VII. Legal Provisions»

SELECTED LEGAL PROVISIONS CONCERNING CINEMATOGRAPHY IN THE COLLECTION OF LAWS

Note: This chapter feature the entire version of Act no. 249 on some terms and conditions for the production, dissemination and archiving of audiovisual works, on changes and amendments of several laws, and other legal regulations, as amended and we draw attention to Act 109 from 12 April 2007 and Act 304 from 1 November 2007.

Act no. 109/207

# that changes Act No. 40 /1995007 Coll., on advertisement regulation and on a change and addition to Act no. 468/1991 Coll., on radio and television broadcast operation, as amended, and Act no. 25/2006 Coll., which changes Act no. 40/1995 Coll., on advertisement regulation and on a change and addition to Act no. 468/1991 Coll., on radio and television broadcast operation, as amended, as amended, and Act no. 132/2003 Coll., which changes Act no. 40/1995 Coll., on advertisement regulation and on a change and addition to Act no. 468/1991 Coll., on radio and television broadcast operation, as amended.

# From: 12. 4. 2007

Valid from: 1. 9. 2007

Act no. 304/2007

# that changes some laws in relation with the completion of the transition from analog television broadcasting to terrestrial digital television broadcasting.

# From: 1. 11. 2007

Valid from: 1. 12. 2007

249

ACT

of 25 April 2006

that changes Act no. 273/1993 Coll., on some terms and conditions for the production, dissemination and archiving of audiovisual works, on changes and amendments of several laws, and other legal regulations, as amended

The Parliament has adopted the following Act of the Czech Republic:

Article I

Act no. 273/1993 Coll., on some terms and conditions for the production, dissemination and archiving of audiovisual works, on changes and amendments of several laws, and other legal regulations, as amended by Act no. 40/1995 Coll., Act no. 121/2000 Coll., Act no. 132/2000 Coll. and Act no. 499/2004 Coll., is changed as follows:

1. The wording of section 1 including the heading and notes under line no. 1, 1a, 2, 3 and 3a shall be as follows:

Section 1

Basic terms

For the purpose of this Act, the following definitions shall apply:

a) producer of an audiovisual work1) (hereinafter "the producer") – the legal entity or individual upon whose impetus or under whose responsibility the recording of the audiovisual work was first carried out and whose right to the audiovisual work are exercised pursuant to the special legal regulation 1a),

b) Czech audiovisual work – an audiovisual work whose producer has or had at the time of its release2) a registered office or permanent residency address in the Czech Republic; an audiovisual work is also considered to be a Czech audiovisual work if its producer, who has or had at the time of its release2) a registered office or permanent residency address in the Czech Republic, took part in at least 20% of the total production costs and if this work was also created with Czech creators or technical participation that corresponds in its extent to at least 20% of the share of the overall production costs (hereinafter referred to as the "co-producer"),

c) audiovisual presentation – a public presentation of an audiovisual work using technical equipment,

d) distributor of an audiovisual work (hereinafter referred to as "distributor") – the legal entity or individual who ensures in an authorised manner and for an agreed price3) the distribution of an audiovisual work to subjects given under letters e) through g), in the extent of the contractually acquired rights from the producer for the use of the audiovisual work pursuant to the special legal regulation,

e) organizer of an audiovisual presentation (hereinafter referred to as "organizer") – a legal entity or individual who, for an agreed price3), publically presents an audiovisual using technical equipment,

f) operator of a sales point of audiovisual works (hereinafter referred to as "sales point operator" – a legal entity or individual that sells copies of audiovisual works to the public,

g) operator of a rental point for audiovisual works (hereinafter referred to as "rental point operator") – a legal entity or individual that lends for an agreed price3) copies of audiovisual works to the public,

h) enterpriser in the audiovisual field is – an entity described in letters a), d) and e), that conducts business in the audiovisual field on the basis of a business license or on the basis of a special legal regulation3a),

i) duplicate copy – a duplication of an audiovisual work in the form of a positive copy designed to secure the original negative,

j) sample undamaged copy – a duplicate of an audiovisual work that is balanced and undamaged,

k) closed captions in Czech, which is synchronised with the soundtrack and captures or identifies both speech and other sounds that describes situations for the hearing-impaired and allows for orientation in the events.

