NGO UACRR’s millions of debts are wanted to be fallen on the author’s shoulders

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Members of the commission for accreditation
of collective management organizations:
ROMANISHYN Oleksandr Viktorovych
KOTUSHENKO Alina Myroslavivna
PETASYUK Dmytro Petrovych
LITVISHCHENKO Anna Oleksandrivna
SYDORENKO Dmytro Petrovych
HOLOVCHENKO Glib Oleksandrovych
BEREZHNY Ignat Volodymyrovych
MASLIKOV Denys Oleksandrovych
and BUGAIENKO Iryna Viktorivna
December 14, 2020

PUBLIC APPEAL

on observance of copyright rights during accreditation of collective management
organizations in some areas of expanded collective management

Ladies and Gentlemen!

It is now your responsibility to decide the fate of tens of thousands of Ukrainian authors in the
coming years!
You have been invited to select a single organization for the field of public performance and a
single organization for the field of public announcement of musical non-dramatic works with and without
text, including those works that are included in audiovisual works.
Soon one or two organizations will be called upon to manage millions of royalties.
The Law of Ukraine № 2415 defines the criteria of representativeness, ie only the presence of an
arithmetic majority of agreements, according to legislators, is sufficient for accreditation.
We, Ukrainian authors and creators, whose rights will be managed, ask you, dear members of the
commission, to pay attention not only to the number of contracts, but also to the quality of organizations
applying for the role of accredited.
By our appeal, we express our surprise and indignation at the fact that the head of the State
Organization “Ukrainian Agency of Copyright and Related Rights” (SO UACRR) does not toughly
defend the interests of the authors – members of the SO UACRR. That is why we decided to contact the
members of the accreditation commission directly so that our interests and rights are not forgotten.
Among the organizations that have submitted an application to the Ministry of Economy, the
greatest concern is the Non-governmental organization “Ukrainian Agency of Copyright and Related
Rights” (NGO UACRR).
That is why we would like to dwell on the activities of this organization and ask you, dear
members of the commission, to join this process.
1. The activities of NGO UACRR begins in 2018 with the renaming of another non-governmental
organization and a complete change of leadership. The Authors’ Council and executive bodies were
completely formed from the members state organization “Ukrainian Agency of Copyright and Related

Rights.” This was very unexpected for thousands of Ukrainian authors who entrusted their copyrights to
SO UACRR, and at that moment were actually robbed. The international community two years ago could
not understand that the managers of the State Organization were simply deceiving them, saying that the
most powerful State Organization in Ukraine had already been liquidated and was not working. They
deceived everyone! Nobody warned us that we would be deprived of support abroad, that now we cannot
hope for cooperation with many international organizations, that the two-year chaos that began after this
“renaming” will deprive us of even small but stable royalties payments. At a press conference in
Ukrinform on December 10, 2020, the new head of the NGO UACRR again talks about their future
renaming (this will be the second time), should we expect many years of chaos again?
The NGO UACRR team talks about a new management format? Let’s talk about the current state
of their affairs further, but let’s emphasize once again that they started with a big scam and deception of
thousands of Ukrainian authors!
2. Violation of the requirements of Law No. 2415 on the establishment of a collective
management organization NGO UACRR
According to Law No. 2415, a collective management organization must be founded exclusively
by rightholders. The members of the “deal” to seize other people’s rights and money understood that
creating a new organization, obtaining the status of a non-profit public association, obtaining the status of
a collective management organization is a rather lengthy process; and perhaps they will not have time to
realize their “criminal” (perhaps not according to the law, but only in essence and according to the norms
of social values ​​and morality) intention. Therefore, it was decided to agree with the leaders of the already
registered collective management organization so that they cede their organization and leave the
leadership.
Probably, all this was not done for free, but there is no public information. The only caveat is that
this organization was created before the adoption of Law No. 2415 by three individuals – entrepreneurs
who have never personally been neither authors nor creators.
Of course, you can draw a flower on a piece of paper, call yourself an artist, sign an agreement
retroactively and become the whole copyright holder. But again, in this letter we are trying to draw
attention not only to the letters of the Law, but more to the moral component of the actions of the persons
who are now running the NGO UACRR.
If they started their activities with deception and manipulation, they can repeat it over and over
again, since the moral values ​​of the leaders who are called upon to manage the rights of tens of thousands
of authors are no longer involved.
3. On the website of NGO UACRR there immediately appear boastful statements that this is “the
first author’s organization in history created by the authors” or “in 2018, at a meeting of authors of the
state organization SO UACRR, the creators decided to create a world-class organization”.
But all these words – unfortunately, are a lie: NGO UACRR is not the first author organization, by
2018 in Ukraine there were several exclusively author organizations that had the status of collective
management organizations. The statement that the creation (or renaming !?) of NGO UACRR took place
at the general meeting of the authors of the SO UACRR is also a lie. We, as the authors of the SO
UACRR inform you that no general meetings of authors on the creation of a new organization in 2018
happened, there are no protocols confirming the words of NGO UACRR. So, in February 2018, there
was a meeting of the Council of a closed circle of authors (not general meeting), who among themselves
decided to use their full power in the SO UACRR.
However, tens of thousands of rank-and-file authors and members of the SO UACRR did not
even know that they had allegedly made a decision to create another public organization.
4. Immediately after the so-called creation of NGO UACRR, the former head of the SO UACRR
(as we remember, the entire top leadership in 2018 held positions both in NGO UACRR and at the same

