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1. Under the present Act, collecting societies shall not be entitled to engage in commercial activity.
Restrictions laid down by antimonopoly legislation shall not be applied with respect to the activity of such organizations.
2. Collecting societies shall be authorized directly by the owners of copyrights and neighboring rights voluntarily, under written agreements, and under appropriate agreements with foreign organizations managing similar rights. Such agreements shall not be copyright contracts, and no application shall be made thereto of the provisions of Articles 30 to 34 of the present Act.
Any author, his heirs, or other owner of copyrights and neighboring rights protected under Section III of the present Act shall be entitled to assign, under contract, the exercise of his property rights to such organization, while the organization shall have the duty to accept the exercise of these rights on a collective basis, where the management of this class of rights is written into the rules and regulations of this organization.
The aforesaid organizations shall not be entitled to make use of the works and objects of neighboring rights assigned for collective management.
3. Collecting societies shall, on the basis of the powers vested in them under Clause 2 of the present Article, issue licenses to users for the various modes of use of works and objects of neighboring rights. The terms of such licenses must be similar for all users of the same class. The aforesaid organizations shall not be entitled to deny the issue of license to user, without good grounds therefor.
Such licenses shall allow the use, in the modes specified therein, of all works and objects of neighboring rights, and shall be issued in the name of all the owners of copyrights and neighboring rights, including owners who have not assigned powers to the organization, in conformity with Clause 2 of the present Article.
All possible property claims by the owners of copyrights and neighboring rights on users arising from the use of their works and objects of neighboring rights under such license must be settled by the organization issuing such license.
4. Collecting society shall be entitled to retain unclaimed royalties, including these in the amounts to be apportioned or using these for other purposes in the interests of the represented owners of copyrights and neighboring rights, upon the expiration of three years from the date of entry of the royalties on the organization's account.
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