1. The results of intellectual activity and means equated to them of individualization of legal entities, goods, work, services, and enterprises that are granted legal protection (intellectual property) shall be as follows:

1) works of science, literature, and art;

2) computer programs;

3) databases;

4) performances;

5) phonograms;

6) broadcasting or diffusion of radio- or television transmissions via cable;

7) inventions;

8) utility models;

9) industrial designs;

10) selection attainments;

11) topographies of integrated circuits;

12) secrets of production (know-how);

13) trade names;

14) trademarks and service marks;

15) appellations of origin;

16) commercial names. 2

2. Intellectual property shall be protected by statute.

Article 1226. Intellectual Rights

Intellectual rights shall be recognized for the results of intellectual activity and means of individualization equated to them (results of intellectual activity and means of individualization), which include an exclusive right that is a proprietary right; and, in cases provided for by the present Code, also personal non-proprietary rights and other rights (droit de suite, right of access, and others).

Article 1227. Intellectual Rights and the Proprietary Rights

1. Intellectual rights shall not depend upon the right of ownership and other proprietary rights to the material carrier (a thing) which has embodied the respective result of intellectual activity or means of individualization.

2. The transfer of the right of ownership to a thing shall not entail the transfer or granting of the intellectual rights to the result of intellectual activity or to means of individualization embodied in this thing, except the case provided for by the second paragraph of Clause 1 of Article 1291 of the present Code.

3. The statement from Part 2 of the present Code are not connected to the intellectual rights, unless the present Code have provided otherwise.

Article 1228. Author of a Result of Intellectual Activity

1. The author of a result of intellectual activity shall be deemed a citizen whose creativity has led to the creation of such a result.

Citizens who have not made a personal creative contribution in achieving such a result, including those who have rendered merely technical, consulting, organizational, or financial support or assistance to the author or who have merely assisted in the formalization of rights to such a result or its use, as well as citizens who have exercised supervision over the process of the relative work, shall not be considered as the authors of the result of intellectual activity.

2. The right of authorship belongs to the author of a result of intellectual activity and, in cases provided for by the present Code, the right to the name and other personal non-proprietary rights.

The right of authorship, the right to the name and other personal non-proprietary rights of the author shall be inalienable and non-transferable. A waiver of these rights is void.

Authorship and the name of the author shall be protected interminably. After the death of the author, protection of his authorship and the name may be maintained by any interested person, except the cases provided for by Paragraph 2 of Article 1267 and Paragraph 2 of Article 1316 of the present Code.

3. The exclusive right to a result of intellectual activity made by creativity shall initially appear in its author. This right may be transferred by the author to another person under the contract and may also be passed to other persons on other grounds provided for by the law.

4. The rights to a result of intellectual activity created by the joint creativity of two or more citizens (co-authorship) belong to the co-authors jointly.

Article 1229. Exclusive Right

1. The citizen or legal entity possessing the exclusive right to a result of intellectual activity or to means of individualization (the rightholder) shall have the right to use this result or this means at his discretion in any legitimate manner. The rightholder may dispose an exclusive right to a result of intellectual activity or to means of individualization (Article 1233), unless otherwise provided for by the present Code.

The rightholder may at his discretion permit or prohibit other persons to use the result of intellectual activity or means of individualization. Absence of a prohibition shall not be considered as a consent (permission).

Other persons shall not use the respective result of intellectual activity or means of individualization without the consent of the rightholder, except the cases provided for by the present Code. The use of a result of intellectual activity or means of individualization (including their use in ways provided for by the present Code) without the consent of the rightholder, shall be illegal and shall entail the liability as provided for by the present Code and other laws, except where the use of a result of intellectual activity or means of individualization by persons other than the rightholder without the consent by the latter is allowed by the present Code.

2. The exclusive right to a result of intellectual activity or to means of individualization (except the exclusive right to trade name) shall belong to one person or to several persons jointly.

3. In case when the exclusive right to the result of intellectual activity or means of individualization belongs to several persons jointly, each rightholder shall have the right to use such a result or such means at his discretion, unless the present Code or an agreement between the rightholders have provided otherwise. Relations of the persons possessing the exclusive right jointly shall be determined by agreement among them.

The disposition of the exclusive right to the result of intellectual activity or to means of individualization shall be effected by the rightholders jointly, unless otherwise provided by the present Code.

The income from the joint use of the result of intellectual activity or means of individualization or from joint disposition of the exclusive right to the result or to means shall be shared among all the rightholders equally, unless otherwise provided for by an agreement among them.

Each rightsholder has the right to take independent action on the legal protection of results of intellectual activity and means of individualization

4. In cases provided for by Paragraph 3 of Article 1454, Paragraph 2 of Article 1466, and Paragraph 2 of Article 1518 of the present Code, independent exclusive rights to one and the same result of intellectual activity or to one and the same means of individualization shall belong simultaneously to various persons.

5. Limitations on exclusive rights to results of intellectual activity and to means of individualization, including the case when use of the results of intellectual activity is allowed without the consent of the rightholders, but with retention for them of the right to remuneration, shall be determined by the present Code.

In such cases limitations on exclusive rights to the works of science, literature, and art, objects of related rights, inventions and industrial designs, trademarks shall be set forth with the observance of the conditions provided for by the subparagraphs 3, 4 and 5 of the present Paragraph.

Limitations on exclusive rights to the works of science, literature, and art or to objects of related rights shall be set forth in certain special cases under the condition that such limitations do not contradict the common use of the works or objects of related rights and do not impair in an unjustified manner the legitimate interests of the rightholders.

Limitations on exclusive rights to inventions or industrial designs shall be set forth in specific cases under the condition that such exceptions do not unjustifiably contradict the normal use of inventions or industrial designs and with the account of the third party interests do not impair in an unjustified manner the legitimate interests of the rightholders.

Limitations on exclusive rights to trademarks shall be established in specific cases under the condition that they take into account the legitimate interests of the rightholders and third parties.

Article 1230. The Term of Exclusive Rights

1. Exclusive rights to the results of intellectual activity and to means of individualization shall be effective within a certain period of time, except the cases provided by the present Code.