time in SO UACRR) Dmytro Kostyuk lists already distributed and ready for sending to foreign authors
funds in a huge amount: 10 403 291.43 UAH. As can be seen from the report of NGO UACRR for 2018,
these funds were never sent to their destination for various far-fetched reasons.
5. As can be understood from the letter of the Russian Authors’ Society, which was published on
the website of the SO UACRR (but in a strange way quickly disappeared from the news), Dmytro
Kostyuk simply deceived the management of RAS, forcing to re-sign the contract in favor of the Non-
governmental organization UACRR. A copy of the letter is attached.
6. About the membership in CISAC.
It is clear that in the same way the top of the SO (at the same time NGO) UACRR decided to
carry out another scam, if we speak in chess terminology: “castling of the SO UACRR on NGO UACRR
in the International Confederation of Societies of Authors and Composers CISAC.
The state organization UACRR suddenly decided to voluntarily (!!!) withdraw from the
permanent members of CISAC, thereby disconnecting its own authors from the international base of
agreements and support of the rights of Ukrainian authors at the global level.
NGO UACRR makes itself a seal with the inscription “1926” (imitating the succession from the
State Organization) and becomes a provisional member, that is, a previous or temporary member of
CISAC. Such an organization cannot today be a member of the governing bodies of CISAC, does not
have the right to vote during meetings of the General Assembly of CISAC (unlike NGO UACRR – SO
UACRR took the place of a full member of CISAC and had the opportunity to more adequately represent
the interests of Ukrainian authors).
Despite this, the management of the NGO UACRR decided to widely demonstrate at least some
kind of connection with CISAC.
Few people in Ukraine understand the difference between a provisional member and a full-
fledged member of CISAC, which NGO UACRR skillfully uses. NGO UACRR even uses the official
CISAC logo in its Statute and in official correspondence.
By the way, not a single CISAC full member uses the CISAC logo in its own official
documentation, as does the leadership of the NGO UACRR, because they already have weight in their
own national authors’ society, they have merits and names.
This reminds us of the bragging boy who was admitted by the adults to an important club, but
told to sit on a bench for now and not touch anything. So our boy (NGO UACRR) is “bursting with pride
from within” that he was able to deceive the CISAC leadership and remain at least a temporary, but a
member. Or as a trainee of a foreman, secretly from his supervisor, brags about trying on the trademark
of the master. Why secretly? Because it is doubtful whether NGO UACRR has an official permission
from CISAC to use its logo in official documents and envelopes of NGO UACRR.
7. Further, the new leadership of the NGO UACRR headed by Dmytro Kostyuk, and then Valerii
Kharchyshyn began to manage, allegedly “in a new way.”
The story of deception has already taken place. It’s time to take a look at the history of
management.
The team of NGO UACRR, as evidenced by the information from the official site, consists only
of people who have already betrayed the interests of thousands of authors (members of the SO UACRR)
when they fled with “looted property (contracts) and money.” For almost 3 years, we have not seen
information about the structure of the regional infrastructure, which can help in the future to effectively
carry out collective management, to reach every corner of Ukraine.
Of course, you can recruit students by ad, enroll them as your formal representatives. But we, as
the authors of the most powerful collective management organization in the past, understand that it is very
difficult to build a truly effective regional system of CMOs. As we can see, the management of the NGO
UACRR did not do this, but for some reason still wants to receive accreditation on formal grounds.

