Hungary Copyright Law

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hungary_copyright_1999_en.pdf

Act No. LXXVI of 1999 on copyright1

(consolidated text as of 01.01. 2007)

Modern copyright legislation keeping abreast of technological development plays a decisive role in the promotion of

intellectual creation and the preservation of the values of national and universal culture; it can create and maintain a

balance between the interests of authors and other rightholders, users and the public at large, taking account of the

requirements/demand of education, culture, scientific research and free access to information; and that it can provide

for an extensive and efficient enforcement of copyright and related rights. In consideration of these aspects, the

National Assembly – in accordance with the existing international obligations of the Republic of Hungary in the field

of intellectual property and with the legal acts of the European Community – hereby adopts the following Act.:

PART ONE

GENERAL PROVISIONS

Chapter I

Introductory provisions

The Subject Matter of Copyright Protection

Article 1

(1) This Act shall provide protection for literary, scientific and art creations.

(2) All creations of literature, science and art - regardless whether or not specified by this Act - shall fall under

a) literary works (for example fictional works, technical works, scientific works, journalistic works etc.),

b) speeches delivered in public,

c) computer program creations and related documentation (hereinafter referred to as ’software’), whether fixed in

source code or object code or in any other form, including application programs and operation systems,

d) dramatic works, musico-dramatic works, ballets and mimes,

e) musical works with or without words,

1 As it stands on January, 1, 2007.

Since its adoption the Act has been amended by the following Acts::

· Act LXXVII of 2001 on the amendment of the Act LXXVI on Copyright (aimed at the implementation of

the Database Directive)

· Act CXLVIII on the protection of design ( § 67, amending the Copyright Act with regards to technical

standards)

· Act No. CII of 2003 amending certain industrial property and copyright acts (entry into force of the relevant

provisions: 1st May, 2004)

· Act CXXV on the „prohibition of discrimination” (amending the rule on the determination and application

of tariffs of collective administration societies)

· Act No LXIX of 2004 amending certain acts with a view to legal harmonization in connection with the

participation in the European Economic Area (entry into force: 10th July, 2004)

· Act XXVI of 2005 on the amendment of acts on taxes and other public dues (introduced a cap on

reprographic royalties)

· Act CVIII of 2005 (on the transposition of the Resale Right Directive

· Act CLXV of 2005 ( on the transposition of the Enforcement Directive)

· Act CIX of 2006 (on amendments of acts in connection with the restructuring of the governmental

administration)

f) radio and television plays,

g) cinematographic creations and other audiovisual works (hereinafter jointly referred to as cinematographic

creations),

h) creations produced by drawing, painting, sculpturing, engraving, lithography or in other like manner, and

designs thereof,

i) artistic photographs,

j) maps and other cartographic creations,

k) architectural creations and plans thereof, and plans of building complexes and town planning projects,

l) designs of engineering structures,

m) applied art creations and designs thereof,

n) costume and scenery designs,

o) industrial design creations,

p) databases rated as collections of works

(3) The creation shall enjoy copyright protection based on its individual, original nature originating from the

intellectual activity of the author. The protection shall not be subject to any quantitative, qualitative and aesthetic

characteristics, or to value judgements relating to the standard of the creation.

(4) The protection provided by this Act shall not cover provisions of law, other legal instruments of state

administration, judicial or authority decisions, authority or other official announcements and documents, as well as

standards and other like provisions made obligatory by legislative acts.

(5) The copyright protection shall not extend to facts and daily news that serve as a basis for press information.

(6) No idea, principle, concept, procedure, method of operation or mathematical operation may be to the subject

matter of copyright protection.

(7) The expressions of folklore shall not enjoy copyright protection. However, this provision does not prejudice

(8) Achievements of performers, producers of sound recordings, radio and television organisations, film

producers, and makers of databases shall enjoy protection as specified by this Act.

The Scope of the Act

Article 2

The copyright protection defined in this Act shall extend to a work first published abroad only if the author is a

Hungarian national, or if the author is entitled to the protection pursuant to an international agreement or by

reciprocity.

Article 3

Matters not covered by the provisions of this Act shall be governed by the provisions of the Civil Code.

Article 4

(1) The copyright shall belong to the person who has created the work (author).

(2) Without prejudice to the rights of the author of an original work, the alteration, adaptation or translation of the

original work, shall be under copyright protection if the work thus obtained is of individual, original character.

Works of Joint Authorship

Article 5

(1) The authors of a joint work, the parts of which cannot be used independently, shall enjoy the copyright

protection jointly and - in case of any doubt - in equal proportions, however, any of the joint authors may take action

independently in the event of the infringement of the copyright.

(2) In case a joint work is made up of parts which can be used independently (connected works), independent

all authors of the original joint work is required if any part of the work consisting of joint works and created jointly is

wanted to be joined with a different work.

Article 6

(1) In the case of a collective work (e.g., national standard), the copyright shall be transferred by legal succession

to the natural or legal person or business company without legal entity at whose initiative and under whose

instructions the work was created and who published it in his own name.

(2) A work shall be regarded as a collective work if the contributions of the authors co-operating in the creation of

the work are combined in the product of joint creation in a manner which makes the separate determination of the

individual authors' rights impossible.

Collection of Works

Article 7

(1) A collection shall be under copyright protection if the selection, arrangement or editing of its contents is of

individual and original nature (collection of works). The protection shall apply to the collection of works even if its

parts or materials do not or may not enjoy copyright protection.

(2) Regarding the whole of the collection of works the copyright shall belong to the editor, however, this shall be

without prejudice to the independent rights of the authors of the individual works selected for inclusion in the

collection as well as of the holders of rights in neighbouring rights covered achievements.

(3) The copyright protection of a collection of works shall not extend to the materials of the collection of works.

Works Published Anonymously or Under a Pseudonym

Article 8

If a work was published anonymously or under a pseudonym, the author's rights shall be exercised, until the author

becomes known, by the person who first published the work.

The Origin of Authors' Rights; Authors' Rights and their Exploitation

Article 9

(1) The entirety of authors' rights - moral rights and economic rights - shall belong to the author from the time of

the creation of the work.

(2) The author may not assign his moral rights, these may not devolve on anyone else, and may not be renounced

by the author.

(3) Subject to the exceptions in Paragraphs (4) to (6), the economic rights may not be assigned, may not devolve

on anyone else, and may not be renounced.

(4) The economic rights shall pass by inheritance, and the author is free to dispose of them to that end for the case

of his death.

(5) The persons becoming holders of economic rights by inheritance may dispose of them to each other's benefit.

(6) In the cases and under the conditions specified by this Act the economic rights may be assigned or may pass to

(an)other person(s). Unless otherwise provided in the assignment contract, the acquirer of rights may dispose of the

economic rights he has acquired.

Chapter II

Moral Rights

Divulgation of the Work

Article 10

(1) The author shall decide whether his work may be made public.

(2) Before the divulgation of the work, any information on the substance of its contents may be provided for the

public only subject to the author's consent.

(3) Unless otherwise provided, the conclusion of a license agreement shall imply the author's consent to the user

providing information on the contents of the work for the public in a manner complying with the purpose of the use.

(4) As regards a work becoming known after the author's death, it shall be presumed - failing other declaration by

the author or his legal successor or the introduction of evidence proving the contrary - that the author intended his

work to be divulgated to the public.

Article 11

Referring to a sound reason, the author may withdraw his authorization to divulgate his work or may prohibit the

continued use of his work already divulgated; however, he is obliged to repair any damage having accrued till the

time of such declaration. This shall not prejudice the employer's right to exploit the work and shall not prevent, in the

case of the assignment of the economic rights, the acquirer of rights from uses based on the economic rights.

Indication of the Author's Name

Article 12

(1) The author shall have the right to have an indication on his work or in the communication on his work - subject

to the scope and nature of the communication - referring to him as the author; reference shall be made to the author

in the event of including part of his work in another work, and citing or reviewing his work. The author may exercise

the right to have his name indicated subject to the nature of the use and in a manner complying with it.

(2) The name of the author of a work shall be indicated on the alteration, adaptation or translation which is based

on the author's work.

(3) The author shall be entitled to have his work divulgated without the indication of his name or under a

pseudonym. The author may require that his work having been divulgated to the public with the indication of his

name shall, in the case of a new authorized use, be further on used without the indication of his name.

(4) The author may demand that his author's capacity shall not be called in doubt.

Protection of the Integrity of the Work

Article 13

The distortion, mutilation or any other alteration of the work of the author which prejudices the honour or

reputation of the author shall be taken to infringe his moral right.

The Exercise of Moral Rights

Article 14

(1) After the author's death, action against the infringement of the moral rights specified in this Act can be taken

within the term of protection (Article 31) by the person put in charge of the administration of the author's literary,

scientific or artistic legacy by the author, and if there is no such person or the one put in charge fails to take actions,

it shall be the person having acquired the economic rights by virtue of inheritance.

(2) After the expiration of the term of protection the organization performing the collective administration of

rights (Article 85 to 93) or the association representing authors' interests may take action, with reference to offence

against the author's memory, against a behaviour which would be taken under the term of protection to infringe the

author's right to have his name indicated on his work or in a communication related to his work.

Article 15

The user may also take action for the protection of specific moral rights of the author if this is expressly consented

to by the author in the licensing agreement.

Chapter III

Economic Rights

General Provisions Relating to Economic Rights

Article 16

(1) By virtue of the copyright protection, the author shall have the exclusive right to use his entire work or an

identifiable part thereof in any tangible or intangible form and to authorise each and every such use. Unless

otherwise provided by this Act, authorization may be obtained for the use of the work by a licensing agreement.

(2) The use of the title of the work, if it is unique, shall be subject to the author's authorization, too.

(3) The commercial utilization of any characteristic and original character in the work and the authorization of

such utilization shall be subject to the exclusive right of the author.

(4) Unless otherwise provided by this Act, remuneration shall be due to the author against the licence he has given

for the use of his work, which remuneration - unless otherwise agreed - shall be in proportion to the revenue earned

by the use of the work. The author may waive his claim to remuneration only by an express representation to that

end. Should the law stipulate a specific form for the licensing agreement to be valid, the waiver of the remuneration

shall itself be valid in the specific form only.

(5) In the cases as specified by this Act, remuneration shall be due to the author for the use of his work even if he

has no exclusive right to authorize the use. The law may exclude the right to waive such remuneration, and should

such provision fail to obtain, the author may only waive the remuneration by an express representation to that end.

(6) A use shall be deemed unlawful in particular if no authorization has been given therefor by the statute or by the

author in a contract, or if the user makes use of the work beyond the limitations of his authorization.

(7) Unless otherwise provided by this Act, the user is obliged to inform the author or his successor in title or the

organization performing the collective administration of rights (Articles 85 to 93) on the manner and scope of the

use.

Article 17

As uses of the work shall be rated in particular:

a) its reproduction (Article 18 and 19),

b) its distribution (Article 23)

c) its public performance (Articles 24 and 25)

d) its communication to the public by broadcasting or in any other manner (Articles 26 and 27),

e) retransmission of the broadcast work to the public with the involvement of another organization than the

original one (Article 28),

f) its alteration (Article 29),

g) its exhibition (Article 69).

The Right of Reproduction

Article 18

(1) It shall be the author's exclusive right to reproduce his work and to grant authorization therefor. Reproduction

shall be taken to mean:

a) the direct or indirect fixation of the work in any manner on a tangible carrier, whether definitively or

temporarily, and

b) the making of one or several copies of the fixation.

(2) As reproduction of the work shall be rated in particular the fixation of the work in a mechanical,

cinematographic or magnetic way and making copies of it by printing, the production of audio or video recording of

the work, its fixation for purposes of communication to the public by broadcasting or by cable, the storage of the

work in a digital form on electronic devices, and the production in a tangible form of the work transmitted by the

computer network. In the case of architectural creations the primary and secondary construction of a creation laid

down as a design shall likewise be rated as reproduction.

Article 19

(1) The producer of a sound recording, the creator of a multimedia work, and the maker of an electronic database

may require that the repeated reproduction of already disclosed non-dramatic musical works and lyrics for music and

parts of musico-dramatical works fixed on sound recordings and video recordings, in a multimedia work or an

electronic database distributed on digital carriers, and the distribution by copies of such reproductions against the

payment of a fair and equitable fee shall be authorized for them too. The licensing agreement shall be concluded with

the organization performing the collective administ

fine arts, designs and authors of artistic photographs, sixteen per cent to script writers, twenty per cent to composers

and lyricists, and twenty-five per cent to performers.

(6) The organization performing the collective administration of rights in literary and musical works shall remit

the part of the royalties, due to authors and copyright rightholders, performers and producers of sound recordings

who are not represented by the said organization regarding the distribution of royalties, to the organizations

performing the collective administration of rights for the rightholders involved.

(7) The rightholders may enforce their claims to remuneration only by the organizations performing the collective

administration of their rights (Articles 85 to 93), and they may renounce the remuneration only with effect following

the date of the distribution and to the extent of the amount due to them.

Article 21

(1) The authors of the works and the publishers thereof in the form of book, or in periodicals which are reproduced

by photocopying or in like manner on paper or on like carrier (hereinafter jointly referred to as by reprography) shall

be due to be paid fair and equitable remuneration on private-purpose copying. The remuneration shall be paid, within

the deadline indicated in the third sentence of Article 20(2), by the manufacturer of the device suitable for

reprography, in the case of manufacture abroad by the person obliged under the law to pay customs duties, or – in the

absence of obligation to pay customs duties – by the person who imports the device and by its first domestic

distributor under joint liability. For the payment of the remuneration all domestic distributors of the device concerned

shall be jointly liable. In addition, the person operating the reprographic device for a consideration is also obliged to

pay remuneration. In both cases the remuneration shall be paid to the organization performing the collective

administration of rights.

(2) The specification of the devices that may be used for reprography shall be determined by a special regulation.

(3) The remuneration referred to in Paragraph (1) shall be set by the organization performing the collective

administration of rights. When determining the said remuneration, it shall take due account of, in particular, the

manner of the use of the device and its output characteristics, as well as the place of the operation in the case of its

use for a consideration.

(4) The remuneration referred to in paragraph (1) shall not exceed 2% of the manufacturing issue price of the

device suitable for reprography, or, in case of a device manufactured abroad, 2% of the value for customs according

to applicable legal regulations.

(5) The obligation to pay remuneration shall not apply to the case where the device is put into circulation for

export purposes.

(6) Of the amount of the royalties collected that remains after the deduction of the expenses, forty per cent shall be

due to the publishers of books and periodicals. Of the remaining sixty per cent, twenty-five per cent shall be due to

the authors of non-fiction and scientific works, twenty-five per cent to the authors of other literary works and ten per

cent to the authors of works of fine arts and artistic photographs. These shares of the remuneration shall be

transferred to the organizations performing the collective administration of rights of the interested rightholders.

(7) The distribution proportions determined in Paragraph (5) shall be applied unless otherwise agreed between the

affected organizations performing the collective administration of rights and the trade organizations of the

rightholders concerned before March 31 of every year.

(8) The authors and publishers may only enforce their claims to remuneration by the organizations performing the

collective administration of their rights, and they may renounce their remuneration only with effect following the

date of distribution and to the extent of the amount due to them.

Article 22

(1) The commercial manufacturer of the blank audiovisual and audio carrier as defined in Article 20 and of

device as defined in Article 21, the person obliged under the law to pay custom duties for importing such carrier and

device, as well as the importer and the first domestic distributor of such carrier and device, is obliged, before the

tenth day of every calendar month, but at the latest within the deadline provided for by Art. 20 (2), to inform the

organization performing collective administration of rights on the quantity imported or put into circulation, as well as

about the types of such carriers and devices. The organization performing the collective administration of rights may

request further information on the figures relating to the putting into circulation and on the sources of procurement;

and it may request those operating reprographic devices for a consideration to provide further particulars necessary

for determining the fair amount of remuneration.

