementioned n on-
governmental organization;  
5. After accreditation of collective manag ement organizations in the spheres  provided in 
sub-paragraphs fou r and five of paragraph five  and sub-paragraphs four and five of paragraph six of 
Article 11 of this Law, the Insti tution shall liquidate UACRR  in accordance with the procedure 
established by law.  
6. The below mentioned legislative acts of Ukraine shall be amended as follows:  
1) The Law of Ukraine "On Professional Creative Workers and Creative Unions" 
(Vidomosti  Verkhovno yi Rady  Ukrainy, 1997, No. 52, art. 312 , 2001, №41, p.199, 2004, № 16, p. 
238; 2011 р., №44, p. 459  shall be amended as follows):  
а) paragraph 12 of Article 9 shall be removed ; 
b) paragraph 3 of Article 21 shall be removed  ". 33 
 2) in the Law of Ukraine "On Copyright and Related Rights" (Vidomosti  Verkhovnoyi  Rady  
Ukrainy, 2001, No. 43, art. 214, shall be amended as follo ws): 
a) in Article 1:  
The Article shall be supplemented with the following definition subject to the alphabet 
order:  
“Cable retransmission  shall mean the recep tion and simultaneous broadcast ing by TV and 
radio organizations , programme service providers and other parties, independently of the technical 
means used, of the full and unc hanged transmissions  (programmes ) of the broadcasting 
organisations, as well as works, performances, phonograms, videograms, in particular those that are  
contained in such transmissions  (programmes) of the broadcasting organi zations  provided that the 
initial broadcast of such transmissio n (program) is carried out by a broadcast ing organization that 
does not fall under the jurisdiction of Ukraine in accordance with a law or an international 
agreement, the consent to be bound by which was given by  the Verkhovna Rada of Ukraine ;”; 
In paragra phs 45 — 48, the words “upon the consent of the copyright and (or) related rights  
subjects” shall be removed;  
b) in Article 4:  
paragraphs 3, 5, and 14 of Part  1 shall be removed;  
pararaph  2 shall be removed;  
c) second sentence of Article 25 .2 shall be wor ded as follows:  
"The specificity of the remuneration payment in this case are determined by Article 42 of 
this Law and the Law of Ukraine "On the Efficient Management of Property Rights of the 
Copyright and (or) Related Rights  Subjects ". 
d) paragraph  two of Article 42 shall be worded as follows : 
"It is allowed to reproduce at home and for personal purposes only works and performances 
recorded in phonograms, videograms, as well as reproduction of literary, photographic, artistic and 
other similar works  without the consent of subjects of copyright and (or) related rights, but with 
paying them a remuneration in the manner prescribed by law. The specificity of the remuneration 
payment in this case are determined by the Law of Ukraine "On the Efficient Mana gement of 
Property Rights of the Copyright and (or) R elated rights  Subjects "; 
paragraphs  4 — 7 shall be removed;  
e) in Article 47:  
paragraph  1 shall be supplemen ted by the following sentence:  
“Legal basis of collective management organization s’ activity a re defined by the Law of 
Ukraine "On the Efficient Management of Property Rights of the Copyright and (or) Related Rights  
Subjects "; 
paragraphs  2 — 5 shall be removed;  
f) art icles 48 і 49 shall be removed;  
g) paragraph  “а” of Article  50 shall be worded as follows:  
a) actions taken by any party in violation of the personal non -property rights of the copyright 
and (or) related rights  subjects defined by Articles  14 and 38 hereof and their property rights 
defined by Articles 15, 17, 27, 39-41 hereof, with due regard of terms of use of objects of copyright 
and (or) related rights envisaged by Articles  21—25, Article 42, 43 hereof, non -fulfilment of the 
requirements  of Article 19.3, Article 22.3 of the Law of Ukraine "On the Efficient Manag ement of 
Property Rights of the Copyright and (or) Related Rights  Subjects ", as well as the abuse of official 
position by the officers of the collective management organization resulting into non -payment or 
inappropriate distribution and payme nt of remuner ation to the right holders ";  
h) sub -paragraph «d» of paragraph two of Article 52 shall be worded as follows:  
«d) payment of compensation determined by the court as a lump sum on the basis of such 
elements as doubled, and in case of intentional violation - as a triple amount of remuneration or 
commissions that would have been paid if the offender applied for permission to use the disputed 
copyright or related rights instead of indemnity or revenue collection»;  34 
 3) in the Law of Ukraine "On the National Counci l of Ukraine on Television and Radio 
Broadcasting" (Vidomosti  Verkhovnoi  Rady  Ukrainy, 2005, No. 16, Article 265, as amended), a 
following paragraph 14 shall be added to the Article 13 . 
"supervision of fulfilment by the broadcasting organizations of the re quirements in regards 
to providing reporting data (reports) on the use of objects of copyright and related rights, namely, 
musical works, audiovisual works, phonograms (videograms) and recorded performances used in 
television and radio broadcasting of the broadcasting organization";  
4) in the Law of Ukraine "On Television and Radio Broadcasting" (Vidomosti Verkhovnoi 
Rady Ukrainy (VVR), 2006, No. 18, art. 155; 2014, № 12, p. 178; 2015, № 45, p. 409 ) a following 
part 3 shall of be added to the Article 59 :  
«3. The broadcasting organization shall annually, by March 31, submit to the central 
execut ive body, ensuring the development  and implementation of state policy in the field of 
intellectual property, a report for the previous (reporting) year of the activi ty on the use of objects of 
copyright and related rights, namely - musical works, audiovisual works, phonograms (videograms) 
and recorded performances in them - in tele vision and radio broadcasting";  
5) in the Law of Ukraine "On Public Associations" (Vidom osti Verkhovnoi Rady Ukrainy, 
2013, No. 1, art. 1, as amended), part six of Article 3 shall be supplemented by the following 
second paragraph:  
"For public associations having the status of collective management in accordance with the 
Law of Ukraine “"On the Efficient Management of Property Rights of the Copyright and (or) 
Related Rights Subjects ", the lack of property interest of their members pr ovides the payment in  
benefit  of members (right holders) after remuneration distribution by the collective management 
organization".  
6) in passage two of paragraph 3 of Section II “Final and Transitional Provisions” of the 
Law of Ukraine “On Introducing Cha nges to Some Laws of Ukraine” (Bulletin of the Verkhovna 
Rada of Ukraine, 2017, No. 3, Art. 25) the words and figures “1600 hryvnias” shall be replaced by 
the words and figures “a minimum subsistence level for able -bodied persons established as of 
January 1 of the calendar year, beginning January 1, 2017.”  
7. The Cabinet of Ministers of Ukraine shall:  
1) within six months  after this Law comes into force prepare and submit to Verkhovna  Rada 
of Ukraine propositions on bringing the laws of Ukraine in compliance with this Law;  
2) within three months after this Law comes into force bring its normative legal acts into 
compliance with this Law;  
3) within three months after this Law comes into  force ensure that the ministries and central 
executive authorities bring their normative legal acts into compliance with this Law;  
4) within three months after this Law comes into force ensure adoption of normative legal 
acts stipulated by this Law;  
5) wi thin three months after this Law comes into force take measures to bring the activities 
of a state organization whose constituent documents foresee the exercise of collective management 
of property rights in accordance with the requirements of this Law.  
 
President of Ukraine  P.POROSHENKO  
Kyiv   
May  15, 2018   
№ 2415 -VIII