2. The term of an exclusive right to the result of intellectual activity or to means of individualization, the procedure for calculation of this term, the grounds and procedure for extending it, as well as the grounds and procedure for terminating an exclusive right before the expiration of the term shall be determined by the present Code.

Article 1231. Objects that include official symbols, names differential signs

Objects that include copy or imitate official symbols, names and differential signs or their recognizable parts cannot be granted legal protections in the form of an industrial design or means of individualization.

1) State symbols and signs (flags, coat of arms, order, banknotes etc.)

2) Abbreviated or full names of international and intergovernmental organisations, their flags, coats of oarms, and other symbols and signs.

3) Official regulating, guarantee or essay seals, stamps, awards and other differential signs.

Presented in the first part of the present Article official symbols, names and differential signs, their recognizable parts or imitations may be included in the industrial design or means of individualization in the form of unprotected element if there is a consent from the appropriate competent government body, international or intergovernmental organization body.

1. Exclusive rights to results of intellectual activity and to means of individualization established by virtue of international treaties of the Russian Federation and by the present Code shall be valid within the territory of the Russian Federation.

Personal non-proprietary rights and other intellectual rights not subject to exclusivity, shall be valid within the territory of the Russian Federation in accordance with the fourth subparagraph of Paragraph 1 of Article 2 of the present Code.

2. In the recognition of an exclusive right to a result of intellectual activity or to means of individualization in accordance with an international treaty of the Russian Federation, the content of the right, its validity, limitations, and the procedure for its realization and enforcement shall be determined by the present Code regardless of the provisions of the legislation of the country of origin of the exclusive right, unless such international treaty or the present Code have provided otherwise.

Article 1232. Official Registration of the Results of Intellectual Activity and Means of Individualization

1. In cases provided for by the present Code, the exclusive right to a result of intellectual activity or to means of individualization shall be recognized and protected under the condition of official registration of such result or such means.

The rightsholder is required to notify the appropriate federal executive authority on selective achievements (Article 1246) about the change in information on the official registration of the result of intellectual activity or means of individualization: change of name, location or place of residence and the address for correspondence. In case the appropriate federal executive authority was not informed of the changes or was misinformed the risk of negative consequences lies upon the rightsholder.

The federal executive authority on the intellectual property and the federal executive authority on selective achievements may make changes to the information about official registration of the result of intellectual activity or means of individualization for the purpose of correcting obvious and technical mistakes on its initiative or upon request of any person, having preliminary informed the rightsholder.

2. In cases when the result of intellectual activity or means of individualization is subject in accordance with the present Code to official registration, contracted alienation of the exclusive right to such result or such means, pledge of this right, and contracted granting of the right to use such result or such means, and likewise the non-contracted transfer of the exclusive right to such result or such means shall also be subject to official registration which terms and conditions to be set forth by the Government of the Russian Federation.

3. Official registration of the contracted alienation of an exclusive right to a result of intellectual activity or to means of individualization, official registration of the pledge of this right, as well as the official registration of the contracted granting of the right of use of such result or such means shall be made upon an application from the parties of the contract.

The application may be filed by parties or by one of the parties of the contract. In case one party will file the application one of the following document s should be enclosed:

signed by all parties of the contract notification that the arrangement of the exclusive right has taken place;

notarially certified extract from the contract;

the contract in itself.

The application of the parties of the contract or the enclosed to the application document by one of the parties should include:

type of contract;

information of the parties of the contract;

the object of the contract with indication of the document number that proves the exclusivity of the rights on the result of intellectual activity or on the means of individualization.

In case of official registration of the contracted granting of rights to use the result of the intellectual activity or means of individualization among with information provided in paragraphs 7 – 9 of the present Paragraph, in the application of the parties of the contract or in the enclosed to the application by one of the parties of the contract document must include:

time frame of the agreement, if such time frame has been provided by the contract;

territory where the right to use the result of intellectual activity or means of individualization is provided, if such territory is provided by the contract;

provided by the contract types of uses of the result of the intellectual activity or goods and services in respect to which the right to use the means of individualization is provided;

presence of the consent to provide rights to use the result of the intellectual activity or means of individualization with respect to a sublicensing agreement if the consent has been granted (Paragraph 1 of the article 1238);

the possibility of terminating the agreement unilaterally.

In case of official registration of the Pledge of the exclusive rights among with the information provided in paragraphs 7 – 9of the present Paragraph the application of the parties of the contracts or the enclosed to the application document must include:

time frame of the contract of the Pledge;

the restriction of the pledgee’s right to use the result of the intellectual activity or means of individualization or to handle the exclusive right on such result of on such means.

4. In case provided for by Article 1239 of the present Code, the relative judicial decision shall be the ground for the official registration of granting a right to use the result of intellectual activity.

5. The ground for the official registration of a transfer of an exclusive right to a result of intellectual activity or to means of individualization by inheritance shall be a certificate of the right to inherit, except the case provided for by Article 1165 of the present Code.

6. Failure to meet the requirements of official registration of a transfer of the exclusive right on the result of intellectual activity or to means of individualization upon the contract of

alienation of an exclusive right or without a contract, pledge of the exclusive right or granting to another person the right to use such result of such means with respect to the contract transfer of rights, its pledge or granting if the rights to use shall be regarded as not effected.

7. In cases provided for by the present Code, official registration of the result of intellectual activity shall be effected at the rightholder’s wish. In such cases the provisions of Paragraphs 2-6 of the present Article shall apply to the registered result of intellectual activity and to the rights to such result, unless otherwise provided for by the present Code.

Article 1233. Disposition of the Exclusive Right

1. The rightholder may dispose of an exclusive right to a result of intellectual activity or to means of individualization belonging to him in any legitimate manner according to the nature of such exclusive right, including by its alienation by virtue of contract to another person (contract on alienation of an exclusive right) or providing another person with the right to use the respected result of intellectual activity or means of individualization under the terms and conditions of the contract (license contract).

The conclusion of a license contract per se shall not entail the transfer of the exclusive right to the licensee.

2. The general provisions on obligations (Articles 307-419) and on contract (Articles 420-453) shall apply to contracts for the disposition of the exclusive right to a result of intellectual activity or to means of individualization, including to contracts for the alienation of the exclusive right and to license (sublicense) contracts, unless otherwise provided for by the provisions of the present Section or follows from the content or nature of the exclusive right.

