CHAIR OF THE COUNCIL OF MINISTERS

1

Proposal for Law No 245 /XII

Exhibition of Motives

The regime regulating the constitution, organization, operation and tasks of the entities

of collective management of copyright law and related rights and establishes the procedures

and principles to be observed in the exercise of the collective management activity of the said rights,

passed by Law No. 83/2001, of August 3, lacks a review with the aim of the

update, in particular with regard to the principles of simplification and streamlining

administrative, transparency, equity, free competition and free provision of services

cross-border.

This proposed law is justified by the need to conform to the present regime

with the provisions of Directive No 2006 /123/CE, of the European Parliament and of the Council, of

December 12, 2006, concerning services in the internal market, which establishes the

principles and criteria that should be observed by access and exercise regimes

of service activities in the European Union, transposed into the internal legal order by the

Decree-Law No. 92/2010 of July 26.

Additionally, it is considered timely to ensure the implementation of certain

standards that ensure greater transparency, rigor and publicity in the relationship between the

collective management entities, their members and the users of works and benefits

protected legally, at the same time a committee of experts is set up for the

resolution of conflicts and are clarified the duties of all actors who direct or

indirectly are involved in this activity.

CHAIR OF THE COUNCIL OF MINISTERS

2

In the context of the transposition of Directive No 2006 /123/CE, of the European Parliament and of the

Council, of December 12, 2006, evidences the definition of rules of

secondary establishment and the possibility of free provision of services in territory

national of entities of collective management of copyright law and related rights when

find themselves previously established in another Member State of the European Union or of the

European Economic Area, observing a set of rules and principles in the exercise

of their activity which, on the one hand, do not escape the main end of dematerialization and

agilization of procedures and on the other hand side, do not lose sight of the important function and

liability that is associated with the collective management of copyright and rights law

related.

The collective management entities constituted in Portugal and with secondary establishment

in national territory shall be subject to an administrative authorisation regime which if

concretizes in the respect register, justified by the special need for protection of the

holders of rights.

The proposed authorisation model provides for a legal framework capable of guaranteeing the

indispensable safeguard of the public interest of protection of consumers and the

intellectual property.

In relation to the registration of entities with secondary establishment in national territory

it is intended to substantiate the legality of the establishment and activity in the Member State

of origin, as well as the existence of a mandate or other enabling legal title for the

exercise of the collective management of copyright and related rights in territory

national.

CHAIR OF THE COUNCIL OF MINISTERS

3

However, whenever these entities with secondary establishment in territory

national have proven before the competent authority of the Member State of

source the existence of a mandate or other enabling legal title for the exercise of the

collective management of copyright and related rights in that territory, the registration is

effected after a declaration to the competent Portuguese authority, upon proof

of the veracity of the elements in the same considered.

It is known that, in a near time horizon, there will be a need to transpose the Directive

n. 2014 /26/UE, of the European Parliament and of the Council of February 26, 2014,

on the collective management of copyright and related rights and the granting of licences

multiterritorial rights on musical works for online use in the market

internal. In this way, the legislator will have the opportunity, shortly, to develop

subjects provided for in the future Community harmonisation that at this time are set out

only in generic terms.

It was heard the Specialized Section of Author and Rights Council's Conductive Rights

National of Culture, the CTP-Confederation of Portuguese Tourism, and the APR-Association

Portuguese of Broadcasting.

Thus:

Under the terms of the paragraph d ) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

CHAPTER I

CHAIR OF THE COUNCIL OF MINISTERS

4

General provisions

Article 1.

Object

This Law regulates the entities of collective management of copyright and rights law

related, including to the establishment in national territory and to the free provision of

services of entities previously established in another Member State of the Union

European or the European Economic Area.

Article 2.

Definitions

For the purposes of this Law, it is understood by:

a) "Agreement of representation", an agreement by which a collective management entity

mandata another to represent it as to the management of rights of the repertoire of the

first;

b) "Management Commission", the amount due to a collective management entity by the

its author rights management services or related rights;

c) "Representative entities of users", the associations, federations or

confederations, legally constituted, that have per object the representation of

companies, entrepreneurs or professionals;

d) "General Licences", the licences or permits granted by management entities

collective for generic, non-discriminated and unspecified use of the

repertoire handed over to its management for public communication, including the execution

public, the diffusion and relay by any means, as well as licensing

of works extracted from newspapers or other periodical publications for their

reproduction, in whole or in part, distribution, provision or file;

e) "Revenue from rights", the amounts collected by a collective management entity

CHAIR OF THE COUNCIL OF MINISTERS

5

on behalf of holders of exclusive rights, of rights to a remuneration or

countervailing duties;

f) "Repertory", the intellectual works and artistic installments, phonograms, videogram-

but and protected emissions that are the object of rights managed by an entity of

collective management;

g) "General Pricing", the tariffs practiced by the collective management entities as

counterpart to the issuance of a general licence;

h) "Holder of rights", the holder of a right of author or conex law, of a

right to equitable or right compensation, resulting from agreement for the

exploitation of rights, to a share of their revenue coming from, not

including the entities of collective management;

i) "User", a person practicing acts subject to authorization, remuneration or

compensation of the right holders.

Article 3.

