Russian authorities figured out how to pay for foreign films and music

With the start of a special military operation and the imposition of sanctions against the Russian financial system by ‘unfriendly’ states (in particular, in connection with the withdrawal of Visa and Mastercard from the country), many organizations and individuals have lost the opportunity to pay to the foreign copyright holders.  First of all, we are talking about previously concluded license agreements.

A day before it became known about the idea of   the authorities to establish a temporary order for such cases.  It will allow commercial organizations and cultural institutions to continue using intellectual property objects without violating their obligations to foreign licensors.

According to Vedomosti, a presidential decree that will allow Russians to fulfill their obligations in the face of the SWIFT disconnection and the crisis of cross-border payments, is being prepared.  The regulation will also affect the activities of organizations engaged in the collective management of rights (for example, the Russian Authors' Society), which previously cooperated with the foreign copyright holders and represented the interests of Russians.

It is assumed that Russian users of foreign content (primarily music and audiovisual content) will be able to pay according to the previously contracts concluded in rubles, transferring money to a special account opened in one of the Russian banks.

The crediting of funds will legally mean that the license obligation has been fulfilled.  However, the right holder from an unfriendly state will be able to withdraw money from such an account only if he (she) receives permission from a special commission of the Government that controls the activities of foreign investors.

Citizens using intellectual property for personal needs, as well as the cases when the amount of payment does not exceed 100 thousand rubles, will be excluded from the new settlement system.  An exception in the upcoming decree should be made for medicines and food and agricultural products, imported into the country.  It is also planned to withdraw from the scope of the presidential act those IT companies that provide communication services or are engaged in computer data processing.

It is assumed that the new procedure will practically not affect those foreign companies that continue to work in Russia and fulfill obligations to Russian counterparties.

On the other hand, the Civil Code of the Russian Federation formally has greater legal force than a presidential decree. The protection of rights of the copyright holders is unconditionally expressed in it.

The upcoming decree, according to experts, should not contribute to the formation of conditions under which copyright content will be used without the consent of the copyright holder.  Considering that a number of foreign companies have banned the distribution of their films and the use of musical works in Russia, the question of a temporary order remains open.