What is copyright?

The copyright is the exclusive right of copying a creative work or allowing someone to do that. The copyright on a work is granted automatically at the moment an original or derived work i created.
Where is copyright applied?
The copyright is applied for all original literary, scientific and artistic works. They include books, music, sculptures, pictures, photographs, films, radio and television programs, computer software.
The copyright is also applied on other entities, including sound recording (such as recordings, taped and compact discs), performers’ performances and communication signals.
Why protecting copyright?

The copyright and related rights are essential for human creativity, incentivizing creators in the form of gratitude and fair economic remunerations. According to this system of rights, creators are ensured that their works can be distributed without fearing unauthorized copying or piracy. This helps in increasing access and enjoying culture, knowledge and entertainment across the world.
When a person creates a literary, musical, scientific or artistic work, he/she is the entitled right holder of that work and is free to decide on its destination and destiny of use. This person (known as the creator or the author or the entitled right holder) can control the destiny of the work. However, pursuant to the law and conventions the work is protected by copyright since the moment it is created and no formalities are needed as a result of that protection.
The copyright is the legal protection extended to the entitled rights holder for an original work he/she has created. It is divided into 2 main groups of rights: economic rights and moral rights.
Economic rights are rights to reproduction, broadcasting, public performance, adaptation, translation, public recitation, public shows, distribution, and so on.
Moral rights include the author rights to object any distortion, mutilation or other modification/change to his/her work, which would harm him/her honor or reputation
What do we mean by authorship?
The author shall be any physical person or a group of natural persons that create the literary, artistic, scientific work, original intellectual product, materialized work, regardless of shape or form of expression.
What rights does copyright provide for?

The original creators of works protected by copyright, and their heirs, have certain fundamental rights. They hold the exclusive right for use or authorize others to use the work on agreed conditions and agreements. The work creator may prohibit or authorize:

•  its reproduction in different forms, such as printed publications or sound recording;
  ·   its public performance in drama or musical works;
  ·   its recordings, for instance in the form of compact discs, audio tapes and video tapes;
  ·   its broadcasting via radio, cable or satellite;
  ·   translations in other languages, or its adaptation, such as a novel put onto stage.
  
  Which are copyright related rights?

  A copyright related rights field has been rapidly developed during the last 50 years. Related rights are:

• Interpreting and/or performing artists are actors, singers, musicians, dancers and other persons who present, sing, dance, recite, play, perform, execute, run an orchestra or otherwise show or perform literary or artistic works, a show of any kind including forms of expression of folklore, varieties, circus performances or puppet shows.
  ·        Producer of phonographic recordings is a person who, directly from an artistic show, realizes the work recording and its fixation in a phonographic device or in a similar tool for sound and voice reproduction.
  ·         Broadcasting organization means broadcasting by a broadcasting organization of a show of another broadcasting organization.

  What is the protection for copyright related rights?
  Taking into account the rights provided for by copyright applied for authors, “related rights”, also known as “neighboring rights” deal with other categories of rights holders, i.e. Interpreting/performing artists, phonogram producers and broadcasting organizations. Related rights are the rights belonging to performers, phonogram producers and broadcasting organizations related to their performances, phonograms and respective broadcastings.
  Are ideas, methods or concepts protected by copyright?
  Copyright covers only expressions and not ideas, procedures, action methods or math concepts as such.

Is a TV format protected by copyright?
Broadcasting organizations are protected as related rights holders by the International Convention for the Protection Performers, Producers of Phonograms and Broadcasting Organizations (Rome Convention). The content of a show as such can be protected by copyright and related rights depending on national legislation. However, TV formats are not addressed in WIPO as the entity of international special protection.
Is a character protected by copyright?
A character can be protected by copyright if is an original expression of an author. Commercial items, such as toys, interactive games, books and clothes, including characters, can also be protected by intellectual property rights under certain circumstances, mainly copyright and marketing of trademarks, along with other fields of legislation.
Is a name, title, slogan or logo protected by copyright?
In most cases, the copyright does not provide protection for names. Copyright may or may not be available for titles, slogans and logos, depending on the fact whether they have sufficient authorship or not.
Which creations are not object to protection by copyright?
The following are not object to copyright protection and do not enjoy protection by this law:

a)ideas, theories, concepts, discoveries and inventions of creative work, regardless of the method of interpretation, justification or expression;
b) discoveries, legal, administrative and judiciary acts, as well as other official works and their collections, disclosed for the purpose of officially informing the public;
c) official state symbols, symbols of organizations and public authorities, such as: arms, seal, flag, emblem, medallion, distinctive signs, medal;
ç) means of payment;
d) news and newspapers, having the character of mere items of press information;
dh) simple data and evidence.
What should I do to protect Copyright?
As long as copyright is automatically an existing right, the right holder is protected by legislation in force. The registration at Copyright Office is optional, thus it is nor mandatory and serves to identify the copyright on a certain work as part of the Copyright Register.

What are derived works?

Derived works shall be intellectual creations realized based on one or several previous works such as translations, adaptations, musical arrangements, illustrations, documentaries, art reproductions, websites with static or interactive data, as well as changes of other original literary, scientific or artistic creations/works that can be transformed, restyled or adapted, and which are protected as original independent works from the copyright of the original creation.
What does the term “Public Domain” mean?
In the context of Law No. 35/2016, the term “public domain” is considered the typology or the mode of free use by the public of works of copyright and other related rights, which have an expired term of protection by this law or that have never been under the protection of the law on copyright.

DATABASE
Protected by copyright shall be any form of database, which, in terms of this law, is an independent collection of creations and data or materials arranged in a systematic or methodical way, accessible by electronic / other means and that represent an intellectual creation. The database does not extend to the content of the materials that make up the database and does not affect the existing rights on them. The protection of database does not apply to computer software used in the preparation or the use of the database, accessible by electronic means.
USE OF DATABASE

1. A legal user of a database or a copy of a database is permitted to operate with all types of use, if this is necessary for accessing the content of databases and its normal use.

2. If a user is authorized only to a part of the database, he/she is permitted to reproduce and alter only that part

3. Any contractual provision contrary to the provisions of this article is void.  

SUI GENERIS PROTECTION OF THE RIGHTS OF DATABASE CREATORS
Object of protection

1. A database shall mean a collection of independent works, data or other materials of any form, that have been arranged in a systematic or methodical way and that are individually accessible by electronic means or through other ones, where the safety, verification or the presentation of their contents, requires a substantial qualitative and/or quantitative investment.

2. A producer of database is a natural or legal person who takes the initiative and the risk of investments referred to in paragraph 1.

3. The protection of the database or of its contents is applied irrespective of their protection by copyright or other rights. The inclusion of a material in a database and its use shall be made without violating the existing rights in relation to that material.

SCOPE OF PROTECTION

1. The protection of the database pursuant this section is applied
   a) to the whole database content;
   b) to any substantial qualitative or quantitative part of its content;
   c)to the qualitative and/or quantitative insubstantial parts of a database, when these parts are repeatedly and systematically used, something that would be in conflict with a normal exploitation of that database or when the legitimate rights of the database producer of are violated in an unreasonable way.

2. The protection, pursuant to this Article, is not applied for the computer software used in the design or operation of the electronic databases. 

 
 DATABASE COPYRIGHT

1. The producer of a database has the exclusive right to authorize or prohibit the extraction and/or reuse of the entire database or a substantial part of it, evaluated qualitatively or quantitatively.
2. For purpose of this Article, the following terms have these meanings:
   a) “Extraction” is the temporary or the permanent transfer of all the database content or of a part of it to another medium, by any means or in any form.
   b)“Reuse” is any form of making available all the database content or of a substantial part of it to the public, via the reproduction and distribution of copies, via the renting of the right for making available the database content to the public, and through any other form of communicating the database to the public. The first sale of the database copy, within the territory of the Republic of Albania, by the right holder or by his/her consent, terminates the control right of the resale of that copy.
3. Public lending is not an act of extraction or re-use.