Object of the management entities

1-Collective management entities have per object:

a) The management of the patrimonial rights entrusted to them;

b) The activities of a social and cultural nature that collectively benefit the entitlements-

rights res by them represented, as well as advocacy, promotion and dissemination

of the right of author and related rights.

2-Collective management entities, when their statutes thus preview, may

exercise and defend the moral rights of their represented as long as these o

request.

Article 4.

CHAIR OF THE COUNCIL OF MINISTERS

6

Autonomy of collective management entities

The collective management entities freely choose the object of their activity and

proceed autonomously to their action, in respect of the statutes and the law.

CHAPTER II

Collective management entities

SECTION I

Constitution and exercise of activity

Article 5.

Constitution

1-A The creation of collective management entities is of the free enterprise of the holders of rights of

author and of related rights.

2-Collective management entities are compulsorily constituted as associations or

private cooperatives with legal personality and non-profit purposes, with a minimum

of 10 associates or cooperators.

Article 6.

Statutes

1-Collective management entities are governed by the respective elaborate statutes of

agreement with the applicable legal provisions.

2-Of the statutes of the collective management entities must appear compulsorily:

a) The denomination, which cannot confuse itself with the denomination of entities already

existing;

CHAIR OF THE COUNCIL OF MINISTERS

7

b) The seat and the territorial scope;

c) The object;

d) The classes of rights holders understood in the framework of collective management;

e) The conditions for the acquisition and loss of the quality of associate or cooperator;

f) The rights of the associates or cooperators and the voting arrangements;

g) The duties of the associates or cooperators and their disciplinary regime;

h) The denomination, composition and competence of the social organs;

i) The form of designation of members of the social bodies;

j) The heritage and economic and financial resources;

l) The principles and rules of the system of apportionment and distribution of revenue from

rights;

m) The limitation period for the right of the holders to claim the payment of the

amounts by them effectively charged;

n) The regime of control of economic and financial management;

o) The conditions of extinction and the fate of heritage.

Article 7.

Secondary establishment

1-Can establish themselves in national territory entities of collective management of the right of

author and related rights lawfully established in another Member State of the Union

European or the European Economic Area in the general terms of law, even if

do not comply with the requirement referred to in Article 5 (2).

CHAIR OF THE COUNCIL OF MINISTERS

8

2-The entities referred to in the preceding paragraph shall be empowered in the Member State

of origin to carry out the activity referred to in paragraph a ) of Article 3 (1), subjecting itself to

a prior process of verification with the Inspectorate-General of Cultural Activities

(IGAC) of the existence of mandates of the right holders for the exercise of management

collective.

3-Unless otherwise specified, the entities referred to in paragraph 1 apply the requirements of

access to activity and its exercise on national territory.

Article 8.

Free provision of services

1-The legally established and qualified collective management entities for the exercise of the

collective management of rights in another Member State of the European Union or Space

European Economic Council may provide on national territory occasional services or

temporary collective management of copyright and related rights, for which if

find mandated in regime of free provision.

2-The collective management entities referred to in the preceding paragraph shall report to the IGAC,

prior to their first provision of services on national territory, which are legally

established in the Member State of origin.

3-A IGAC can draw on the Internal Market Information System (IMI) for

check the veracity of the information provided.

4-To the entities providing collective management services of the copyright and rights

related in free provision, under the terms of this Article, the

provisions of Article 13, paragraph 1, Article 447 and Article 51 para.

Article 9.

CHAIR OF THE COUNCIL OF MINISTERS

9

Legitimacy

The entities of collective management exercise the rights entrusted to their management and may require the

its compliance by third parties, including in the face of administration and in judgement.

Article 10.

Principles

1-A The activity of collective management entities respects the following principles and criteria

of management:

a) Transparency;

b) Democratic organization and management;

c) Participation of the associates or cooperators;

d) Justice in the allocation and distribution of the income collected in the financial year

collective management;

e) Non-discrimination, fairness, reasonableness and proportionality in the fixation of

commissions and fees;

f) Efficient and economic management of available resources;

g) Moderation of administrative costs;

h) Non-discrimination between national and foreign holders;

i) Control of financial management by the adoption of appropriate procedures in the

internal life of the institutions;

j) Pertinent, rigorous, current and accessible information to third parties interested in the

conclusion of contracts;

k) Reciprocity in the establishment of relations with congenic entities based

CHAIR OF THE COUNCIL OF MINISTERS

10

abroad;

l) Statement of reasons for the practiced acts;

m) Swiftness in the payment of the amounts due to the rightful holders of the rights;

n) Publicity of the relevant acts of institutional life.

2-The requirements referred to in the paragraphs of the preceding paragraph, to the exception of point (s) c ), apply

equally to the entities of collective management with secondary establishment in territory

national.

Article 11.

Authorisation and registration

1-Without prejudice to the provisions of paragraph 4, the exercise of the collective management of copyright law and

of the related rights by entities constituted in Portugal or with establishment

secondary in national territory is subject to authorization, with request for effectivation

of the registration with the IGAC.