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1) Section 62 of Act no. 121/2000 Coll., on copyright, on copyright-related rights and on a change in some laws (Copyright Law).

1a) the Copyright Law.

2) Section 4 of the Copyright Law.

3) Section 2 of Act no. 526/1990 Coll., on prices.

3a) the Trades Licensing Act.

Act No. 483/1991 Coll., on Czech Television, as amended.

2. Following section 1 the new section 1a is inserted including the notes under line no. 4 as follows:

Section 1a

The Ministry of Culture (hereinafter “the Ministry”) shall keep records of entrepreneurs in the audiovisual field, records of Czech audiovisual works and records of non- Czech audiovisual works. The processing of personal information is governed by special regulation 4).

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4) Act no. 101/2000 Coll., on the protection of personal information and on a change in other laws, as amended

3. The wording of section 2 including the heading shall be as follows:

Section 2

Records

Anyone has the right to review records kept by the Ministry pursuant to section 1a and to acquire extracts or copies of them.

The hitherto notes under line no. 4 and 5 are annulled.

4. Following section 2 the new section 2a and 2b is inserted including the notes under line no. 5, 6, 7 and 8 as follows:

Section 2a

(1) The relevant Business Licence Authority shall send to the Ministry for the purpose of recording entrepreneurs in the audiovisual field a copy of the business license, its changes, interruption and suspension of the business license, decision on the nullification of a business license and decision that business license authorisation was not made through notification 5).

(2) The Business License Authority shall perform the obligation pursuant to paragraph 1 within 30 days from the issuance of a business license, its change or from the day of the decision's legal effect.

(3) The Ministry shall record entrepreneurs in the audiovisual field within 15 days of the delivery of their data pursuant to paragraph 1.

Section 2b

(1) A producer of a Czech audiovisual work is obliged within 10 days before the date of release 2) of this work in the Czech Republic to send the Ministry a records entry of this audiovisual work.

(2) A distributor of a Czech audiovisual work is obliged within 10 days before the date of release 2) of this work in the Czech Republic to send the Ministry a records entry of an audiovisual work that is not a Czech audiovisual work.

(3) A records entry of a Czech audiovisual work and a records entry of an audiovisual work that is not a Czech audiovisual work must contain

a) name of audiovisual work,

b) name, or names as the case may be, and surname, or pseudonym of the author of the audiovisual work and authors of works that are of audiovisual use6), if they are known and if the authors did not express the will to release the work without giving a name7),

c) names and surnames, and or pseudonyms of the executive artists8),

d) company name, registered office or permanent residency address and place of producer's business activities as the case may be, if it is entered into the Commercial Register or its name or names and surname, registered address or the permanent residency address and place of business activities, if it is not entered in the Commercial Register,

e) year of making the initial recording of the audiovisual work,

f) names and surnames or company name or names of individuals participating in the production of the audiovisual work, if such identification is usual,

g) content characteristic of the audiovisual work,

h) the age requirement for access to an audiovisual work (hereinafter referred to as the "age requirement") determined by the producer of a Czech audiovisual work or distributor including a brief statement justifying the age requirement,

i) information on the language version of the audiovisual work,

j) duration of audiovisual work in minutes,

k) technical parameters of audiovisual work.

(4) The records entry of a Czech audiovisual work must also contain the specification in percentage of the share of the individual producers in the total production costs and the share in the creative or technical participation.

(5) The Ministry shall enter the Czech audiovisual work to the records of the Czech audiovisual works and non-Czech audiovisual works to the records of non-Czech audiovisual works within 15 days from the day of delivery of the records entry of the Czech audiovisual work or records entry of a non-Czech audiovisual work.

(6) If the records entry of a Czech audiovisual work does not contain complete data pursuant to paragraphs 3 and 4, the Ministry shall formally notify the producer of the Czech audiovisual work to complete the records entry within 15 days from the delivery of the notification.

(7) If the records entry of a Czech audiovisual work does not contain complete data pursuant to paragraphs 3, the Ministry shall formally notify the distributor to complete the records entry within 15 days from the delivery of the notification.

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5) the Trades Licensing Act.

6) Section 64 of the Copyright Law.

7) Section 7 of the Copyright Law.