The repeated and systematic actions related to insubstantial parts of the database content The repeated and systematic extraction and/or reuse of insubstantial parts of the database content, are considered as actions that conflict with a normal exploitation of the database or that unreasonably infringe the legitimate interests of the database producer, and as such are not allowed.
 

 THE RIGHTS AND OBLIGATIONS OF THE LEGITIMATE USERS OF DATABASES 

1. The producer of the database, which is made in any way available to the public, cannot forbid the legitimate user of the database to extract and/or reuse insubstantial parts of the database content, evaluated qualitatively and/or quantitatively, for any purpose. If the legitimate user is authorized to issue and/or the reuse only certain parts of the database, this paragraph is applied only to those parts.

2. The legitimate user of the database that is made available to the public in any way, cannot perform actions that are contrary to the normal use of the database, or prejudice unreasonably the legitimate interests of the database producer.

3. The legitimate user of the database, which is made in any way available to the public, cannot violate the holder of the copyright or related rights in relation to protected works or objects, included in the database.

4. Any contractual provision that is inconsistent with these paragraphs are void.

Exceptions to the rights of databases producers The legitimate users of databases, which are made in any way available to the public, may extract or reuse substantial parts this database content, without the authorization of its producer:

a)in case of extracting the content of non-electronic database, for personal purposes, in compliance with the provisions of Article 72, of this law;
b) in case of extraction for purposes of illustration for teaching or scientific researches, provided that the source should be cited, and it should be at the extent that justifies the non-commercial purpose to be achieved, in compliance with the provisions of Article 71 of this law;
c)in case of extraction and/or reuse for purposes of public security or of an administrative or judicial proceeding. 

THE TERM OF PROTECTION FOR THE RIGHTS OF DATABASE PRODUCERS

1. The rights of a database producer are protected from the date of database completion until the end of the 15^th year, which is calculated from January 1^st of the year following the completion date.

2. In case of a database, which is made in any way available to the public before the end of the period provided in paragraph 1, the term of protection for the right of database producer expires after 15 years, which is calculated from January 1^st of the year following the date when the database was first made available to the public.

3. Any substantial change, qualitatively or quantitatively evaluated, of the database content, including any significant changes arising from the collection of additions, deletions or from consecutive changes, which would bring as a result a database that is considered as a substantially new investment, qualitatively and quantitatively evaluated, qualifies the database resulting from this investment for its own term of protection.

BENEFICIARIES OF THE PROTECTION OF DATABASE PRODUCERS RIGHTS  

1. The right provided for in Article 121 of the law on copyright is applied to databases, the producers or holders of rights, who are citizens of the Republic of Albania or reside in the territory of the Republic of Albania.

2. The right provided for in Article 121 of the law on copyright is also applied to commercial entities, established pursuant to the legislation on the establishment and organization of the commercial companies in the Republic of Albania, and that have their headquarters or main place of business activity, within the territory of the Republic of Albania. However, when a commercial entity or company has only the registered office in the Republic of Albania, it should conduct its ongoing activity in this territory.

3. Agreements that extend the right, provided in Article 121 of the law on copyright, to databases created in the third countries and which are not object to the provisions of paragraphs 1 and 2, are protected pursuant an international treaty where the Republic of Albania is party.

4. The term of any protection, including databases created in third countries, does not exceed the term provided in Article 115 of the law on copyright.

OBJECT OF PROTECTION

1. Pursuant to the law on copyright, computer software will be protected as a work of speech if it is an individual and original intellectual creation of the author him/herself. The term “computer software” constitutes the creation of any form of a computer software, application programs and operating systems expressed in any kind of language, including preparatory design materials and manuals. The ideas and principles, which underlie any element of computer software, including those that underlie its interface, shall not be protected by the copyright.

2. Without violating the provisions of the law on copyright, if computer software is part of a diploma or use model, that program enjoys protection by the legal provisions on protection of industrial property.

 A COMPUTER PROGRAM CREATED WITHIN THE EMPLOYMENT TERMS

If a computer software is developed by an employee in the execution of his/her duties or by following the instructions given by his/her employer, the employer is exclusively entitled to exercise all economic rights for the created program, unless otherwise provided in the contract.
 