2-A authorization for the exercise of the collective management of copyright and rights

related by entities constituted in Portugal is required from the IGAC, and the

application for registration to be instructed with the following elements:

a) Statutes of the entity, of which it must appear the identification of the activity for

whose exercise is intended to enable or for which it is empowered, the classes of

holders of rights understood in the framework of collective management, the conditions

for the acquisition and loss of the quality of members, their rights and duties, and the

principles and rules for allocation and distribution of income;

b) Identification of the mandates of holders of rights conferred for the exercise of the

collective management of rights.

3-A authorization for the exercise of the collective management of copyright and rights

CHAIR OF THE COUNCIL OF MINISTERS

11

related to the collective management entities with secondary establishment in territory

national is also required from the IGAC, and the application for registration is to be instructed

with the proving of the existence of a mandate or other enabling legal title for the

type of exercise it intends to carry out on national territory.

4-Should the entities referred to in the preceding paragraph have proven before the

competent authority of the Member State of origin the existence of a mandate or other

legal legal title for the exercise in that territory of the collective rights management

of author and related rights, the registration is effected after mere prior communication to the

IGAC, to whom it competes to verify the veracity of the statement held.

5-A Decision on the applications for registrations submitted pursuant to paragraphs 2 and 3 is

delivered within 30 working days, and there is room for tacit deferris in the absence of

decision on this deadline.

6-Compete to IGAC to check, through the IMI, the veracity of the statements held,

may, in the event of falseness, reject the application for registration or cancel the registration

effected under the terms of paragraph 4.

7-Administrative procedures relating to the assessment of applications for registration are

subject to the payment of fees, in the terms to be fixed by the porterie of the members of the

Government responsible for the areas of finance and culture.

Article 12.

Undue and revocation

1-The application for registration is liminally undue if not accompanied by the

proof of the payment of the fee due, without prejudice to the possibility of

renewal.

2-The application for registration is still undue when the statute of the managing entity

collective do not comply with the provisions of this Law.

CHAIR OF THE COUNCIL OF MINISTERS

12

3-A The refusal of permission shall be substantiated and notified, within 10 working days, to the

entity that has required its registration as a collective management entity.

4-From the dismissable of the application for registration is up to appeal, in the legally permitted terms.

5-A The permission granted may be revoked when the conditions that substantiate the

improper in the terms of paragraph 2 come to occur superveniently.

Article 13.

Unvalidity of the acts of irregular management entities

Are void the acts of collective management practiced by collective management entity that do not

observe the requirements for access to the activity.

Article 14.

Association of collective management entities

1-The legally constituted and registered collective management entities can associate themselves

among themselves, constituting or not a new collective person, under any of the forms previs-

tas in the law, to jointly pursue some of its purposes, representing

jointly the respected holders of rights.

2-A collective person constituted in the terms of the preceding paragraph shall register with the

IGAC and shall be subject to the rules of organization and operation provided for in this Law,

with the necessary adaptations.

3-Of the social organs of the collective person referred to in paragraph 1 may be part of, in addition to

collective management entities that constitute it, any natural or collective person,

regardless of whether or not you have the quality of rights holder.

CHAIR OF THE COUNCIL OF MINISTERS

13

Article 15.

Public utility

The entities constituted in Portugal under the provisions of this Law and registered

pursuant to Art. 11 acquire, by mere effect of the registration, the nature of persons

public utility collectives, with dispensation of the obligations provided for in the Decree-Law

n. 460/77, of November 7.

Article 16.

Right of competition

Collective management entities are bound by the right of competition.

Article 17.

Subsidiary law

It is subsidiary to be applicable to the collective management entities legislation on associations,

cooperatives and commercial societies, depending on the respect of the legal nature.

SECTION II

Organization and operation of the collective management entities constituted in

Portugal

Article 18.

Bodies of the collective management entity

1-Collective management entities are endowed with a general assembly, from a body of

administration or direction and of a tax council.

2-Statutes may provide for the existence of an executive, singular or collective body,

subordinated to the body of management, and by this designate, with management functions

current and representation of the collective management entity.

CHAIR OF THE COUNCIL OF MINISTERS

14

3-The executive body is composed of natural persons and possesses the skills

provided for in the statutes and those expressly delegated to it by the organ of

administration.

4-The tax council must integrate an official reviewer of accounts.

Article 19.

Composition of the organs of the collective management entity

1-Members of the social bodies are necessarily associated or cooperators of the

entity, with the exception of the official reviewer of accounts and the members of the executive body

referred to in paragraph 2 of the previous article that may or may not have the quality of holder of

rights.

2-The members of the social organs are not allowed the simultaneous performance of more than

that a post in the social bodies of the same entity.

Article 20.

General assembly

1-A general meeting of the members of the collective management entity shall be convened,

at least, once a year.

2-They shall be of the exclusive competence of the general meeting the following subjects:

a) Statutes and definition of the general conditions of accession, refusal of accession and exclusion

of members, as well as any amendment of the statutes and general conditions of

accession;

b) Appointment or removal of members of the social bodies, as well as any

matters relating to respect for remuneration, save when this matter is

assigned to a commission of fixation of salaries appointed by the assembly

general;

CHAIR OF THE COUNCIL OF MINISTERS

15

c) Definition of the general criteria for the distribution of amounts due to holders

of the rights;

d) Definition of the general criteria of the policy for the use of social funds and

cultural;

e) Definition of the general criteria of the financial investment policy to be applied

transiently to revenue from rights to the effective distribution, to which it shall

ensure the interest of the members of the collective management entity, liquidity and the

security of rights revenue;

f) Approval of the plan of activities and the budget;

g) Approval of the management report and too many accountability documents.