3. A contract with no direct indication on transfer an exclusive right in full scope to a result of intellectual activity or to means of individualization shall be considered as a license contract, except when a contract concluded with respect to the right to use a result of intellectual activity specially created or to be created for inclusion in a complex object (second subparagraph of Paragraph 1 of Article 1240).

4. The terms and conditions of a contract for the alienation of an exclusive right or of a license contract introducing limitations of the right of a citizen to create results of intellectual activity of a defined type or in a defined area of intellectual activity or to alienate the exclusive rights to such results to other persons shall be invalid.

5. In case of conclusion of a contract for the pledge of an exclusive right to a result of intellectual activity or to means of individualization, the pledgor shall have the right during the validity period of this contract to use such result of intellectual activity or such means of individualization and to dispose of the exclusive right to such result or such means without the consent of the pledgee, unless the contract provides otherwise.

6. The rightsholder may make public, that is by communicating it to a uncertain audience of persons, the application on grating to any persons the ability to use free of charge works of science, literature or art that belong to him or an object of ancillary rights with respect to stated by the rightsholder conditions and in the established by him time frame. In this time frame any person has the right to use this work of this object ofancillary rights with respect to the stated by the rightsholder conditions.

The application is submitted though an official web site of the federal executive authority in the internet. The federal executive authority responsible for allocation of the applications, the order and conditions of their allocation are provided by the Government of the Russian Federation.

The application must include information which will allow to identify the rightsholder and the work or object of ancillary rights that he owns.

In the absence of time frame in the application of the rightsholder, the time frame is considered to be 5 years.

In the absence of the indication of territory in the application of the rightsholder the territory is considered to be Russian Federation.

In the time frame of validity the application may not be withdrawn and provided conditions by it may not be limited.

The rightsholder does not have the right to carry out such actions when the licensing agreement is valid and provides exclusive license for the use of works or objects ofancillary rights in the same limitations. In case that the rightsholder carries out such actions when the licensing agreement is valid and provides a nonexclusive licenseon the compensatory basis for the use of the work or object ofancillary rights in the same limitations, the contract terminates. The rightsholder who made the appropriate application when the licensing agreement is present and valid, must compensate loses caused to the lisensee.

In case author’s of other rightsholder’s exclusive right on the work or on an object of ancillary rights has been infringed by unlawfull allocation of the application made with respect to the present Paragraph he may demand enforcement measures of the exclusive rights in accordance to the Article 1252 of the present Code.

The statement provided in this clause do not apply to open licenses (Article 1286);

Article 1234. Contract for the Alienation of an Exclusive Right

1. Under the contract for the alienation of an exclusive right, one party (the rightholder) shall transfer or shall undertake commitment to transfer the exclusive right belonging to him to a result of intellectual activity or means of individualization in full scope to the other party (the recipient).

2. The contract for the alienation of an exclusive right shall be concluded in written form. Failure to conclude the contract in written form shall entail the invalidity of the contract.

Transfer of exclusive right in accordance to the contract must be officially registered in the cases and under regulations provided by the Article 1232 of the present Code.

3. Under the contract for the alienation of exclusive right, the recipient shall be committed to pay the rightholder the remuneration provided for by the contract unless the contract provides otherwise.

In case of absence in a remunerated contract for the alienation of an exclusive right of the terms and conditions, as well as provisions on the amount of remuneration or the procedure for its determination, the contract shall be considered as not concluded. In such case the provisions on determination of the price provided for by Paragraph 3 of Article 424 of the present Code shall not apply.

The payment of the remuneration in accordance to the contract for the alienation of the exclusive right may be made in the form of fixed non-recurrent or periodical payments, percentage from the income (revenue) or in other form.

Alienation of the exclusive right between profit organisations cannot be made free of charge, unless otherwise provided by the present Code.

4. The exclusive right to a result of intellectual activity or to means of individualization shall be passed from the rightholder to the recipient at the time of conclusion of the contract for the alienation of the exclusive right, unless otherwise provided for by a contract between the parties. If the contract for the alienation of an exclusive right is subject to official registration (Paragraph 2 of Article 1232), the exclusive right to such result or such means shall pass from the rightholder to the recipient at the time of official registration of this contract.

5. In case of a substantial breach by the recipient of the obligation to pay the rightholder, within the time-frames specified by the contract for the alienation of the exclusive right, the remuneration for obtaining the exclusive right to the result of intellectual activity or to means of individualization (subparagraph 1 of Paragraph 2 of Article 450), the former rightholder shall have the right to invoke the judicial procedure to demand the transfer to himself of the rights of the recipient of the exclusive right and the reimbursement of losses, if the exclusive right has been passed to its recipient.

If the exclusive right has not been passed to the recipient, then in case of breach by him of the obligation to pay, within the time-frames specified by the contract, the remuneration for obtaining the exclusive right, the rightholder may unilaterally renounce the contract and demand reimbursement of losses caused by the dissolution of the contract. The contract shall terminate in 30 days after the moment the notification of renouncement of the contract had been received if the licensee hasn’t paid the remuneration in that period.

Article 1235. License Contract

1. Under a license contract, one party, the holder of an exclusive right to a result of intellectual activity or to means of individualization (the licensor), shall grant or shall undertake the commitment to grant to the other party (the licensee) the right to use such result or such means within the limits provided for by the contract.

The licensee shall use the result of intellectual activity or means of individualization only within the limits of those rights and those means as provided for by the license contract. The right to use a result of intellectual activity or means of individualization not indicated expressly in a license contract shall not be considered as granted to the licensee.

2. The license contract shall be concluded in written form, unless otherwise provided for by the present Code. Failure to conclude the license contract in a written form shall entail the invalidity of the license contract.

The provision of rights for the use of the result of intellectual property or means of individualization on the basis of a licensing agreement shall be subject to official registration in cases provided for by paragraph 2 of Article 1232 of the present Code.

3. The license contract shall contain the indication of the territory within which the use of the result of intellectual activity or means of individualization is permitted. If the territory within which use of such result or such means is permitted is not indicated in the contract, the licensee shall have the right to exercise its use throughout the territory of the Russian Federation.