THE COPYRIGHT OF COMPUTER SOFTWARE

1. Pursuant to the provisions of Chapter III, Section 2 of the law on copyright, the author of computer software shall enjoy the exclusive right to forbid or authorize:

a) permanent or temporary reproduction of a software by any means and form, in whole or in part; this includes the uploading, displaying, operating, transmitting or storing a software which requires its reproduction;
b) translation, adaptation, arrangement and any other alteration of a software, and the reproduction of the results thereof, without infringing in the rights of the person who alters the program;
c) any form of distribution to the public of the originals or copies of a software, including leasing of the originals or its copies

2. The provisions of Articles 24, 31 and 72 of the law on copyright shall not apply to computer software.

Computer software will not be subject to public lending, unless it is stipulated in the contract.

3. The provisions of Article 27 of the law on copyright for the termination of the distribution right, shall apply with the needed alterations to computer software.

 
 EXEMPTIONS 

1. In the absence of specific contractual provisions for the actions referred to in letters “a” and “b” of paragraph 1, Article 90 of the law on copyright, including the errors corrections, there will not be required the authorization of the right holder, when the use of the computer software is needed for the legitimate buyer, in line with the purpose.

2. The making of a backup copy by the person who owns the right to use the computer software shall not be prevented by contract as long as it is necessary for such a use.

3. The person who has the right to use a copy of a computer software, is entitled to observe, study or test the software operation, to determine the ideas and principles underlying any software component, without the author’s authorization, if he/she does so while performing any of the acts of uploading, displaying, operating, transmitting or storing the software.

4. Any contractual provision, contrary to paragraphs 2 and 3 of this Article, shall be void.  

CODE BREAKDOWN 

1. If code reproduction and translation of its form, pursuant to the provisions of paragraphs 1 and 2, Article 90 of law on copyright, are required to obtain the information necessary to achieve the interaction of a software, created independently by other software, the authorization of the right holder will not be necessary, provided that:

a) these actions must be carried out with authorization for use, or by another person who has the right to use a copy of the software, or by a person authorized to perform this action on his/her behalf;
b) the information necessary to achieve the interaction has not previously been available to the persons referred to in paragraph ‘”a” of this Article;
c) these actions are limited only to those parts of the original software that are necessary to achieve the interaction.

2. The information obtained pursuant to the provisions of paragraph 1 may not:

 
a) be used for other purposes except for achieving the interaction of the computer software created independently;
b) be transferred to other persons, except when it is necessary to achieve the interaction of the software created independently;
c) be used for producing, developing, or marketing another software, mainly similar in its essence, or for any other action that infringes the copyright. 

3. The paragraphs above must not be interpreted in such a way that their application prejudices the legitimate interests of rights holders over the work, or impedes the normal use of the computer software.

4. Any contractual provision, contrary to the provisions of this Article, shall be void. 

SPECIAL MEASURES OF PROTECTION A VIOLATION OF RIGHTS ON A COMPUTER SOFTWARE CONSTITUTES, IN PARTICULAR:

          a) any act of distributing a computer software copy, having knowledge of or having reasons to believe that it is an illegal copy;
          b) the possession of a computer software copy for commercial purposes, having knowledge of or having reasons to believe that it is an illegal specimen;
          c) any act of distribution or possession for commercial purposes of any mean, the sole purpose of which is to remove or skip without authorization the technical devices, which serve as a protection for a computer software.
 
 The provisions of the law on copyright, concerning the protection of computer software and of other copyrights, and related rights, do not violate other legal provisions, such as those rights governing the protection of inventions by patents, trademarks, the protection of designs and topographies of semiconductor products, utility models, conditional access, access to services of cable broadcasting, protection of national treasuries, legal deposits requirements, laws on restrictive practices and unfair competition, security, confidentiality, data and privacy protection and access to public documents.

 Pursuant to the law on copyright, the audiovisual works are cinematographic films, TV movies, animated movies, commercials or other films, short musical videos, documentaries, shows and TV graphics, as well as other audiovisual works expressed by sequences of cross-linked moving images, with or without sound, regardless of the type of the device on which they are fixed.
 