Article 21.

Obligations of members of the governing bodies or direction

1-The members of the governing bodies or direction of the collective management entities

are required to manage the destinations of the entity diligently, idoty and prudent,

owing to ensuring the existence of administrative and accounting procedures and

appropriate internal control mechanisms.

2-The members of the governing bodies or direction of the collective management entities

ensure still the existence of procedures designed to prevent conflicts of

interests and to allow in particular to identify, manage, monitor and disseminate the

conflicts and prevent damage to the interests of its members.

3-For the purposes set out in the preceding paragraph, the members of the governing bodies

or direction of the collective management entities present annually to IGAC, in

set with the accountability documents, a statement containing the

following information:

a) Any interests held in the entity of collective management;

CHAIR OF THE COUNCIL OF MINISTERS

16

b) Any remunerations received from the entity of collective management, including

pension schemes, advantages in kind and other types of advantage;

c) Any amounts received from the collective management entity, while holder

of rights;

d) Eventual conflicts, real or potential, between your personal interests and those of the

entity of collective management, or between any obligations to the entity and

any duty to any other natural or collective person.

Article 22.

Operation of organs

1-Unless legal or statutory provision to the contrary, the deliberations of the organs of the

collective management entities are taken by a majority of votes of the holders present,

having the respected president vote of quality.

2-The deliberations relating to elections of the social bodies of the managing entities

collective or the personal incidence affairs of its members are taken by

secret ballot.

3-Are always lavished minutes of the meetings of any body of the managing entities

collective.

Article 23.

Mandates

1-The members of the social bodies of collective management entities are elected by a

period of four years, renewable for one time and for equal period, if another more

short is not provided for in the statutes.

2-Statutes may limit the number of consecutive terms for any organ

of the collective management entities.

CHAIR OF THE COUNCIL OF MINISTERS

17

Article 24.

Responsibility of the holders of the social bodies

1-Members of the social bodies are civil and criminally responsible for the practice of

illegitimate acts committed in the exercise of the mandate.

2-The provisions of the preceding paragraph shall apply to the entities of collective management with

secondary establishment on national territory.

Article 25.

Financial regime

1-Collective management entities are required to draw up and approve, annually, the

management report and accounts of the exercise, the activity plan and the budget.

2-Compete to the tax council to draw up the opinion on the documents referred to in the

previous number.

3-The documents referred to in paragraph 1 shall be disclosed to the associates or

cooperators and be at the disposal of these for easy consultation at the social headquarters of the entity of

collective management.

CHAPTER III

Relations with holders of rights and users

SECTION I

Rights and duties

Article 26.

General duties of collective management entities

1-Collective management entities are obliged to:

CHAIR OF THE COUNCIL OF MINISTERS

18

a) To accept the management of copyright and related rights that are to them

requested, in accordance with their nature and assignments, in the terms of the respects

statutes and the law;

b) Exercise the management of rights in respect for the mandate granted, with

safeguarding the public interests involved;

c) To draw up and publish the list of the holders they represent, respecting the principles

of transparency and non-discrimination;

d) Providing the relevant information to persons interested in the use of the goods

intellectuals who so want to rewant it on the represented and the conditions and

criteria that preside over the tariffs set;

e) To ensure the existence of communication mechanisms with their members by

electrolytic means, particularly so that they can exercise their respects

rights;

f) Hiring with the interested non-exclusive entitlements of the rights whose management

have been entrusted to them, in non-discriminatory, equitable and reasonable terms and

upon payment of the remuneration or tariff established;

g) Negotiate the appropriate pecuniary counterparts corresponding to the authorisations

requested by interested third parties, as well as the remuneration owed by the

uses not subject to authorization or licensing.

2-The provisions of the g) of the preceding paragraph applies when interested third parties

are representative entities of a significant number of users of the respective

sector, owing to the negotiation in such a case to establish the general conditions of licensing,

including general tariff respects, with associations whose members explore or

use works, benefits or protected rights or are required, under the law,

to pay an equitable remuneration or compensation.

CHAIR OF THE COUNCIL OF MINISTERS

19

3-Collective management entities may not refuse to negotiate with the entities

referred to in the preceding paragraph when the uses are understood in the object and

scope of its management.

4-To affer the representativeness of the representative entities of users must have

into account the object, the territorial scope and the number of represented in relation to others

representative entities of users who exercise identical activities.

5-In cases where there is a place to a right of remuneration, may the entities of

collective management waking up with representative entities of users the tariffs that

better if they adept at the characteristics, needs and nature of the activity of these.

Article 27.

Duty of information

1-Collective management entities must inform interested third parties, as well as

on the conditions and prices of use of any work, provision or product that

be entrusted to them.

