Alexey Karelov: Russian Authors’ Society is ready to accommodate broadcasters as long as it does not infringe the rights of authors

08.06.2022

The Executive Director of Russian Authors’ Society noted that the organization plans to work on the issue of fixed payments.

Russian Authors’ Society is ready in difficult economic situation to meet the needs of broadcasters, whose incomes have recently fallen significantly, but as long as this does not infringe the interests of the authors. This was stated by Alexey Karelov, Executive Director of Russian Authors’ Society at a meeting of broadcasters and collective management of rights entities, held at the Civic Chamber of the Russian Federation:

“Authors experience loss of income in these difficult times in the same way. You can’t say that they are profiting from someone. But we certainly have something to work on together with the broadcasters, primarily in the question of fixed payments. During the pandemic, we did not go to courts and did not apply penalties, and we are ready to do exactly the same now. We are ready to interact with the industry and jointly resolve all issues within the framework of the working group.”

Alexey Karelov notes that representatives of collective management societies drew the attention of the meeting participants to the fact that since 2015 inflation has depreciated the Russian Authors’ Society royalties’ rate by 60%. At the same time, the advertising market grew by 40%. But since then the rated have not been indexed. According to representatives of Russian Authors’ Society, the royalty rate in Russia (which is about 2%) is approximately four times lower than similar rates of foreign CMR.

Payments to right holders from “unfriendly” countries

Media representatives raised the issue of working with copyright holders from “unfriendly” countries and artists who made anti-Russian statements. Some broadcasters do not agree that Russian Authors’ Society (RAO) and Russian Organization for Intellectual Property (VOIS) continue to collect money for their benefit. The arguments cited were not so much political aspects as the fact that, due to sanctions, money transfers to the West are limited.

Representatives of Russian Authors’ Society and Russian Organization for Intellectual Property explained how these fees are currently carried out. In accordance with a recent presidential decree, royalties to such copyright holders are transferred to a special account in a Russian bank, from which money can be withdrawn only with the permission of a special government commission, the Head of Russian Authors’ Society said.

In addition, if foreign content becomes free, and domestic content remains paid, then there is a high probability that interest in the latter will decrease, the press service of representatives of the authors society quotes. “People will stop watching and listening to Russian content or there will be an additional incentive to download music in a pirated way, which they have been fighting against for so long,” Karelov said.

About the meeting

In a press release, Russian Authors’ Society explained that the financial situation of the media was complicated by the exit from Russia of 18 out of 30 major foreign advertisers. In this situation, broadcasters are counting on optimizing the costs, where copyright payments are traditionally a necessary cost item.

The meeting, held in the Civic Chamber of the Russian Federation, was attended by representatives of both the media and the authors community. The moderator was Rafit Sabitov, Chairman of the Commission of the Civic Chamber of the Russian Federation for the Development of the Information Community, Mass Media and Mass Communications, Head of the Regional Department of Russian State Television and Radio Broadcasting Company. As a result of the discussion, the participants agreed that for a deeper analysis of the proposals of the media, summing up the results of the discussion and developing specific solutions, it would be advisable to create a working group in which the legal departments of all interested parties will participate.