The Collective Copyright Management Society of Graphic, Applied and Photographic Artists Association presents this Information on the relevant conditions of collective copyright management according to Law XCIII of 2016 on the Collective Management of Copyright and Rights related to copyright, to Government Decree 216/2016 (VV.22) on the detailed rules governing the operation of Collective Copyright Management organisations and independent rights management organisations and the procedures of collective management of rights, as well as to the Articles of Association, Regulation on Allocation and dispositions of other Regulations of this Association published on its present homepage:
Rights of the Copyright Holder
Collective management of rights
HUNGART performs collective copyright management as directed by law as well as on the basis of a Mandate. The Association performs the mandatory and the extended collective management of copyright as a legal obligation; in this case HUNGART manages certain property rights (see below) without a Mandate. On the other hand, HUNGART acts also on the basis of Mandates that could be contracts linked to membership or contracts without a membership.
Mandatory collective copyright management covers the following property rights: resale right, retransmission right, blank tape remuneration and reprographic right, while extended collective right management implies secondary use of already published works of art: reproduction, exhibition, and broadcasting.
HUNGART must accept a commission to manage the rights belonging to its sphere of activity.
Within the framework of laws, regulations and agreements concluded with foreign rights management organisations; HUNGART provides equal rights for every Right holder and performs collective copyright management with consideration to the interests of every represented right holder without any unjustified differentiation among them. Right holders are entitled to royalties from enforcement of property rights irrespectively of their legal relationship with HUNGART.
b) Limitation and termination of collective right management
Right holder is entitled to the right to protest against the extended collective right management but he may instead proceed with the conclusion of a Limited Mandate.
Right holder may narrow the sphere of rights to be included into Extended Collective Right Management, for this purpose a Limited Mandate should be concluded with HUNGART. Thus, the management of property rights exercised by HUNGART henceforth will be limited to specified countries, to certain types of work of art and to particular copyrights.
At the same time extended collective copyright management could be terminated in full, in this case the right holder must lodge a protest with HUNGART. Any Right holder may protest against the licensing of his/her work of art in the framework of collective right management, the rights belonging to mandatory collective right management notwithstanding. A relevant disclaimer protesting against the extended collective copyright management in the form of a private document providing conclusive evidence should be addressed to HUNGART at least three months in advance, coming into effect on January 1st of the following year.
Right holder may terminate or limit a written Mandate.
Right holder may terminate the Mandate for right management with the collective management organisation with a three month notice period as of January 1st of the following year by a disclaimer in the form of a private document providing conclusive evidence.
It is advisable to ponder before protesting or terminating whether right holder might want to limit right management by HUNGART instead.
Right holder is entitled to unilaterally limit the right management to specified countries, certain types of works of art and to particular copyrights by a disclaimer in the form of a private document providing conclusive evidence. Limitation of right management can solely be exercised if covering all works of art belonging to the same type of work of art of the right holder.
c) Information rights
Right holder should be informed in a verifiable manner about the relevant conditions of collective copyright management before accepting the commission.
The Right holder who does not give a commission (including Right holders, whose rights are managed by HUNGART as a legal obligation) should be informed in writing about the relevant conditions of collective copyright management the first time when a royalty is being paid.
Right holder is informed in detail about the collective rights management activities performed by HUNGART for him/her at least once per year as long as royalty income is being allocated to Right holder or any other payment is made during the information period.
Upon substantiated request by Right holder information should be provided within reasonable time – by electronic means if it is being demanded – about the works of art in the framework of collective copyright management if possible. If it is not possible, information should be provided about the type of works of art within the scope of collective right management and the geographical location concerned.
d) Notification of a complaint
HUNGART provides an efficient and quick procedure of handling complaints for its members and represented Right holders. The complaint should be addressed in writing to the Supervisory Board within 30 days after receiving the information serving as the ground for complaint.
Complaints can be made in particular concerning rights management commissions, termination of commissions, protests against rights management, membership regulations, and collection of royalties of Right holders, deductions and allocation of collected royalties.