2-Collective management entities advertise on the respective site in the Internet the following

information:

a) Statutes or equivalent legal instrument;

b) Conditions of accession and terms of revocation of rights management mandates;

c) List of holders of social bodies;

d) Criteria and methods of pricing applicable by the management entities

collective to the users of protected works, or, where appropriate, the

indication of the respective agreements or decisions of the committee of experts that

determine the tariff to be applied;

CHAIR OF THE COUNCIL OF MINISTERS

20

e) Fares practiced with mention of all relevant and necessary elements

to your application;

f) Rules on the distribution of amounts due to the holders of the rights;

g) Rules on management commissions;

h) Rules on deductions of revenue from rights for the purposes of social services,

cultural and educational and other purposes approved by the general assembly;

i) Procedures for handling complaints and resolution of available disputes;

j) Management report and annual accounts;

k) Values collected and distributed, by category of managed rights and value of the

deductions effected, for the purposes of commission of management, social funds and

cultural and other purposes approved by the general meeting;

l) Identification of the total number of beneficiaries, with information from the total

recipes obtained.

3-Collective management entities must keep updated the information referred to

in the previous number.

4-In the relationship with rightholders, collective management entities ensure

existence of procedures that allow each holder of rights they represent, the

access, by means of an electronic means, to the following information:

a) Any personal data that has authorized the collective management entity to

use, including data on their identification and location;

b) The revenue from rights charged on your behalf or, in the event of licensing

collective or remuneration rights that do not allow the individualisation of the

revenue from rights in the collection act, the value due to it after the

distribution;

CHAIR OF THE COUNCIL OF MINISTERS

21

c) The amounts owed to it by category of managed rights and type of

use, paid and payable by the entity of collective management;

d) The deductions from management commissions effected in the period concerned;

e) The procedures for handling complaints and resolution of available disputes.

Article 28.

Social and cultural function

1-Collective management entities constituted in Portugal should affect a percentage

not less than 5% of your income to social activities and assistance to your

associates or cooperators, as well as the actions of forming these, promoting their

works, benefits and products, and still to the dissemination of the rights understood in the object

of your management.

2-Collective management entities must guarantee to their members the application of

fair, objective and non-discriminatory criteria in access to social and cultural funds

and the appropriateness of such services to the interests of the members.

3-Rights holders who are not members of the collective management entity may

access the social and cultural funds, under the terms and conditions approved by the assembly

general.

4-Collective management entities establish in their regulations special tariffs

reduced, to apply to non-profit collective persons, when the respective respects

activities take place in place whose access is not remunerated.

5-Anually, collective management entities make public the information about the

activities developed, taking into account the purposes set out in paragraph 1.

6-The provisions of paragraph 1 shall not apply in the first four years of the existence of the entities

of collective management, counted as of the date of their registration.

CHAIR OF THE COUNCIL OF MINISTERS

22

Article 29.

Rights of holders

1-Rights holders represented by the entities of collective management have the right to:

a) Mandating a collective management entity of your choice to manage the rights, the

categories of rights or the types of protected works and benefits that they understand,

may not be required to mandate for the management of all modalities of

exploitation of the protected works and benefits or for the whole of the repertoire;

b) Repeal, in whole or in part, the mandate granted in favor of the entity

of collective management in respect of categories of rights or works and other

installments that compose the repertoire's respect;

c) Being informed of all the rights they are to assist them, of the statutes and criteria

applied, before they provide their consent to the management of any right or

category of rights or repertoire.

2-The rights holder may not confer the management for the same type of uses of the

works, artistic instalments, phonograms, videograms or emissions in question, for the

same period and territory, to more than a collective management entity.

3-A revocation of the mandate referred to in point b ) of paragraph 1 is made in writing, upon

a 90-day notice.

4-If there are revenue from rights by management acts practiced prior to the revocation of the

mandate to produce effects, the holder fully retains the right to receive them.

CHAIR OF THE COUNCIL OF MINISTERS

23

5-A outwards of powers of representation to the entity of collective management, under the terms of the

previous figures, is without prejudice to the exercise of respect rights or colleges by

part of its holder, provided that this gives prior written knowledge to the managing entity

collective of its intention to directly exercise such rights or faculties,

in particular those concerning uses that do not pursue commercial purposes.

Article 30.

Management and representation contract

1-A The management of rights can be attributed by its holders in favour of an entity of

collective management upon conclusion of management contract and representation, with a

duration not exceeding five years, renewables automatically, by equal periods, in the

lack of opposition.

2-The contract of management and representation shall expressly establish the conditions of

opposition to its renewal, the prediction of the management obligation of all the

modalities of exploitation of the protected works and benefits.

3-In the case of the cooperators, associates or beneficiaries of the collective management entity, the

representation of the rights holders may result from the simple inscription as

beneficiary of the services, as set out in the statutes and regulations of the

entity of collective management and verified the conditions referred to in the preceding paragraph.

4-In the exercise of their representation activity, the collective management entities dispose

of the rights, benefits or colleges legally assigned to its represented.

CHAIR OF THE COUNCIL OF MINISTERS

24

Article 31.

Distribution

1-Collective management entities distribute regular, speedy, diligent and rigorously to the

right holders the revenue they obtain with the management of the rights of these.

2-A The distribution of the revenue obtained with the management of rights is effected in accordance with the

statutes and with the distribution policy approved by the general assembly.

