Executive Branch Submits to Congress a Bill Incorporating Amendments to the Intellectual Property Law and Other Laws Related to Culture

Intellectual Property and Culture

The bill “Bases and Points of Departure for the Freedom of the Argentine People” incorporates as article 68 a chapter on collective management of rights to the Intellectual Property Law 11723.

The main provisions added in this chapter are:

• Creation of Associations: Hlders of copyrights and related rights may form associations for the defense of their interests, for which they must request authorization to the National Copyright Office (Dirección Nacinal del Derecho de Autor or DNDA) to operate as collective management organizations.

 

The Bill establishes the requirements that a society must meet to be acknowledged as a collective management society and to be authorized by the DNDA. The authorization may be revoked if the society seriously fails to comply with its obligations, subject to prior notice and a three-month term to remedy the situation. There may be more than one society with similar competences.

 

• Collective Management Organizations: Cllective management organizations must be non-profit civil associations with legal status, subject to the DNDA’s control, inspection, and surveillance. The DNDA may not engage in political, religious, or other activities unrelated to its purposes.

 

• Affiliation and Exercise of Rights: Holders of copyrights and related rights will have the possibility of exercising their rights individually or through a collective management organization. The association cannot intervene in the collection of royalties when the represented parties choose to exercise their rights individually.

 

• Statute of limitations. Rights or remunerations collected by the collective management organizations do not become statute barred in their favor and against the parties they represent. The principles of national treatment and reciprocity apply to foreign authors.

 

• Bylaws: the Bill establishes the requirements fr the bylaws of collective management organizations and includes a limit of 30% of the collections for administration expenses.

 

• Management and Distribution of Rights: Cllected royalties must be distributed equitably among copyright owners in periods not exceeding one year. For the purposes of distribution, principles of equitable distribution must be applied, considering actual use of the works, performances, or productions, as the case may be.

 

•  Financial statements and Penalties: Collective management organizations must submit annual financial statements and report the activities carried out in the previous fiscal year that may be of interest for the exercise of the rights of the parties they represent. The DNDA will examine and control these.

 

• DNDA: the DNDA may impose sanctions on the collective management societies for violations of their bylaws or regulations or for conducts that affect the interests of the parties they represent.

Regarding culture, the Bill:

1. Modifies substantial aspects of Law 17741 for the Promotion of the National Cinematographic Activity (Ley de Fomento de la actividad cinematográfica nacional), including:

• Administration and Authorities. It maintains the authorities of the Director, Vice Director, the Federal Assembly, and the Advisory Council. However, it reduces the number of members of the Advisory Council from 11 to 8. These will be appointed by the Director and will serve for a 1-year term with the possibility of being reelected once.

 

The Bill amends the section referring to the duties and attributions of the administrative bodies of the INCAA (“National Institute of Cinema and Audiovisual Arts”).

 

• Cinematographic Regulations and Certification: it establishes conditions and requirements for films to qualify as "national films" and prohibits screening films in movie theaters which do not have the screening certificate granted by the INCAA.

 

• Cinematographic Promotion Fund: It includes a significant change in the current financing surces, which are limited to the 10% tax of the basic price of movie tickets and to the resources granted every year in the Government Budget. Thus, it would eliminate the income from:

 

(a) the 10% tax on the sale or rental price of all types of recorded videograms,

 

(b) the 25% revenues collected by the National Communications Entity (ENACOM).

 

The Bill also establishes that 50% of the annual budget of the Cinematographic Promotion Fund must be destined to subsidies for producing and screening national films and limits INCAA's operating expenses to 25% of the annual budget.

 

• Granting of loans: It enables INCAA to grant loans for producing national films or co-productions. The subsidy granted amount may not be more than 50% of the total production cost of the project.

 

The beneficiaries of a subsidy may not receive new subsidies until 2 calendar years have elapsed since the previous loan was obtained.

 

2. It introduces changes to Law 26801, which created the National Institute of Music (Instituto Nacional de la Música- INAMU) for promoting musical activities. Among the most relevant provisions are:

 

o Organization and Authorities: INAMU will continue operating within the scope of the National Secretariat of Culture, but as a decentralized agency.

 

The Bill creates the role of Executive Director, in charge of INAMU's Board of Directors together with a representative of the National Secretariat of Culture.

 

o Purposes: It eliminates the following purpose for INAMU: "to protect live music, coordinating and promoting establishments with access to the public where musical activity is usually performed, especially cultural centers, music clubs, cultural bars, auditoriums, dances, festivals, traditional festivities, and non-conventional music venues in our country."

 

o Allocation of Resources: It eliminates the financing fund and establishes that the funds destined to INAMU will be proposed and allocated by the National Secretariat of Culture, within the Government Budget.

 

The Bill also provides that no more than 20% of the annual resources allocated to INAMU may be used for INAMU's general and internal operating expenses and no less than 70% may be used for national subsidies.

 

3. It repeals Law 24800, which had created the National Theater Institute (Instituto Nacional del Teatro), the main purpose of which was to promote and support the theatrical activity.

 

4. It repeals Decree-Law 1224, which had created the National Arts Fund (Fondo Nacional de las Artes- FNA). Therefore, in principle, it will not be necessary to pay for any royalties to the FNA once works enter the public domain.

 

5. It amends Law 23351 on Public/ Popular Libraries, particularly regarding the classification and internal organization of Public/ Popular Libraries and the benefits they may obtain.

 

6. It repeals Law 24905, which created the Museum, Library, and Archive of Labor. It also repeals Law 14800, which regulates the demolition of theaters, and Law 21154 which established discounts for artists in the tickets for state transport.