(2) The failure to meet, and even the incomplete meeting of, the obligation to provide information or particulars

and to supply data as required by the provision of Paragraph (1) a lump sump for covering the expenses of the

organization performing the collective administration of rights is to be paid in addition to the remuneration due,

which lump sum shall be of the same amount as the remuneration due to be paid.

The Right of Distribution

Article 23

(1) The author shall have the exclusive right to distribute his work and to authorize others therefor. The making

accessible to the public of the original copy or the reproduced copies of the work through putting into circulation or

their offer for putting into circulation shall be taken to mean distribution.

(2) The distribution shall in particular imply the transfer of the title of ownership of the copy of the work and the

rental of the copy of the work as well as the importation into the country of the copy of the work with the purpose of

putting it into circulation. The possession of an infringing copy of a work for commercial purposes shall also be

regarded as an infringement of the right of distribution, if the person concerned knows, or has reasonable grounds to

know, that the copy is the result of infringement.

(3) In the case of cinematographic creations, works included in sound recordings and software, the lending to the

public of individual copies of the work shall likewise be covered by the right of distribution.

(4) The right of distribution through rental shall only cover the designs within the domains of architecture, applied

arts and industrial designing.

(5) If the copy of the work has been put into circulation by the rightholder or by another person expressly

authorized therefor by the rightholder through sale or the transfer of proprietary rights in any other manner in the

European Economic Area, the right of distribution – with the exception of the right of rental, lending and importation

– shall further on be exhausted with regard to the copy of the work thus put into circulation.

(6) If the right of rental relating to a cinematographic creation or a work included in a sound recording has been

transferred, or otherwise licensed, by the author to the producer of the film or sound recording, the author shall retain

a claim to the producer of the film or sound recording for a fair and equitable remuneration regarding the distribution

of the work through rental. This right may not be waived by the author, however, he may enforce his claim to a

remuneration only via an organization performing the collective administration of rights (Articles 85 to 93).

(7) In the case of the lending to the public of works not referred to in Paragraph (3) - as far as architectural, applied

art and industrial creations are concerned, of their design -, a fair and equitable remuneration shall be due to the

authors. This claim to a remuneration may be enforced only via the collective administration of rights and the

rightholders may waive such remuneration only following the date of its distribution and to the extent of the amount

due to them.

The Right of Public Performance

Article 24

(1) The author shall have the exclusive right to perform his work to the public and to authorize another person

therefor. The making of the work perceptible to those present shall be taken to mean performance.

(2) As performance shall be rated in particular

a) the performance of the work to the public by a performer in person, including stage performance, concert,

recital, reading out ("live performance");

b) making the work perceptible by any technical device or manner, including the projection of a cinematographic

creation, making the work communicated or distributed (as a copy) to the public become audible by loudspeaker or

visible on a screen.

(3) A performance shall be taken to be public if it occurs in a place accessible to the public or in any other place

where people other than the members of the family of the user and their acquaintances gather or may gather.

Article 25

(1) In the name of writers, composers and lyricists, the organization performing collective administration of rights

in literary and musical works shall conclude licensing agreements with user on the authorization of the public

performance of an already disclosed literary and artistic work and on the royalty to be paid for this, unless the

author has made a declaration defined in Article 91(2).

(2)2

(3) The provisions of paragraph (1) shall not apply to the performance of literary works written for dramatic

purposes and musico-dramatic works, or scenes or overviews thereof, and of non-fiction works and longer fiction

works written for non-dramatic purposes (such as novels).

(4) In the cases covered by Paragraph (1) the planned use and the alteration of the current use have to be notified

to the organization performing collective administration of rights mentioned in Paragraph (1) by the user in advance.

The organization performing the collective administration of rights referred to in Paragraph (1) may inspect the use

on the spot.

(5) The royalty due on a public performance realized by the performer's personal acting - except for the royalty

due on the supply of music in a catering establishment - has to be paid within three days from the date of the

performance. In other cases an advance payment of the royalty for at least a quarter of a year's period - or for the

whole period if it is shorter than a quarter of a year and the operation of the establishment is of seasonal character - is

required for obtaining the licence.

(6) In case the user fails to meet its obligation of notification required by the provision of Paragraph (4) and in

consequence of this the organization performing the collective administration of rights gets knowledge of the use

only by conducting its inspection, a flatrate amount covering the organization's inspection costs has to be paid in

addition to the royalty due to be paid. The flatrate amount shall be of the same size as is that of the royalty due.

The Right of Communication of the Work to the Public

Article 26

(1) The author shall have the exclusive right to have his work communicated to the public by broadcasting and to

authorize another person therefor. The making of the work perceptible to people at a distance by the transmission of

sounds or pictures and sounds or the technical presentation of these without the use of cable or other like device shall

be taken to mean broadcasting.

(2) Satellite broadcasting shall be taken to be covered by the broadcasting of the work in case the programme

broadcast can directly be received by the public. The programme broadcast by satellite shall be regarded to be

accessible to direct reception by the public if, under the responsibility and control of the radio or television

organization, signals carrying the work are uplinked to the satellite and from there back to the ground by

uninterrupted transmission with the purpose that the signals can be received by the public. In the case of broadcasting

by satellite, the place of the use of work shall be solely in the Member State of the European Economic Area where,

under the control and responsibility of the radio or television organization, the programme-carrying signals are introduced

into an uninterrupted chain of communication leading to the satellite and down towards the earth for reception

by the public. For broadcasting by satellite in the case of which the place of use of work is, on the basis of the

preceding rule, a state outside the European Economic Area, Article 1(2)(d) of Council Directive 93/83/EEC on the

coordination of certain rules concerning copyright and rights related to copyright applicable to satellite broadcasting

and cable retransmissions shall apply.

(3) As broadcasting of the work shall further be rated an encrypted broadcasting which can be directly received by

the public only after the organization concerned with the communication to the public has made the signals carrying

the programme suitable for reception by the use of a device for decryption procured from the original radio or

2 End of validity: 1st May 2004 by virtue of Act No. CII of 2003.

television organization on the basis of an agreement concluded with it or from another organization authorized by the

original one to sell the said device. The original radio or television organization and the organization concerned with

communication to the public and using the device for decryption shall jointly and severally be held liable for such

use.

(4) As broadcasting of the work shall also be rated if the signals of the broadcast programme are encrypted by the

organization concerned with communication to the public and the work is accessible for undisturbed perception by

the members of the public only by the use of a device for decryption procured from the said organization on the basis

of an agreement concluded with it or from another organization authorized for the sale of the said device by the

original organization.

(5) A broadcast in which the signals carrying the programme are transformed in any manner in order to restrict the

access thereto to a limited part of the public shall be considered as an encrypted broadcast.

(6) The fixation of the work permitting its repeated broadcasting is subject to the author's special licence. Each and

every use of the recording is subject to the payment of remuneration.

(7) The communication to the public of an own programme by cable or any like device or in any like manner shall

be subject, mutatis mutandis, to the provisions relating to broadcasting.

(8) The author shall further have the exclusive right to communicate his work to the public in a manner other than

broadcasting or the means referred to in Paragraph (7) and to authorize another person therefor. This right shall in

particular cover the case when the work is made available to the public by cable or any other means or in any other

manner so that the members of the public can choose the place and time of the availability individually.

Article 27

(1) In the name of writers, composers and lyricists – with the exception of the use of literary works written for

dramatic purposes and musico-dramatic works, or scenes or overviews thereof, and of non-fiction works and longer

fiction works written for non-dramatic purposes (such as novels) – the organization performing collective

administration of rights in literary and musical works shall conclude licensing agreements with the user on the

authorization of the broadcasting of an already disclosed work and on the remuneration to be paid for it.

(2) In the case of broadcasting by satellite, paragraph (1) shall apply only if

a) the programme is simultaneously communicated to the public by the same radio or television organization

through terrestrial broadcasting, and

b) the author has not made a declaration defined in Article 91(2).

(3) In the name of composers and lyricists – with the exception of musico-dramatic works, or scenes or overviews

thereof – the organization performing collective administration of rights in literary and musical works shall conclude

licensing agreements with users on the authorization of uses covered by Article 26 – other than those mentioned in

paragraphs (1) and (2) – of already disclosed non-dramatic musical works with or without words and excerpts of

such musico-dramatic works and on the royalty due to be paid, unless the author has made a declaration defined in

Article 91(2).

Article 28

(1) The author shall have the exclusive right to rebroadcast his work communicated to the public by broadcasting

and to authorize another person therefor.

(2) The author shall also have the exclusive right to authorize the retransmission to the public of his work

broadcast or transmitted in the programme of a radio or television organization or of an entity communicating its

own programme by cable or by any other means to the public, simultaneously and in an unaltered manner via an

organization other than the original one.

(3) The rightholders may exercise their right referred to in paragraph (2) only through collective administration

and may waive their remuneration only with effect following the date of its distribution and to the extent of the

amount due to them. The remuneration shall be determined by the organization performing collective administration

of rights in literary and musical works in agreement with the organizations performing collective administration of

rights of other rightholders. The organization executing retransmission shall pay the remuneration determined to the

organization performing collective administration of rights in literary and musical works.

(4) The collected remuneration, with the expenditures deducted from them, shall be distributed to the rightholders,

and – unless otherwise agreed between the interested organizations performing collective administration of rights

before March 31 of every year, – thirteen percent shall be due to film producers, nineteen percent to cinematographic

creators of movie pictures, three percent to creators of works of fine arts, designs and authors of artistic photographs,

fourteen percent to script writers, fifteen and a half percent to composers and lyricists, twenty-six and a half percent

to performers, and nine percent to producers of sound recordings.

(5) The organization performing collective administration of rights in literary and musical works shall remit the

part of the collected remuneration due to authors and other copyright holders of the genres of works which are not

represented by the said organization regarding the distribution of the remuneration, and to performers and producers

of phonograms, to the organizations performing collective administration of rights of those rightholders.

(6) The royalties due on the retransmission of the works broadcast in the programme of, or communicated by

cable or in any other manner by, the Hungarian public radio and television broadcasting organization shall be paid

from the Broadcasting Fund, and this payment shall be the responsibility of the administrator of the Fund.

The Right of Alteration

Article 29

The author shall have the exclusive right to alter his work or to authorize another person therefor. The translation

of the work, its dramatic or musical adaptation, its adaptation for a cinematographic production, the adaptation of the

cinematographic creation, and any other alteration of the work as a result of which another work is derived from the

original one shall be taken to mean alteration.

Work Created Under Employment or Other Service Relations

Article 30

(1) Unless otherwise agreed, the delivery of the work to the employer shall imply the transfer of the economic

rights upon the employer as successor in title to the author, if the creation of the work is the author's duty under an

employment contract.

(2) The economic rights acquired pursuant to the provision of Paragraph (1) shall be transferred upon the successor

in title to the employer if there has occurred such succession in title.

(3) The author shall be entitled to an appropriate remuneration if the employer authorizes another person to use the

work or transfers to another person the economic rights relating to the work.

(4) The author shall continue, even in the case of the acquisition of rights by the employer, to be entitled to the

remuneration which is due to him even after the transfer of the right of use pursuant to this Act.

(5) If the creation of the work is the author's duty under an employment contract, the delivery of the work to the

employer shall be considered as an act of consent to the disclosure of the work to the public. In the case of the

author's declaration aimed at withdrawing his work (Article 13 11) the employer is obliged to make no mention of

the author's name. The author's name shall likewise be left unmentioned, at the author's request, if availing himself of

his employer's rights the employer makes alterations in the work without the author's agreement.

(6) Declarations of legal nature made with regard to the work created by way of fulfilment of the author's duty

under an employment contract shall be laid down in writing.

(7) The provisions relating to a work created as duty under an employment contract shall be applied mutatis

mutandis if the work has been created by a person employed as public or civil servant, a person belonging to the

professional staff of the armed forces and police forces and being in active service, or a co-operative member

employed under legal relations similar to those of employment relations.

The Term of Protection

Article 31

(1) The authors' rights shall enjoy protection during the lifetime of the author and for seventy years following his

death.

(2) The seventy years' term of protection shall be counted from the first day of the year following the death of the

author and, in the case of joint authors, from the first day of the year following the death of the joint author dying

last.

(3) In case the person of the author is unknown, the term of protection shall be seventy years and shall be counted

from the first day of the year following the first disclosure of the work. However, should the author become known

during this period of time, the term of protection shall be counted as in Paragraph (2).

(4) In the case of a work disclosed to the public in several parts, the year of the first disclosure shall be counted

part by part.

(5) The term of protection of a collective work shall be seventy years counted from the first day of the year

following the first disclosure of the work.

(6) The term of protection of a cinematographic creation shall be counted from the first day of the year following

the death of the author thereof dying last.

(7) In case the term of protection shall be counted from a date other than the first day of the year following the

death of the author, the author dying last, or the joint author, and the work is not disclosed to the public within the

seventy years' period following its creation, no copyright protection shall further on be due to the work.

Article 32

following the expiration of the term of protection or the period of time determined in Article 31 (7), discloses

according to the law a work previously not disclosed to the public. The term of such protection shall be twenty-five

years from the first day of the year following the first disclosure.

Chapter IV

The Free Use of the Work and Other Limitations to the Copyright

General Provisions

Article 33

(1) Uses falling within the scope of the free use shall not be subject to the payment of any consideration and to any

authorization of the author. Only works disclosed to the public may be used freely pursuant to the provisions of this

Act.

(2) The use under the provisions relating to free use is permitted and not subject to the payment of a fee only so far

as it does not conflict with a normal exploitation of the work and does not unreasonably prejudice the legitimate

interests of the author, and it is in compliance with the requirements of fairness and is not designed for a purpose

incompatible with the intention of free use.

(3) The provisions relating to free use shall not be interpreted in an extensive manner.

(4) For purposes of the provisions of this chapter the use shall be taken to serve the purposes of school education if

it is implemented in accordance with the requirements of education and with the curricula respectively used in

kindergarten, primary school, secondary school, industrial school, vocational school education, the primary

education of arts, as well as in higher education falling under the scope of the law on higher education.

Cases of Free Use

Article 34

(1) From a work any part may be cited by indication of the source and naming the author indicated therein. Such

citation shall be true to the original and its scope shall be justified by the nature and purpose of the borrowing work.

(2) Part of a literary or musical work or such a type of an entire work of a minor volume disclosed to the public

may be borrowed for the purposes of illustration for teaching and scientific research, with the indication of the source

and the author named therein, to the extent justified by the purpose on condition that the borrowing work is not used

for commercial purposes.. Borrowing shall mean the use of a work in another work to an extent that goes beyond

citation.

(3) The non-commercial reproduction and distribution of the borrowing work mentioned in paragraph (2) shall not

be subject to the author's authorization where the borrowing work is, pursuant to the relevant legislation, qualified as

a textbook or a reference book and the school education purpose is indicated on its front page.

Article 35

(1) A copy of the work may be made by a natural person for private purposes if it is not intended for earning or

increasing income even in an indirect way. This provision shall not apply to architectural works, to engineering

structures, to software and to databases operated by a computer device, as well as to the fixation of the public

performance of a work on video or sound carrier. It shall not be allowed to reproduce sheet music by means of

reprography [Article 21(1)] even for private purposes or in the cases mentioned in paragraph (4) b) to d).

(2) A complete book as well as the whole of a periodical or daily may be copied even for private purpose only by

handwriting or typing.

(3) It shall not be considered as free use to have a work copied by someone else by means of a computer and/or on

an electronic data carrier, even if it is done for private purposes.

