05 Ene 24 Bill Project: Transformations in Intellectual Property Regulation

Agustín Cerolini, Matías Ferrari, Natalia Artmann and Lara Becq

On December 27, 2023 the Bill for Bases and Starting Points for the Freedom of Argentines (the “Bill”) was introduced to the Argentine National Congress by the Executive Power (the “PEN” for its acronym in Spanish). Among the issues addressed, the Bill introduces modifications to the Intellectual Property Law No. 11,723 (the «Law«).

Below, we will detail the main proposed modifications.

Several articles are incorporated after article 68 of the Law, under “Gestión Colectiva de Derechos”. It states that copyright holders may form associations to defend their interests in accordance with the provisions of the Law.

In this sense, copyright holders and related rights associations, created or to be created with the purpose of protecting the economic rights recognized by the Law, will need authorization from the National Directorate for Copyright (the “DNDA” for its acronym in Spanish) to operate as collective management companies and will be subject to the supervision and control of the DNDA, as well as the regulation established by the Law and any relevant regulations.

Additionally, the Bill establishes that they will be non-profit entities, with legal status and their own assets, and will not be able to carry out any activity of a political, religious or other nature unrelated to their own function.

As for the DNDA, it states that:

1. It will determine which associations are in a position to represent the owners of rights in works, editions, productions, performances and broadcasts. If authorized to operate, it shall be published in the Official Gazette of the Argentine Republic; otherwise, the interested party shall be notified of its rejection and it shall be published on the DNDA website.
2. It shall grant authorizations if the following conditions are met: a) that the by-laws meet the requirements of this amendment and the respective laws; b) that their corporate purpose is the management of copyright or related rights; c) that from the data provided and the information supplied by the applicant is clear that the collective management company meets the conditions necessary to ensure the transparent and effective administration of the rights, the management of which is to be entrusted thereto; d) that the operation of the collective management company is in the general interests of the protection of copyright and of the copyright holders and related rights in the country.
3. It may impose sanctions on collective management companies that violate their own by laws or regulations, or that commit acts affecting the interests of those they represent.

As regards the copyright holders and related rights, it establishes that they may freely choose whether to join a collective management company or not, and that they may choose whether to exercise their economic rights individually or through such company. It also adds that collective management company may not intervene in the collection of royalties when those they represent choose to exercise their rights individually in respect of any use of the work or have agreed direct mechanisms for such collection.

Collective management companies must comply with certain requirements set out in this amendment in their bylaws. Additionally, they must also issue an annual balance sheet as at December 31 of each year and a report on the activities carried out in the last financial year.