4. The duration of the license contract shall not exceed the term of validity of the exclusive right to the result of intellectual activity or to means of individualization.

In case the duration of the license contract is not defined in the license contract, the contract shall be considered to be concluded for five years, unless otherwise provided for by the present Code.

In case of termination of the exclusive right, the license contract shall be terminated.

5. Under a license contract the licensee shall be committed to pay the licensor the remuneration provided for by the contract unless the contract provides otherwise.

In case of absence in a remunerated license contract of provisions on the amount of remuneration or on the procedure for determining it, the contract shall be considered as not concluded. In this case the provisions for determination of the price provided for by Paragraph 3 of Article 424 of the present Code shall not apply.

The payment of the remuneration in accordance to the licensing agreement may be made in the form of fixed non-recurrent or periodical payments, percentage from the income (revenue) or in other form.

Rights for the use of the result of intellectual property or means of individualization may not be granted without compensation between proprietary organizations worldwide and throughout the whole term of the validity of the exclusive right on the conditions of the exclusive license unless the present Code have provided otherwise.

6. The license contract shall provide for:

1) the subject of the contract by indicating the result of intellectual activity or means of individualization, the right of the use of which to be granted under the contract, with an indication, in appropriate cases, of the reference number of the document confirming the exclusive right to such result or to such means (patent, certificate);

2) ways of use of the result of intellectual activity or means of individualization.

7. The transfer of the exclusive right to a result of intellectual activity or to means of individualization to a new rightholder shall not be the ground for change or dissolution of a license contract concluded by the previous rightholder.

Article 1236. Types of License Contracts

1. The license contract shall provide for:

1) granting to the licensee the right to use a result of intellectual activity or means of individualization with retention by the licensor of the right to grant licenses to other persons (simple (non-exclusive) license);

2) granting to the licensee the right to use a result of intellectual activity or means of individualization without retention by the licensor of the right to grant licenses to other persons (exclusive license).

The licensor does not have the right to use the result of the intellectual activity or mean of individualization within the limits provided to the licensee on the conditions of an exclusive license in accordance to the contract.

2. Unless otherwise provided by the license contract, the license shall be presumed to be simple (non-exclusive).

3. One license contract with respect to different ways of use a result of intellectual activity or means of individualization shall contain provisions provided for by Paragraph 1 of the present Article for license contracts of different types.

Article 1237. Implementation of License Contract

1. The licensee shall be committed to provide the licensor with reports on the use of the result of intellectual activity or means of individualization, unless otherwise provided by the license contract or by the present Code. If the license contract requiring submission of reports on the use of the result of intellectual activity or means of individualization does not specify the time-frames and procedure for such submission, the licensee shall be committed to submit such reports to the licensor at his request.

2. Within the duration of the license contract, the licensor shall be committed to refrain from any actions capable to impede the realization by the licensee of the right to use the result of intellectual activity or means of individualization within the limits specified by the contract.

3. The use of a result of intellectual activity or means of individualization in a manner not provided for by the license contract, or after the expiry of the duration of the license contract or in another manner beyond the limits of the rights granted to the licensee under the contract shall entail the liability for infringement of the exclusive right to the result of intellectual activity or means of individualization set forth by the present Code, other laws, or the contract.

4. In case of breach by the licensee of the commitment to pay to the licensor, within the time-frames specified by the license contract, the remuneration for granting the right to use a result of intellectual activity or means of individualization the licensor may unilaterally renounce the license contract and demand the reimbursement of losses caused by the dissolution of such contract. The contract shall terminate in 30 days after the moment the notification of renouncement of the contract had been received if the licensee hasn’t paid the remuneration in that period.

Article 1238. Sublicense Contract

1. With the written consent by the licensor the licensee shall have the right to grant under a contract the right to use a result of intellectual activity or a means of individualization to another person (sublicense contract).

2. Under a sublicense contract the sublicense shall be granted the right to use a result of intellectual activity or means of individualization only within the limits of those rights and those means as provided for by the license contract for the licensee.

3. The sublicense contract concluded for a time period exceeding the duration of the license contract shall be considered as concluded for the duration of the license contract.

4. The licensee shall bear liability to the licensor for actions of the sublicense unless the license contract provides otherwise.

5. The provisions of the present Code on a license contract shall apply to the sublicense contract.

Article 1239. Compulsory License

In cases provided for by the present Code, a court may, at the request of an interested person, take a decision to provide this person, on conditions determined in the judicial decision, with rights to use a result of intellectual activity, the exclusive right to which belongs to another person (a compulsory license).

Article 1240. Use of a Result of Intellectual Activity in the Composition of a Complex Object

1. A person who has organized the creation of a complex object containing several protected results of intellectual activity (cinematographic work, other audio-visual work, theatrical-audience presentation, a multimedia product, adatabase) shall obtain the right to use these results under the contracts for the alienation of the exclusive right or license contracts concluded by such person with the holders of exclusive rights to the respective results of intellectual activity.

In case when the person who has organized the creation of a complex object obtains the right of use of a result of intellectual activity specially created or to be created for inclusion in such complex object, the corresponding contract shall be considered to be a contract for the alienation of the exclusive right unless otherwise provided by agreement of the parties.

The license contract providing for the use of a result of intellectual activity in the composition of a complex object shall be concluded for the whole time period and with respect to the whole territory of the validity of the respective exclusive right, unless otherwise provided for by the contract.

2. The provisions of the license contract restricting the use of a result of intellectual activity in the composition of a complex object shall be invalid.

3. In the use of the result of intellectual activity in the composition of a complex object, the creator of such a result shall retain the right of authorship and other personal non-proprietary rights to such a result.

4. In the use of the result of intellectual activity in the composition of a complex object, the person who has organized the creation of this object shall have the right to indicate his name or designation or to demand such an indication.

5. The provisions of the present Article shall apply to the right of use of results of intellectual activity in a system of single technology created at the expense of the Federal budget totally or partially, to the extent not otherwise provided for by the provisions of Chapter 77 of the present Code.

Article 1241. Non-contracted transfer of Exclusive Right to Other Persons

The transfer of an exclusive right to a result of intellectual activity or to means of individualization to another person without concluding a contract with the rightholder shall be allowed in cases and on the grounds stipulated by the law, including by virtue of universal legal succession (inheritance, reorganization of a legal entity) and in the levying of execution on the property of a rightholder.