THE RIGHT TO AUDIOVISUAL ADAPTATION

1. The right to audiovisual adaptation is the exclusive right of the author to an existing work of copyright to transform it into an audiovisual work.

2. The transfer of the right provided for in paragraph 1 shall be authorized only on the basis of a written contract, distinct from the publishing contract of a work, between the copyright owner and the producer of the audiovisual work.

3. The producer of an audiovisual work is the natural or legal person, who takes the responsibility for producing the work, and provides the necessary technical and financial resources for its materialization, pursuant to the terms of the contract.

4. Unless otherwise provided for in the contract, the contract of the audiovisual adaptation, entered into between the author of a previously existing work and the film producer, will provide that the right of transforming and including the original/existing work into an audiovisual work, the economic rights on this audiovisual work, on its translations, audiovisual transforming and on the photographs made for the producing of the audiovisual work, will be exclusively transferred and without limitations to film producer.

5. Regardless the provisions of the paragraph 3, the author of the adapted work will hold:
   a)the exclusive right of new audiovisual adaptations of the adapted work, a right which he/she may exercise after twenty years following the conclusion of the contract, referred to in paragraph 1;
   b)the exclusive right to further alternations of the audiovisual work in any other artistic form;
   c)the right for a fair remuneration from the film producer for each rental of a videogram, which contains the audiovisual work.

6. The author of an adapted work cannot waive the right referred to in paragraph 5.

THE AUDIOVISUAL WORK CO-AUTHORSHIP

1. The following persons will be recognized as co-authors of an audiovisual work:

a) principal director who will be considered as the author of the work or as one of the authors;
b) author of screenplay (screenwriter);
c) author of dialogues;
ç) composer of the musical work (with or without text), created specifically for the audiovisual work;
d) author of work adaption;
dh) director of photography.

2. If a drawing or an animation constitutes a key element of the audiovisual work, the principal creator of the drawing or animation will be considered as the co-author of this work.

Authors of contributions to audiovisual works A creator of the animation (animator) or a drawing and a music composer of the film, who are not considered the co-authors of an audiovisual work pursuant to Article 97 of the law on copyright, a scenographer, a costume designer, a make-up designer and an editor, shall have copyrights on their individual contributions to the work (authors of the contributions). 

CONTRACT OF AN AUDIOVISUAL PRODUCTION

1. A contract of an audiovisual production regulates the relationship between the film producer, co-authors of an audiovisual work and authors of contributions, as well as the relationships among the authors of an audiovisual work.

2. Unless otherwise provided in the contract, it will be considered that the authors and co-authors, by the film production contract, as having transferred to the film producer, exclusively and without limitations, all their economic rights on the audiovisual work, translations, audiovisual transformations and photographs made for this work.

3. Unless otherwise provided in the contract of the audiovisual production between film producer and authors of contributions, the film producer shall be deemed to obtain all economic rights of such authors to use their contributions to the extent necessary to fulfill the purpose of the contract.

4. Notwithstanding the provisions laid down in the preceding paragraphs
   a) co-authors retain the exclusive right for the further transformation of the audiovisual work in another artistic form;
   b) authors of contributions retain the right to use individually their contributions to the audiovisual work, provided that such use does not infringe the rights of film producers;
   c)co-authors retain the right for a fair remuneration from film producer for each rental of videograms of the audiovisual work.

5. The co-authors and authors of contributions to an audiovisual work cannot waive the rights provided for in paragraph 4.
    

INCOME DERIVING FROM THE USE OF AUDIOVISUAL WORKS 

1. The co-authors of an audiovisual work are entitled to remuneration for any form of using the audiovisual work of the author, which is calculated proportionally to its total income, except when otherwise agreed.

2. The film producer should, at least once a year, send to the co-authors of the audiovisual work a report on generated income, in particular on any authorized form of the work use. The authors receive the remuneration from the producer, or from the users or by the collective management agency, based on the agreements entered into between them. 

COMPLETION OF AUDIOVISUAL WORK

1. The audiovisual work shall be considered completed when, upon an agreement between the principal director and the film producer, the first standardized copy of the work, which is object to the contract, is realized.