(4) Publicly accessible libraries, educational establishments [Article 33(4)] museums and archives as well as audio

and audiovisual archives shall be allowed to make a copy of a work for internal institutional purposes – outside the

scope of entrepreneurial activity – to the extent and in the way justified by such a purpose if it is not intended for

earning or increasing income even in an indirect way and if the copy is

a) required for scientific research,

b) made for archiving from an own copy of such an institution for scientific purpose or for public library supply,

c) made of a minor part of a work made public or of an article published in a newspaper or periodical, or

d) the copying is allowed by a separate law under certain conditions, in exceptional cases.

(5) Specific parts of a work published as a book as well as newspaper and periodical articles may be reproduced

for purposes of school education in a number corresponding to the number of pupils in a class, or for purposes of

exams in public and higher education in a number necessary for the said purpose.

(6) A temporary act of reproduction that is transient or incidental -- and is an integral and essential part of a

technological process with no independent economic significance – shall be free if its sole purpose is to enable

a) a transmission in a network between third parties by an intermediary, or

b) a use of the work authorized by the author or permitted pursuant to the provisions of this Act.

(7) Ephemeral recording of a work lawfully used by a radio or television organization for the broadcast of its own

program if made by its own facilities shall be free. Unless otherwise provided by the contract authorizing the

broadcasting of the work, such a recording shall be destroyed or erased within three months counted from its making.

Those of such recordings which are specified in separate legislation may, however, be for an indefinite

term.preserved on the ground of their exceptional documentary character in audiovisual and audio archives

qualifying as public collections

(8) The free uses mentioned in paragraphs (1), (4), (5) and (7) shall be without prejudice to the application of

Articles 20 to 22.

Article 36

(1) Parts of publicly presented lectures and similar other works, and political speeches may be freely used for the

purpose of information to the extent justified by this purpose. In the case of such a use, the source – along with the

name of the author – shall be indicated, unless it proves to be impossible. For the publication of collections of such

works, the authorization of the author shall be required.

(2) Articles published on current economic or political topics or works broadcast on the same topics may in the

press be reproduced and communicated to the public– including the making available to the public [Article 26(8)] –

freely, provided that the author has not made a representation prohibiting such a use. In the case of such a use, the

source – along with the name of the author – shall be indicated.

(3) Any fine art, photographic, architectural, applied art or industrial design creation may freely be used as décor

in a television programme. In this case the indication of the author's name may be dispensed with.

(4) The use in a television programme of works made for purposes of décor or costume is subject to the

authorization of the author and the indication of his name.

Article 37

Particular works may be used freely for the purpose of information on current events to the extent justified by this

purpose. In the case of such a use, the source – along with the name of the author – shall be indicated, unless it

proves to be impossible.

Article 38

(1) If the performance is not designed to earn or increase income even in an indirect manner and the participants

do not receive remuneration, the works may be performed in the following cases:

a) by amateur theatre groups if a dramatic work is involved and it is performed on the basis of a text published or a

manuscript lawfully used, supposing that this is not to prejudice of any international agreement,

b) for purposes of school education or at celebrations held at school,

c) within the framework of the care of those at social disadvantage and of aged people,

d) at celebrations held on national holidays,

e) at religious ceremonies or on religious holidays,

f) for private use and at occasionally held private social gatherings.

(2) If a use is suitable for increasing the number of customers (e.g., that of a shop or a place of amusement) or for

entertaining the customers of a shop or other types of consumers, it shall be taken to serve the purpose of increasing

income. The collection of entrance fees, even if a different name is used for these, shall be taken to mean earning

income. Payments exceeding the incurring and justified costs in connection with the performance shall be taken to

mean remuneration.

(3) A dancing party held at a school shall not be taken to mean performance for purposes of school education.

(4) A party held by an economic organization or a legal entity other than an economic organization exclusively for

its members, officers and employees shall be taken to be a private event.

(5) In the absence of a contractual provision to the contrary, works forming part of the collection of publicly

accessible libraries, educational establishments [Article 33(4)], museums, archives, as well as audio and audiovisual

archives, may be, for the purpose of research or private study, freely displayed to individual members of the public

on the screens of dedicated terminals on the premises of such establishments, and, in the interest of this, they may be

in a way and on conditions as provided for in separate legislation communicated, including their making available, to

such members of the public, provided that this is not for direct or indirect earning or increasing income.

Article 39

Libraries providing public services may freely lend individual copies of a work. This provision shall not apply to

software and to databases operated by computer devices.

Article 40

The copies reproduced within the scope of free uses shall not be distributed without the author's authorization,

except for lending between libraries.

Article 41

(1) Any non commercial use of a work shall be free if the purpose of the use is to meet demands of disabled

persons that are directly related to the disability and it does not exceed the extent justified by the purpose, shall be

free.

(2) In court, public administration and other authority proceedings a work may be used for purposes of evidence,

in a manner and to the extent consistent with the purpose i.

Chapter V

License Agreements

General Provisions for License Agreements

Article 42

(1) On the basis of a license agreement the author authorizes the use of his work and the user is obliged to pay a

remuneration therefor.

(2) The parties may freely agree on the contents of the license agreement; by mutual consent they may waive the

observance of the provisions relating to the license agreement if this is not prohibited by this Act or other provision

of law.

(3) If the contents of the license agreement cannot be interpreted unambiguously, the interpretation most

favourable for the author shall be accepted.

Article 43

(1) The license agreement shall provide exclusive right to use only by an express stipulation to that end. In case an

exclusive authorization obtains, only the acquirer of right may exploit the work, the author may not grant further

authorizations for the use of the work, and even he himself remains entitled to use his work only if this is stipulated

in the contract.

(2) The authorization provided for non-exclusive use prior to the conclusion of the agreement in which exclusive

use is authorized shall remain valid unless otherwise provided by the agreement concluded between the author and

the user acquiring non-exclusive right of use.

(3) The authorization of use may be limited to a specific domain, period of time, manner of use and extent of use.

(4) Unless otherwise provided by statute or agreement, the authorization of use shall cover the territory of the

Republic of Hungary and its term shall be in compliance with the period customary in agreements concluded on the

use of works similar to the subject-matter of the agreement.

(5) If the agreement does not provide for the manners of use which the authorization is intended to apply to or does

not provide for the authorized extent of use, the authorization shall be limited to the manner and extent of use

indispensably necessary for the implementation of the objectives of the agreement.

Article 44

(1) The stipulation of the license agreement whereby the author authorizes the use of an indefinite number of

works he is to create in the future shall be taken to be null and void.

(2) No authorization of a manner of use still unknown at the conclusion of the agreement may be granted.

However, the method of the use evolving following the conclusion of the agreement is not to be considered a manner

of use still unknown at the conclusion of the agreement if what is merely involved is that a manner of use known

earlier will be possible to be applied more efficiently, in more favourable conditions or in a better quality as a result

of the improvement of methods.

Article 45

(1) Unless otherwise provided by this Act, the license agreement shall be drawn up in a written form.

(2) The drawing up of the agreement in a written form shall not be obligatory if the agreement is designed for

publication in a daily or periodical.

(3) If the communication to the public specified in Art 26 par (8) is carried out by the author, the license agreement

shall be deemed as have been made in writing, if the author licenses further uses to the work via a contract concluded

and fixed by electronic means.

Article 46

(1) The user may confer the authorization or may grant sub-licence to a third person for the use of the work only

subject to the author's express consent thereto.

(2) The authorization of use shall, without the author's consent, be transferred to the successor in title in case the

economic organization authorized for the use is wound up or the affected organizational unit of its is withdrawn from

it.

(3) In case the user confers its rights or grants sub-licence without the author's consent or the authorization of use

is transferred without the author's consent, the user and the acquirer of rights shall be jointly and severally

responsible for the fulfilment of the license agreement.

Article 47

(1) The authorization of use shall cover the alteration of the work only on express stipulation to that end.

(2) The authorization of reproduction shall permit the user to fix the work in video or sound recording or to copy it

by computer or onto an electronic data carrier only on express stipulation to that end.

(3) The authorization of the distribution of the work shall permit the user to import copies of the work for purposes

of putting them into circulation only on express stipulation to that end.

(4) The authorization of the reproduction of the work shall, in case of doubt, cover the distribution of the

reproduced copies of the work. This shall not imply, however, the importation into the country of copies of the work

for purposes for putting them into circulation.

Article 48

According to the general provisions of civil law the court may alter the license agreement even if such an

agreement infringes the author's substantive lawful interest in having an equitable share in the income on use for the

reason that because of the considerable increase in the demand for the use of the work following the conclusion of

the agreement the difference in value between the services respectively provided by the parties becomes strikingly

great.

Article 49

(1) The user is obliged to make a statement on the acceptance of a work delivered to him under an agreement

relating to a work to be created in the future within two months from the date of the delivery of the work to him. If

the user returns the work to the author for corrections to be made in it, the term shall be counted from the date of the

delivery of the corrected work. If no statement is made by the user within the term available to him for that purpose,

the work shall be considered as accepted.

(2) In case the agreement was concluded on a work to be created in the future, the user shall be entitled to

repeatedly return the finished work, with reference to justified grounds and by setting appropriate deadlines, to the

author for purposes of correction.

(3) In case the author refuses to make corrections without reasonable grounds, or fails to make the corrections by

the deadline set, the user may rescind from the agreement without the payment of remuneration.

(4) In case the work proves unsuitable for use even after the correction, only a reduced remuneration shall be paid

to the author.

Article 50

If the author authorizes the use of his work, he is obliged to perform on it the alterations not affecting its essence

but indispensably or obviously necessary for the use. Should he refuse or be unable to meet this obligation, the user

may perform the alterations without his consent.

Article 51

(1) The author may unilaterally terminate the agreement containing the authorization of exclusive use if

a) the user fails to commence the use of the work within the period determined in the agreement or - in the absence

of a stipulated period - within the period reasonably to be expected in the given situation; or

b) the user exercises his rights acquired by the agreement in a manner obviously inappropriate for the

implementation of the goals of the agreement or in a manner other than consistent with the intended purpose.

(2) If the agreement for use is concluded with an indefinite term or for a period longer than five years, the author

may exercise his right of termination referred to in Paragraph (1) only after two years have passed from the date of

the conclusion of the agreement.

(3) The author may exercise his right of termination only after he has set a deadline to the user for the fulfilment of

the terms and conditions of the agreement and that deadline has expired with no result achieved.

(4) The author may not in advance waive his right of termination referred to in Paragraph (1); such waiver may be

excluded by agreement only for a five years' period following the conclusion of the agreement or the delivery of the

work if this occurs at a later date than is that of the conclusion of the agreement.

(5) Instead of termination of the agreement, the author may terminate the exclusivity of the authorization with a

simultaneous proportional reduction of the fee to be paid to him for the use.

Article 52

(1) If the agreement for use relating to works to be created in the future is concluded so that the future works are

referred to only by their genre or character, either party may terminate the agreement with a six months' notice after

the lapse of five years and thereafter repeatedly after the lapse of five years' terms.

(2) The author may not in advance waive his right of termination referred to in Paragraph (1).

Article 53

(1) The author may terminate the license agreement if, with reference to any reasonable grounds, he withdraws his

authorization to publish his work to the public or forbids the further use of his work having been published.

(2) The exercise of the right of termination is subject to the author providing a security for making up for the

damage having arisen till the time of the announcement of the denunciation.

(3) If following the termination of the license agreement as provided by Paragraph (1) the author wants again to

consent to publishing his work to the public or to its continued use, the previous user shall have the right of first

refusal in respect of the licence.

(4) The rules governing the right of first refusal regarding sale of goods shall apply to the right of first refusal in

respect of the licence.

Article 54

The license agreement shall cease to have effect with the lapse of the time determined in the agreement, with the

emergence of the circumstances referred to in the agreement, as well as after the expiration of the term of protection.

Article 55

The provisions relating to license agreements shall apply, mutatis mutandis, to agreements aimed at assigning the

author's economic rights and to licensing the use of performers' performances.

Publishing Agreement

Article 56

(1) Under a publishing agreement, the author shall be obliged to make his work available to the publisher, and the

publisher shall be entitled to publish it and put it into circulation, and shall be obliged to pay remuneration to the

author.

(2) The right of publishing shall - in case of any doubt - relate to the publication of the work in Hungarian. The

right of publishing exercised under the agreement shall be exclusive, except in the case of works made for collections

as well as dailies and periodicals.

Article 57

(1) The inclusion of pictures in the publication of literary works shall be subject to the author's consent.

(2) In case the author has consented to the inclusion of pictures (illustrations) in the publication of his work, he

may refuse his consent to the use of specific pictures only with reference to highly reasonable grounds.

PART TWO

PROVISIONS RELATING TO SPECIFIC GENRES

Chapter VI

Software Program Creation

Article 58

(1) The provision of Article 1, Paragraph (6), shall apply also to the idea, principle, concept, procedure, method of

operation or mathematical operation on which the interface of the software is based.

(2) The provision of Article 4, Paragraph (2), shall apply also to the adaptation of the software from the original

program language to a different program language.

(3) The economic rights relating to the software shall be assignable.

(4) The provisions of Article 30, Paragraphs (3) and (4), shall not apply to the software created by the author as a

duty under an employment contract.

Article 59

(1) Unless otherwise agreed, the author's exclusive right shall not cover the reproduction, alteration, adaptation,

translation and any other modification of the software, including the correction of mistakes, as well as the

reproduction of the product resulting from these acts in so far as these acts of use are carried out by the person

authorized to acquire the software in compliance with the intended purpose of the software.

(2) No provision in the licensing agreement shall prohibit the user from making a back-up copy of the software if it

is necessary for the use.

(3) The person entitled to use a copy of the software may, without the author's authorization, observe and study the

operation of the software and may make a trial use thereof in the course of its loading, displaying on a monitor,

running, transmission or storage in order to get to know the idea or principle serving as a basis for any elements of

the software.

Article 60

(1) No authorization of the author shall be required for the reproduction or translation of a code which is

indispensable for the acquisition of the information necessary to the combined operation of an independently created

software with another software supposing that

a) these acts of use are performed by the authorized user or another person entitled to use the copy of the software

or a person put in charge of performing these acts by these persons;

b) the information necessary to the combined operation has not been readily accessible to the persons referred to in

Item a);

c) these acts of use are limited to those parts of the software which are necessary for ensuring the combined

operation.

(2) The information obtained through application of the provision of Paragraph (1) shall not be

a) used for a purpose other than the combined operation with the independently created software;

b) communicated to another person unless this is required for the combined operation with the independently

created software;

c) used for the development, production and putting into circulation of another software essentially similar as

regards its form of expression, or for other acts resulting in the infringement of the copyright.

(3) The provision of Article 33, Paragraph (2), shall apply, mutatis mutandis, to the acts falling under the

provisions of Paragraphs (1) and (2).

(4) Paragraph (2) of Article 34 and Paragraph (1) of Article 38 shall not be applicable to the software. The term

defined in Article 49, Paragraph (1), shall be four months in the case of software.

(5) In case copies of the software are procured in the course of commercial distribution, it is not obligatory to lay

down in writing a contract relating to the use of the software.

Chapter VII

Database

Article 60/A

(1) For purposes of this Act database shall mean a collection of independent works, data or other material arranged

in a systematic or methodical way whose materials are individually accessible by computer devices or other means.

(2) The regulations relating to databases shall appropriately be applied also to the documentation necessary for

their operation and accessing their contents.

(3) The regulations applying to databases shall not apply to the software used in the making or operation of

databases having contents accessible by computer devices.

Article 61

(1) Copyright protection shall apply to the database rated as a collection of works (Article 7).

(2) The economic rights relating to databases shall be assignable.

(3) The provisions of Article 30, Paragraphs (3) and (4), shall not apply to the database created by the author as a

duty under an employment contract.