Article 1242. Organizations of Collective Management of Copyright and Related Rights

1. Authors, performers, producers of phonograms and other holders of copyright and related rights, in cases when exercise of their rights individually is difficult or when the present Code allows the use of the objects of copyright and related rights without the consent of the holders of the respective rights, but with the payment of remuneration to them, may establish non-commercial partnership organizations aimed at management of the respective rights on a collective basis, in accordance with terms of reference defined by the rightholders (organizations for collective management of rights).

The establishment of such organizations shall not impede the realization of the representation of the holders of copyright and related rights by other legal persons and citizens.

2. Organizations for collective management of rights may be established to manage the rights relating to one or several types of objects of copyright and related rights, as well as for management of one or more types of such rights with respect to particular ways of use of the respective objects or for management of any copyright and/or related rights.

3. The grounds for terms of reference of an organization for collective management of rights shall be a contract for the transfer of powers for management of rights concluded by the organization with the rightholder in written form except the case provided for by the first subparagraph of Paragraph 3 of Article 1244 of the present Code.

This contract shall be concluded with the rightholders being the members of such an organization as well as with non its members. In doing so, the organization for collective management of rights shall undertake the commitment to manage these rights if the management of such category of rights relates to the charter activity of this organization. The grounds for terms of reference of an organization for collective management of rights may be as well a contract with another organization, including a foreign organization conducting collective management of rights.

The general provisions on obligations (Articles 307-419) and on contract (Articles 420-453) shall apply to the contracts indicated in the first and second subparagraphs of the present paragraph, to the extent that it does not follow otherwise from the content or the nature of the right transferred for management. The provisions of the present Section on contracts for the alienation of exclusive rights and on license contracts shall not be applied to such contracts.

4. Organizations for collective management of rights shall not have the right to use of objects of copyright and related rights the exclusive rights to which have been transferred to them for management.

5. Organizations for collective management of rights shall have the right, in the name of the rightholders or in their own name, to submit claims to court and also to take other legal actions necessary for the protection of rights transferred to them for collective management.

The accredited organization (Article 1244) shall also have the right, in the name of the unlimited number of rightholders, to submit claims to court necessary for the protection of rights entrusted for management.

6. The legal status of organizations for collective management of rights, the functions of these organizations, as well as the rights and obligations of members of these organizations shall be determined by the present Code, laws on non-commercial organizations, and the charters of the respective organizations.

Article 1243. Implementation of Contracts with Rightholders by Organizations of Collective Management of Copyright and Related Rights

1. An organization for collective management of rights shall conclude license contracts with the users for granting them the rights entrusted for management by the rightholders, the rights to the respective ways of use of objects of copyright and related rights on conditions of a simple (non-exclusive) license and shall collect from the users remuneration for the use of these objects. In cases when objects of copyright and related rights in accordance with the present Code may be used without the consent of the rightholder but with payment to him of remuneration, an organization for collective management of rights shall conclude contracts on the payment of remuneration with users and other persons who are obliged by the present Code to make the payment of remuneration and shall collect fees for such purposes.

An organization for collective management of rights shall not have the right to refuse to conclude a contract with a user without sufficient grounds.

2. If the rightholder directly concludes a license contract with a user, an organization for collective management of rights may collect remuneration for the use of objects of copyright and related rights only under the condition that this is explicitly provided by the aforesaid contract.

3. Users shall be committed at the request of the organization for collective management of rights to submit reports to it on the use of objects of copyright and related rights as well as other information and documents necessary for the collection and distribution of remuneration, a list and time tables to submit them shall be defined in a contract.

4. An organization for collective management of rights shall share the remuneration for the use of objects of copyright and related rights among the rightholders and also shall effect payment to them of the indicated remuneration.

An organization for collective management of rights shall have the right to deduct amounts from the remuneration to cover necessary expenses for the collecting, sharing and payment of such remuneration, as well as the amounts to be contributed to special funds created by this organization with the consent and in the interests of the rightholders represented by it, to the amounts and by the procedure that are provided for by the charter of the organization.

The sharing and payment of remuneration shall be made regularly within the time periods provided for by the charter of the organization for collective management of rights and in proportion to the actual use of the respective objects of copyright and related rights, defined on the basis of information and documents submitted by users as well as on other data on the use of objects of copyright and related rights including information of a statistical nature.

Simultaneously with the payment of remuneration the organization for collective management of rights shall be committed to provide the rightholder with a report containing information on the use of his rights, including on the amount of the collected remuneration and on the amounts deducted.

5. An organization for collective management of rights shall maintain registers containing information on rightholders, on rights entrusted for management and also on the objects of copyright and related rights. The information contained in such registers shall be provided to all interested persons under the procedure established by the organization, except where information by virtue of the law shall not be disclosed without the consent of the rightholder.

An organization for collective management of rights shall place on a generally- accessible information system on the rights transferred to it for management, including the designation of the object of copyright or related rights, and the name of the author or other rightholder.

6. Failure by the organisations for collective management of rights to pay the collected for the rightsholder remuneration as a result of infringement of the procedure of management of rights provided by the present Code,entails appliance of the measures of the exclusive right enforcement in accordance with the Article 1252 of the present Code.

Article 1244. State Accreditation of Organizations for Collective Management of Copyright and Related Rights

1. An organization for collective management of rights may have official accreditation to fulfill its activity in the following areas of collective management:

1) management of exclusive rights tomusical works (with or without accompanying text ) that have been made public and excerpts from musical and dramatic works with respect to their public performance, broadcasting or diffusion by cable including by way of retransmission (subparagraphs 6-8 of Paragraph 2 of Article 1270);

2) exercise of the rights of composers of musical works (with or without accompanying text ) used in an audiovisual work for the remuneration for public performance or broadcasting or diffusion by cable of such audiovisual work (Paragraph 3 of Article 1263);

3) management of the droit de suite with respect to works of fine arts and also of authors' manuscripts (autographs) of literary and musical works (Article 1293).