8. NGO UACRR unreasonable and nontransparent spending of excessive funds for own needs
Even if we disregard the previous stories of deception, praise and misappropriation of other
people’s merits, the attitude of the management of the NGO UACRR to financial policy is very
worrisome. It seems that they respect their actual material security more than the interests of the authors.
So, according to the official report of NGO UACRR for 2018, during the year it received: 21
430 380, 80 UAH and from other CMOs (with the exception of the money from SO UACRR, which
are counted twice in the report): 1,744,559, 47 UAH.
Moreover, the money from the SO UACRR (10 403 291, 43 UAH) should have been paid back in
2018, since the money was collected for previous periods. But, for example, RAS reports that in 2020
they are still waiting for money from the distant past.
But NGO UACRR paid out to the copyright holders in total: 3 370 486, 18 UAH.
That is, out of the amount over 23 million hryvnias, the management of the NGO UACRR was
able to pay off a little more than 3 million hryvnias, forming a huge debt.
It would seem that the situation will improve next year.
Let’s see together: income from rights amounted to: 6 265 695, 07 UAH and received from other
CMOs: 2 066 165, 85 UAH, that is, in total: 8 331 860, 92 UAH.
Paid to other CMOs: 1 473 552, 08 UAH.
The amount of income from rights paid to copyright holders: 4 284 438, 07 UAH.
The funds not paid to the copyright holders amounted to 12 459 395, 96 UAH. Moreover, one of
the reasons is indicated: “payments were delayed by the bank”. That is, there should be problems with
documentation and improper work of the management and accounting department of NGO UACRR so
that banks do not transfer funds.
However, the management of NGO UACRR spent in 2019 a record amount on its own support:
13 070 067, 11 UAH.
Parts 8, 9 of Article 21 of Law No. 2415 establish the maximum size that collective management
organizations can withhold as a management fee.
Taking into account the spent on own support in 2018 2 525 188, 23 UAH we have the following
picture for two years of NGO UACRR activity:

Income from rights for 2 years Paid to copyright holders

Expenses for providing NGO UACRR activities

31 506 801,19 UAH

7 654 924,25 UAH

15 595 255,34 UAH

It is not clear from which funds NGO UACRR plans to cover its own debts to copyright holders,
since simple arithmetic shows that they do not have as much (12.5 million hryvnyas indicated as a debt to
copyright holders) funds.
In addition, NGO UACRR committed a direct violation of the law and withheld on its own
security an amount higher than that provided for by Art. 21 of Law No. 2415.
Taking into account the amount of funds withheld in 2019 in the amount of 13 million UAH,
NGO UACRR must collect and distribute in favor of the copyright holders funds in the amount of at least
65 million UAH, which is not even close to the funds reported in the reports of NGO UACRR.
Dear members of the accreditation commission, how can you be entrusted with the right to
become an accredited organization with such a train of debts and leadership that has neither moral
principles nor respect for the interests of the authors (except for a few close associates acting as heralds of
all the “good” in this organization). NGO UACRR has never been and is not the legal successor of the
State Organization! On the international agreements stolen from the SO UACRR, we see the first seal of
the NGO UACRR with the inscription “1926”, which also shows with what audacity the scam was carried

out, which now completely excludes the use of the concept of “representativeness” in relation to NGO
UACRR.
In the case of accreditation of NGO UACRR millions (it is not yet clear from the reports, it is 12,
16 or 23 million UAH) of debts of this organization to the copyright holders will fall on the shoulders of
the innocent authors of not only Ukraine, but also from the whole world. What is so special about NGO
UACRR today, apart from the insane debts created by their management in two years? Any honest and
transparent CMO with the support of Ukrainian authors and accreditation can sign agreements with
international organizations and become a member of CISAC. These millions have not been paid to the
Ukrainian authors to a large extent, so let the NGO UACRR look for money to pay off their debts not in
our pockets!

ON BEHALF OF THE COMMUNITY OF UKRAINIAN AUTHORS

we ask at the very first meeting of the commission for accreditation of collective management

organizations to make the following decisions:

1. Apply to the Ministry of Economy to organize an unscheduled documentary verification of
compliance by the management of NGO UACRR with the requirements of the Law of Ukraine “On the
effective management of property rights of rightholders in the field of copyright and (or) related rights”,
in particular Article 21, regarding the validity of withholding the management fee and ensuring the
activities of the non-governmental organization “Ukrainian Agency of Copyright and Related Rights”.
2. At the time of the inspection, in order to prevent further plunder of copyright money, make a
decision on the temporary suspension, until the final decision on the inspection materials, for the non-
governmental organization “Ukrainian Agency of Copyright and Related Rights” of the status of
collective management organization.
3. Make a decision to exclude the non-governmental organization “Ukrainian Agency of
Copyright and Related Rights” from the number of organizations applying for accreditation in the areas of
extended collective management: public performance of musical non-dramatic works with and without
text, including works that are included in audiovisual works; public announcement of musical non-
dramatic works with and without text, including works that are included in audiovisual works.
4. Contact the Ministry of Economy with a proposal to create a working group together with
representatives of rightholders and authors to develop mechanisms to prevent the creation of debts of
Ukrainian CMOs to foreign organizations and rightholders, to properly inform the situation in the field of
collective management of Ukraine and develop a strategy for cooperation with foreign copyright societies
and CISAC within the framework of the ongoing accreditation process for collective management
organizations.
DEAR members of the Commission!
We ask you not to formally treat the facts set forth in this appeal, since they concern not only the
interests of tens of thousands of Ukrainian authors, but also the image of Ukraine in the world of
authorship. We would not want Ukraine to become a persona “non grata” in the authors’ community due
to the unprincipled and dishonest behavior of the leaders of one non-governmental organization, who took
advantage of the legacy and the name of the State Organization UACRR.

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