The Parliament has adopted the following Act of the Czech Republic:
PART 1
Conditions of Production, Dissemination and Filing of Audio-Visual Works
Section 1
Definitions
(1) For the purpose of the present Act, the following definitions apply:
a) audio-visual work shall be such work consisting of a sequence of mutually associated pictures, either accompanied by sound or soundless, perceivable by sight, and if accompanied by sound, also perceivable by hearing *, if designed for public dissemination -* with help of technical equipment.
b) Czech audio-visual work shall be such audio-visual work whose maker, as under Paragraph 2, a), has had or at the time of the first public showing thereof had permanent address or headquarters in the territory of the Czech Republic; Czech audio-visual work shall also be such audio-visual work in the creation of which such maker has participated,
c) audio-visual demonstration shall be public demonstration of audio-visual work with help of technical equipment, with the exception of television broadcasting * ; audio¬visual work shall be demonstrated publicly if demonstrated to persons not individually identified.
(2) Furthermore, for the purpose of the present Act, the following definitions shall apply:
a) makers of audio-visual work shall be such persons which possess rights to use individual segments of audio-visual work and which have created such audio-visual work,
b) distributors of audio-visual work shall be such persons which, based on contract and usually for consideration, provide dissemination of audio-visual work, with the exception of dissemination by television broadcasting -*, for entities as identified in Subsections c) to e),
c) organisers of audio-visual demonstration shall be such persons which publicly show audio-visual work with help of technical equipment, with the exception of television broadcasting3*.
d) operators of selling points of audio-visual works shall be such persons which sell multiplied copies of audio-visual works to the public.
e) operators of lending libraries of audio-visual works shall be such persons which, for consideration, lend the public multiplied copies of audio-visual works.
Section 2
Records
(1) The Ministry of Culture (hereinafter “the Ministry) shall keep records of persons as established in Section 1, Par.2, a) and b), which have registered their businesses. Records of such persons shall constitute an information system under special legislation *.
(2) The purpose of keeping records as under Paragraph 1 shall be to secure existence of official records for implementation of the Authorship Act * and the present Act.
(3) The appropriate Business Licensing Office, for the purpose of such records as established in Par. 1, shall send the Ministry a copy of the Business Licence.
Section 3
Identification of Audio-Visual Works
(1) Makers of audio-visual work shall be obliged to have identified the following information at the original carrier of audio-visual work:
a) name of work,
b) name and surname, or pen-name, of author(s), if such author is known and if such author has not expressly prohibited the use of his/her name,
c) names and surnames of executive artists *,
d) name and surname of owner(s) of copyright, if other than author(s) and/or executive artist(s),
e) name and surname of maker, if a physical person, or its trade name, if a legal entity,
f) place and year of production of such work, and
g) names and surnames of co-workers participating in the production of such work, if such identification is usual.
(2) Distributor of audio-visual work shall be obliged to secure that multiplied copies of such audio-visual work should bear the maker’s information as established in Paragraph 1, and further an identification of the distributor containing its name and surname, if a physical person, or its trade name, if a legal entity.
Section 4
Public Availability of Audio-Visual Works
(1) Audio-visual works, the content of which may imperil moral formation of minors * , shall be identified as unsuitable for viewers less than 15 or 18 years of age.
(2) Makers of Czech audio-visual work shall be obliged to establish such category of suitability as under Par.1, for each audio-visual work produced by such makers, and to identify such category in distribution contract(s).
(3) Distributors of audio-visual work shall be obliged to establish, and identify in contract(s) with persons as described in Section 1, Paragraph 2, c) to e), such category of suitability for each audio-visual work. In the event such category of suitability be established under Par.2, such distributor shall be obliged to observe it.
(4) Makers, or distributors of audio-visual work, shall also be responsible for identification of category of suitability on the encasement of such audio-visual work carrier.
(5) Organisers of audio-visual demonstrations shall be obliged to make public such category of suitability as established by makers or distributors and to check its observance by participants in such demonstration.
(6) Operators of selling points or lending libraries of audio-visual works may not sell or lend multiplied copies of audio-visual works to persons younger than limits applicable to relevant categories of suitability as established by makers and distributors.
Section 5
Advertising at Audio-Visual Demonstrations
(1) Organisers of audio-visual demonstrations containing advertising shall be obliged to secure that such advertising be identified as such and shown separately from the rest of such demonstration.