4) exercise of the rights of authors, performers, and producers of phonograms and audiovisual works to the remuneration for the reproduction of phonograms and audiovisual works for private use (Article 1245);

5) exercise of rights of performers to the remuneration for public performance and also for broadcasting or diffusion by cable of phonograms published for commercial purposes (Article 1326);

6) exercise of the rights of producers of phonograms to the remuneration for public performance and also for broadcasting or diffusion by cable of phonograms published for commercial purposes (Article 1326);

Official accreditation shall be made on the basis of the principles of transparency of procedure with due account of the opinion of interested persons, including rightholders, in accordance with the procedure set forth by the Government of the Russian Federation.

2. Official accreditation for exercising the activity in each of the areas of collective management indicated in Paragraph 1 of the present Article may be obtained by only one organization for collective management of rights.

An organization for collective management of rights shall have official accreditation for exercising the activity in one, two, or more of the areas of collective management indicated in Paragraph 1 of the present Article.

No limitations provided for by the antimonopoly legislation shall apply to the activity of an accredited organization.

3. An organization for collective management of rights that has had official accreditation (an accredited organization) shall have the right along with the management of the rights of those rightholders with whom it has concluded contracts following the procedure provided for by Paragraph 3 of Article 1242 of the present Code to exercise management of the rights and collection of remuneration for those rightholders with whom it has not concluded such contracts.

The existence of an accredited organization shall not impede the establishment of other organizations for collective management of rights, including in areas of collective management indicated in Paragraph 1 of the present Article. Such organizations shall have the right to conclude contracts with users only following the interests of rightholders who authorized them to manage the rights in accordance with the procedure provided for by Paragraph 3 of Article 1242 of the present Code.

4. The rightholder who has not concluded a contract with an accredited organization to authorize it to manage the rights (Paragraph 3 of the present Article) shall have the right at any time to total or partial renounce the management of his rights by this organization. The rightholder shall notify the accredited organization in a written form of his decision. In case the rightholder intends to renounce management by the accredited organization only of part of copyright or related rights and/or objects of these rights, he shall submit to the accredited organization a list of such excluded rights and/or objects.

Upon the expiration of three months from the date of the receipt from the rightholder of the respective notice, the accredited organization shall be committed to exclude the rights and/or objects indicated by him from contracts with all the users and to place information on this on a generally-accessible information system. The accredited organization shall be committed to pay to the rightholder due remuneration collected from users in accordance with previously concluded contracts and to submit the report in accordance with the fourth subparagraph of Paragraph 4 of Article 1243 of the present Code.

5. An accredited organization shall take reasonable and sufficient measures to identify rightholders having the right for remuneration in accordance with license contracts and contracts for remuneration concluded by this organization. Unless otherwise provided for by the laws, the accredited organization shall not have the right to refuse membership in this organization of a rightholder having the right for remuneration in accordance with license contracts and contracts for remuneration concluded by this organization.

6. Accredited organizations shall exercise their activity under the supervision of the authorized federal executive body.

Accredited organizations shall annually submit to the authorized federal executive body a report on their activity as well as publish it in All-Russian mass media. The form of the report shall be specified by the authorized federal executive body.

7. The model charter of an accredited organization shall be approved in accordance with the procedure set forth by the Government of the Russian Federation.

Article 1245. Remuneration for Free Reproduction of Phonograms and Audiovisual Works for Private Use

1. Authors, performers, and producers of phonograms and audiovisual works shall have the right to remuneration for free reproduction of phonograms and audiovisual works exclusively for private use. Such remuneration shall be of a compensatory character and shall be paid to the rightholders from fees to be paid by producers and importers of equipment and material carriers used for such reproduction.

The list of equipment and material carriers as well as the amount and procedure for collection of the respective fees shall be approved by the Government of the Russian Federation.

2. Collection of fees for payment of remuneration for free reproduction of phonograms and audiovisual works for private use shall be effected by an accredited organization (Article 1244).

3. The remuneration for free reproduction of phonograms and audiovisual works for private use shall be shared among the rightholders in the following proportions: forty percent to authors, thirty percent to performers, and thirty percent to producers of phonograms or audiovisual works. The sharing of remuneration among specific authors, performers, and producers of phonograms or audiovisual works shall be effected in proportion to the actual use of the respective phonograms or audiovisual works. The procedure for sharing the remuneration and for its payment shall be set forth by the Government of the Russian Federation.

4. The fees for payment of remuneration for free reproduction of phonograms and audiovisual works for private use shall not be collected from the manufacturers of that equipment and those material carriers produced for export as well as from manufacturers and importers of professional equipment not designed for home use.

Article 1246. Official Regulation of Relations in the Area of Intellectual Property

1. In cases provided for by the present Code, the adoption of normative legal acts in order to regulate the relations in the area of intellectual property with respect to the objects of copyright and related rights shall be done by the authorized federal executive body responsible for normative and legal regulation in the area of copyright and related rights.

2. In cases provided for by the present Code, the adoption of such forms of documents (requisition, petitions, objections, motions etc.) that provide sufficient basis for the authorized federal executive body responsible for normative and legal regulations in the area of intellectual property to regulate the relations in the area of intellectual property, provided in Paragraph 3 of the present article, with respect to the inventions, utility models, industrial designs, computer programs, databases, topographies of integrated circuits, trademarks and service marks, appellations of origin, to establish rules of composition and application of presented above documents, rules and regulations of the review of the documents, including the criterion fordecision making upon the result of the document review, and to adopt other normative and legal acts.

3. Legally significant actions for official registration of inventions, utility models, industrial designs, computer programs, databases, topographies of integrated circuits, trademarks and service marks, appellations of origin, including filing and examination of the respective applications and the grant of patents and certificates confirming the exclusive right of their holders to these results of intellectual activity and to means of individualization, and in cases provided for by the laws as well as other actions connected with the legal protection of results of intellectual activity and means of individualization shall be exercised by the federal executive authority for intellectual property. In cases provided for by Articles 1401-1405 of the present Code the actions indicated by the present Paragraph may also be exercised by the federal executive authority duly authorized by the Government of the Russian Federation.

4. With respect to selection attainments, the functions indicated in Paragraphs 2 and 3 of the present Article shall be exercised respectively by the authorized federal executive body responsible for normative and legal regulation in the area of agriculture and the federal body of executive power for selection attainments.