2. The original copy, where the final version of the work is materialized, referred to in the paragraph 1, must not be destroyed.

3. Any alteration to the audiovisual work copy, referred to in paragraph 1, shall be permitted only after a preliminary agreement is concluded between the film producer and the principal director.

4. When any of the co-authors refuses to complete his/her contribution to the audiovisual work, or when he/she is unable to do so due to a force majeure, he/she will not object the use of his/her contribution provided until then for purposes of this work completion. The author in question shall have respective rights of copyright related to the contribution he/she has already given. 

CONTRACT TERMINATION 

1. If the producer does not complete the audiovisual work within five years from the date of contract signing for the film production, or if he/she does not distribute the completed audiovisual work within a year from the time of its completion, the co-authors are entitled to require the cancellation of the contract, unless otherwise provided in the contract.

2. In the case referred to in the paragraph 1, co-authors and authors of contributions retain the right to compensation for the caused damage, respectively on each element of the audiovisual work.

 Related rights, such as: the rights of performers/executors related to their performance/execution; producers of their phonographic records; producers of first fixations/(recordings) of their films; broadcasting organizations with regards to their broadcastings; publishers related to their publishing; database producers with regards to their databases;

PERFORMING AND/OR EXECUTING ARTISTS “PERFORMERS AND/OR EXECUTORS”, PURSUANT TO THE LAW ON COPYRIGHT, ARE:
actors, singers, musicians, dancers, directors of orchestras or of choirs and other persons who present, act, sing, recite, play, perform, execute, run an orchestra or otherwise perform literary or artistic works, a show of any kind, including forms of expression of folklore, varieties, circus performances or puppet shows.

THE MEANING OF PHONOGRAM AND ITS PRODUCERS PURSUANT TO THE LAW ON COPYRIGHT, THE FOLLOWING TERMS HAVE THIS MEANING:
a)“Phonogram” is the fixation of sounds of a performing and/or executing, or other sounds, or representations of sounds in another form, except that one of the fixation incorporated in an audiovisual work.
b)“Phonogram producer” is a natural or legal person who takes the initiative, and has the responsibility for the first fixation of sounds of a performance, or other sounds, or presentations of sounds in another form. 

THE RIGHTS OF FILMS FIRST FIXATIONS PRODUCERS

1. The producer of films first fixations is a natural or legal person, who under their own name and individually, or on someone else’s behalf, organizes and manages the production of an audiovisual work, and is responsible for its completion.

2. The producer of films first fixations has the exclusive right to authorize or prohibit the following actions in relation to the original or the copies of their films:
   a) reproduction of their films;
   b) distribution of their films;
   c) rental and public lending of their films copies
   ç) making their films available to the public in an interactive way; d) public presentation of their films.

3. Article 27 of the law on copyright applies, mutatis mutandis, to the producers rights to distribute the first fixations of films.

4. Pursuant to this chapter:
   a) A “film or videogram” shall be:
    i) the first fixation of what is considered an audiovisual work;
      ii) any sequence of images in motion, accompanied by a sound or not, that in the absence of the originality, is not considered an audiovisual work;
   b) the “first fixation of a film” is the ultimate form of film that can be used by the public.
5. The film producers have the right to a fair remuneration for the reproduction of author’s works for private or other personal use, pursuant to Article 31, paragraph 1 of the law on copyright

6. The related rights of the producer of the film first fixation and the copyright, the holder of which is the producer of the film first fixation, are applied in parallel and independently from one another, as in the case when the film first fixation is considered as an audiovisual work, as well as for the copyright holder of the audiovisual work.

RIGHTS OF MEDIA SERVICE PROVIDERS

1. Media service providers have the exclusive right to authorize or prohibit the following acts that deal with:
   a) fixing their broadcasts, whether these broadcasts are transmitted by wire or wireless, including cable or satellite broadcasting;
   b) reproduction of their broadcasts fixations;
   c) distribution of their broadcasts fixations;
   ç) re-transmission of their broadcasts by wire or wireless;
   d) communication to the public of their broadcasts in countries where a fee is required;
   dh) making their broadcast fixations available to the public in an interactive way.

