Article 57. Activities of organizations managing property rights on a collective basis

The powers to collectively manage property rights shall be granted directly by the rightholders voluntarily on the basis of written contracts, as well as under appropriate contracts with other (including foreign) organizations performing the management of property rights. These contracts shall not constitute authorʼs contracts and shall not be covered by the provisions of Articles 38 — 42 of this Law.

The author or other rightholder shall have the right to entrust the organization performing the administration of property rights on a collective basis with the powers to exercise his/her property rights under the contract, and the organization shall be obliged to undertake to exercise these rights on a collective basis, if the administration of such rights pertains to the statutory activities of this organization. An author or other rightholder shall have the right to grant authority to exercise his/her property rights or rights only to one organization managing property rights on a collective basis to the relevant category of rightholders.

Decisions regarding the amount of remuneration and the conditions for concluding contracts with users for the use of works and objects of related rights, the order of distribution and payment of the collected remuneration, and other fundamental aspects of the activities of the organization managing property rights on a collective basis shall be made exclusively by the authors or other rightholders collectively at a general meeting.

On the basis of the authority received from the rightholders, the organization managing property rights on a collective basis shall conclude contracts with users for the use of works and objects of related rights. The terms and conditions of the contracts must be the same for all users of the same category, determined depending on the type and volume of works and objects of related rights used. These organizations shall have no right to refuse to conclude a contract with the user without sufficient grounds. Such contracts shall permit the use of all works and objects of related rights in the manner envisaged therein and shall be granted in the name and in the interest of all rightholders, including those who have not delegated authority under parts one, two, and six of this Article to the organization. All possible property claims of rightholders against users connected to the use of their works and objects of related rights on the basis of such contracts shall be settled by the organization that has concluded the contracts and manages the property rights on a collective basis.