Article 62

(1) The performance of acts necessary to get access to the contents of the database rated as a collection of works

and to use the contents thereof in accordance with the intended purpose by a person authorized to use the database

shall not be subject to the author's authorization.

(2) In case right has been obtained only for the use of a specific part of the database, the provision of Paragraph (1)

shall apply to that specific part of the database.

(3) The provision of Article 33, Paragraph (2), shall apply, mutatis mutandis, to the acts falling under the

provisions of Paragraphs (1) and (2).

(4) The stipulations of a contract on use contrary to the provisions set out in (1) and (2) shall be null and void.

(5) No written contract on the use of a database shall be required as obligatory in case copies of the database are

commercially available.

Chapter VIII

Works Ordered for Publicity Purposes

Article 63

(1) The economic rights relating to a work ordered for publicity purposes shall be assignable to the user.

(2) The mode of use, its extent, the scope of territory, the term, the specification of the carrier of the advertisement,

as well as the remuneration due to the author shall be particularly essential issues when a contract on the assignment

of economic rights is concluded.

(3) Such works shall not fall within the scope of the collective administration of rights.

(4) In the case of the use of pre-existing works for publicity purposes the author and the user may agree that the

work shall be considered - exclusively from the aspect of the application of the provisions of Paragraphs (1) to (3)

and of the use related to the domain of publicity - as a work commissioned for publicity purposes. This agreement

shall become effective for the organization performing the collective administration of rights (Articles 85 to 93) only

if the organization is informed of this by the author in writing.

Chapter IX

Cinematographic Creations and Other Audiovisual Works

General Provisions

Article 64

(1) A cinematographic creation shall be taken to mean a work which is expressed by motion pictures arranged in a

predetermined order and accompanied or not by sound, irrespective of what carrier the work has been fixed on. The

feature film produced for movie projection, the television film, the publicity and documentary film as well as

cartoons and educational films shall in particular be rated as cinematographic creations.

(2) The authors of the literary and musical works prepared for a motion picture, the director of the motion picture,

and all other persons having made creative contributions to the production of the whole of the motion picture shall be

taken to be the authors of the cinematographic creation. This provision shall not prejudice the statutory rights of the

authors of other works used in producing the cinematographic creation.

(3) The natural or legal person or the unincorporated economic organization who or which on their own behalf

initiates and organizes the creation of the film and provides therefor the necessary financial and other conditions

shall be taken to be the producer of the film (hereinafter referred to as the producer).

Article 65

(1) A cinematographic creation shall be considered as completed if its final version is accepted as such by the

authors and the producer. The final version may not thereafter be unilaterally altered by either party.

(2) The alteration of a completed film by addition, omission or replacement or in any other form shall be subject to

the authorization of the authors and the producer.

(3) Unless otherwise agreed between the authors, the director shall represent the other authors in the exercise of the

rights provided in Paragraphs (1) and (2).

(4) Except for the rights provided in Paragraphs (1) and (2), the producer may take action towards the protection of

the moral rights of the authors.

(5) The cinematographic creations shall not be subject to the general provisions relating to works created as duty

under an employment contract (Article 30).

Synchronization Agreement

Article 66

(1) Unless otherwise stipulated, pursuant to the contract concluded on the production of a cinematographic

creation (hereinafter referred to as synchronization agreement) the author - except the composer of a musical work

with or without text - shall assign to the producer the right of the use of the cinematographic creation and of the

authorization of its use.

(2) The assignment of the right of use shall not extend to the economic rights provided in Articles 20, 23 (6) and

28.

(3) Regarding each manner of use, remuneration shall be due to the author separately. The support made available

to the producer for the creation of the film shall be considered as income related to the use. It is the producer's

obligation to pay the remuneration.

(4) The producer may exercise the rights due to him under the contract jointly with another natural or legal person,

whether Hungarian or foreign.

(5) The producer is obliged, at least once a year, to report in writing to the author on the incomes related to the use

of the cinematographic creation by modes of use.

(6) Should the producer fail to start the work of adaptation to the screen within four years from the acceptance of

the work, or if such work is started but is not completed within a reasonable deadline, the author may unilaterally

terminate the agreement and may raise claim to the payment of a proportional remuneration. Any advance payment

disbursed to the author shall be considered as due to him, and the author may freely dispose of his work.

(7) If the contract is concluded on a work to be created in the future for purposes of a cinematographic creation,

the producer is obliged to notify the author in writing within six months from the delivery of the work whether he

accepts it or requests it to be corrected. In case the work is returned to the author for corrections an appropriate

deadline is to be set for performing those corrections. The producer is obliged to make it known whether he accepts

the corrected work within three months from the delivery to him of the corrected work. Should the producer fail to

meet his obligation to make a statement on the acceptance of the work or of the corrected work, the work shall be

considered as accepted.

(8) Within ten years from the completion of the production of the film the author may not enter into another

contract on the production of a new film unless this is consented to by the producer. This limitation shall also extend

to characteristic figures in a cartoon or puppet film and - in case it is agreed between the parties - to another work of

the author with the same topic as is that of the work created and utilized for the production of the film.

Chapter X

Creations of Fine Art, Artistic Photography, Architecture, Applied Art and Industrial

Design and Designs of Engineering Structures

Moral Rights

Article 67

(1) The alteration without the author's consent of the design of an architectural creation or engineering structure

which influences the appearance or the intended ordinary use shall be taken to be an unauthorized alteration of the

work.

(2) The designer shall have the right to determine where and how his name and the date of designing should be

indicated on the building or engineering structure. However, the exercise of this right shall be subject to the

requirement that no unjustified and disproportionate infringement of the rights and lawful interests of the owner, the

user or the operator shall thereby be caused.

(3) The author's name has to be indicated on a view if this is intended to present a specific fine art, architectural,

applied art or industrial design creation or engineering structure. The author's name has likewise to be indicated if

such creations are used for presentation in scientific educational lectures as well as for school education purposes

(Article 33, Paragraph (4)).

(4) In the case of further uses in an unaltered form of the design of an architectural or engineering creation only the

name of the author of the original design has to be indicated.

(5) The provision of Article 34, Paragraph (1), shall not be applicable to the use of fine art, artistic photographic

and applied art creations.

(6) The user of the work shall tolerate the presentation of the work and the taking of shots thereof by persons

authorized thereto if this is without prejudice to his equitable interests.

The Cases of Free Use

Article 68

(1) Of a fine art, architectural and applied art creation erected with a permanent character outdoors in a public

place a view may be made and used without the authorization of the author and paying remuneration to him.

(2) For purposes of scientific educational lectures as well as of school education (Article 33, Paragraph (4)), the

picture of a fine art, architectural, applied art and industrial design creation, furthermore artistic photographs may be

used without the authorization of the author and paying remuneration to him.

The Right of Exhibition

Article 69

(1) The owner of a fine art, artistic photographic, applied art or industrial design creation is obliged to make the

work temporarily available to the author in order that he can exercise his author's right, if such action is without

prejudice to the owner's equitable interest.

(2) The exhibition of fine art, artistic photographic, architectural and applied art creations shall be subject to the

author's authorization. The exhibition of a work forming part of a public collection shall not be subject to the author's

consent and no remuneration shall therefor be due to the author.

(3) The author's name shall be indicated in the case of the exhibition of the work.

Droit de Suite

Article 70

(1) Royalty shall be paid when the ownership of an original work of art is transferred by any dealer in works of art.

This provision shall only apply after the first transfer of the ownership of the work of art by the author. The right to

the royalty cannot be waived.

(2) For the purposes of this §, „original work of art” means works of fine art (e.g. pictures, collages, paintings,

drawings, engravings, prints, lithographs, sculptures), works of applied arts (e.g. tapestries, ceramics, glassware) and

works of photographic art, provided they are made by the author himself or are copies considered to be original

works of art. Copies of works of art shall be considered to be original works if they have been made in limited

number by the author himself or under his authority. Copies of works of art which are numbered, signed or otherwise

duly authorized by the author, shall be considered to be such copies.

(3) For the purposes of this article a dealer in works of art shall mean any natural or legal person or business

organization without legal personality marketing works of art.

(4) The royalty shall be set on the basis of the exchange value, which is or can be expressed in money, of the work

of art (hereinafter referred to as ”sale price”) net of tax and other public dues (e.g. cultural contribution) at the

following rates:

a) 5 per cent for the portion of the sale price up to the amount in HUF wich is equivalent to EUR 50 000;

b) 3 per cent for the portion of the sale price from EUR 50 000.01 to EUR 200000, expressed in HUF;

c) 1 per cent for the portion of the sale price from EUR 200 000.01 to EUR 350000, expressed in HUF;

d) 0.5 per cent for the portion of the sale price from EUR 350 000.01 to EUR 500000, expressed in HUF;

e) 0.25 per cent for the portion of the sale price exceeding the amount in HUF which is equivalent to EUR

500 000.

(5) The total amount of the royalty cannot exceed the amount in HUF which is equivalent to EUR 12500.

(6) The transfer referred to in paragraph (1) shall not be subject to royalty payment if the sale price net of tax and

other public dues (e.g. cultural contribution) does not exceed HUF 5000.

(7) The amount in HUF shall be calculated on the basis of the official exchange rate of the National Bank of

Hungary, valid on the first day of the calendar quarter of the conclusion of the contract.

(8) Where a museum obtains the ownership of an original work of art from a person other than a dealer in works

of art, there shall be no obligation to pay the royalty referred to in paragraph (1), provided that the activities of the

museum do not generate or increase income in any way or form.

(9) The royalty shall be paid by the dealer in works of art to the collecting society performing the collective

management of copyright in fine art and applied arts. If more than one dealer in works of art are involved in the

transaction of the transfer of the ownership, they shall have joint and several liability for the royalty payment. In such

a case, unless the dealers in works of art agree otherwise, the seller is obliged to pay the royalty. If none of the

dealers in works of art involved in the transaction participates in the transfer as a seller the royalty shall be paid by

the buyer, unless otherwise agreed.

(10) The dealer in works of art shall be required to pay the royalty for the contracts concluded, quarterly, by the

twentieth day of the month following the calendar quarter concerned to the collecting society performing the

collective management of copyright of works in fine art and applied arts. When paying the royalty, the following

information shall be communicated: the name of the author, unless it proves to be impossible, as well as the title, the

sale price of the work of art and the amount of the royalty. The collecting society shall pay the collected royalty to

the author of the work of art or his successor in title.

(11) For a period of three years after the conclusion of the contract relating to the transfer determined in paragraph

(1), the collecting society may require from the dealer in works of art to furnish all the information that may be

necessary in order to collect the royalty.

(12) The provisions of paragraphs (1)–(11) shall apply to

a) author or his successor in title who is national of any of the Member States of the European Economic Area,

as well as

b) nationals of any of the countries outside the European Economic Area, provided that the legislation in the

country of which the author or his successor in title is a national permits resale right protection in that country for

authors and their successors in title from the Member States of the European Economic Area, and

c) author or his successor in title who is not national of any of the Member States of the European Economic

Area, but who has his habitual residence in the Republic of Hungary.

(13) As regards paragraph (12) point b), the statement of the minister responsible for the justice shall be followed.

As regards the works of art falling under Directive 2001/84/EC of the European Parliament and of the Council of 27

September 2001 on the resale right for the benefit of the author of an original work of art, the Minister of Justice

shall issue his statement taking account the list published by the European Commission.

Other Provisions

Article 71

As regards industrial design and interior design creations intended for industrial production purposes:

a) the right to have the name indicated may be provided by statute or contract by derogation of the provisions of

this Act;

b) the user shall have the right of exclusive use and alteration within the scope covered by the contract, however,

the designer shall be consulted before the execution of any alteration;

c) the contract shall include a provision on whether the user may use the creation with or without limitation of

time.

Article 72

As regards portraits made to order, the exercise of the author's right shall be subject to the consent of the portrayed

person, too.

PART THREE

RELATED RIGHTS

Chapter XI

The Protection of the Neighbouring Rights

The Protection of Performers

Article 73

(1) Unless otherwise provided by statute, the performer's consent shall be sought for:

a) the fixation of his unfixed performance;

b) the broadcasting or the communication in another manner to the public of his unfixed performance, unless the

performance broadcast or communicated in another manner to the public is a broadcast performance itself;

c) the reproduction of his fixed performance;

d) the distribution of his fixed performance;

e) making his performance available to the public by cable or any other device or in any other manner so that the

members of the public can choose the place and time of the availability individually.

(2) In the case of an ensemble of performers, the performers may exercise their rights referred to in Paragraph (1)

via their representative.

(3) In case the performer has consented to his performance being fixed in a cinematographic creation, by this

consent - unless otherwise stipulated - he transfers upon the producer of the film the economic rights referred to in

Paragraph (1) (Article 63, Paragraph (3)). This provision shall not prejudice the performers' claim to remuneration

pursuant to Articles 20 and 28. Paragraph (6) of Article 23 shall also apply to performers, mutatis mutandis.

Article 74

(1) Unless otherwise provided by this Act, remuneration shall be due to the performer for the uses mentioned in

Article 73, Paragraph (1).

(2) The provisions of Article 27(3) shall apply mutatis mutandis, also in the case of performers and the

organizations performing the collective administration of their rights (Articles 85 to 93), regarding the remuneration

for the fixation of a performance made for the purposes of broadcasting or communication to the public [Article

26(6)] and regarding the exercise of the right provided for in Article 73(1)(e).

Article 75

(1) In the case of the uses referred to in Article 73, Paragraph (1), the performer shall have the moral right to have

his name indicated, depending on the nature of the use and in a manner consistent with it. In the case of ensembles of

performers, this right shall apply to the indication of the names of the ensemble, the leader of the ensemble, and the

chief performers.

(2) The distortion, mutilation or any other alteration of a performance which prejudices the honour or reputation of

the performer shall be taken to infringe his moral right.

The Protection of Phonogram Producers

Article 76

(1) Unless otherwise provided by statute, the consent of the producer of a sound recording shall be required for the

sound recording to be:

a) reproduced;

b) distributed;

c) made available to the public by cable or any other means or in any other manner so that the members of the

public can choose the place and time of the availability individually.

(2) Unless otherwise provided by statute, the producer of the sound recording shall have a right to remuneration for

the uses referred to in Paragraph (1).

Article 77

(1) In the case of the broadcasting, or communication to the public in any other manner, of a sound recording

released for commercial purposes or of its copy, the user must pay an additional remuneration, in addition to the

royalty to be paid for the use of the works under copyright protection, which shall be due to the producer of the

sound recording and the performer on an equal basis, unless otherwise agreed between those entitled.

(2) For purposes of the provision of Paragraph (1) a sound recording shall be considered as released for

commercial purposes if it is made available to the public in the manner provided in Item e) of Paragraph (1) of

Article 73 and Item c) of Paragraph (1) of Article 76. For purposes of the provision of paragraph (1) and of Article

73(1)(b), the use referred to in Article 28(2) shall also be regarded as communication to the public. Furthermore, for

purposes of paragraph (1), the making available of a phonogram in the presence of, or in a place open to, the public

[Article 24(2)(b)], shall also be regarded as communication to the public.

(3) The rightholders may enforce their claim to remuneration only through the organizations performing the

collective administration of their rights (Articles 85 to 93) and they may renounce the remuneration only with effect

following the date of the distribution and to the extent of the amount due to them.

Article 78

(1) The public lending and rental of the released copies of a sound recording shall be subject to the authorization -

in addition to that of the author of the work embodied in the sound recording - of the phonogram producer and - in

the case of the sound recording of a performance - to that of the performer(s).

(2) The use determined in Paragraph (1) shall be subject to the payment of remuneration, which shall be distributed

on an equal basis between those entitled, unless otherwise agreed between them. The authors and the performers may

enforce their claim to remuneration via the organizations performing the collective administration of their rights

(Articles 85 to 93) and may renounce such remuneration only following the date of its distribution and to the extent

of the amount due to them.