The Supervisory Board investigates the complaint, hears out the complainant if necessary and prepares an answer in writing within 30 days of filing the complaint. Refusal of a complaint should be lucidly justified by the Supervisory Board.
Right holder may file a complaint in writing with the Hungarian Intellectual Property Office against the activities and operation of HUNGART or other conditions related to it, that – according to the point of view of complainant – violates legal obligations of right management.
e) Communication by electronic means
Right holder may communicate with HUNGART and exercise their rights by electronic means as well: firstname.lastname@example.org
Right holder may be accepted as a member of HUNGART if he/she meets the membership criteria contained in the Articles of Association of HUNGART.
g) Non-commercial use
Right holder may individually authorise the non-commercial use of his/her work of art – provided it does not belong to mandatory collective right management – even when such use is otherwise being authorised by HUNGART.
A use can be considered as non-commercial use of work of art if this does not serve directly or even indirectly purposes of income generation nor enhancement thereof and if Right holder does not claim any royalty.
In case of a non-commercial use User will conclude a written use agreement with Right holder, the contents of which is regulated by the norms governing use and the content of a use agreement of the Copyright Law. User must report a non-commercial use to HUNGART in writing, in every case before commencement of the use.
h) Allocation of royalties and payment
HUNGART must act in the rights and interests of Right holders and with the expected due care when collecting and handling royalties.
Royalties will be allocated by HUNGART according to its Regulation on Allocation and will be paid to Right holders if appropriate data is at its disposal, regardless of whether HUNGART manages property rights as a legal obligation or on the basis of a Mandate.
HUNGART is liable to allocate and pay the royalties collected by the end of the third quarter of the year following collection, in case of royalties taken over from other collecting societies these should be allocated and paid within six months. In case of certain types of royalty the Regulations on Allocation prescribe a shorter deadline that is tree months in general.
i) Handling of personal data
HUNGART handles personal data of Right holder in accordance to rules contained in the Act CXII. of 2011 on Informational Self-determination and Freedom of Information.
a) General handling fees
HUNGART will deduct from the royalty income generated through collective right management a reasonable handling fee that is necessary for its operation. This amount will be determined by the Presidency taking into consideration operating costs and the recommendations of the International Confederation of Authors and Composers Societies (CISAC). When determining general handling fees attention should be paid to the source of the income, whether it comes from royalties collected and allocated by HUNGART (resale royalties, authorisation of secondary uses) or copyright royalties taken over only for allocation (blank tape, retransmission, reprography):
In 2016 this amount is 22% for royalties collected and allocated by HUNGART and 15% for royalties taken over for allocation.
b) Individual costs
Those costs that arise not from the collection and allocation activities of HUNGART but due to payments of public burden made in compulsory manner by the paying organisation as prescribed by laws on taxation and/or social security should be debited from the royalty only of the concerned Right holder. This amounts to 27 % in 2016 (health care contribution as prescribed by Act LXVI of 1998).
c) Deductions for Social and Community purposes
HUNGART is determined to support the creative work and community goals of contemporary graphic artists, professionals in the field of applied arts, designers, industrial designers and photographic artists, hence the societies of these creative artists and the social well-being of individual artists.
To this end from the royalty incomes HUNGART will- pay 5% of the non-personalized royalties (blank tape remuneration, retransmission, reprography) for social support, furthermore
from the royalties collected until July 28th 2016 (date of entering into force of the new law on collective copyright management) that are un-allocated due to lack of relevant data, after the term of limitation of 5 years, 5 % will be disbursed for social support and 20% will support other purposes serving the interests of Right holders, thus for the support of national organisations of Graphic, Applied and Photographic Artists.
Concerning the royalties collected after July 28th 2016, if HUNGART cannot pay the royalty within three years after the end of the collection year due to non-success of efforts to identify and locate the Right holder or missing data, it is a legal obligation to hand over 90% of the royalty to the National Cultural Fund for cultural purposes in support of Graphic, Applied and Photographic Artists.
We hope that you will continue to be satisfied with our collective copyright management practices described in the present information material.