We helped our Client to undergo inspection by the State Intellectual Property Service of Ukraine

Lawyers of the Pravova Dopomoga Law Firm provided our regular Client with the legal support of the scheduled inspection of his company for compliance with the law of Ukraine in the field of copyright and related rights, in particular, the rights of phonogram and videogram producers, and performers. The inspection was carried out by inspectors of the State Intellectual Property Service of Ukraine to check the permits for the use of copyright and related rights during the retransmission of television channels.

Based on the results of the inspection, the inspectors drawn up an Inspection Act, stating the violation of the law by our Client, in particular, noting: “In the course of the inspection of agreements with copyright holders and collective management organizations, no documents confirming the payment of royalty were presented”.

Having extensive experience in legal support of various types of state inspections (control) of business entities, our company’s lawyers clearly recorded all violations of the law during the inspection, which later were used for preparing written comments on the Inspection Act. In addition, the inspectors were notified of the detected violations of the inspection procedure and incorrect application of the law of Ukraine not during the inspection, so as not to allow them to promptly correct the deficiencies in their work, but by preparing written comments on the Inspection Act addressed to the Deputy Chairman of the State Intellectual Property Service of Ukraine.

The main thing is that such strategy of the lawyers of the Pravova Dopomoga Law Firm allowed the Client to avoid administrative responsibility.

In addition to the description of numerous procedural violations in the course of the inspection, when preparing comments on the Inspection Act, our lawyers paid special attention to the fact that during the inspection of the legality of the use of intellectual property rights, the inspectors of the State Service of Intellectual Property of Ukraine requested only the agreements with collective management organizations and did not take into account the agreements with television channels provided by our Client. The latter transferred our Client the rights to retransmit objects of intellectual property in accordance with the terms and conditions of the licensing agreements concluded by and between the rights holders.

It should be noted that pursuant to part 1 of Article 1107 of the Civil Code of Ukraine, the right of disposal of intellectual property shall be exercised on the basis of the following agreements:

  • License to use the intellectual property rights;
  • Licensing Agreement;
  • Agreement for the creation and use of an intellectual property right;
  • Intellectual Property Assignment Agreement;
  • Any other agreement for the disposal of intellectual property rights.

However, for some unknown reason, the inspectors requested only the agreements with collective management organizations, despite the fact that they were provided with the retransmission agreements with television channels that had a documented status of copyright owners, because, as noted above, they had concluded licensing agreements with the authors.

In addition, as it turned out, the inspection of agreements to use intellectual property rights with collective management organizations is not included in the list of issues subject to the state inspection (control) over the use of intellectual property rights, and therefore, employees of the State Service for Intellectual Property of Ukraine had illegally carried out the inspection of an issue that they were not entitled to check.

Thus, the inspection of our Client was carried out with numerous violations of the law. And thanks to our actions taken to detect and record the violations, as well as to notify the management of the inspectors of those violations, the Client was not illegally brought to administrative responsibility.

Publication date: 16/06/2014

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