1. Article 27 of the law on copyright applies, mutatis mutandis, to the distribution right of the broadcasting fixation of the audiovisual media service providers

2. A numerical network operator, which merely retransmits by cable system the broadcast of audiovisual media service providers, will not be considered audiovisual media service provider, under the provisions of this chapter.

3. The rights referred to in paragraph 1 cannot be transferred, in an exclusive or non-exclusive form, without observing the rights of creative authors, performers and/or executors, and film producers.

THE RIGHTS OF PUBLISHERS

The right to remuneration Publishers have their right to reasonable remuneration for any reproduction of their written publications for their own personal use or other personal use, equivalent to author’s right for remuneration, as provided in Article 31, paragraph 2 of the law on copyright.

A DATABASE MEANS:

1. A collection of independent works, data or other materials of any form, which have been arranged in a systematic or methodical way and which are individually accessible by electronic means or through other ones, where the safety, verification or the presentation of their contents, requires a substantial qualitative and/or quantitative investment.

2. A producer of database is a natural or legal person who takes the initiative and the risk of investments referred to in paragraph 1.

3. The protection of the database or of its contents is applied irrespective of their protection by copyright or other rights. The inclusion of a material in a database and its use shall be made without violating the existing rights in relation to that material.

1. The collective management of rights may be performed by the collective management of rights agency, (hereinafter CMA), as a legal entity established by the holders of the copyrights and related rights, which has as the object of its activity the collection of income from the use of works, and their distribution to the holders of the copyright and related rights, which has been licensed by the ministry responsible for copyright, upon the proposal of the Copyright Directorate (hereinafter CD).
2. The licensing referred to in paragraph 1 shall be granted to the entity that has the following characteristics:
   a) it is registered as a nonprofit organization in compliance with the legal provisions in force;
   b) ) it has approved its status, which meets the conditions laid down in the law and should specifically include:
        i) designation of collective management agency, its objectives and goals, administered rights, categories of rights holders that the agency represents, criteria for gaining or losing the membership, rights and obligations of members, rules of election and functioning of governing bodies, its initial capital and planned economic resources, rules defined for the collection and distribution of income, modality of the agency’s economic-financial management supervision, setting the ad hoc commission up pursuant to Article 153, paragraph 6 of the law on copyright, modality of using the capital and other assets, in the case of the company’s liquidation, rules on modalities for drafting methodologies that should be negotiated with users, and rules of representation in negotiations, and as well as any other provision which is mandatory according to the legislation in force;
        ii) statutory provisions of collective management agencies should take into account the principle of transparency, the principle of conflict of interest in their governing bodies, and the principle of non-discrimination among members, members and nonmembers, as well as between users of copyrights and other related rights;
        iii) the General Assembly of the agency’s members should be met at least once a year; it makes decisions for changes to the agency’s statute for the nomination or dismissal of executive bodies, reviews their general performance and approves their remuneration, as well as other benefits, such as monetary and non-monetary benefits, granting pensions or dignities, other rights and remuneration, or the rights to transitional payments; decides at least for the general policy of remuneration distribution to rights holders and of expenses on rights management, as well as the approval of any purchase, sale or immovable property registry;
   c) it has its headquarters in the Republic of Albania;
   ç)it has the adequate space and logistics and sufficient mechanisms for the collection, distribution and payment of remuneration, the technical service and professional expertise with at least one jurist and one financial officer;
   d) the collective management of rights is its sole activity, except when its other activities extend in the field of art and culture;
   dh)it introduces the mechanisms that guarantee equal treatment for both rights holders and users, when objective conditions of treatment are the same.

1.The CMA manages the rights in the name and on behalf of these rights holders.

2.Any proposal to change the status is subject to the approval of the Minister responsible for the copyright, upon the proposal of the Copyright Directorate. The Copyright Directorate shall review the application on changing the statute of the agency within 10 days from the date of submitting the application. The approval or rejection of the proposal must be grounded and expressed in terms of compliance of status changes with the exercise of the licensing mandate, object of the activity, and then it is submitted to the district court in order to change the registration. Any change of the status contrary to the provisions of this paragraph constitutes a condition for revoking the license of the collective management agency.