5. The government of the Russian Federation has the right to regulate rate, order and time frame for the payment of the compensation for the service invention, service utility models, service industrial design. These rates, order and time frame aply in case of absence of the agreement between an employee and an employer, that establishes rate, conditions, and order of payments of the compensation for the service invention, service utility models, service industrial design.

6. The government of the Russian Federation has the right to set minimum rates, order of collection, distribution and payment of the compensation for the certain types of uses of works, performances andphonograms in such cases, when with respect to the copyright law the use of such intellectual activity will be done upon receiving permission from the rightsholders and upon payment of compensation to them.

The government of the Russian Federation has the right to set minimum rates, order of collection, distribution and payment of the compensation for the certain types of uses of works, performances andphonograms in such cases, when with respect to the copyright law the use of such intellectual activity will be done without permission from the rightsholders but with payment of compensation to them.

Article 1247. Patent Attorneys

1. The proceedings with the federal executive authority for intellectual property shall be exercised by the applicant, the rightholder, another person personally or through a patent attorney, registered in this federal authority or through another representative.

2. Citizens permanently residing out of the territory of the Russian Federation and foreign legal entities shall exercise proceedings with the federal executive authority for intellectual property through patent attorneys, registered by this federal authority, unless otherwise provided for by an international treaty of the Russian Federation.

If an applicant, a rightholder, or another person exercise proceedings with the federal executive authority for intellectual property personally or through a representative not registered by the this federal authority as a patent attorney, they shall be committed at the request of the this federal authority to communicate the address within the territory of the Russian Federation for correspondence.

The terms of reference of a patent attorney or another representative shall be confirmed by a power of attorney

3. The citizen of the Russian Federation permanently residing within its territory may be registered as a patent attorney. Other requirements for a patent attorney, the procedure for his certification and registration as well as his legal powers to exercise the proceedings on the legal protection of the results of intellectual activity and means of individualization shall be specified by the law.

Article 1248. Disputes Connected with the Enforcement of Intellectual Rights

1. Disputes connected with the enforcement of infringed or contested intellectual rights shall be considered and resolved by a court (Paragraph 1 of Article 11).

2. In cases provided by the present Code, enforcement of intellectual property rights as concerns filing and processing of applications to grant the patents for inventions, utility models, industrial designs, selection attainments, trademarks, service marks, and appellations of origin, official registration of these results of intellectual activity and means of individualization, the grant of the appropriate right-establishing documents, the contesting of granting legal protection for these results and means, or its termination shall be made under administrative procedure (Paragraph 2 of Article 11) correspondingly by the federal executive authority for intellectual property and by the federal executive authority for selection attainments, and in cases provided for by Articles 1401-1406 of the present Code, by the federal executive authority body authorized by the Government of the Russian Federation (Paragraph 2 of Article 1401). The decisions of these authorities shall enter into force on the date of their adoption. They may be contested in a court following the procedure set forth by the law.

3. The procedures for consideration and resolution of disputes, as specified in Paragraph 2 of the present Article, for the federal executive authority for intellectual property, as well as for the federal executive authority for selection attainments shall be adopted correspondingly by the federal executive authority responsible for normative and legal regulation in the area of intellectual property and by the federal executive authority responsible for normative and legal regulation in the area of agriculture. The procedures for consideration and resolution of disputes connected with secret inventions as specified in Paragraph 2 of the present Article shall be adopted by the authorized body (Paragraph 2 of Article 1401).

Article 1249. Patent and Other Fees

1. Patent and other fees shall respectively be collected for taking legally-significant actions with respect to a patent for an invention, an utility model, an industrial design, or selection attainments, the official registration of a computer program, databases, topographies of integrated circuits, trademark and service mark, the official registration and grant of the exclusive right to an appellation of origin and also official registration of the transfer of exclusive rights to other persons and the national registration of the Pledge of these rights and the use of the results of such intellectual activity and means of individualization on the basis of a contract.

2. The list of legally-significant actions as regards a computer program, databases, and the topographies of integrated circuits subject for payment of official fees, their amounts, procedure and time-frames for payment, as well as grounds to free from payment of the official fees, reduction of their amounts, postponement of payment or return of fees shall be set forth by the taxation legislation of the Russian Federation.

The list of legally-significant actions other than those indicated in subparagraph 1 of the present Paragraph subject to payment of patent and other fees, their amounts, the procedure and time-frames for payment, as well as grounds to free from payment of the fees, reduction of their amounts, postponement of payment or return of fees shall be set forth by the Government of the Russian Federation.

Article 1250. Enforcement of Intellectual Rights

1. Intellectual rights shall be enforced by the means provided for by the present Code with due account of the substance of the infringed right and the consequences of the infringement of this right.

2. The means of enforcement of intellectual rights provided for by the present Code shall be applied at the request of the rightholders, organizations for collective management of rights, as well as other persons in cases set forth by the law.

3. The means of responsibility for intellectual rights infringement provided by the present Code aply in case of presence of fault of an infringer, unless the present Code have provided otherwise.

The absence of fault shall be proven by the infringer of intellectual rights.

The means of responsibility for infringement of intellectual rights by entrepreneurship activities provided by the Subparagraph 3 of Paragraph 1 and by Paragraph 3 of Article 1252 of the present Code shall apply regardless of the fault of the infringer unless such person proves that infringement of intellectual rights happened as a result of irresistible force, i.e. in case of emergency and unavoidable in this situation conditions, unless the present Code has provided otherwise

4. A person towards whom the measures of enforcement of intellectual rights provided by subparagraphs 3 and 4 of Paragraph 1 and Paragraph 3 of Article 1252 of the present Code have been applied in the absence of the his fault may submit a claim of regress on compensation of his losses, including the amount paid to third parties.

5. The absence of fault of an infringer shall not excuse him from the obligation to cease infringement of intellectual rights and also shall note exclude the application to the infringer of measures aimed at the enforcement of such rights. In particular, the publication of a judicial decision on an infringement committed (subparagraph 5 of Paragraph 1 of Article 1252), prevention of the infringement of the exclusive right to a result of intellectual activity or to means of individualization or threat of infringement of such right (subparagraph 2 of Paragraph 1 of Article 1252), withdrawal and elimination of counterfeit physical carrier (subparagraph 4 of Paragraph 1 of Article 1252). The stated actions shall be made at the expense of the infringer.

