EN
OPINION OF THE EUROPEAN CENTRAL BANK
of 10 October 2002
at the request of the Bank of Greece
concerning a draft legislative provision on the protection of euro banknotes 
(CON/2002/26)
1. On 23 August 2002 the European Central Bank (ECB) received a request from the Bank of
Greece for an opinion concerning a draft legislative provision on the protection of eurobanknotes (the draft legislative provision). On 3 October 2002 the ECB received revisedversions of both the draft legislative provision and the explanatory report. This opinion takesinto account these revised versions.
2. The ECBs competence to deliver an opinion is based on the second indent of Article 105(4) of
the Treaty establishing the European Community and the first indent of Article 2(1) of CouncilDecision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank bynational authorities regarding draft legislative provisions
1, as the draft legislative provision
deals with the legal protection of euro banknotes. In accordance with the first sentence ofArticle 17.5 of the Rules of Procedure of the European Central Bank
2, this opinion has been
adopted by the Governing Council of the ECB.
3. The draft legislative provision provides for the protection of euro banknotes by introducing
rules on their reproduction and exchange. Pursuant to the explanatory report, the draftlegislative provision has a twofold aim. Firstly, to fill a gap in the legislation after the repeal ofthe Greek law regarding the protection of banknotes denominated in drachma. Secondly, toadapt the Greek legislation in accordance with Community legislation. In particular, the draftlegislative provision reflects the rules laid down in Decision ECB/2001/7 of the EuropeanCentral Bank of 30 August 2001 on the denominations, specifications, reproduction, exchangeand withdrawal of euro banknotes
3, as amended by Decision ECB/2001/144.
                                                     
1 OJ L 189, 3.7.1998, p. 42.
2 OJ L 125, 19.5.1999, p. 34.
3 OJ L 233, 31.8.2001, p. 55.
4 OJ L 5, 9.1.2002, p.26.
24. Sections 1 to 3 of the draft legislative provision ensure, in line with Article 2(1) of Decision
ECB/2001/7, that the ECBs copyright on euro bank notes shall be protected in Greece without
any time limit and that it shall be exercised in Greece by the Bank of Greece on behalf of theECB. The ECB welcomes these rules as they follow Recommendation ECB/1998/7 of theEuropean Central Bank of 7 July 1998 regarding the adoption of certain measures to enhancethe legal protection of euro banknotes and coins
5, which provides that Member States should
ensure that banknote designs may legally benefit from copyright protection6. 
5. Section 1 of the draft legislative provision establishes that copyright [on] euro banknotes, as
such banknotes are specified in the applicable provisions, which belongs to the EuropeanCentral Bank, shall be exercised within the Greek territory by the Bank of Greece for theaccount of the European Central Bank and its duration shall be subject to no time limits. TheECB would suggest clarifying that the ECB can always enforce the copyright on euro banknotesin the Greek territory on its own. The ECB further welcomes the reference made in the revisedversion of the explanatory report to the agreement on the drawing-up of draft designs for eurobanknotes (the Agreement) concluded between th e European Monetary Institute (EMI) and the
author of the selected designs in the Europe-wide competition concerning the design of a seriesof euro banknotes organised by the EMI in 1996, from which the ECBs ownership of copyrightstems. Pursuant to this Agreement, the ECB holds copyright on the designs of the eurobanknotes, as mentioned in Articl e 2(1) of Decision ECB/2001/7. 
6. With the aim of ensuring copyright protection of euro banknotes, Section 1 of the draft
legislative provision enables the Bank of Greece to exercise the ECBs copyright and thus totake action, including initiating legal proceedings, in the case of infringement. The ECBwelcomes the fact that such enforcement powers have been given to the Bank of Greece, sincethis accords with the decentralised approach contained in Article 1 of Guideline ECB/1999/3 ofthe European Central Bank of 7 July 1998 on certain provisions regarding euro banknotes, asamended on 26 August 1999
7. Article 1(1) of Guideline ECB/1999/3 imposes on the national
central banks (NCBs) the obligation to take all necessary and feasible measures, according totheir national legal systems, to ensure that there is no breach of the copyright on the eurobanknote designs held by the ECB. Article 1(2) further compels NCBs, when they becomeaware of unauthorised reproductions of euro banknotes having occurred on their nationalterritory, to take immediate action to ensure that such reproduction ceases and that any copiesproduced in this manner are withdrawn, and to inform the ECB without delay. 
7. The ECB takes note that Section 4 of the draft legislative provision introduces criminal law
penalties for the damage and mutilation of euro banknotes. It renders any damage, including any
                                                     
5 OJ C 11, 15.1.1999, p. 13.
6 Article 3.
7 OJ L 258, 5.10.1999, p. 32.
3alteration effected by various means, or mutilation of euro banknotes, a criminal offence
carrying a penalty of imprisonment for a term of one up to six months or a fine of not less than500 euro. Damaged or mutilated euro banknotes shall be handed over to the Bank of Greece.The procedure for exchanging damaged or mutilated banknotes is in conformity with the ruleslaid down in Article 3(3) of Decision ECB/2001/7. Notwithstanding this, the Greek authoritiesare invited to apply the provisions laid down in Section 4 of the draft legislative provision insuch a way that it does not discourage the acceptance of euro banknotes.
8. The ECB confirms that it has no objection to the competent national authorities making this
opinion publicly available at their discretion. 
Done at Frankfurt am Main on 10 October 2002.
The President of the ECB
[signed]
Willem F. DUISENBERG