8) Section 67 of the Copyright Law.

5. The wording of section 3 including the heading shall be as follows:

Section 3

Identification of Audiovisual Works

(1) The producer of a Czech audiovisual work, or co-producer, is obliged to ensure that the following are attached to the initial recording of the audiovisual work:

a) name of audiovisual work,

b) name, or names as the case may be, and surname, or pseudonym of the author of the audiovisual work and authors of works of audiovisual use6), if they are known and the authors did not express the will to release the work without giving a name7),

c) names and surnames, and or pseudonyms of the executive artists8),

d) company name, registered office or permanent residency address and place of producer's business activities as the case may be, if it is entered into the Commercial Register or its name or names and surname, registered address or the permanent residency address and place of business activities, if it is not entered in the Commercial Register,

e) year of making the initial recording of the audiovisual work,

f) names and surnames or company name of individual participating in the production of the audiovisual work, if such identification is usual.

(2) Distributor is obliged to ensure that the data on duplications of an audiovisual work are given pursuant to paragraph 1.

(3) Distributor is obliged to ensure that the following is given on the covers or cover sheet of duplications of an audiovisual work:

a) name of audiovisual work,

b) content characteristic of the audiovisual work,

c) the age requirement for access determined by the producer or distributor including a brief statements justifying the access restriction,

d) company name, registered office or permanent residency address and place of producer's business activities as the case may be, if it is entered into the Commercial Register or its name or names and surname, registered address or the permanent residency address and place of business activities, if it is not entered in the Commercial Register,

e) company name, registered office or permanent residency address and place of distributor's business activities as the case may be, if it is entered into the Commercial Register or its name or names and surname, registered address or the permanent residency address and place of business activities, if it is not entered in the Commercial Register,

f) names or names and surname or pseudonym of the author of the audiovisual work,

g) year of making the initial recording of the audiovisual work,

h) information on the language version of the audiovisual work,

i) duration of audiovisual work in minutes,

j) technical parameters of the audiovisual work.

6. Following section 3 the new section 3a is inserted including the heading as follows:

Section 3a

Closed captions

(1) The distributor of a Czech audiovisual work made available via duplications with the option of setting subtitles is obliged to provide these duplications with closed captions for the hearing-impaired. This does not apply for Czech audiovisual works that do not contain speech.

(2) The distributor of a Czech audiovisual work made available via duplications with the option of setting subtitles is obliged to label these duplications, their covers and cover sheets with "Closed captions".

7. Sections 4 and 5 including the headings shall be as follows:

Section 4

Age requirement

(1) An audiovisual works whose content may threaten the physical, spiritual or moral development of minors must be identified before its release2) as unsuitable for viewers younger than 15 or 18 years of age.

(2) The age requirement for access to a Czech audiovisual work including justification for the access restriction must be determined by its producer, or co-producer as the case may be. The producer is obliged to inform the distributor of the access restriction of a Czech audiovisual work including a brief statement justifying the access restriction.

(3) The age requirement for access to a non-Czech audiovisual work including justification for the access restriction must be determined by its distributor.

(4) An organizer is obliged to ensure the publishing by the producer or distributor of the designated age requirement in connection with the notification of an audiovisual presentation and in holding the audiovisual presentation to ensure the exclusion of individuals to whom such an age restriction for access to the audiovisual work stipulated pursuant to paragraphs 2 or 3 applies.

(5) An operator of a sales point or rental point may not sell or lend copies of an audiovisual work with an age restriction to individuals younger than permitted by the age restriction for an audiovisual work stipulated pursuant to paragraph 2 or 3.

Section 5

Advertising at an audiovisual presentation

The organizer is obliged to ensure that an advertisement shown to the public during an audiovisual presentation is separated from the other content of the audiovisual presentation and indicated as an advertisement.

The hitherto notes under line no. 6 and 7 are annulled.

8. In section 6 paragraph 1 following the word "ministry" the words "as a state allowance organization" are inserted8a).

The note under line no. 8a reads:

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8a) Section 53 of Act 218/2000 Coll. on budget rules and on the change in some related laws (budget rules), as amended.

Section 54 of Act no. 219/2000 Coll., on the assets of the Czech Republic and its acts in legal relations, as amended.