Article 79

The producer of the sound recording shall have the right to have his name indicated on the copies of the sound

recording.

The Protection of Radio and Television Organizations

Article 80

(1) Unless otherwise provided by statute, it shall be subject to the radio or television organization's authorization

that its programme can be

a) broadcast or communicated to the public by other radio or television organizations or by entities concerned with

communication by cable to the public;

b) fixed;

c) reproduced after fixation, if the fixation was made without its authorization, or the fixation was made pursuant

to Article 83, Paragraph (2), and the reproduction is made for a different purpose than to which Article 83, Paragraph

(2) relates;

d) made available to the public by cable or any other means or in any other manner so that the members of the

public can choose the place and time of the availability individually.

(2) Unless otherwise provided by statute, the television organization's authorization shall be required for its

programme to be communicated to the public in a room where the programme is accessible to the public for the

payment of an entrance-fee.

(3) The uses referred to in Paragraphs (1) and (2) shall be subject to the payment of remuneration, unless otherwise

provided by statute.

(4) In the case of communication by cable of an own programme to the public, Paragraphs (1) to (3) shall be

enforced as applicable.

Article 81

In the case of the uses referred to in Article 80, the radio or television organization and the organization

communicating by cable its own programme to the public shall have the right to have its name indicated.

The Protection of Film Producers

Article 82

(1) The consent of the film producer [Article 64, Paragraph (3)] shall be required for the film to be

a) reproduced;

b) distributed, including lending to the public;

c) made available to the public by cable or any other means or in any other manner so that the members of the

public can choose the place and time of the availability individually.

(2) Unless otherwise provided by statute, the uses referred to in Paragraph (1) shall be subject to the payment of

remuneration.

(3) The protection provided pursuant to Article 2 of this Act shall apply, mutatis mutandis, to the producer of the

film.

The Relationship Between Authors' Rights and Neighbouring Rights

Article 83

(1) The protection of the rights dealt with by this Chapter may not prejudice the protection of authors' rights in

literary, scientific and art creations.

(2) No authorization of the rightholders under neighbouring rights shall be required in cases where the author's

authorization shall not be required for the use of statutorily copyrighted creations. When, under this Act, a

remuneration is due to the rightholders under neighbouring rights for the use, the provisions in subparagraph (4) and

in the first sentence of subparagraph (5) of Article 16 on the proportional quantity of the remuneration shall also

apply to the rightholders under neighbouring rights.

The Term of Protection

Article 84

(1) The rights covered by the provisions of this Chapter shall be under protection for the following periods of time:

a) rights in sound recordings and in the performances fixed therein, for fifty years from the first day of the year

following the one in which the sound recording was first made public, and for fifty years from the first day of the

year following the one which includes the date of completion of the sound recording if this was not made public

during the term named;

b) rights in unfixed performances, for fifty years from the first day of the year following the one in which the

performance was held;

c) rights in broadcast programmes or in own programmes communicated by cable to the public, for fifty years

from the first day of the year following the one in which the programmes were first broadcast or the communication

occurred;

d) rights in films, for fifty years from the first day of the year following the one in which the film was released for

distribution or for fifty years from the first day of the year following the one in which the production of the film was

completed if the film was not released during the term named.

(2) In case a sound recording was not made public through commercial distribution within fifty years from the first

day of the year following the one in which the sound recording was made, however, it was communicated to the

public during the term referred to, the term of protection provided for in (1) (a) shall be counted beginning with the

year following the one in which the first communication to the public occurred.

(3) In case a film is communicated to the public prior to its release for distribution, the term of protection provided

for in (1) (a) shall be counted by replacing the year of the first release for distribution by the year of the first

communication to the public.

Chapter XI/A

THE PROTECTION OF THE MAKERS OF DATABASES

Article 84/A

(1) Unless otherwise ruled by legislation, the authorization of the maker of a database (Article 60/A) shall be

required, affecting the whole or a substantial part of the the contents of the database, for

a) its reproduction by making copies of it [Article 18, Paragraph (1), Point (b)] (hereinafter referred to as

extraction);

b) making it available to the public through distribution of copies of the database or through communication to the

public - as provided for in Paragraph (8) of Article 26 - (hereinafter referred to as re-utilization).

(2) The distribution referred to in (1) (b) shall be understood to cover the following cases of distribution: release

for commercial circulation through sale or by the transfer of the right of ownership in a different manner, and import

into the country for purposes of commercial circulation and rental. The provision in Paragraph (5) of Article 23 shall

apply, mutatis mutandis, to the rights of the maker of the database.

(3) The repeated and systematic extraction and/or re-utilization of even insubstantial parts of the contents of the

database implying acts which conflict with a normal exploitation of the database or which unreasonably prejudice the

legitimate interests of the maker of the database shall not be permitted in want of authorization therefor by the maker

of the database.

(4) The uses provided for in Paragraphs (1) to (3) shall be subject to remuneration, unless otherwise ruled by

legislation.

(5) The rights provided for in Paragraphs (1) to (3) shall apply to the maker of the database if obtaining, verifying

or presenting the contents of the database have required the investment of considerable resources.

(6) The rights provided for in Paragraphs (1) to (3) shall apply to - as the maker of the database - the natural or

legal person or business company without legal entity at whose initiative, in whose name and at whose risk the

creation of the database occurred and who/which provided the necessary resources therefor.

(7) The rights provided for in Paragraphs (1) to (3) shall apply to the maker of the database irrespective of whether

the database is under copyright protection or any other legal protection. These rights shall apply to the maker of the

database even if parts of, or materials in, the database are not, or cannot be, under copyright protection or any other

legal protection.

(8) The rights of the maker of the database shall be without prejudice to the rights of the authors of the individual

works included in the database as well as to other rights subsisting in specific materials of the contents of the

database.

(9) Unless otherwise provided by international agreement, the maker of the database shall enjoy the protection

provided for in this Act, if

a) he is a national of a Member State of the European Economic Area or is regularly resident in the territory of

the European Economic Area;

b) it is a legal person or a business company without legal entity registered in accordance with the law of a

Member State of the European Economic Area, and its seat, the place of its headquarters or the main area of its

business activity as named in its articles of association is in the territory of the European Economic Area.

(10) In the case referred to in paragraph (9)(b), with the protection provided for by this Act shall apply to the legal

person or business company without legal entity which has just its seat in the territory of the European Economic

Area only if its activity is actually and continuously related to the economy of a Member State.

Article 84/B

(1) No authorization of the maker of the database shall be required for the extraction or re-utilization - whether

repeated or regular - of an insubstantial part of the contents of the database by a person authorized for the use of the

database made public.

(2) In case the right acquired for the use of just a specific part of the database, the provision in (1) shall apply to

only the part involved of the database.

(3) Not even the person legally authorized for the use of the database made public may perform acts which conflict

with normal exploitation of the database or unreasonably prejudice the legitimate interests of the maker of the

database.

(4) The provisions in (1) and (2) shall be without prejudice to the rights of the authors of the individual works

included in the database as well as to the neighbouring rights applying to other materials of the contents of the

database.

(5) Any stipulations of the contract on use contrary to the provisions set out in (1) to (4) shall be null and void.

Article 84/C

(1) An extract of even a substantial part of the contents of the database may be made by anyone for private purpose

if it is not designed for earning or increasing income even in an indirect way. This provision shall not apply to

databases operated by computer devices.

(2) A copy of even a substantial part of the contents of the database may be made - in a manner and to the extent

consistent with the use involved - for purposes of school education and scientific research subject to the requirements

of reference to the source and avoidance of earning or increasing income even in an indirect way.

(3) An extraction or re-utilization of even a substantial part of the contents of the database may be made - in a

manner and to the extent consistent with the use involved - for purposes of evidence in court of justice, public

administration or other authority proceedings.

(4) The provisions of Article 33 shall apply, mutatis mutandis, to the cases of free use provided for in (1) to (3).

Article 84/D

(1) The term of protection applying to the rights provided for in this Chapter shall be as follows. It shall run for

fifteen years from the first day of the year following the year in which the database was first made public, or for

fifteen years from the first day of the year in which the database was completed in case it was not made public during

the term referred to.

(2) The term of protection applying to the database as calculated according to (1) shall recommence in case the

contents of the database have undergone a substantial alteration as a result of which the altered database, as such,

shall be rated as one completed with substantial resources. A substantial alteration of the database may be the result

of successive additions, deletions and modifications.

Article 84/E

(1) Paragraph (1) of Article 83 shall apply, mutatis mutandis, to the rights provided for in this Chapter.

(2) In case remuneration shall be due to the maker of the database according to the provisions of this Act, the

provision in the first sentence of Paragraph (4) of Article 16 requiring that the remuneration shall be in proportion to

the use shall apply to the maker of the database too.

(3) Wherever neighbouring right or neighbouring rights are referred to in other legal rules, this or these shall be

taken to apply to the maker of the database, too, unless otherwise provided for by legal rules and except for the legal

rule promulgating the international agreement.

PART FOUR

THE COLLECTIVE ADMINISTRATION OF RIGHTS

AND THE CONSEQUENCES OF THE INFRINGEMENT OF RIGHTS

Chapter XII

The Collective Administration of Authors’ Rights and Neighbouring Rights

The Collective Administration of Rights

Article 85

(1) The collective administration of rights shall mean the exercise of authors' rights and neighbouring rights as

well as database creators' rights respectively related to authorial works, productions of performers, sound recordings,

and programmes broadcast or transmitted by cable as well as the creation of films and databases which are

individually non-exercisable due to the character or circumstances of utilization and therefore exercised through

organizations of rightholders established to this end whether it is legally prescribed or based on the resolution of

rightholders.

(2) Wherever this Act or other legal rules refer to the collective administration of neighbouring rights, the

collective administration of rights applying to makers of databases shall be implied.

Registration of the Organizations Concerned with the Collective Administration of Rights

Article 86

(1) The minister appointed by the Government (hereinafter referred to as the Minister) shall keep records of the

organizations performing collective administration of rights under statutes on authors' rights and neighbouring rights.

Only societies (pursuant to Articles 61 to 64 of the Civil Code) may be registered as organizations performing

collective administration of rights.

(2) Only one society may be registered nation-wide for the collective administration of authors' rights and

neighbouring rights related to each of the following types of work and product:

a) literary works and musical compositions,

b) other works of the fine art,

c) film productions,

d) performances,

e) sound recordings.

(3) To enforce rightholders' right of autonomy and increase efficiency in the administration of rights, the

categorization contained in Paragraph 2 may be disregarded, and societies established for the collective

administration of rights but not contained in Paragraph 2 may also be registered, however, only one society may be

registered for the administration of the same right of the same group of rightholders.

Article 87

(1) The type of right administration provided by the society shall be indicated in the register. The disbursement of

royalties to other organizations and agreements with other organizations shall not be effective for the registered

society and the rightholders with respect to the actual right administration activity and shall not exempt from the

legal consequences of the infringement of the copyright.

(2) The entry with respect to the right administration activity performed by the registered society may be amended

by the Minister under agreement between the registered societies in case the conditions of registration continue

prevailing with all affected societies following the amendment of the right administration activities in accordance

with the said agreement.

Article 88

(1) The records on the societies for the collective administration of rights is open to the registration of a society

a) which may be joined by all those concerned who so wish and authorize the society to perform the collective

administration of their rights and who prove eligible for admission according to the criteria laid down in the statutes,

b) which includes as members or is intended to be joined as members by a substantial part of the resident

rightholders who are affected by the collective administration of rights the type of which is specified by the society,

c) which has a staff in reliance on which it has the appropriate expertise and experience necessary for the collective

administration of rights and the maintenance of international contacts,

d) which is equipped for data processing related to the collective administration of rights,

e) which has entered into reciprocal representation agreements with organizations concerned with the collective

administration of the rights of foreign rightholders and are of importance from the aspect of domestic and

international utilizations, or which possesses a mutual letter of intent on the conclusion of such agreements,

f) the statutes of which include that the society

1. shall endeavour to collectively administer the rights and protect the interests of the affected rightholders, in

particular exercising and enforcing economic rights related to the collective administration of rights in its own name

before the court and other authorities,

2.shall keep databases of the Hungarian and foreign works, and subject-matters protected by neighbouring rights

subject to collective administration, as well as the respective rightholders,

3. shall perform the collective administration of rights not as a business activity and shall use revenues from

complementary activities, if any, only for the reduction of its expenditures,

4. shall cover the expenses of its operation from the administration costs deducted by this title from the collected

royalties and - if so provided by the statutes - from the membership fees it collects,

5. shall distribute its revenues from collective administration reduced by the administration costs among the

rightholders according to its rules of distribution, irrespective of whether they are or are not members of the

organization.

(2) When establishing whether a substantial part of the rightholders are members of the society or wish to join it,

both the rightholders' number and their share in royalties are to be taken into account.

(3) The society shall be considered as equipped for processing the data related to the collective administration of

rights if it is able to conduct the registration of rightholders, collectively administered works, neighbouring rights

related performances, and different types of utilization in a manner which allows the distribution and disbursement of

royalties to the rightholders.

(4) If several societies request to be registered for the administration of the same rights of the same group of

rightholders and each of them meets the criteria for registration, the society best complying with the criteria in their

totality shall be registered.

Article 89

(1) The procedure of the registration of societies for the collective administration of authors' rights and

neighbouring rights shall commence upon the receipt of relevant applications.

(2) The documents certifying the fulfilment of registration criteria as detailed in Article 88, Paragraph (1), shall

accompany the application. The documents may contain the personal particulars of only those rightholders who are

members or wish to be members of the society and consent to making their personal particulars public.

(3) The Minister shall publish the registration in the official gazette Magyar Közlöny. The Minister shall insert an

announcement containing the names of the registered societies and their collective right administration activities in

Magyar Közlöny.

(4) The regulations relating to the registration of the societies collectively administering authors' rights and

neighbouring rights shall be determined in detail by the Minister in a decree.

General Provisions of the Collective Administration of Rights

Article 90

(1) The society collectively administering authors' rights and neighbouring rights shall regularly determine tariffs

to equally apply to all users without unjustified distinction and other terms and conditions of use, to meet the

requirement of equal treatment , for each mode of use within the scope of the administration of rights the society is

entitled to exercise according to the registry.

(2) The determination of tariffs and other conditions are subject to the Minister’s approval. Prior to its approval,

the Minister shall consult with the major users and their representative organizations, and following this also with the

President of the Hungarian Patent Office and – concerning the use mentioned in the second sentence of Article 26(8)

– with the minister responsible for the electronic telecommunication.. In respect of the remuneration referred to in

Article 21, the persons obliged to pay the remuneration and their representative organizations shall be regarded as

users and their representative organizations. The approval shall only be the condition of the application of tariffs and

other conditions and of their publishing in the Magyar Közlöny [the official gazette], and shall not exclude or affect

the enforcement of other legal provisions concerning tariffs and other conditions.

(3) Following the Minister's approval, the society administering rights shall publish the tariffs and other conditions

of use in Magyar Közlöny in its own name. Until this, the tariffs determined, approved – and previously published in

the Magyar Közlöny – for the previous period shall be applied even if the period for which they have been

determined has in the meantime expired.

(4) In the course of the application of tariffs the requirement of equal treatment shall be observed.

Article 91

(1) Where a society registered according to Articles 86 to 89 for the collective administration of rights authorizes

the use for, or enforces a claim to remuneration against, a user, the user shall be entitled to the use the works or

performances of neighbouring rights of the same genre covered by collective administration under this Act or

according to the decision of the interested rightholders, provided that the user pays the remuneration for the use of

the works and performances of neighbouring rights involved under the same conditions.