(2) Organisers of audio-visual demonstrations shall be obliged to secure non-publication of advertising:
a) supporting behaviour which may imperil morality or injure the interest of health protection, security and environmental protection,
b) designed for children or featuring children, if such advertising support behaviour hazardous for their health and psychic and moral formation,
c) promoting medicaments available only on medical prescription, registered in the Czech Republic,
d) breaching a ban established by other legislation *.
Section 6
The National Film Archives
(1) The National Film Archives with its headquarters in Prague, established by the Ministry (hereinafter “the Archives” represents archives of special importance * for filing audio-visual works. The mission of the Archives shall be collecting, protection, scientific research and use of filed audio-visual records, particularly those which form part of the national cultural heritage and document the inception and development of film.
(2) The Archives shall create, on the basis of agreements concluded with owners of copyright, a special fund of selected artistic audio-visual works, to be provided on a non-profit basis to civic associations * for temporary use, the chief goal of which, in keeping with their statutes, shall be to provide their members with access to artistic audio-visual works.
(3) The right to decide on which artistic audio-visual may be included in such special fund as under Paragraph 2, shall belong to the Fund Council *.
Section 7
Obligation of Proffer
(1) Makers of Czech audio-visual work shall be obliged to make a proffer in writing to the Archives to purchase two new and undamaged copies of Czech audio-visual work, within 60 days following its first public demonstration. The price shall be agreed in keeping with price regulation *.
(2) The period during which such proffer may be accepted to conclude a purchase contract as under Paragraph 1 shall be 6 months since the delivery of such proffer. In the event that the Archives fail to accept such proffer within such period, the proffer shall expire and obligation of proffer as established in Paragraph 1 shall thus be deemed implemented. The Archives shall be obliged, not later than within 7 days, to issue such person which made such proffer, with certification in writing testifying thereto. Such certification must exclude any possibility of confusing the object of such obligation of proffer.
(3) Makers of Czech audio-visual work created with help of contribution(s) made by the Fund * shall be obliged to submit to the Archives free of charge a sample undamaged copy of such Czech audio-visual work for filing, within 60 days following its first public demonstration.
(4) By transferring ownership to such copies of such Czech audio-visual work as under Paragraphs 1 and 3, the Archives shall not acquire the right to any public use of such copies. This does not affect the provision of Section 6, Par.2.
(5) Obligation as established in Par. 1 and 3 shall not apply to audio-visual works produced by Czech Television14* exclusively for dissemination by television broadcasting *.
Section 8
Maker of audio-visual work may proffer for filing by the Archives the negative film and duplicating materials under conditions as agreed between such maker and the Archives.
Section 9
Supervision
Observance of obligations as established in the present Act shall be supervised by the Ministry. In order to execute such supervision, authorised official of the Ministry shall be entitled to enter buildings, operations and business establishments belonging to persons identified in Sec. 1, Par. 2, and to require them to submit such documents and other written documentation, as well as any required explanation, if associated with the object of supervision. Such persons in question shall be obliged to allow for execution of such supervision.
Authorised officials of the Ministry shall be obliged to keep confidential any facts they have learned as part of execution of such activity as under Par. 1, or in connection therewith. Such obligation shall survive their authorization.
Section 10
Penalties
(1) The Ministry shall be entitled to impose the following penalties, on:
a) makers and distributors of audio-visual works, for breaching their obligations as under Sec. 3, Par. 1 and 2, a fine of up to Kc100,000,
b) makers and distributors of audio-visual works, for breaching their obligations as under Sec. 4, Par. 2, 3 and 4, a fine of up to Kc10,000,
c) organisers of audio-visual demonstrations, for breaching their obligations as under Sec.
4, Par. 5, a fine of up to Kc10,000,
d) operators of selling points or lending libraries of audio-visual works, for breaching their obligations as under Sec. 4, Par. 6, a fine of up to Kc10,000,
e) organisers of audio-visual demonstrations, for breaching their obligations as under Sec.
5, Par. 1 and 2, a fine of up to Kc10,000,
f) makers of Czech audio-visual works, for breaching their obligations as under Sec. 7, Par. 1 and 3, a fine of up to Kc50,000.
(2) When establishing the amount of such fine the Ministry shall take into consideration dangerousness and consequences of such breach; in case of physical persons, also the amount of guilt on the part of such person shall be considered.
(3) Any fine may be imposed not later than within one year following such breach of obligation is discovered by the Ministry, and not later than within three years following such breach.
(4) Any proceedings concerning imposing of such fines shall be subject to general legislation on administrative proceedings15*.
(5) Fines imposed as under Par. 1 represent income of the Fund. Such fines shall be exacted by the Ministry in keeping with legislation on administration of tax and fees .
