The Case over Public Performance of Phonograms in Chain’s Restaurants

Ukrainian League of Copyright and Related Rights (ULCRR) filed a lawsuit against McDonald's, seeking remuneration for public performance of phonograms in the chain’s restaurants.

ULCRR is the only accredited collective management organization (CMO) authorized to collect remuneration for this type of use of phonograms in Ukraine.

However, McDonald's entered into remuneration agreements directly with the holders of related rights to phonograms and performances. The rights holders withdrew their rights from the management of ULCRR, which is why the latter had no right to collect remuneration for their phonograms.

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The courts of two instances dismissed the ULCRR’s lawsuit, and the Supreme Court refused to commence cassation proceeding.

The courts found that ULCRR had no right to file such a lawsuit. The law stipulates that in order to apply to a court for the protection of property rights ULCRR must obtain a power of attorney from the rights holders.

The assessment of the right to file a lawsuit is essential for this category of disputes, and there are currently several dozens of them.