3-Statutes and revenue distribution policy shall be based on criteria

objectives, appropriate to the types of rights managed and which exclude arbitrariness, and

shall assure the holders of rights a stake in the distribution that is

proportional to the use of the respecting works.

Article 32.

Prescription

1-A payment obligation to holders of revenue rights obtained with the management of

rights prescribe within three years.

2-The time limit referred to in the preceding paragraph is:

a) From the date of the launch of the respective distribution, should the holder of the right

be associated, cooperator, beneficiary of the services or represented by the

entity of collective management by virtue of the celebration of management contract and

representation; or

b) From the date of the effective utilization of the artwork, installment, phonogram, videogram

or issue, should the use in question be legally subject to collective management

mandatory and the holder is represented by the collective management entity at

virtue of legal presumption.

CHAIR OF THE COUNCIL OF MINISTERS

25

3-Collective management entities can only invoke the prescription if they demonstrate to have

taken all necessary measures to identify and locate the rightholders.

4-For the purposes of the provisions of the preceding paragraph, the collective management entities shall

check the public records and make available on your site at the Internet a list of works and

of other benefits whose holders have not been identified or located.

5-Operate the prescription, the values are distributed to the holders identified in relation

to the same type of uses or revert to the social and cultural background provided for in the

article 28, whichever comes to be approved by the general assembly of the entity of

collective management.

Article 33.

Management of rights under representation agreements

1-Collective management entities may not, with regard to the applicable tariffs,

management commissions, the conditions for collection of rights and distribution revenues

of the amounts due, discriminate between its members and holders of rights whose

management ensure under a representation agreement.

2-Collective management entities must distribute and pay regular, speedy, diligent and

strictly the amounts due to other entities.

3-Rights revenue collected in representation from other entities apply the

deductions, particularly the title of management committee or social and cultural background,

applicable to members of the entity.

4-Collective management entities assure the entities with which they conclude agreements

of representation access to the elements provided for in paragraph 1 and the values that are given to them

due to the title of rights revenue, after the distribution.

CHAIR OF THE COUNCIL OF MINISTERS

26

Article 34.

Relations with users

1-Negotiations between users and entities of collective management must comply with the

principles of good faith and transparency, including the provision of all information

required to allow for effective collection of the corresponding revenues.

2-General conditions of licensing should reflect objective criteria and not

discriminations, particularly with respect to the applicable tariffs.

3-Collective management entities ensure the existence of mechanisms that allow for

communication with users through electrolytic means.

4-Users shall provide information relating to the use effected where the

same is necessary for the purposes of the distribution of the revenue of rights.

5-A information provided for in the preceding paragraph shall be provided, in good time, in

conditions permitting your treatment, specifically with regard to the

identification of the work, of the holders and of the use effected.

6-The provisions of paragraphs 4 and 5 shall not apply to users who proceed solely to the

public execution of works and installments embedded in phonograms and videograms, by

any means, including in audio or audio-visual broadcasts.

7-Users referred to in the preceding paragraph shall accept the installation, at the expense of the

collective management entities, in the spaces where they effectuate public execution, of

mechanisms for monitoring and automatic detetion of the works and benefits by them

used, or, alternatively and for the same purposes, admit access for persons

accredited by the collective management entities that have outored the respective licence to the

places where it is used or from which it is used, by any means, the respect

repertoire, with the safeguarding of the right to privacy and intimacy of the respects

customers.

CHAIR OF THE COUNCIL OF MINISTERS

27

8-The failure to comply with the obligations of information, granting access and installation of

monitoring and detetion mechanisms provided for in paragraphs 4 a to 7 confers on the

entity of collective management the right to unilaterally revoke the granted permission,

without prejudice to the possibility of application of other contractual or constant penalties

of the respects general conditions of licensing.

Article 35.

Joint licensing balconies

1-The collective management entities representative of the various categories of di-holders of di-

remyths negotiate, in conjunction with the representative entities of users

eventually be interested, and make available to users procedures of

licensing of acts of public execution of works, installments, phonograms and

protected videograms, designated "joint licensing balconies".

2-Joint licensing balconies should allow users to request and obtain,

in a single procedure, the licensees or permits for the public execution of

works, benefits, phonograms and videograms protected, the said licences or

authorizations issued in representation of all holders of rights represented

by the diverse entities of collective management.

3-Joint licensing balconies must safeguard:

a) The effective implementation of the general tariff rates in force of the various management entities

collective and the distribution of the values collected in function of such tariff rates;

b) The autonomous fixation of tariff respects, through the foreseen mechanisms

in this Law;

c) The apportionment of the respective operating costs as a function of the value of the

remuneration assigned to each of the collective management entities;

CHAIR OF THE COUNCIL OF MINISTERS

28

d) The efficient and transparent management of the licensing service;

e) The effective control of the issuance of licences by the various entities of

collective management, under conditions of equality and parity;

f) The speed and ease of access to licensing by users

interested;

g) The autonomy of its organisation and operation with respect to those of the entities

of collective management.

4-In the lack of agreement between the entities of collective management, or between these and the entities

representative of users, for the implementation of the licensing counter

set, IGAC should listen to the entities involved and exercise mediation with a view to

search for your entry into operation.