9. In section 6 paragraphs 2 and 3 including the notes under line no. 10, 10a and 10b read as follows:

(2) The Archive shall create on the basis of agreements with individuals that execute the rights to an audiovisual work pursuant to the special legal regulations, a special fund of select audiovisual works that it provides for no profit for temporary use to civic associations10), whose main mission pursuant to their articles of association is to make accessible audiovisual works, and also to secondary, post-secondary professional film schools10a) and tertiary film schools10b). The archive is entitled to request compensation in connection with costs purposely incurred.

(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 Board of the State Fund of the Czech Republic for the Support and Development of Czech Cinematography (hereinafter referred to as the "Fund")11) on the basis of the Archive's proposals.

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10) Act No.83/1990 Sb., on Association, as amended.

10a) Act no. 561/2004 Coll., on preschool, basic, secondary, higher technical and other education (the education law), as amended.

10b) Act No. 111/1998 Coll. on tertiary schools and on the change and supplementation of other laws (tertiary schools), as amended.

10. In section 7, paragraph 1 reads:

(1) The producer of a Czech audiovisual work is obliged to offer in writing to the Archive the sale of two new undamaged copies of the Czech audiovisual work in the quality of a first recording and literature and promotional materials that go with this work within 60 days of its release2). In the event that the Archive demonstrates an interest, the producer of the Czech audiovisual work is obliged to offer for sale one duplicated copy and one copy of the Czech audiovisual work and the literature and promotional material that go with the work.

The hitherto notes under line no. 12 are annulled.

11. In section 7 paragraph 3 including the notes under line no. 13 read as follows:

(3) The producer of a Czech audio-visual work created with the help of a contribution made by the Fund13) shall be obliged to submit to the Archives free of charge a sample undamaged copy of that Czech audiovisual work or a copy in the quality of a first recording for the purpose of archiving, within 60 days following its first public presentation.2).

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13) Section 9 par. 1of Act no. 241/1992 Coll.

12. In section 7 paragraph 5 including the notes under line no. 14 are annulled.

13. Following section 7 the new section 7a is inserted including the heading as follows:

Section 7a

Notification obligation of Archive

(1) The archive is obliged without undue delay to notify in writing the relevant regional authority of individuals which it learns breached the obligation pursuant to section 7, paragraphs 1 and 3. The notification must give the name of the individual, when and how the obligation was breached.

(2) Upon notification the Archive is obliged to submit to a regional authority the necessary explanation or expert explanation and to hand over written documentation that concerns the notified cases of breach of obligation.

14. In section 8 the words "audiovisual works" are deleted.

15. Sections 9, 9a, 10 and 10a including the notes under line no. 15 and 16 read as follows:

Section 9

Supervision

Supervision of the observance of obligation pursuant to this Act, with the exception of the obligations pursuant to section 4 of paragraphs 4 and 5 and section 5 is performed as part of the responsibilities delegated to regional authority. In order to perform such supervision, regional officials shall be entitled to enter buildings, facilities and operations of persons identified in section 1, letter a), d) through g) 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 such supervision to be carried out.

Section 9a

Supervision of the observance of obligation pursuant to section 4 of paragraphs 4 and 5 and section 5 is performed as part of the responsibilities delegated to municipal authority. In order to perform such supervision, municipal officials shall be entitled to enter buildings, facilities and operations of persons identified in Sec. 1 e) through g) 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 such supervision to be carried out.

Section 10

Administrative torts of legal entities

(1) The producer of a Czech audiovisual work, or co-producer, commits an administrative tort if it

a) does not send the Ministry a records entry of a Czech audiovisual work pursuant to section 2b, paragraph 1 or does not fill out a records entry of a Czech audiovisual work pursuant to section 2b, paragraph 6,

b) does not ensure that the data concerning the initial recording of an audiovisual work are not given pursuant to section 3 paragraph 1,

c) does not designate an age requirement for access to a Czech audiovisual work including justification for the access restriction, or does not inform the distributor of it (section 4, paragraph 2),

d) does not perform its obligation to offer the Archive a copy pursuant to section 7, paragraph 1, or

e) does not perform its obligation to the Archive pursuant to section 7, paragraph 3.

