Interregional Public Organization “Licensing Society” — LES Russia
The national member society of LES International in Russia
Licensing Executives Society
LES Russia
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Seminar “Specific Features of Content Licensing under Part IV of the Civil Code of the Russian Federation”
On 5 June 2008, the Scientific and Practical Seminar “Specific Features of Content Licensing under Part IV of the Civil Code of the Russian Federation”, organised by the Russian Chapter of the Licensing Executives Society International (LES Russia)
5 June 2008

On 5 June 2008, the Scientific and Practical Seminar “Specific Features of Content Licensing under Part IV of the Civil Code of the Russian Federation”, organised by the Russian Chapter of the Licensing Executives Society International (LES Russia) with the support of Gorodissky & Partners LLC and the law firm Steiner, Neyman & Partners, was held in Moscow.

The seminar was attended by major rights holders, representatives of business communities, including intellectual property rights aggregators, mobile operators, producers of digital video and music content, Internet service providers and new media technology providers. Patent attorneys and lawyers from companies specialising in intellectual property protection, as well as those interested in legislative regulation in this field, also took part.

The seminar was held in the form of a round table, allowing participants to communicate freely with invited expert speakers, express their opinions, ask questions, model and analyse complex practical situations arising in the market.

Vice President of LES Russia V.N. Medvedev opened the seminar and addressed the participants with introductory remarks, speaking about the purposes for which LES was established and its areas of activity as a membership-based non-profit organisation. Valery Nikolaevich also emphasised the importance and relevance of intellectual property legislation in the context of the development of modern law, business and technology.

The event was divided into three specialised sections:

  1. licensing issues in the production of films, television programmes and multimedia products;
  2. licensing in the digital environment;
  3. licensing in the use of musical works, phonograms and performances. Collective rights management.

The first part was devoted to legal issues relating to the creation of audiovisual works and television programmes and their subsequent use.

In particular, attention was paid to the legal status of the producer under the new Civil Code. As Elena Shirokova, Legal Counsel at World Media Ventures Management, noted, the definition of a producer as a person who organised the creation of an audiovisual work (Articles 1240 and 1263 of the Civil Code of the Russian Federation), unlike the wording “a person who took the initiative and responsibility for the creation” contained in the Law of the Russian Federation “On Copyright and Related Rights”, which ceased to be in force on 1 January 2008, is too vague, since it makes it possible to designate the film director in an agreement as the “producer”, although the director undoubtedly organises the creation of the film but does not take any initiative or, even more so, responsibility for its creation.

Problematic issues arising during the creation of audiovisual works (the so-called “production” period), including those related to the inclusion of other intellectual property objects in films, were addressed in a presentation by Natalia Maltseva, Senior Lawyer at Comedy Club Production LLC.

A lively discussion arose during a presentation by Leila Neyman, Managing Partner of Steiner, Neyman & Partners, on licensing aspects of the use of content in digital cable networks and ensuring the protection of rights at every stage of the chain of such use (“rights holder – aggregator – operator – consumer”). We are witnessing a growing number of television broadcasting formats — video on demand (VOD), streaming television via the Internet (Stream TV or so-called “streaming”), and direct delivery of a satellite signal to the consumer (DTH – direct-to-home), each of which has its own technical implementation features and requires the acquisition of a different scope of rights.

The question of what scope of rights is sufficient for the retransmission of terrestrial television channels in a digital cable network generated considerable interest. Fedor Kravchenko, Managing Partner of the Media Lawyers Collegium, actively participated in the discussion and explained the technical aspects of using content by means of “downloading” and “streaming” without allowing end users to save copies of the content on a PC hard drive.

Presentations by Pavel Galchenko (X-Media LLC, Head of the Legal Department), Maria Skurova (Sukharev & Partners Law Office, Head of the International Legal Department) and Vadim Pogulyaev (Steiner, Neyman & Partners, Chief Legal Counsel) were devoted to an analysis of the legal aspects of using works and objects of related rights on the Internet. The risks arising from the use of content containing musical works, phonograms and performances belonging to foreign rights holders, as well as the subjective allocation of liability, were discussed. The content of the exclusive right of making available to the public was analysed, including the relationship between the wording contained in the Civil Code of the Russian Federation and the previously applicable Law of the Russian Federation “On Copyright and Related Rights”. Judicial practice in disputes involving infringement of copyright and related rights on the Internet was also considered.

As part of the third section of the conference, A.V. Turkin, Honoured Lawyer of the Russian Federation, Member of the Board of Directors and Director of the Expert and Analytical Department of the Russian Authors’ Society, gave a presentation on collective rights management and accreditation provided for by Part IV of the Civil Code of the Russian Federation. As Arkady Vasilyevich explained, the Russian Authors’ Society had applied for state accreditation, which was expected to take place in August 2008. After receiving accreditation, the Russian Authors’ Society would continue to manage rights on the basis of the relevant agreements and in other areas of collective rights management not covered by state accreditation, but for which the Russian Authors’ Society had received authority from rights holders under agreements.

Attention was also drawn to the fact that the Civil Code of the Russian Federation provides for accreditation and the issuance by collective management organisations of so-called “blanket licences” only in six clearly defined areas of use of intellectual property, while use on the Internet and other telecommunications networks is not included in this list.

Irina Tulubyeva and Viktor Osipov, managing partners of Tulubyeva, Osipov & Partners LLC, spoke about problems of inconsistency between provisions within Part IV of the Civil Code of the Russian Federation, as well as contradictions between the provisions of the Civil Code and established judicial practice and public relations. In particular, it was noted that, unlike the Law of the Russian Federation “On Copyright and Related Rights”, which, through mandatory and discretionary provisions, protected the interests of creators of works and objects of related rights when agreements were concluded, the new Code treats the author and the user as equal parties to the agreement who are economically protected and legally knowledgeable.

Olga Loyanich, Head of the Legal Department of CD Land+ CJSC, gave a presentation on the licensing of performances under Part IV of the Civil Code of the Russian Federation. She noted that when using phonograms of works, user companies conclude agreements for the use of musical works recorded on the phonogram and for the use of the phonogram itself, but do not obtain the right to use the performances of the works contained in the phonogram as a separate object of related rights, and therefore fail to respect performers’ rights.

In conclusion, Vice President of LES Russia V.N. Medvedev summed up the seminar and thanked the participants for their active involvement.
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