Clubs, discos

Nightclubs and discos are unimaginable without music because music lies in the basis of creation of this type of establishment. At the same time we should not forget that the use of copyrighted (music) without obtaining a permission (without signing a license agreement) from the rightholders (including – collective management organizations) and without paying proper royalties is a violation of the current copyright legislation of Ukraine.

It is also worth to be noted that no matter how the music is exploited (live performance or by any technical devices (radio, TV, stereo, etc.), there is a necessasity to conclude the licensing agreement. Amount of royalties is calculated in accordance with Resolution of the Cabinet of Ministers of Ukraine on January 18, 2003 № 72 “On approval of the minimum rates of remuneration (royalty) for the use of copyright and related rights”.

According to the resolution the minimum rate of royalties is as follows:

Public performance of the works Royalty*
Musical compositions with or without lyrics (both in case of performing the compositions by artists and playing the records of compositions in locations with paid admission)
(Annex 1, paragraph 21)
4%
of the gross collection derived from ticket sales
Musical compositions with or without lyrics, literary works (both in case of performing the compositions by artists and playing the records of compositions in locations with paid admission).
(Annex 1, item 22)
1%
income derived from the activity during which the works are used
and in the absence of such income
2,5%
of the total expenditure on holding the event by organizer

Interest rates (royalties) are accrued as a percentage of gross collection coming from the sale of tickets for the public performance of one work or a program or income derived from the use of the works and in the absence of such income — as a persentage of total expenditure of holding the event where literary and (or) art works are used.

Additionally:

In the case of alternate or simultaneous use of works of art and literature referred to in paragraphs 16, 21 , 22 and 25 of the Annex the minimum interest rates (royalty) are charged separately for each type of using of the work.

For contract or advice please refer to the following contacts:

Anna Silvestruk
Chief specialist of “small rights” users section

Tel.: (044)235-32-88
+38-067-506-4367
+38-063-833-1551

Chief Specialistof “small rights” users section
Teplyuk Natalia
Tel.: (044) 230-93-57
+38-067-506-4367
+38-067-833-1551