5-The provisions of this Article shall be without prejudice to the possibility of the managing entities

collective will promote and issue, concurrently, autonomys and

exercise, separately, the rights delivered to their management, in relation to all the

users who have not requested and obtained the licensing or authorization through

of the joint licensing balconies, in the terms of the previous numbers.

SECTION II

Fixing of tariff rates

Article 36.

General tariffs and tariff rates

1-Collective management entities publishes the duties of licensing fees

exclusive and exercise rights of remuneration or fair compensation in the

respects sites in the Internet , as well as general tariff rates that are counterpart to the

general licenses that grant.

CHAIR OF THE COUNCIL OF MINISTERS

29

2-The tariffs should reflect the economic value of the use of the rights in question and meet

to the actual operation of the market.

3-General pricing shall take into account, in particular, the real value of the benefit that the

use of the repertoire has for the various categories of recipients of the respects

permits or licences, correspond to the fair remuneration of the rights holders by the

use of their works, artistic instalments, phonograms, videograms or emissions and,

where possible, to still take into account the actual volume of its use.

Article 37.

Fixing of general tariff rates by negotiation

1-General tariff rates are set by negotiation between the collective management entities and the

representative entities of users.

2-It is up to the entities of collective management and the representative entities of cele-users

brar in writing the contracts that result from the setting of the general tariff rates by

negotiation, which are deposited with the IGAC once concluded.

3-The provisions of the preceding paragraph shall be without prejudice to the possibility of the managing entities

collective shall fix the tariff respects, in compliance with this Law and enunciating

the criteria and methods of their training.

4-General contracts must regulate with accuracy the requirements and conditions of your

applicability and uses of the repertoire to which they respect.

5-Without prejudice to the provisions of the deposit of the deposit of the agreements, the general contract

binds the parties and members of the representative entity of users in it

intervener, as well as the users by this represented, and serves as a reference

to third parties who do not fig. as a part of the outwigning.

CHAIR OF THE COUNCIL OF MINISTERS

30

6-Collective management entities are obliged to the negotiation and the celebration of the

agreed general contracts, in the terms of the following numbers, when the entities

representative of users who request them to demonstrate effectively represent

a significant number of companies, entrepreneurs or professionals who, in the exercise of the

your activity, whether typical or customarily users, in the following cases:

a) When you do not find yourself to invigorate a deposited agreement that has per object to

definition of a tariff or various tariff applicable to the use or uses

in cause;

b) In the term of agreement referred to in the preceding paragraph, if the entities

representative of users part in the negotiation demonstrem represent more

users than the representative entities of signatory users;

c) Two years after the deposit with IGAC of the last decision of the committee of experts

which has per object the determination of a tariff applicable to the same type of

uses.

7-For the purposes set out in the Article b) of the previous number, whenever they whisk away

doubts as to the effective representativeness of the representational entities of users,

the IGAC shall, on the application of any of the parties interested in the negotiation,

notify the entities that are party to the agreement and the entities intending to initiate

to a new negotiation, to present, within five working days, the

proof of the number of associates or represented.

8-Received the voucher referred to in the preceding paragraph, IGAC informs the entities

representative of users in cause of the effective number of associates or

represented by each of them.

CHAIR OF THE COUNCIL OF MINISTERS

31

Article 38.

Formalism of the negotiation of general tariff

1-Any of the Parties may initiate the negotiations through the submission of a

written proposal that contains at least the uses covered, the term of the

licensing, the duration of the agreement and the applicable tariffs, including the value, the

conditions and the requirements of their application and the criteria and methods of forming the value

proposed.

2-A The proposal referred to in the preceding paragraph shall be remitted to the counterparty by

registered mail or with proof of delivery, and shall, on the same date, be given

knowledge of such a fact to IGAC.

3-Should the proposal have been submitted by representative entities of users and

these have not complied with the provisions of the preceding paragraph, the entity of

collective addressary management of the proposal must remetallate it to IGAC, at the maximum time of

three working days from your payoff.

4-The proposals may be formulated, depending on the cases, by one or more entities of

collective management or by one or more representative entities of users, but not

may be directed to more than one entity.

5-The provisions of the preceding paragraph shall be without prejudice to the possibility of any entity

representative of users responding to the proposal jointly with other entities

that represent the same category of users.

6-The recipient of the proposal has the 30-day deadline, recount of his or her prescription, for the

accept or submit a counteroffer.

7-The silence is worth as acceptance of the proposal and the counterproposal.

CHAIR OF THE COUNCIL OF MINISTERS

32

8-Should the proposal be formulated by a representative entity of users, the

addressee collective management entity may, within 10 days of the recetion of the

proposal and giving knowledge of such a fact to IGAC:

a) Refuse to negotiate, demonstrating that they are not fulfilled the requirements that,

in accordance with paragraph 6 of the preceding Article, they impose the duty of negotiation;

b) Nominate another representative entity of greater number of potential users

of the respected sector, owing, in the same term, to initiate negotiations with the entity

to indicate, in accordance with paragraphs 1 and 2.

9-Should the proposal be formulated by a collective management entity, the entity

representative of addressee users may, within 10 days of their

recetion, refuse the negotiation, stating that it does not intend to enter into agreements with the

management entity concerned, giving knowledge of such a fact to IGAC.

