The Russian copyright society has filed 383 claims since the beginning of 2024 for 71.3 million rubles

The amount of funds collected by the Russian Copyright Society (RAO) for the public use of rights has increased since the beginning of the year compared to the comparable period in 2023, while the number of claims fell by a quarter. The increase in claims, as explained by music publishers, is associated with the illegal use of music by cinemas, distributors, concert organizers, restaurants and other companies. Analysts clarify that the basis for claims may also be arrears of payment under agreements with RAO UES.

The Russian copyright society, as of March 19, filed 383 claims since the beginning of the year for 71.3 million rubles, according to SPARK-Interfax data. This amount already exceeds a quarter of the funds collected in 2023, Kommersant’s interlocutors in the media market emphasize. In 2023, from the beginning of the year to March 19, according to the file of arbitration cases, 514 claims were filed in the courts, said Georgy Davidyan, executive director of the intellectual property law firm Media-NN.

“Based on the number of claims filed and the amounts claimed in them, the average value of one claim was about 180 thousand rubles,” Mr. Davidyan clarified. “Compensation amounts, as a rule, are declared at the rate of 10 thousand rubles. for each illegally used track.”

In 2023, RAO was a plaintiff in 1,949 claims for 278.6 million rubles. (the average size of one is 143 thousand rubles), and in 2022 – in 2042 claims for 284.8 million rubles. (about 140 thousand rubles). The number of claims and amounts recovered at the end of 2024 may well overtake the figures for 2022 and return to the record figures of 2018, Kommersant sources predict. In 2018, RAO filed 2,230 claims for 447 million rubles. The organization did not respond to Kommersant’s request.

“Violators use an extensive repertoire, which entails the presentation of appropriate amounts to them,” Georgy Davidyan explains the increase in the average value of claims. In addition, the lawyer clarifies, the basis for claims filed in courts could be either the illegal use of musical works or the resulting payment arrears under concluded agreements with RAO. The declared amounts still need to be recovered in full, which depends on the position of RAO and the court’s decision, emphasizes Kommersant’s interlocutor on the media market: “I don’t think that we will see a multiple increase in the amounts that are recovered in court.”

In just nine months of last year, the number of cases involving the use of music in commercial premises without payment increased by 25–30% year-on-year, Cubic Media said (see Kommersant, November 7, 2023). Thus, according to their data, more than 50 cases reach the court per month, and the average amount of recovery for them is about 150 thousand rubles. (according to Cubic Media, the amount corresponds to 60 months of legal use of music for a coffee shop in Moscow with an area of ​​up to 50 sq. m).

In many ways, this increase in the amount of claims can be associated with the illegal use by cinemas, film distributors, concert organizers, restaurants and other companies of works of foreign copyright holders, believes Kommersant’s interlocutor in one of the music publishing houses: “Restaurateurs are still arguing with RAO over the payment of royalties to the latter foreign copyright holders (see “Kommersant” dated November 7, 2023.— “Kommersant”), cinemas operating within the framework of pre-show service simply ignore the issues of paying royalties, and medium-sized businesses are completely unaware of the need for royalties.”

Yulia Yurasova