Modern hotels, resorts, motels and other forms of this category (hereinafter – the hotels) have a well developed structure. Apart from rooms in hotels, in fact, there are lobbies, bars, cafes, restaurants, clubs, SPA – salons, beauty salons, gyms, i.e. premises, where the music may be played.
In the case of use of music in economic activities (mood music (including the background music) on the said hotel’s territories, it is obligatory to conclude a licensing agreement. Such kind of permission (license agreement) shall be obtained regardless of the methods and forms of use of musical works (the authorization is also required in the case of playback of CD, DVD, audiocassette tapes via music center or a computer, in the case of use a TV, a radio – receiver or other similar methods, as well as “live” performance of musical works by musicians, DJ, etc.).
Amount of royalties shall be calculated in accordance with Resolution of the Cabinet of Ministers of Ukraine on January 18, 2003 № 72 “On approval of the minimum rates of remuneration (royalty) for the use of copyright and related rights”.
Public performance royalty*
According to the resolution, the minimum rate of author’s remuneration is as follows:
| Public performance of the works | Royalty* |
| Musical compositions with or without lyrics (both in case of performing the compositions by artists and playing the records of compositions in locations with paid admission) (Annex 1, paragraph 21) |
4% of the gross collection derived from ticket sales |
| Musical compositions with or without lyrics, literary works (both in case of performing the compositions by artists and playing the records of compositions in locations with paid admission). (Annex 1, item 22) |
1%
income derived from the activity during which the works are used
and in the absence of such income
2,5%
of the total expenditure on holding the event by organizer |
*Interest rates (royalties) are calculated as a percentage of gross sales deriving from the sale of tickets for the public performance of one work or a program or income derived from the use of the works and in the absence of such income — as a persentage of total cost of holding the event where literary and (or) art works are used.
Additionally:
In the case of alternate or simultaneous use of works of art and literature referred to in paragraphs 16, 21 , 22 and 25 of the Annex the minimum interest rates (royalty) are charged separately for each type of using of the work. For music exploitation in hotel, restaurant, lobby etc. the rate of author’s remuneration is – 1%, for exploitation in club/ recreation center over the hotel – 4%.
If a jukebox or karaoke system which is held by owner who doesn’t own the establishment is placed in the premises, the owner of the above said systems shall conclude the licensing agreement.
For contract or advice please refer to the following contacts:
Anna Silvestruk
Chief specialist of “small rights” users section
Tel.: (044)235-32-88
+38-067-506-4367
+38-063-833-1551
Chief Specialistof “small rights” users section
Teplyuk Natalia
Tel.: (044) 230-93-57
+38-067-506-4367
+38-067-833-1551