Russian Union of Right-holders headed by Mikhalkov refused to cooperate with Russian Authors Society
The Russian Ministry of Culture received a letter from the Director General of the Russian Union of Right-holders (RSP) Andrey Krichevsky notifying of RSP’s intention to end cooperation with the Russian Authors Society (RAO).
The press service of the Ministry of Culture clarified that it received a copy of the letter, whereas the original letter was referred to the Russian Authors Society. By sending it, the RSP notified the RAO of termination of the previously signed agreement relating to the delegation of authority to manage the rights of authors and other copyright holders on a collective basis. In addition, the organization no longer wished to cooperate under the previously concluded contract with the RAO in the field of copyright and related rights.
The Ministry of Culture also noted that the RSP indicated the numerous and repeated violations of RAO's obligations under the previously concluded agreement as the reason for termination of cooperation under the agreement in question.
The RAO denied the receipt of RSP's notification of breaking the contractual relationship. The Russian Authors Society also stated it had never received any claims from the RAO related to violation of agreement terms.
Moreover, RAO submitted a response letter to the Ministry of Culture, stating that the Russian Union of Right-holders had not paid royalty fee to members of the RAO since October 2015.
The letter says that "by failure to pay the royalty fee, the Russian Union of Right-holders has been violating the terms of agreement concluded with the RAO and infringing upon the rights and interests of the RAO members for ten months."
The agreement on delegation of authority to manage rights of authors and other right holders on a collective basis and cooperation in the field of copyright and related rights between the RAO and the RSP was signed in 2010.
In its appeal to the Ministry of Culture, the RAO asked to apply measures stipulated by the Russian legislation to the Russian Union of Right-holders. In particular, the RAO asks the RSP to eliminate the violation of rights of the RAO members in the shortest time possible.
The Russian Union of Right-holders, in turn, noted that the RAO lacked a functional system of personalized accounting related to the distribution and payment of remuneration.
"The approach to the provision of timely and accurate reporting in respect of remuneration payment to the right holders, used by the RAO, is contrary to the standards of ensuring transparency of management of rights on a collective basis adopted at the RSP," the RSP announced.
As earlier reported by the CrimeRussia, in late June the Head of RAO Sergey Fedotov came under investigation on suspicion of swindling on an especially large scale. According to the Ministry of Internal Affairs, MIA and FSB officers revealed a fraudulent scheme of illegal alienation of RAO assets. As a result, according to preliminary estimates, the organization suffered damages of more than 500 million rubles. Sergey Fedotov is currently in custody.