About the Regulation on Collective Management Organizations in the Field of Copyright

The Regulation on Collective Management Organizations in the Field of Copyright (“Regulation”), prepared within the scope of Article 42 titled “Establishment of Collective Management Organizations” of the Law No. 5846 on Intellectual and Artistic Works (“FSEK”), was published in the Official Gazette No. 31802 dated 7 April 2022 and entered into force on the date of publication.

The Regulation introduces detailed provisions regarding the establishment and supervision of collective management organizations and federations of authors, related rights holders, and book publishers; general assembly meetings; principles governing the establishment of mandatory and optional bodies; number of members and duties of such bodies; membership requirements; distribution of collected copyright fees and compensations to rights holders; and other relevant procedures and principles.

According to the Regulation, multiple collective management organizations may be established in the fields specified under the Regulation in order to protect the common interests of authors, related rights holders, and book publishers, monitor the rights granted under the FSEK, collect compensation and copyright fees, and ensure their distribution to rights holders.

The duties and powers of collective management organizations under the Regulation are determined as follows:

Management of rights;
Establishment of databases regarding such rights;
Collection and distribution of all types of payments related to such rights;
Taking necessary measures for the protection of such rights;
Applying to administrative, civil, and criminal remedies where necessary.

Principles Regulated Under the Regulation

1. Information Regarding the Bodies of Collective Management Organizations

The mandatory bodies of collective management organizations are regulated as:

General Assembly;
Board of Directors;
Supervisory Board;
Technical – Scientific Board;
Honorary Board.

Although the Regulation allows collective management organizations to establish optional bodies, it explicitly prevents the transfer of the duties, powers, and responsibilities of mandatory bodies to optional bodies.

2. Information Regarding Authorization Documents Granted to Collective Management Organizations

The Regulation stipulates that each type and scope of right subject to an authorization document granted by rights holders shall be determined in accordance with the criteria established by collective management organizations.

Collective management organizations are authorized and responsible for:

Exercising the rights subject to authorization documents on behalf of themselves;
Allowing or preventing the use of such rights;
Collecting fees arising from the use of such rights;
Initiating all necessary legal proceedings for monitoring and protecting such rights.

3. Information Regarding the Relationship Between Collective Management Organizations and Users

Under the Regulation, collective management organizations are permitted to notify users regarding licensing agreements and communicate through electronic means in order to respond to users’ requests for information concerning licensing agreements.

With this regulation, fundamental principles have been established to ensure that relations with users are conducted:

In good faith;
Under objective conditions;
Without discrimination.

4. Information Regarding Payment of Copyright Revenues Collected by the Organization

The Regulation stipulates that copyright revenues payable to rights holders shall be paid by the organization:

After deduction of the organization’s administrative share;

and compensation amounts shall be paid:

After deduction of collection expenses and the organization’s share.

Such payments must be made within a maximum period of nine months following the end of the financial year in which the relevant amounts were collected, and as soon as possible.

5. Information Regarding the Establishment of Federations of Collective Management Organizations

The Regulation provides that:

At least two collective management organizations may establish a federation;
More than one federation cannot exist in the same field.

The fields in which federations may be established are expressly listed and clarified under the Regulation.

6. Information Regarding Federation Establishment Applications and Federation Membership

Regarding federation establishment applications:

Required application documents;
The authority to which applications must be submitted;

are clearly specified.

Regarding membership:

Organizations operating in the same field as the federation may become federation members;
Membership applications may only be rejected based on justified grounds.

This regulation aims to prevent arbitrary or non-objective rejection of membership applications submitted by organizations wishing to join a federation.

7. Information Regarding Existing Collective Management Organizations and Federations

Temporary Article 1 and Temporary Article 2, added to regulate the transition period, stipulate that:

Existing collective management organizations and federations established before the Regulation entered into force must amend their statutes and other internal regulations to comply with the Regulation through an extraordinary general assembly meeting to be held no later than 1 January 2023;
Existing organizations and federations shall continue their activities according to their existing statutes until this date;
Ordinary general assembly meetings shall be held during the relevant year and in the month specified in the organization’s statute, in accordance with Article 23/1 of the Statute on Collective Management Organizations and Federations of Owners of Intellectual and Artistic Works and Related Rights Holders (“Statute”).

Conclusion and Evaluation

The Regulation, which entered into force following its publication in the Official Gazette No. 31802 dated 7 April 2022, introduces new regulations and principles regarding:

The establishment of collective management organizations;
Their organizational structure;
The scope of authorization documents granted to such organizations;
Relations with users;
Establishment of federations;
Federation membership procedures.

The procedures and principles regarding the establishment and operation of federations, which were not comprehensively regulated under the Statute, have been detailed through the Regulation.

Submitted for your information and evaluation.