(2) Distributer commits and administrative tort if it

a) does not send the Ministry a records entry of a non-Czech audiovisual work pursuant to section 2b, paragraph 2 or does not fill out a records entry of a non-Czech audiovisual work pursuant to section 2b, paragraph 7,

b) does not ensure the publishing of information pursuant to section 3 paragraph 2 and 3,

c) does not designate an age requirement for access to a Czech audiovisual work including justification for the access restriction (section 4, paragraph 3),

d) in the case of a Czech audiovisual work made available via duplications with the option of setting subtitles does not provide these duplications with closed captions,

e) in the case of a Czech audiovisual work made available via duplications with the option of setting subtitles does not label such copies, their cover or cover sheet with the words "closed captions".

(3) The Organizer commits an administrative tort if it

a) does not ensure the publishing of an age requirement designated by the producer or distributor, does not ensure the exclusion of minors, to whom the access restriction for an audiovisual work applies (section 4, paragraph 4), or.

b) does not ensure the indication or separation of a publically shown advertisement pursuant to section 5.

(4) An operator of a sales point or rental point commits an administrative tort if its sells or lends copies of an audiovisual work with an age restriction to individuals younger than permitted by the age restriction for an audiovisual work (section 4, paragraph 5).

(5) If an administrative tort is committed pursuant to paragraph 1, letters a) through c) and paragraph 2, letters a) through d) a fine of up to CZK 100,000 can be imposed; for an administrative tort pursuant to paragraph 1 letter d) and e) a fine of up to CZK 50,000 can be imposed; for an administrative tort pursuant to paragraphs 2 letter e), 3 and 4 a fine of CZK 10,000 can be imposed.

Section 10a

Joint provisions regarding administrative torts

(1) A legal entity is not responsible for a legal tort if it proves that it made every reasonable effort to prevent the breach of its legal obligations.

(2) In determining the amount of the fine imposed on a legal entity, the gravity of the administrative tort is taken into consideration, and especially the manner in which it was committed, its consequences and the circumstances in which it was committed.

(3) A legal entity's responsibility for an administrative tort is annulled if the administrative body does not commence proceedings concerning the tort within 1 year of the day in which it learned of it and no later than 3 years from the day in which it was committed.

(4) First-degree administrative torts pursuant to section 10 paragraph 1 and 2 are negotiated as part of the responsibilities delegated to the regional authority of the region in which the producer, co-producer or distributor have its registered office, residency or place of business.

(5) First-degree administrative torts pursuant to section 10 paragraphs 3 and 4 are negotiated as part of the responsibilities delegated to the municipal authority of the municipality in which the organizer, sales point operator or rental point operator have its registered office, residency or place of business.

(6) The provisions of this act on the responsibility and recourse of a legal entity govern the responsibility for negotiations that occurred during an individual's business activity15) or in direct relation with it.

(7) The body that imposes a fine shall collect and settle it. The income from fines is a budgetary income which goes toward covering the expenses of activities of the body that imposed the fine.

(8) In collecting and settling fines matters shall proceed pursuant to the special legal regulation 16).

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15) Section 2 par. 2 of the Commercial Code.

16) Act No. 337/1992 Sb., on Administration of Taxes and Fees, as amended.

16. Following section 10a the new sections 10b and 10c is inserted and reads as follows:

Section 10b

The proceedings and decision-making taken pursuant hereto is governed by the rules of administrative procedure unless otherwise stipulated herein.

Section 10c

This act does not concern audiovisual works designated for release via television broadcasting or release on the Internet.

Article II

Temporary provisions

1. A fine is imposed pursuant to the legal regulations applicable before the effect of this act for a breach of obligations that occurred before this act went into effect.

2. Proceedings on the imposition of a fine, commenced prior to the effective date hereof, shall be completed pursuant to the legal regulations applicable before the effective date.

Article III

Authorisation to promulgate the full version of the law

The prime minister authorises that the Act no. 273/1993 Coll., on some terms and conditions for the production, dissemination and archiving of audiovisual works, on changes and amendments of several laws, and other legal regulations, as amended, is promulgated in the Collection of Laws.

Article IV

Effect

This present act shall come into force on the date of January 1, 2007.

Kasal in his own hand

Klaus in his own hand

Paroubek in his own hand