(2) The provisions of paragraph (1) shall not apply if a rightholder covered by the society's collective

administration of rights objects beforehand in a written declaration to the authorization of the use of his works or

performances of neighbouring rights within the framework of collective administration of rights. The organization

performing collective administration of rights shall proceed according to such a declaration, if it is made more than

three months before the end of the calendar year, with an effect not earlier than the first day of the following year.

The rightholder may, however, not oppose such authorization of the use of his works or performances of

neighbouring rights if collective administration is prescribed by this Act [Articles 19(1), 20(7), 21(7), 23(6), 27(1),

28(3), 70(5), 73(3), 77(3) and 78(2)].

Article 92

(1) The society exercising collective administration of rights pursuant to registration under Articles 86 to 89 shall

have the legal standing of a rightholder under the authors’ rights or the neighbouring rights when enforcing claims

before courts falling within the scope of collective administration of rights . It is not required to have any other

rightholder in the procedure as a party, for the society exercising collective administration of rights, in order to

enforce its claims before courts.

(2) The royalty claims enforced through the collective administration of rights and the royalties paid or collected

shall be at the disposal of the society performing the collective administration of rights pursuant to registration under

Articles 86 to 89 until their distribution among the rightholders.

(3) In case of collective administration of rights – with the exception of the authorization of mechanical

reproduction (Article 19) – it shall be presumed, until the contrary is proved, that the works or performances of

neighbouring rights to be used are protected.

(4) The organization performing the collective administration of rights shall, within the scope of the administration

of rights it is in charge of, issue a written statement on whether protection is provided for the work or the

performance under neighbouring rights specifically referred to by the user.

(5) The organization performing the collective administration of rights may require in its tariffs as a criterion of

eligibility for use that the user should pay the remuneration under the tariffs and should provide particulars about the

used works or performances of neighbouring rights. This provision shall be applicable only to live performances

(Item (a) of Paragraph (2) of Article 24) in the case of public performances.

The Supervision of the Collective Administration of Rights

Article 93

(1) Under his obligation to supervise the collective administration of rights pursuant to Article 17 of Act II of 1989

on the Right of Association the Minister shall control whether the conditions of registration applying to the societies

for the collective administration of rights are continuously observed and whether the provisions of the statutes,

distribution rules and other internal regulations do not contradict the provisions of this Act and other copyright

regulations in force.

(2) The society exercising collective administration of rights pursuant to registration under Articles 86 to 89 shall

make the following documents available to the Minister to enable him to perform supervision:

a) its statutes,

b) its organizational and operational rules,

c) its distribution rules,

d) the list of its members who have consented to publishing their names for such purposes,

e) the list of its members participating in its administrative and representative organizations,

f) its annual report,

g) its agreements on reciprocal representation concluded with foreign societies performing collective

administration of rights.

(3) Should the Minister find while exercising supervision that the conditions of registration are not met or the

regulations referred to in Paragraph 1 are infringed, he shall

a) summon in writing the administrative and representative organization of the society performing collective

administration of rights to fully observe the conditions of registration and restore operation in accordance with the

b) contact the Prosecutor's Office for the enforcement of the measures that may be taken within the scope of the

supervision of the society aimed at the observance of legality;

c) cancel the registration of the society performing collective administration of rights from the registry and shall

publish this action in the official gazette Magyar Közlöny, should the deadline referred to in (a) have passed with no

result achieved or the measure aimed at restoring the observance of legality have remained or appears to remain

ineffective.

(4) The Minister shall send – at his request – to the President of the Hungarian Patent Office all the documents

mentioned in paragraph (2) (a) to (c) and (f) and (g), as a matter of information for the purposes of the fulfilment of

the governmental functions concerning the protection of intellectual property.

Chapter XIII

The Consequences of the Infringement of Authors’ Rights

Civil Law Consequences

Article 94

(1) In case of infringement the author may - in accordance with the circumstances of the case – have recourse to

the civil law remedies as follows, demanding:

a) a court ruling establishing that there has been an infringement;

b) to cease and desist the infringer from the infringement and from acts directly threatening with infringement and

to enjoin the infringer from any further infringement;

c) that the infringer make amends for his action - by a statement or in some other appropriate manner - and, if

necessary, that such amends should be made public by and at the expense of the infringer;

d) that the infringer provide information on parties taking part in the manufacture of and trade in goods or

performance of services affected by the infringement, as well as on business relationships established for the

infringing acts;

e) the recovery of the enrichment achieved via the infringement;

f) the injurious state of affairs be terminated, the antecedent state of affairs be restored, the seizure of materials and

implements used exclusively or primarily for the infringement, as well as the seizure of goods resulted from the

infringement or the delivery up thereof to a particular person, or the recall or definitive removal thereof from

commercial circulation, or the destruction thereof.

(2) In the event of copyright infringement the author may demand compensation for damages in accordance with

the provisions on tort liability.

(3) The author may seek the remedy referred to in Paragraph b) of Subsection (1) against a person whose services

are being used in connection with the copyright infringement.

(4) The author may seek the remedy referred to in Paragraph d) of Subsection (1) against a person who:

a) was found in possession of the infringing goods on a commercial scale;

b) was found to be using the infringing services on a commercial scale;

c) was found to be providing on a commercial scale services used in infringing activities;

d) was indicated by the person referred to in Paragraphs a)-c) as being involved in the production, manufacture or

distribution of the goods or the provision of the services.

(5) In the course of application of Paragraphs a)-c) of Subsection (4), acts shall be deemed to carry out on a

commercial scale if the nature and quantity of the goods or services involved clearly indicate that they are carried out

for direct or indirect commercial or other economic advantage. Pending proof to the contrary, the definition of acts

carried out on a commercial scale would normally exclude acts carried out by end consumers acting in good faith.

(6) The infringer under Paragraph d) of Subsection (1) and to Subsection (4) or the person referred to in

Subsection (4) may be obliged to furnish the following information:

a) the names and addresses of persons involved in the manufacture, production, distribution of goods, supply and

performance of services, other holders of the goods affected by the infringement involved in the copyright

infringement, as well as of wholesalers and retailers involve or intended to be involved;

b) the quantities produced, manufactured, delivered, received or ordered, as well as the price paid or received for

the goods or services affected by the infringement.

(7) Upon request by the author, the court may order that the materials, implements, goods seized, or recalled and

removed from commercial circulation be deprived of the infringing nature, and that they be destroyed if such

removal is not possible. Under justified circumstances the court may also order, instead of destruction, the sale of the

seized materials and implements in accordance with the regulations of judicial enforcement, and in this case shall

determine the disposition of the proceeds from such sale.

(8) Materials and implements used in the copyright infringement and infringing goods may also be seized if such

articles are not in the possession of the infringer, but the owner of the articles was aware of the infringement or could

have been aware of such with proper circumspection.

(9) The court shall order that the measures referred to in Par. f) of Subsection (1) and in Subsection (7) be carried

out at the expense of the infringer, unless particular reasons are invoked for not doing so. The courts ruling on the

recall and definitive removal from the channels of commerce, or destruction of the infringing goods shall take into

account the interests of third parties and be proportional according to the gravity of the infringement.

(10) The court may order, at the request of the author and at the expense of the infringer, appropriate measures for

the publication f information on the decision. The mode of publication shall be decided by the court. Dissemination

shall include publication in a national newspaper or posting on the internet.

Article 94/A

(1) In court actions instituted due to infringement of a copyright, temporary measures shall be considered required

- unless there is any evidence presented to substantiate otherwise - for the special protection of the claimants’ rights,

if the claimant can prove that the work is under copyright protection and that he or she is the author, the authors heir

at law or such a licensee of the work, or a collective copyright management organization, that is entitled to file an

action due to the infringement in his own name.

(2) Subsection (1) shall not apply if the copyright infringement has commenced more than six months before, or if

a period of sixty days has passed since the claimant gained knowledge of the infringement and of the identity of the

infringer.

(3) In a copyright infringement case a request to order provisional measures may be lodged before filing the

statement of claim, and it shall be adjudged by the court in a non litigious proceedings. Non litigious proceedings

relating to provisional measures shall be governed by the provisions of this Act and the general rules of the CPC,

subject to the exceptions stemming from the special characteristics of non litigious proceedings. If the claimant has

initiated the lawsuit in accordance with Subsection (7) in connection with the copyright infringement, the court costs

of the lawsuit shall be due and payable in addition to the stamp duties paid for the non litigious proceedings.

(4) The author – beyond the civil law claims available in connection with the infringement - may request the court

to order, under the conditions applicable to provisional measures:

a) protective measures in accordance with the provisions laid down in the Act on Judicial Enforcement, if able to

substantiate that any subsequent attempt for the recovery of enrichments made via the infringement or the payment

of damages is in jeopardy, and the infringement is committed on a commercial scale [Subsection (5) of Section 94];

b) the infringer to give notification of and to present bank, financial or commercial information and documents for

the purpose of ordering the protective measures referred to in Paragraph a);

c) the provision of security if in exchange - in lieu of demanding the cease and desist from infringement - the

author gives consent to the continuation of the alleged acts of infringement.

(5) The court may also order the provision of security as referred to in Paragraph c) of Subsection (4) in the absence

of any request on behalf of the author, provided that the author has filed a claim to cease and desist the infringement

and it is rejected by the court.

(6) The court shall pass a decision on the provisional measure in expedited proceedings, not to exceed fifteen days

following the lodging of the petition for such measures. The court of second instance shall adjudge appeals against

court decisions on provisional measures in expedited proceedings, not to exceed fifteen days following the date of

lodging the appeal.

(7) The court shall, upon request of the other party, revoke its order on the provisional measure - including

measures under Subsections (4) and (5) – passed prior to the filing of the statement of claim, if the author does not

initiate the lawsuit for copyright infringement concerning the claim affected by the provisional measure within

fifteen days of the notification of the decision. The court shall pass a decision to revoke the provisional measures in

expedited proceedings, not to exceed fifteen days following the date of filing the request.

(8) Where one of the parties in a copyright infringement lawsuit has already substantiated its statements to a

reasonable extent, upon the request of the party providing evidence, the court may order the other party:

a) to present and allow for review of the documents and other material proof in his possession;

b) to give notification of and to present bank, financial or commercial information and documents in his

possession if the infringement is carried out on a commercial scale [Subsection (5) of Section 94].

(9) Preliminary collection of evidence may be presented before the lawsuit is instituted if the author has already

substantiated the fact of infringement or the threat thereof to a reasonable extent. If the lawsuit has not yet been

commenced, preliminary collection of evidence may be requested at the county court of jurisdiction by reference to

the authors’ residence or at the court where the taking of evidence can be carried out most expeditiously. Orders on

preliminary collection of evidence may be appealed.

(10) The court shall, upon request of the other party, revoke its decision to order preliminary collection of

evidence if the author does not initiate the lawsuit for copyright infringement within fifteen days from the date of the

notification of the decision to order preliminary evidence. The court shall pass a decision on the request to revoke the

order on preliminary collection of evidence in expedited proceedings, not to exceed fifteen days following the date of

filing of the request.

(11) Where any delay is likely to cause irreparable harm, it shall be treated as a case of extreme urgency, and

provisional measures - including measures under Subsections (4) and (5) - may be ordered without the other party

having been heard. Where any delay is likely to cause irreparable harm or where there is a demonstrable risk of

evidence being destroyed, it shall be treated as a case of urgency, and preliminary collection of evidence may be

ordered without the other party having been heard. Where any decision is passed without the other party having been

heard, the other party shall be given notice when the decision is executed. Upon being notified of the decision the

other party affected may request to be heard and may request that the decision ordering the provisional measures or

the preliminary collection of evidence be reversed or revoked.

(12) The court may require the provision of security in connection with the ordering of preliminary collection of

evidence and - with the exception of measures under Paragraph c) of Subsection (4) and Subsection (5) - of

provisional measures.

(13) If, in the cases specified in Paragraph c) of Subsection (4), Subsection (5) and Subsection (12), the party who

is entitled to seek satisfaction from the security fails to enforce his claim within three months from the operative date

of the order to reverse or revoke the order passed in connection with preliminary collection of evidence or

provisional measures or the judgement (discontinuation order), the depositor of the security may request the court to

release the security.

Article 94/B.

(1) Pending proof to the contrary, for the author to be regarded as such it shall be sufficient for his/her name to

appear on the work in the usual manner.

(2) Where Subsection (1) does not apply, pending proof to the contrary, the person under whose name the work is

registered by the Hungarian Patent Office in the voluntary register of works shall be regarded the author, if able to

substantiate it with an official deed..

(3) Where Subsection (2) does not apply, pending proof to the country, for a person to be regarded as the author it

shall be substantiated with a private deed with full evidentiary force issued by a collective rights administration

society relying upon the database containing works, subject-matters protected by neighbouring rights and

rightholders subject to collective rights management [Section 88 (1) f) 2]. These private deeds shall be issued by

collective rights administration societies as a voluntary service provided to their own members, upon request,

consistent with their bylaws.

(4) Where Subsection (3) does not apply, pending proof to the contrary, the person who first published the work

shall be regarded the author.

Protection Against the Circumvention of Technological Measures

Article 95

(1) The legal consequences of the infringement of copyright shall apply to the circumvention of any effective

technological measures designed to provide protection for copyright, which the person concerned carries out in the

knowledge, or with reasonable grounds to know, that the aim of that act is pursuing that objective.

(2) The legal consequences of the infringement of copyright shall apply to the manufacture, import, distribution,

sale, rental, advertisement for sale or rental, or possession for commercial purposes of devices, products or

components or the provision of services which:

a) are promoted, advertised or marketed for the purpose of circumvention of, or

b) have only a limited commercially significant purpose or use other than to circumvent, or

c) are primarily designed, produced, adapted or performed for the purpose of enabling or facilitating the

circumvention of,

any effective technological measures.

(3) For the purpose of paragraphs (1) and (2), the expression “technological measures” means any device,

component, method or technology that, in the normal course of its operation, is designed to prevent or restrict acts, in

respect of works, which are not authorized by the copyright holder. Technological measures shall be deemed

effective where the use of a protected work is controlled by the rightholders through application of an access control

or protection process, in particular encryption or other transformation of the work or a copy control mechanism,

which is suitable to achieve the protection objective.

(4) The provisions of paragraphs (1) and (2) shall not affect the application of Articles 59 and 60(1) to (3). In the

case of software, paragraph (2) shall only apply to the distribution or possession for commercial purposes of any

technology, device or component whose sole intended purpose is to facilitate the unauthorized circumvention or

removal of a technological measure applied for the protection of the software.

Article 95/A

(1) In the case of reprographic reproduction [Article 21(1)] for private purposes [Article 35(1)], and of the free

uses provided for in Articles 34(2), 35(4) and (7) and 41, a beneficiary of such a free use may demand that the

rightholder, in spite of the protection granted under Article 95 against the circumvention of technological measures,

make the free use possible for him, provided that the beneficiary of the free use has got access to the work lawfully.

If no agreement is reached between the parties on the conditions of the making the free use possible, either of the

parties may initiate a procedure under Article 105/A.

(2) Paragraph (1) shall not apply where the work is made available to the public, on the basis of a contract, in such

a way that the members of the public may access to it from a place and at a time individually chosen by them

[Articles 26(8), 73(1)(e), 76(1)(c), 80(1)(d) and 82(1)(c)].

The Protection of the Rights Management Data

Article 96

(1) The legal consequences of the infringement of copyright shall apply to the unauthorized removal or alteration

of any rights-management information, or to the distribution, importation for distribution, broadcasting or other

communication to the public of works from which rights-management information has been removed or in which it

has been altered without authorisation, if the person who commits any of such acts knows, or has reasonable grounds

to know, that by so doing he is inducing, enabling, facilitating or concealing an infringement of copyright.