PART II
Amendment to Act No. 455/1991 Sb., on Business (Business Act), as amended by subsequent legislation
Section 11
Act No. 455/1991 Sb., on Businesses (Business Act), as amended by Act No. 231/1992 Sb., Act No. 591/1992 Sb., and Act No. 600/1992 Sb., shall be amended as follows:
1. In Footnote 1 to Section 3, Par. 1, a), delete “Section 1, Paragraph 1, of Decree of the President of the Republic No. 50/1945 Sb., on Measures Concerning the Film Industry”.
2. In Section 3, Paragraph 1, c), 9, delete “film and other audio-visual”.
PART III
Amendment to Act No. 241/1992 Sb., of CNR, on State Fund of the Czech Republic to Assist and Promote Czech Cinematography
Section 12
Act No. 241/1992 Sb., of CNR, on State Fund of the Czech Republic to Assist and Promote Czech Cinematography, shall be amended as follows:
1. In Section 7, after sub-paragraph 1) new sub-paragraph m) shall be inserted, which – including Footnote 3a – shall read:
“m) revenue ensuing from use of works of cinematography art, in the case of which the Fund executes the copyright of the producer3)F, which such Fund acquired based on special legislation33*,
2. In Section 8, Paragraph 2, the second sentence shall read: “Such accounting shall be done by the organiser in a form issued by the Fund Administrator.”
3. In Section 8, new Paragraphs 3, 4, and 5 shall be inserted after Paragraph 2, which – including Footnote – shall read:
(3) Organisers of public demonstrations of works of cinematography art where admission fee is paid shall be obliged to keep special records on dates of such demonstrations, as well as amounts of surcharge collected, total amount of surcharge collected over the appropriate quarter and the date of its payment to the Fund.
(4) Any surcharge as under Par. 1, unpaid in time as under Par. 2, shall be exacted by the Fund Administrator in keeping with legislation on administration of taxes and fees3b*.
(5) Authorised officials of the Fund Administrator shall be obliged to keep confidential any facts they have learned as part of execution of such activity as under Par. 4, or in connection therewith. Such obligation shall survive their authorization.
The existing Paragraph 3 shall become Paragraph 6.
4. New Section 8a shall be inserted after Section 8 which – including Footnote 3c) – shall read:
“Section 8a
(1) The Fund Administrator may impose a fine of up to Kc50,000 on organisers of public demonstrations of works of cinematography art where admission fee is paid, for breaching their obligations as under Section 8, Par. 2 and 3.
(2) When establishing the amount of such fine the Fund Administrator shall take into consideration dangerousness and consequences of such breach; in case of physical persons, also the amount of guilt on the part of such person shall be considered.
(3) Any fine may be imposed not later than within one year following such breach of obligation is discovered by the Fund Administrator, and not later than within three years following such breach.
(4) Any proceedings concerning imposing of such fines shall be subject to general legislation on administrative proceedings *.
(5) Fines imposed as under Par. 1 represent income of the Fund. Such fines shall be exacted by the Fund Administrator in keeping with legislation on administration of tax and fees3b*.
PART IV
Interim and Final Provisions
Section 13
(1) Commercial use of Czech works of cinematography art, produced between 28th of August 1945 and 31st of December 1990 , whose protection of property copyright expired on or after the date of force of the present Act , may be possible only on the basis of their original carriers for which the right to management belong to the Archives, or with a consent in writing thereof. This provision shall not affect the rights of authors of individual segments of audio-visual works.
(2) Any profit generated in connection with demonstrating such works, after deduction of expenses ensuing from obligations imposed by the present Act, shall be surrendered by the Archives to the Fund.
Section 14
State organisations “Film Studios Barrandov – Copyright” and “Film Studios Zlin – Copyright” which execute copyrights of makers of works of cinematography art , shall merge, on the date of force of the present Act, with the Fund; the Fund as their legal successor shall assume their rights and obligations from property and other relations, including rights and obligations in the sphere of intellectual property. This provision shall not affect the right to management belonging to the Archives in respect to all original carriers from which such rights and obligations ensue.
Section 15
Section 1, Section 3, Par. 2 and Section 4 of Decree of the President of the Republic No. 50/1945 Sb., on Measures Concerning the Film Industry, shall be abolished.
Section 16
The present Act shall come into force on the date of enactment.
Uhde, in his own hand Havel, in his own hand Klaus, in his own hand
14* Act No.483/1991 Sb., of CNR, as amended by Act No.36/1993 Sb., of CNR.
15) Act No. 71/1967 Sb., on Administrative Proceedings (Administrative Statutes).
