Performance licensing covers the rules by which theatres, concert halls, clubs and other users clear the right to perform published works. In Georgia this right is not obtained from each author individually but through an organization managing property rights on a collective basis — the system of structures accredited by Sakpatent. This page explains that system on the basis of the copyright law's provisions on collective management, licensing of users and the setting of tariffs.
The Collective-Management Organization and Accreditation
Under article sixty-three, authors of works of science, literature and art, performers, producers of phonograms and videograms, and other holders of copyright and neighbouring rights may create an organization managing property rights on a collective basis. It is a non-profit legal entity accredited by Sakpatent under the procedure established by the law. The management of one right or one category of rights must be carried out by only one such organization — which means that a user negotiates with the single organization that manages the relevant category of rights.
A right holder who transfers property rights to the organization for collective management under a contract transfers rights in all works already created and to be created during the term of the contract, unless the contract provides otherwise. No other legal entity may use in its name the words designating this status.
The Organization's Functions
Article sixty-six defines the functions: in the name of right holders the organization negotiates with users on the amount of the royalty and the conditions of use, issues licences within the limits of its mandate, collects royalties, distributes and pays them in due time with regard to the principle of equality and proportionally to actual use, represents the interests of right holders in court and before administrative bodies, and also represents non-member right holders and collects the royalty due to them.
The user must provide the program, information and documents giving precise information about the use and necessary for calculating the royalty. All works performed publicly, transmitted by air or cable or otherwise made available to the public are included in the organization's repertoire, and the burden of proof lies with the user. Where a work is performed publicly, responsibility for lawful use is determined by a written contract concluded between the user, the organizer of the public performance and the person who owns the place where the performance takes place; absent such a contract, these persons bear responsibility jointly and severally.
User Rights and Obligations in Licensing
Under the law, the organization and the user must conduct negotiations on the granting of a licence in good faith and provide each other with all information necessary for concluding the licence contract. The conditions of licensing must rest on objective and non-discriminatory criteria. The organization is not required to present the terms agreed with another user as a precedent.
A user's application must be examined within a reasonable time, and a notice of refusal must contain a reasoned explanation indicating the relevant ground. Users of one category must enjoy equal licensing conditions, and the organization may not refuse to grant a licence without sufficient ground. For its part, the user must keep documentation on use and supply the organization with the information needed to collect and distribute royalties.
Tariffs
Upon using a work, the right holder must receive an appropriate royalty. The organization is obliged to provide the user with complete information about the criteria for setting tariffs. A tariff must correspond to the economic value of the rights in civil circulation. Tariff schedules are published on the organization's website and submitted to Sakpatent.
Where the organization and the user cannot agree, the amount of the royalty is determined — upon the application of one or both parties — by a commission created by order of the chairman of Sakpatent, under the procedure established by the law. A tariff set by that commission must likewise correspond to the economic value of the rights. Once approved, the tariffs must be submitted to Sakpatent for publication in the official bulletin.
Frequently Asked Questions
Users most often ask whom they should negotiate with, whether a licence can be refused, and how a tariff is set.
From whom must a theatre or hall obtain the public-performance right?
From the collective-management organization accredited by Sakpatent — the public performance of published works is cleared through the collective-management system, not through individual licences.
May the organization refuse to issue a licence?
Only with sufficient ground: a refusal is notified in writing and must contain a reasoned explanation. Conditions must be equal for users of one category.
What happens if no agreement on the tariff is reached?
The royalty is determined by a commission created by order of the chairman of Sakpatent, upon the application of one or both parties.
Who bears responsibility for the venue?
Responsibility for lawful public performance is distributed by a written contract among the user, the organizer and the owner of the place; absent a contract they are liable jointly and severally.
How We Help on Legal.ge
The Legal.ge team assists both users — theatres, halls, organizers — and right holders on collective-licensing questions: we prepare public-performance contracts, assess tariffs, and safeguard the good faith of negotiations and the proper keeping of documentation.
If you are planning an event or facing a licensing dispute, write to us on Legal.ge — we will assess your position and plan the next steps in accordance with the law.