(2) Rights management data shall mean all particulars provided by the rightholders which identify the work, the

author of the work, the owner of any right in the work, or inform about the terms and conditions of the use of the

work, including any numbers or codes that represent such information, when such data are attached to a copy of the

work or are made perceptible in connection with the communication of the work to the public.

The Customs Law Consequences of the Infringement of Authors Rights

Article 97

In the case of the infringement of the authors' right the author may, with reference to the provisions of a special

statute, require the customs authorities to take measures for preventing the dutiable goods affected by the

infringement of rights from being put into circulation.

The Consequences in Case of a License Agreement

Article 98

(1) In the case of the infringement of the authors' economic right the exclusive licensee [Art. 43 (1)] may call the

author to take the necessary measures to stop the infringement. The licensee is entitled to initiate such a legal action

in his or her own name, when the author fails to take the measures within 30 days of the notification.

(2) In the case of a non-exclusive license the licensee is entitled to initiate a legal action under subparagraph (1)

only on express authorization given in the license agreement.

The Consequences of the Infringement of the Copyright-Related Rights

Article 99

The provisions of Articles 94 to 98 shall apply, mutatis mutandis, to cases of the infringement of the provisions of

Chapters XI and XI/A and to the protection of the technological measures and rights management data provided for

in those Chapters. For the purposes of Chapter XI/A, free uses mentioned in Article 95/A(1) shall be construed as

meaning the reprographic reproduction [Article 21(1)] for private purposes and the free uses provided for in Article

84/C(2) and (3).

PART FIVE

MISCELLANEOUS AND FINAL PROVISIONS

Chapter XIV

Payment of Contribution After the Expiration of the Term of Protection

Article 100

(1) After the expiry of the term of protection for copyright, the transfer of the ownership of an original work of art

by a dealer in works of art shall be subject to payment of a contribution.

(2) The contribution shall be 5 per cent of the sale price net of tax and other public dues (e.g. cultural

contribution). The provisions of § 70 shall apply mutatis mutandis to the definition of the scope of original works of

art and to the sale price, as well as to the person required to pay the contribution, to the collection and transfer of the

contribution, save that the collecting society shall use the collected contribution for the purposes of supporting

artistic activities and contributing to the social welfare of creative artists .

(3) There shall be no obligation to pay the contribution if the ownership of the original work of art is obtained by

or from a museum.

(4) The organization performing the collective administration of rights shall be obliged to record and administer

under a separate head the amount collected as contributions.

(5) The organization performing the collective administration of rights shall annually inform the public on the

amount of the contribution, and on the uses thereof by means of the official gazette of the ministry headed by the

minister referred to in Article 86.

Chapter XV

Organizations Co-operating in the Settlement of Copyright Related Legal

Disputes

Body of Experts in Copyright

Article 101

(1) Concerning specific issues arising in copyright related legal disputes the courts of justice and other authorities

may consult the Body of Experts in Copyright attached to the Hungarian Patent Office requesting them to give their

opinions. The members of the Body shall be appointed for a five years' term by the minister responsible for justice in

agreement with the minister responsible for the culture.

(2) The Body shall set up a three- or five-member panel to formulate its advisory opinion by majority.

(3) Upon request, the Body may give advisory opinions also in extrajudicial procedures on issues connected with

the exercise of the right of use.

(4) Where a court or other authority requests an opinion from the Body of Experts in Copyright, the Body shall

be informed about the decision on merits, along with sending it a copy thereof.

(5) The detailed rules of the Body's organization and operations shall be established by a special statute.

Mediation Board

Article 102

(1) In case no agreement on remuneration and other terms and conditions of uses is reached between the user and

the rightholders or the organization performing the collective administration of their rights in connection with the

simultaneous and unaltered retransmission to the public of the broadcast work with the involvement of another

organization than the original one, either party may contact the Mediation Board set up pursuant to Article 103.

(2) If no agreement is reached about the remuneration to be paid and the conditions of the use between the user

and the rightholder or between the users and their representative organizations, on the one hand, and the collective

administration organization of the rightholders, on the other hand, the parties, by common agreement, may turn to the

Mediation Board.

Article 103

(1) The provisions of Chapter II of Act LXXI of 1994 on Arbitration shall apply to the setting up of the Mediation

Board on the understanding that the members of the Mediation Board shall be appointed from among the members of

the Body of Experts in Copyright (Article 101).

(2) The Mediation Board shall operate within the Body of Experts in Copyright.

Article 104

(1) The objective of the procedure of the Mediation Board is the facilitation of an agreement between the

parties. In the case of a procedure initiated in a dispute concerning collective administration of rights, the Mediation

Board shall inform the Minister [Article 86(1)] immediately.

(2) In case no agreement is established between the parties, the Mediation Board shall draft a proposal concerning

the contents of the agreement which it makes known to the parties in writing.

(3) The parties may accept the agreement expressly or tacitly. If no objection is made by the parties to the

Mediation Board with regard to the proposal for agreement within three months from the date of its delivery, a case

of tacit understanding obtains.

(4) In case the Mediation Board has proceeded by infringing the provisions of Article 105, the party having

sustained injury may bring an action before the Court against the agreement established by the decision of the

Mediation Board within three months from its entry into force.

(5) In the procedure referred to in paragraph (4), the Metropolitan Court shall have jurisdiction and exclusive

competence.

Article 105

(1) Equal treatment shall be given to the parties during the proceedings of the Mediation Board and either party

shall have the possibility to present his position. The Mediation Board may not oblige the parties to get involved in

the proceedings and carry out acts of proceedings unless the parties have agreed thereto. As regards other matters,

the Mediation Board shall itself establish its rules of proceedings - within the frameworks of the statutes referred to

in Paragraph (2) - and determine its tariffs.

(2) The statutes of the Mediation Board shall be elaborated by the Body of Experts in Copyright and approved by

the minister responsible for justice. Prior to the approval, the minister supervising the Hungarian Patent Office and

the minister responsible for the culture have to be consulted as regards their opinions.

Article 105/A.

(1) If no agreement is reached between the beneficiary of a free use and the rightholder about the conditions of

making the free use possible (Article 95/A) in spite of the protection against the circumvention of technological

measures (Article 95), any of the parties may turn to the Mediation Board.

(2) The procedure may also be initiated by the representative organizations of the beneficiaries. In such a case,

the effect of the award of the Mediation Board – in the absence of a stipulation to the contrary – shall extend to all

members of such organization who are beneficiaries of the free use.

(3) The provisions of Article 103 shall apply to the establishment of the Mediation Board mutatis mutandis, on

the understanding that the members of the acting panel of the Mediation Board shall be appointed by the President of

the Body of Experts in Copyright, where the parties do not reach an agreement – within eight days from the

beginning of the procedure – about the composition of the panel.

(4) Articles 104(1) and (2) and 105(2) shall apply to the procedure of the Mediation Board mutatis mutandis.

(5) The parties may accept the agreement proposed by the Mediation Board either explicitly or implicitly. It

shall be regarded as an implicit acceptance if none of the parties oppose the proposed agreement at the Mediation

Board within 30 days from its delivery.

(6) Where the Mediation Board has proceeded by violating the provisions of Article 105, the injured party may

oppose the award of the Mediation Board in a lawsuit at the court within 30 days of its adoption.

(7) If no agreement has been reached on the basis of paragraph (5), the beneficiary of the free use may turn to

the court within 15 days after the expiry of the deadline provided for in paragraph (5) and may demand in a lawsuit

that the court oblige the rightholder to make the free use possible according to the conditions indicated by him.

(8) The representative organizations of the beneficiaries shall also have the right to initiate lawsuits under

paragraphs (6) and (7) – within the deadline mentioned there – on the understanding that the effect of any final court

decision shall extend to all those members of the organization who are beneficiaries under this Act.

(9) In lawsuits initiated under this Article, the Metropolitan Court shall have exclusive competence.

(10) Article 95 shall apply mutatis mutandis to the technological measures to be applied on the basis of an

agreement or final court decision according to this Article, provided that such a technological measure fulfils the

conditions under Article 95(3).

Chapter XVI

Final Provisions

Other Rightholders Under the Authors' Right

Article 106

(1) Wherever author is mentioned in this Act, the successor in title of the author and other rightholders under the

(2) In case the legacy of a deceased person includes copyright, the notary public shall notify on the institution of

the execution of the will the organization performing the collective administration of rights related to the works of

the deceased person. If the affected organization performing the collective administration of rights cannot be

identified or the works do not fall within the scope of collective administration of rights, the notification shall be

addressed to the organization performing the collective administration of rights related to literary and musical works.

(3) In appropriate consideration of the provision of Paragraph (2), the notary public shall send a copy of the

abridged certificate of inheritance and the Court a copy of the abridged definitive judgement to the affected

organization performing the collective administration of rights notifying it of the transfer to the heir of the copyright

forming part of the legacy.

(4) The rules relating to certificates of inheritance and definitive judgements shall apply to the abridged certificate

of inheritance and abridged definitive judgement on the understanding that they may only include particulars of the

transfer to the heir of the copyright forming part of the legacy.

(5) The abridged certificate of inheritance and abridged definitive judgement referred to in Paragraph (3) shall

include, over and above what is ruled by the provision of Paragraph (4), the indication "abridged" as well as the

purpose for which they can be used.

(6) The provision of Paragraph (5) shall be taken as a basis for proceedings also when the certificate would not

include any other provision than what is ruled by Paragraph (4).

(7) The affected organization for the collective administration of rights is obliged to keep records on the heirs and

to provide therefrom data to the users in consideration of the legal rules relating to the protection of personal

particulars.

(8) The provisions of Paragraphs (1) to (7) shall apply, mutatis mutandis, to the rights related to copyrights and the

holders of such rights..

Article 106/A

The provisions of this Act related to the copyright protection of, as well as the protection provided for in Chapter

XI/A affecting, the editors of the databases rated as collections of works as well as the makers of the databases shall

be without prejudice to the legal rules respectively providing protection for personal data and requiring publicity for

data of public interest.

Provisions Relating to the Entry Into Force of the Act and Determining the Transitory

Provisions

Article 107

(1) This Act shall enter into force on September 1, 1999; its provisions shall apply to the agreements for use

concluded after its entry into force.

(2) The provisions of Article 21 of this Act and the provisions in Article 22 related to the devices used for

reprography shall apply after the September 1, 2000.

(3) The provisions established by Paragraphs (1) and (2) of Article 111 shall apply to the proceedings of execution

instituted following the entry into force of this Act.

Article 108

(1) The provisions of Article 31 shall, among others, apply to the works whose term of protection calculated

according to the provisions previously in force had expired before the entry into force of Act No. VII of 1994 on the

amendment of specific legal rules relating to copyright and the protection of industrial property.

(2) The rights determined by this Act shall be due to performers, the producers of sound recordings, the radio and

television organizations and those transmitting by cable their own programmes to the public even if the twenty years'

term - relating to them - calculated from the end of the year referred to by Article 84 had expired by the time of the

entry into force of Act No. VII of 1994.

(3) In case the term of protection relating to the authors' economic rights and the neighbouring rights related to the

between the expiration and the time of the entry into force of this Act shall be rated as free uses, irrespective of

whether these rights will again, or will not, fall under protection following the entry into force of this Act.

(4) The uses referred to in Paragraph (3) will be possible to be continued - in the case of sound recordings

regarding copies manufactured before the entry into force - for one year more following the entry into force of this

Act, but only to the extent existing at the time of the entry into force. The right of such uses performed within the

framework of economic activity may be transferred only jointly with the authorized economic organization or its

organizational unit performing the use. An equitable remuneration shall be due to the rightholder on any use

performed even after the entry into force of this Act.

(5) The provisions of Paragraph (4) shall be applied as appropriate even if definite preparations have been made

towards the use before the date of the promulgation of this Act, on the understanding that in this case the use may be

begun and carried on to the extent of the preparation that existed at the promulgation of this Act.

(6) The alteration, adaptation or translation performed in the period of time referred to in Paragraph (3) shall be

regarded as if it had been performed with the authorization of the author.

(7) On the use after the entry into force of this Act of the alteration, adaptation or translation referred to in

Paragraph (6) an equitable remuneration shall be due to the rightholder who holds copyright in the work serving as a

basis for the action mentioned.

(8) Any debates concerning remuneration considered as due on the basis of the provisions of Paragraphs (4) and

(7) shall be settled through judicial procedure.

(9) The right of use acquired through an agreement for use concluded prior to the entry into force of Act No. VII

of 1994 for the full term of protection or for an indefinite period of time shall be due to the user - under the terms and

conditions of the agreement for use - after the entry into force of this Act, if the copyright or the neighbouring right

related to the copyright falls again under protection pursuant to this Act.

Article 108/A.

(1) The provisions of Articles 31 and 84 – with the exception regulated in the first sentence of Article 13(7) of

Act LXXVII of 2001 – shall also apply to works and performances of neighbouring rights, the term of protection of

which had not expired at least in one Member State of the European Economic Area until 1 July 1995.

(2) The provisions of Article 108(3) to (9) shall be applied mutatis mutandis to the works referred to in paragraph

(1), on the understanding that, for the purposes of paragraph (1), the entry into force and promulgation of Act VII of

1994 and of this Act shall be construed as meaning the entry into force and promulgation of the Act promulgating the

international treaty on the accession of the Republic of Hungary to the European Union.

Article 109

The provision of Paragraph (6) of Article 31 shall be applied in case it does not result in shortening of the term of

protection calculated according the provisions previously in effect. The provision of Paragraph (6) of Article 31 shall

be applied also to cinematographic creations of which the term of protection had already expired before the entry

into force of this Act. The provisions of Paragraphs (3) to (9) of Article 108 shall, mutatis mutandis, apply in this

case, too, on the understanding that the entry into force of this Act shall replace the entry into force of Act No. VII of

1994.

Provisions Losing Their Effect

Article 110

(1) Simultaneously with the entry into force of this Act, the following Acts and Decrees shall lose effect:

a) Act No. III of 1969 on Copyright and Law-Decree No. 27 of 1978, Articles 13 to 19 and Article 29 of Act No.

VII of 1994, Act No. LXXII of 1994, Article 151 and Item (e) of Article 161 of Act No. I of 1996, and Items (b)

and (c) of Article 120 of Act No. XI of 1997;

b) The second sentence of Paragraph (2) of Article 117, Paragraph (4) of Article 139, Article 151 and

subparagraph e) of Article 161 of Act No. I of 1996 on radio and television broadcasting;

c) Government Decree 146/1996. (IX. 19.) on the collective administration of copyright and neighbouring rights

and Government Decree 239/1997. (XII. 18.) amending it;

d) Decree No. 9/1969. (XII.29.) MM on the implementation of the Copyright Act and the Decrees No. 4/1978.

(XII.7.) KM and No. 15/1982. (IX.20.) MM modifying and amending it, as well as Decree No. 15/1983.

(VII.12.) MM, Decree No. 18/1988. (VIII. 24.) MM, Decree No. 6/1992. (IV.8.) MKM, Article 2 of Decree No.

12/1992. (VII.29.) MKM, Subparagraph a) Paragraph 2 of Article 33 of Decree No. 8/1994. (IV.26.) MKM,

Decree No. 24/1994. (XII.28.) MKM.

e) Decree No. 1/1970. (III. 20.) MM on the terms and conditions of contracts for publishing and on royalties,

and the decrees amending it, namely Decree No. 2/1980. (IX. 15.) MM, Decree No. 13/1982. (X. 18.) MM,

Decree No. 21/1984. (XII. 28.) MM, Decree No. 14/1985. (XII. 22.) MM, Decree No. 15/1987. (VIII. 9.), and

Decree No. 19/1996. (XII. 26.) MKM;

f) Decree No. 2/1970. (III. 20.) MM on the terms and conditions of the contracts for the use of dramatic works,

and Decree No. 7/1992. (IV. 8.) MKM amending it;

g) Decree No. 3/1970. (III. 20.) MM on the contracts for the composition of musical works and their first public

performance;

h) Decree No. 5/1970. (VI. 12.) MM on the terms and conditions of the contracts for use by the Hungarian Radio

and Television and on royalties, and the decrees amending it, namely Decree No. 15/1985. (XII. 28.) MM,

Decree No. 16/1988. (VIII. 11.) MM, Decree No. 13/1992. (VIII. 26.) MKM, and Decree No. 23/1994. (XII.

