The System of Collective Management of Property Rights
Music rights management in Georgia rests on the institution of the organization for the collective management of property rights. Such an organization may be created by authors of works of science, literature and art, performers, producers of phonograms and videograms, and other holders of copyright and related rights, in order to manage their property rights jointly and professionally. The organization is a non entrepreneurial legal person accredited by the national intellectual property centre according to the procedure established by law. Property rights with respect to one right or one category of rights must be managed by only one accredited organization, which creates a monopoly regime on the market and allows right holders to be organized around a single trusted partner.
Accreditation Conditions and the Competition
To obtain accreditation, the organization submits to the centre an application establishing that: it represents right holders and any right holder may join it under its charter — confirmed by written contracts with a list of holders and a repertoire; it is capable of collective management — it has appropriate staff, the material and technical base for collecting royalties, and effective mechanisms for collection, distribution and payment; its charter and tariff distribution principles guarantee equal and non discriminatory treatment; it has paid the fee for reviewing the application; and it is not registered in the debtors registry and is not under attachment. The application is accompanied by reciprocal representation contracts with foreign organizations of the same kind — covering both the repertoire used in Georgia and the Georgian repertoire used abroad.
If those contracts cannot be presented in full at the time of application, the accreditation commission may extend the deadline: the organization receives a 1 year term for full presentation, which may be extended by a substantiated decision for the same period; failure to comply renders the accreditation void and a new competition is announced. Where there is more than one applicant, the decision is taken in favour of the one satisfying the conditions best, taking past activity into account. The decision on accreditation is published in the official bulletin; it may be appealed within 1 month of official notification, though the appeal does not suspend its operation. The organization must, within 14 days of the decision, apply to the National Agency of the Public Registry to ensure its firm name complies with the law, and upon termination of accreditation the centre announces a new competition within no later than 1 month.
The Functions and Powers of the Managing Organization
On behalf of right holders the organization negotiates with users on the amount of royalties and the conditions of use, issues licences within the limits of its mandate, collects and timely distributes royalties in accordance with the principle of equality and proportionally to actual use, and represents the interests of holders before courts and administrative bodies. It also represents non member right holders and collects royalties for them — including for the reproduction of a musical work with or without text, for public performance or public transmission. The organization may demand from users exact information on use — a programme, document or source necessary for calculating the royalty — and must keep the information confidential. All works publicly performed, broadcast, transmitted by cable or otherwise made available are included in the organization's repertoire, and the burden of proof lies on the user.
Licensing Rules with Users
In the licensing process the organization and the user must negotiate in good faith and provide each other with all necessary information. Licensing conditions must rest on objective and non discriminatory criteria; users of the same category must enjoy equal conditions, and refusal to grant a licence without sufficient ground constitutes a violation. The organization examines an application within a reasonable time and, in case of refusal, issues a written notice with a substantiated explanation. The user maintains documentation of use and passes information to the organization in the agreed format, while the organization ensures the possibility of electronic communication. In public performance, liability is determined by a written contract concluded between the user, the organizer of the performance and the owner of the place; in its absence these persons answer jointly and severally.
Frequently Asked Questions
Who accredits the managing organization?
The national intellectual property centre, through the accreditation commission, under the procedure established by law. Only one accredited organization manages rights with respect to a given right or category of rights.
How long is the term for presenting reciprocal representation contracts?
The organization receives a 1 year term, extendable by a substantiated decision for the same period. Failure results in the accreditation becoming void.
Can the accreditation decision be appealed?
Yes, to court within 1 month of official notification, but the appeal does not suspend the operation of the decision.
How are royalties distributed?
Timely, in accordance with the principle of equality and proportionally to actual use; royalties are collected for non member holders as well, in the manner established by law.
How We Help on Legal.ge
The Legal.ge team assists right holders in negotiating contracts and recovering royalties, and users in obtaining licences, assessing the lawfulness of tariffs and resolving disputes. Contact us — we will plan the effective management of your rights.