Article 1251. Enforcement of Personal Non-proprietary Rights

1. In case of infringement of personal non-proprietary rights of an author, their enforcement shall be exercised, in particular, by the recognition of a right, restoration of the situation existing before the infringement of the right, prevention of the activities infringing the right or creation of a threat of its infringement, remuneration for moral damages, publication of the decision of a court on the infringement committed.

2. The provisions provided for by Paragraph 1 of the present Article shall also be applied to the enforcement of rights provided for by Paragraph 4 of Article 1240, Paragraph 7 of Article 1260, Paragraph 4 of Article 1263, Paragraph 4 of Article 1295, Paragraph 1 of Article 1323, Paragraph 2 of Article 1333, and subparagraph 2 of Paragraph 1 of Article 1338 of the present Code.

3. Protection of the honor, dignity, or business reputation of the author shall be exercised in accordance with the provisions of Article 152 of the present Code.

Article 1252. Enforcement of Exclusive Rights

1. Enforcement of exclusive rights to the results of intellectual activity and to means of individualization shall be exercised in particular by putting forward a claim in accordance to the regulations provided by the present Code:

1) the recognition of the right – against the person who denies or in another manner does not recognize the right, infringing thereby the interests of the rightholder;

2) preventing the actions infringing the right or creating a threat of its infringement – against the person taking such actions or being prepared to take them and also to other persons, who may prevent such actions;

3) reimbursement of damages – against the person who has unlawfully used a result of intellectual activity or means of individualization without the conclusion of an agreement with the rightholder (non-contracted use) or has infringed his exclusive right in another manner and has inflicted damage to him, including infringement of his right to receive compensation, which is provided by the Article 1245, Paragraph 3 of the Article 1263 and by Article 1326 of the present Code;

4) seizure of the physical carrier in accordance with Paragraph 5 of the present Article – against its producer, importer, depositor, carrier, seller, other distributor, or unscrupulous buyer;

5) the publication of the judicial decision on the infringement committed with an indication of the actual rightholder – against infringer of the exclusive right.

2. In line to secure a claim within suits on infringements of the exclusive rights security measures provided by theprocedural legislation and appropriate to the size and nature of the infringement may be taken, including seizure of material carriers, equipment, and materials, prohibition of such actions in information-telecommunication media if material carriers, equipment and materials are presumed as infringing the exclusive right to a result of intellectual activity or to means of individualization

3. In case one action caused infringement of rights to several results of intellectual activity or means of individualization, the amount of compensation for each unlawfully used result of intellectual activity or means of individualization is determined by the court. Herewith if the rights to the appropriate results of the intellectual activities or means of individualization belong to one rightsholder the overall compensation for the infringement of the rights, taking into account the nature and the consequences of the infringement, may be lowered by the court below the provided by the present Code limits, but it can’t be lower than 50 per cent of the minimum amount of all compensations for the infringements.

4. In case when the production, distribution, or other use, as well as importation, transportation, or storage of material carriers embodied the result of intellectual activity or means of individualization lead to infringement of the exclusive right to such a result or to such means, the material carriers concerned shall be considered counterfeit and upon the decision of a court shall be removed from circulation and destructed without any compensation whatsoever unless other consequences are provided for by the present Code.

5. Equipment, other facilities and materials mainly used or aimed for the infringement of exclusive rights to results of intellectual activity and to means of individualization, upon the decision of a court shall be removed from circulation and destructed at the expense of the infringer, unless the legislation provides for their transfer to the income of the Russian Federation.

6. If various means of individualization (trade name, trademark, service mark, commercial name) are identical or confusingly similar and as a result of such identity or similarity the consumers and/or contract partners may be confused, the priority shall be applied to the means of individualization with prior date of appearance of the exclusive right or in case of conventional or exhibitional priority of means of individualization with a prior established priority .

If various means of individualization and aт industrial design are identical or confusingly similar and as a result of such identity or similarity the consumers and/or contract partners may be confused, the priority shall be applied to the means of individualization or industrial design with prior date of appearance of the exclusive right or in case of conventional or exhibitional priority of means of individualization or industrial design with a prior established priority.

The holder of such exclusive right may in accordance of the present Code demand the recognition as invalid the granting of legal protection to a trademark (or service mark), recognition as invalid if a patent on an industrial design or the full or partial prohibition of the use of a trade name or commercial name.

For the purposes of the present Paragraph, the meaning of the partial prohibition of use shall be as follows:

with respect to a trade name – prohibition of its use in certain types of activity;

with respect to a commercial name – prohibition of its use within the boundaries of a certain territory and/or in certain types of activity.

In cases when an infringement of an exclusive right to a result of intellectual activity or to means of individualization has been made jointly by actions of several persons, these persons shall jointly and severally answer to the rightsholder.

7. In cases when an infringement of an exclusive right to a result of intellectual activity or to means of individualization has been recognized under the established procedure as an act of unfair competition, the enforcement of the infringed exclusive right shall be exercised both by the means provided by the present Code and in accordance with antimonopoly legislation.

Article 1253. Liability of Legal Persons and Individual Entrepreneurs for the Infringement of Exclusive Rights

If a legal entity repeatedly or severely infringes exclusive rights to results of intellectual activity or to means of individualization, the court may as provided by Paragraph 2 of Article 61 of the present Code adopt a decision on the liquidation of a legal entity at the request of the public prosecutor if such legal entity is at fault in the infringement of exclusive rights.

If such infringements are made by a citizen during his entrepreneurship activities as an individual entrepreneur, his activity as an individual entrepreneur may be terminated in case he is at fault of infringement of exclusive rights by the decision or verdict of a court as provided for by the laws.

Article 1254. Aspects of Enforcement of Licensee’s Rights

If infringement by third parties of an exclusive right to a result of intellectual activity or to means of individualization under the exclusive license affects the rights of the licensee under a license contract, the licensee shall have the opportunity to enforce his rights along with other enforcement measures as provided by Articles 1250,and 1252 of the present Code.