26.) MKM;

i) Decree No. 4/1988. (II. 12.) MM amending the provisions relating to remuneration under the various contracts

for use;

j) Decree No. 6/1970. (VI. 24.) MM on the terms and conditions of the contracts for the use of applied graphic

works and on royalties;

k) Decree No. 7/1970. (VI. 24.) MM on the terms and conditions of the contracts for the use of small sculpture,

medals and plaques and on royalties;

l) Decree No. 8/1970. (VI. 24.) MM on the terms and conditions of the contracts for the use of artistic

photographs and on royalties;

m) Decree No. 9/1970. (VI. 25.) MM on the terms and conditions of the contracts for the use of applied art and

industrial design creations and on royalties, and Decree No. 14/1989. (V. 13.) MM amending it;

n) Decree No. 10/1970. (VI. 25.) MM on the terms and conditions of the contracts for the use of scenic graphic

creations and on royalties;

o) Non-numbered Paragraphs 4 to 9 of Article 11 of Decree No. 16/1982. (XII. 29.) MM on the implementation

of Decree No. 83/1982. (XII. 29.) MT on the regulation of various issues relating to fine arts and applied art;

p) Decree No. 12/1970. (VI. 30.) MM on the terms and conditions of the contracts for the adaptation to the

screen and on royalties, and Decree No. 2/1983. (III. 23.) MM amending it;

r) Decree No. 6/1972. (VIII. 19.) on the terms and conditions of the contracts for the publication of musical

works, other contracts connected with the publication of musical works, and on remunerations due to authors

and on other activities.

Provisions Amended

Article 111

(1) The following subtitle and Article 184/A shall be inserted in Act No. LIII of 1994 on judicial execution (Vht.):

"Execution of the decision passed in a lawsuit instituted by reason of the infringement of intellectual property

rights

Article 184/A (1) In case of execution of the decision of the Court passed in a lawsuit instituted by reason of the

infringement of a patent, infringement of a utility model protection, infringement of the protection relating to the

topography of a microelectronic semiconductor product, infringement of a trademark protection, infringement of the

protection of an industrial design, infringement of the provisions on the prohibition of unfair market practices and of

restrictions of competition, or infringement of author's rights, if the execution relates to the performance of certain

act, the Court summons in its executory deed the obligor to voluntarily execute the decision with the deadline set at

the end of a three days' period. In case the act involved relates to the transfer or delivery of movable effects, the

Court summons the obligor to execute the decision with immediate effect.

(2) The executor shall forward the executory deed, with no delay upon its receipt, to the petitioner of the

execution, simultaneously summoning him to make with no delay an advance payment of the costs of the proceeding

of execution. In the case of the execution of a temporary measure, the executor shall be entitled to receive by

advance payment, at the beginning of the proceeding, the amount of the full cost of execution and of the

disbursements and fees liable to arise or a lump-sum expected to cover the latter.

(3) Upon receipt of the advance payment, the executor shall with no delay deliver the executory deed to the

obligor on the spot and shall summon him to perform the execution. Should the obligor not act immediately upon the

executor's summons, the executor shall control on the spot the performance of the execution at the expiry of the

deadline for the execution.

(4) Should the execution fail to be performed, the executor shall submit with no delay the minutes drawn up on the

control on the spot to the Court having ruled the execution, which shall with special promptness take decision

pursuant to Articles 174 to 177 on the method of execution.

(5) The Court can impose a fine up to 500 000 Hungarian Forints on the obligor during the execution of the

decisions passed in the lawsuits defined in Paragraph (1), based on Subparagraph c) of Article 174. In case of nonpayment,

the amount of the fine increases by the double of the prime rate from the date of the time of performance

on.

(6) In case the execution provided under this title implies the surrender, delivery or distraint of specific movable

effects, upon delivery of the executory deed the executor shall distrain upon the movable effects and make

arrangement for their forwarding to the person named in the decision. In case the obligor refuses to surrender or

deliver the movable effects or prevents their distraint, the executor shall carry out the execution with the direct

involvement of the police.

(7) In case the Court rules the sale of the effects and materials distrained upon pursuant to the rules of judicial

execution, the executor shall act according to the rules governing the auction of movable effects on the

understanding that no evidence shall be admissible regarding the return of the movable effects to the obligor as

provided by Paragraphs (1) and (2) of Article 135.

(8) In case the decision passed in the lawsuit referred to in Paragraph (1) rules exclusively money payment, the

decision shall be executed according to the rules relating to the execution of pecuniary claims."

(2) Paragraph (4) of Article 190 of Vht. shall be replaced by the following provision:

"(4) Upon receipt of the decision ruling the insurance measure the executor shall without delay summon the

petitioner of the execution to make an advance payment at short notice and upon receipt of the advance payment he

shall without delay initiate the execution of the insurance measure. In the case of the execution of an insurance

measure, the executor shall be entitled to receive by advance payment, at the beginning of the proceeding, the

amount of the full cost of execution and of the disbursements and fees liable to arise or a lump-sum expected to

cover the latter."

(3) The following sentence shall be inserted, as second sentence, in Paragraph (7) of Article 75 of Act No. I of

1996 on radio and television broadcasting:

"This provision shall not prejudice the application of copyright statutes, except for the entitlements due under the

neighbouring rights to the Hungarian Radio Organization, the Hungarian Television Organization and the Duna

Television Organization."

(4) The following Paragraph (7) shall be added to Article 78 of Act No. I of 1996 on radio and television

broadcasting:

"(7) In the case of the supply of programmes as determined in Paragraph (1) of Article 117, the administrator of

the Fund, instead of the operator, shall pay from the Fund the remunerations due on the basis of copyright statutes."

Authorizations

Article 112

(1) The Government shall be authorized to determine - taking into account the opinion of the representative

organisations concerned - by a decree the range of the devices used for purposes of reprography.

(2) The Government shall be authorized to determine by a decree the detailed rules of the organization and

operation of the Body of Experts in Copyright.

(3) The Government shall be authorized to determine by decree the manner and conditions of the communication

and making available to the individual member of the public in the case of the free use provided for in Article 38(5).

(4) The minister responsible for the culture shall be authorized to determine by a decree the detailed rules

governing the records on the societies concerned with the collective administration of authors' rights and

neighbouring rights.

(5) The Minister responsible for justice shall be authorized to determine by decree, in agreement with the

President of the Hungarian Patent Office, the detailed regulations relating to the voluntary register of works

maintained by the Hungarian Patent Office.

Approximation to the Legislation of the European Communities

Article 113

This Act ensures compliance with the following acts of the European Union:

a) Council Directive 91/250/EEC of 14 May 1991 on the legal protection of computer programs;

b) Council Directive 92/100/EEC of 19 November 1992 on rental right and lending right and on certain rights

related to copyright in the field of intellectual property;

c) Council Directive 93/83/EEC of 27 September 1993 on the coordination of certain rules concerning copyright

and rights related to copyright applicable to satellite broadcasting and cable retransmission;

d) Council Directive 93/98/EEC of 29 October 1993 harmonizing the term of protection of copyright and certain

related rights;

e) Directive 96/9/EC of the European Parliament and of the Council of 11 March 1996 on the legal protection of

databases;

f) Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of

certain aspects of copyright and related rights in the information society;

g) Directive 2001/84/EC of the European Parliament and of the Council of 27 September 2001 on the resale right

for the benefit of the author of an original work of art.

h) Directive 2004/48/EC of the European Parliament and of the Council of 29 April 2004 on the enforcement of

intellectual property rights.

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Article 1. Contracting parties.
1. The Parties of this Public Offer (paid service agreement), hereinafter referred to as the “Agreement” or “Offer”, are, as follows:

a) Executor is a person, who makes this Offer and who executes this Agreement in accordance with its terms and conditions: Solcity World Investment and Development; and

b) Customer is a person, who accepts this Offer and who is the author of any publication.

Article 2. Acceptance.

1. The Customer shall accept this Offer in case of and after the following activities:

a) fill in and send to the Executor an application in electronic format in the form established by this Agreement and posted on the Executor’s official website; and

b) provide the author’s abstract specifying what material was created by the author; and

c) provide a list of all key words (tags) that enable finding the location of the author’s abstract of the Customer on the Executor’s website; and

d) post (“upload”) the material itself on the Executor’s official website; and

e) pay for the Executor’s services in the amount and following the procedure set forth by this Agreement.

2. The Executor shall verify the Customer’s data and post the information about the Customer and his/her work of authorship on SciReg.org in Internet. From this moment on, the Customer shall be considered as an acceptor of this Offer and a Party to this Agreement.

3. The Executor shall be entitled, without giving any reasons, to refuse the Customer to accept this Offer and the Customer unconditionally, entirely and irrevocably agrees with this provision.

Article 3. Scope of the Agreement.

1. The Executor hereof shall render services on establishing, formation and maintenance of the Copyright register in electronic format on the Executor’s official website in Internet.

2. The Executor hereof shall render to the Customer paid services on posting (publishing) of information about the applicant as the author of the material under the terms and in accordance with this Agreement.

3. The work of authorship shall be understood by the Parties as a subject matter of copyright established by the Civil Code or other laws of the Author’s Country of domicile.

4. The Executor shall publish information (data), hereinafter referred to as the “summary”, about the applicant as the author of the material in the Register posted on the Executor’s official website in Internet under the terms set forth by this Agreement.

5. The Executor shall be entitled, at his own discretion and without coordination with the Customer, to assign his obligations for execution of this Agreement to any third party, and the Customer unconditionally agrees with this provision.

Article 4. Register.

1. The Register shall be an ordered and standardized register containing a summary of the Customer: Author’s information, including co-authors, name of the work of authorship, publication date, author’s abstract revealing the content of the work of authorship and its unique character, as well as a unique number of posting in the Register assigned to the author and his/her material automatically by the Executor, key words (tags) that enable any person to find information about the author and his/her publication posted in the Register on the Executor’s official website in Internet.

2. The author’s abstract shall be a brief description of the author’s publication designating its unique character and showing that the Customer is its author.

3. The Register shall be maintained in electronic form on the Executor’s official website in Internet.

4. Information about the author, work of authorship and other information required by the rules for information posting in the Register, set forth by the Executor, except for the unique number, shall be posted by the Customer individually on the Executor’s official website in Internet.

5. Both the Register and the official website shall be the Executor’s property.

6. Any and all information posted by the Customer in the Register in accordance with the terms set forth by this Agreement shall be the Executor’s property. Hereby, the Customer shall not transfer copyright for his/her work of authorship to the Executor.

7. The rules for maintenance of the Register, its execution, posting of any details (information) in it shall constitute Appendix 1 to this Agreement forming an integral part hereof. The rules shall be issued exclusively by the Executor. The Executor, without coordination with the Customer and the Customer’s consent, shall have the right to make any changes in and/or amendment to the Register maintenance rules and the Customer unconditionally agrees with this provision. The Register maintenance rules shall be unconditionally mandatory for the Customer.

Article 5. Obligations of the Parties.

1. The Parties hereto shall (hereby shall be obliged to) unconditionally, voluntarily, conscientiously, and accurately follow all provisions of this Agreement, as well as any and all supplements, amendments and/or alterations hereto made under the terms set forth by this Agreement.

2. The Customer shall pay for the Executor’s services following the procedure and in the amount established by this Agreement.

3. The Customer, in contemplation of his/her death, shall be obliged to bind defendants to the terms of this Agreement.

4. If the Customer’s copyright is assigned to a third party, he/she shall be obliged to bind such third party to his/her obligations hereunder.

5. The Customer shall have an exclusive right to refer, in any form, to his/her summary (synopsis, author’s abstract) posted in the Register on the Executor’s official website in Internet in case of complete and fair execution of his/her obligations under this Agreement.

Article 6. Payment for the Executor’s services. Agreement price.

1. The Customer shall pay for the Executor’s services following the procedure and in the amount established by the provisions of this Article.

2. The price for one posting by the applicant of one his/her summary in the Register shall be 20 (twenty) US Dollars – price of this Agreement.

3. The procedure for paying the amount set forth by this Article of the Agreement shall be determined in Appendix 1 to this Agreement.

4. The applicant shall pay the amount stated in para 2 of this Article (pay for the Executor’s service) to the Executor at the time of registration.

5. The amounts paid hereunder by the Customer to the Executor shall be nonreturnable.

6. Each Party shall individually pay any and all own taxes, duties and/or fees established by the legislation of the Party in connection with execution of the terms hereof by the Party. Neither party shall be a fiscal agent of the other Party.

Article 7. Withdrawal from the Agreement.

1. The Customer shall be entitled to withdraw from execution of this Agreement in the form of non-payment of a next settlement set forth by this Agreement.

2. The Executor shall have the right, including in his sole discretion, to withdraw from execution of this Agreement without reimbursement to the Customer of any expenses and/or losses (damages), as well as without payment of any penalty and/or penalty fee and/or any other forfeit, and the Customer unconditionally and entirely agrees with this provision, in the following case (cases):

a) failure to pay by the Customer for the services to the Executor in the amount and under the terms set forth by this Agreement; and/or

b) provision of false information by the Customer; and/or

c) any other technical reasons.

Article 8. Information sharing.

1. Unless otherwise provided for in this Agreement, the Parties hereto may share information, and this information for the Parties shall be regarded as official, by phone, fax, sms, Skype, via e-mail and/or in writing (in hard copy).

2. The Parties hereto may share documents and these documents shall be legally effective for the Parties and considered properly received by the Parties by fax, Skype, via e-mail, in writing in hard copy, unless otherwise provided for in this Agreement. A signature affixed to the document forwarded by any Party via e-mail shall be accepted by the Parties. A signature affixed to the document forwarded by any Party by fax shall be accepted by the Parties. A signature affixed to the document forwarded by any Party via Skype shall be accepted by the Parties.

3. Along with the afore-mentioned, the Parties may have electronic documentary interchange and affix their electronic digital signatures (EDS) on any and all documents.

Article 9. Arbitration.

1. All disputes arising between the Parties in relation to interpretation of this Agreement and/or execution of this Agreement shall be settled by the Parties in the form of bilateral negotiations.

2. If the Parties fail to reach a compromise during negotiations, they shall settle their dispute in the arbitration court (arbitration) of the Chamber of Commerce and Industry of British Virgin Islands.

3. As the rules of procedural law based on which the Parties shall settle their dispute, the Parties shall accept the rules of arbitration court (arbitration) of the Chamber of Commerce and Industry of British Virgin Islands.

4. As the rules of substantive law based on which the Parties settle their dispute, the Parties shall accept this Agreement and rules of international agreements (conventions) regulating copyright legal relationship.

Article 10. Other terms and conditions.

1. This Agreement is made in written and electronic form, in one counterpart, which:

a) Agreement in writing is kept in the Executor’s office, and

b) posted in electronic form on the Executor’s official website in Internet.

2. Alteration, amendments and/or supplements to this Agreement shall be made in written and electronic form by the Executor individually, in a single hard counterpart and a single electronic counterpart posted on the official website in Internet and the Customer unconditionally agrees with this provision.

3. Changes in this Agreement shall be made by the Executor as a new version of the Agreement.

4. If the Customer disagrees with new terms and conditions, he/she shall have a right to withdraw from the Agreement following the procedure and terms set forth by this Agreement.