 
LICENSE VALIDITY

1. The license of collective management agencies to exercise the activity is valid for 3 years, and it is renewable.

2. The procedures for obtaining the license or its renewal is subject to the same criteria provided for in this law or other sub-legal acts enacted pursuant to this law, and is carried out through a public process that ensures the principles of transparency and competitiveness.

 
FUNCTIONS, RIGHTS AND OBLIGATIONS OF COLLECTIVE MANAGEMENT AGENCIES WITH REGARDS TO RIGHTS HOLDERS AND BASED ON COMPETENCES ASSIGNED AND PROVISIONS OF THE LEGISLATION ON COPYRIGHT, THE CMAs HAVE THE FOLLOWING FUNCTIONS:
a) to grant users, upon their requests, non-exclusive contracts for the use of works or objects of related rights, in exchange of a payment, by a written contract, within the rights set forth in the agency’s license;
b) to collect the remuneration for the use of works or objects of related rights;
c) to distribute, on the basis of distribution rules, the remuneration collected by users in a fair and proportionate way with the actual value and use of works and objects of related rights. The principles of remuneration distribution shall be determined in the agency’s statute and any possibility of arbitrariness shall be excluded;
ç) to represent rights holders, whose rights they administer, in judicial or administrative proceedings and perform any other necessary legal action to protect and enforce the rights administered by them;
d) to perform any other act in compliance with their legal rights and of their decision-making bodies on competences granted by rights holders;
dh) to develop negotiable methodologies for setting the tax level that users have to pay in accordance with the provisions of this law;
e) to fulfill, on behalf of the author or the holder of copyright and other related rights or in the basis of a contract of reciprocity with similar foreign agencies, the general agreements with organizers of shows, audiovisual media service providers, numeric network operators, which have as object of activity the authorization of shows and distribution of works it administers;
ë) ) to represent the interests of their members on the use of rights, outside the territory of the Republic of Albania, by signing a contract of reciprocity with similar foreign agencies;
f) to inform, upon request, the holders of copyrights and other related rights on the manner of use of their rights, for the annual financial report and annual financial income audit report, within the time provided for in the statute;
g) to ensure the transparency of collective management agency’s activity in relation to the public control authorities, pursuant to the aw;
gj)with regards to income collected from users and the remuneration paid to rights holders, these agencies are obliged to keep and pay the withholding tax on behalf of tax administration, in compliance with the legislation on income tax;
h) pfor the purpose of accurately determining tax liabilities, they have the obligation to make available to the tax administration, according to the approved forms, the information on collected income from users of works of copyright / related rights, as well as the distribution of these remunerations to rights holders.
 
THE UNIQUE AGENCY PERFORMING THE FUNCTION OF REMUNERATION COLLECTION (UNIQUE OFFICE)

1.By means of a written agreement, the CMA-s agree and decide which of them will be responsible to collect the fees for all categories of rights holders. 2. If they fail to reach the above-mentioned agreement, within 30 days from the entry into force of remuneration tariffs, the National Council of Copyright (hereinafter NCC) will choose the licensed agency by a decision, based on the following criteria:
a) to have the administrative capacity for territory coverage;
b) to strictly apply the provisions for the remuneration collection procedure pursuant to this law;
c) to have a long time span of subject’s activity over the years;
ç) to have contracts of reciprocal representation with counterpart agencies and have international recognition;
d) to have the appropriate infrastructure, guaranteeing transparency in the collection and distribution of income to its members;
dh) to have the most appropriate platform and cost effective resources for rights management.

2.The agreement referred to in paragraph 1, or the NCC decision provided for in paragraph 2, shall mandatorily contain the manner and the proportion of fee and collected remuneration division to CMAs, as follows:
a) 40% will be allocated to the agency, representative of copyright;
b) 30% will be allocated to the agency, representative of performers rights;
c) 30% will be allocated to the agency, representative of the rights of producers, including those of publishers and producers of phonograms.