Russian Authors’ Society resumes debts collection suspended due to the pandemic

09.12.2021

The past year was tough for everyone, but small and medium-sized businesses, the entertainment industry and the service sector were particularly hard hit. Cinemas and organizers of mass events, restaurateurs, trade enterprises have accumulated most of the debts on payment of royalties during this time.

Russian Authors’ Society agreed with the terms of the debtors by avoiding litigation during the period of restrictions. At present, according to the representatives of Russian Authors’ Society, business has recovered enough to start paying its bills, because, as the CEO of Russian Authors’ Society Alexei Karelov explained, rightholders also need support.

To date, 1,175 claims for 185.7 million rubles have already been registered. For comparison: in 2018, Russian Authors’ Society collected 447 million rubles from debtors in 2,230 claims, in 2019 – 326 million rubles in 1,863 claims, and in 2020 collections fell by 35%.

The list of Russian Authors’ Society debtors includes restaurants, TV channels, trade and transport companies. At the same time, 85% of claims are addressed to individual entrepreneurs and small and medium-sized businesses.

According to Arbitrazh.ru lawyer Igor Vershinin, most cases are considered in summary proceedings and the probability of satisfying claims is more than 90%. However, not all debtors give up without a fight. For example, the Association of Cinema Owners (AVK) insists on reviewing the procedure for accruing remuneration and reducing the percentage rate from the box office. The head of AVK, Oleg Berezin, believes that 0.5% deductions are quite enough. Representatives of the concert industry also want to negotiate with Russian Authors’ Society on revising rates, arguing that the industry’s turnover has decreased by 90%.

RAO is not making any concessions yet, protecting the interests of the authors.