10-Initiated the negotiation and up to its term, any representative entity of

users who demonstrate to represent greater number of potential users of the

respects sector should be admitted to participate in it, as long as it retargets the entity of

collective management in question a proposal formulated pursuant to paragraph 1 or communique,

by the same way, its adherence to the proposal or counterproposal formulated by the entity

one that finds itself in negotiation.

Article 39.

Deposit of the general tariff setting agreements

1-The general tariff setting agreement entered into in the terms of the preceding Article shall be

deposited by any of the parties to the IGAC.

2-When various representative entities of users have participated in the

negotiations, the agreement is only object of deposit if it is subscribed by entities

representative of largest number of users of the respected sector.

CHAIR OF THE COUNCIL OF MINISTERS

33

3-Depositionable the agreement, the charging of it constant, its rules of application and too much

conditions bind the signatory collective management entities, by integrating into their

general fees, as well as users who fulfil the objective assumptions of the

your application, whether or not they are members or associates of the representative entities of

signatory users.

4-A linkage of collective management entities and users stay for the period

effective of the agreement, or by a lower term, should the act of deposit, the requirement of

both parties, limit temporally to their duration.

5-The deposit automatically lapses on the date on which the agreement cede no effect

by virtue of its expiry, denunciation, resolution, revocation, cancellation or declaration

of nullity.

6-From the act of deposit shall be given advertising on the site at the Internet of IGAC.

7-Within 30 days from the date of the deposit of the agreement, the representative entity

of greater number of potential users of the sector's sector, taking into account the

respect object, the territorial scope and the number of represented by the entities in

cause, may obster to the production of the effects provided for in paragraph 3.

8-For the purposes of the provisions of the preceding paragraph, the representative entity of users

should initiate the negotiations with the collective management entities concerned, through the

dispatch of the proposal referred to in Article 38 (1), giving knowledge of such

fact to IGAC.

9-In the cases referred to in paragraphs 2, 7 and 8 shall apply, with the necessary adaptations, the

provisions of Article 40 (1) and 3.

CHAIR OF THE COUNCIL OF MINISTERS

34

Article 40.

Pendency of negotiations for the setting of general tariff

1-In the pendency of the negotiations for the setting of general tariff-users not

are exempted from obtaining the legally required permits or permits for the

use of the repertoire they wish to effect, and the management entities may not

collective refuse the issuance of provisional licences, valid until the deadline of 15 days to

count of the end of the negotiations, if another shorter one is not requested by the user.

2-In relation to the tariff rates practiced by the collective management entities participating

in the negotiations, pending these applies the following:

a) General tariff determined by agreement shall be provisionally in force

with the representative entities of users, the tariffs that have been ob-

Previous deposit project or the tariff determined in the decision sequence of the

committee of experts, even if the said agreements, acts of deposit or decisions

have ceased to invigorate by virtue of their denunciation or lapse;

b) It shall be suspended for the collection of the general tariff rates which have been fixed

unilaterally by the entities of collective management.

3-For the purposes of the provisions of the preceding paragraphs, the negotiation is considered pending

between the date of the proposal's prescribing and the expiry of the 60-day period on that date.

4-In cases referred to in paragraph b ) of paragraph 2 a compulsion to issue the licence

provisional only exists when the user declars, in writing, that he considers himself

debtor of the values that result alternatively:

a) From the application of the tariffs that are to be determined by agreement to the

provisionally authorized or licensed uses;

CHAIR OF THE COUNCIL OF MINISTERS

35

b) On the lack of agreement, and if a fixing procedure is not pending

of tariffs by the commission of experts, of the tariffs set by the management entities

collective with effect to the start date of the negotiation.

Article 41.

Refusal of negotiation and lack of agreement in the negotiation

1-Refused to be negotiated by the representative entity of users in the terms provided for

in Article 38 (9), the collective management entity may, in the absence of collective bargaining agreement or

of a decision of the Commission of Experts in force, fix the tariff rates in question.

2-In the lack of agreement in the negotiation, any of the parties may appeal, past 60

days on the date of the proposal's prescribing, to a commission of experts, proceeding from

immediate to the designation of its expert.

3-In case the parties involved in the negotiation do not resort to a committee of experts in the

terms of the previous number, collective management entities may fix and require the

fares corresponding to the counterpart of the authorizations and licensing by the

uses of the rights entrusted to its management.

Article 42.

Commission of experts

1-The conflicts resulting from the relations between the collective management entities and the

users or representative entities of emerging users of the fixture and

application of general tariff rates are addressed by a commission of experts.

2-A committee of experts consists of three experts, competing for each party

designate your expert and the experts so appointed shall choose the other expert, who

serves as chairman of the committee of experts.

CHAIR OF THE COUNCIL OF MINISTERS

36

3-If one of the parties does not designate the expert who competes with it or the designated experts

by the parties not to agree on the choice of the expert President shall apply the provisions of the n.

2 of Article 40 while maintaining a lack of designation or choice.

4-The operation of the committee of experts is the object of regulatory framework,

to be approved by porterie of the members of the Government responsible for the areas of culture and

of the economy.

5-The decisions of the committee of experts have per object:

a) The fixation, through a collective procedure, of a general tariff, applicable to

a particular activity or category of objectively defined users;

b) The fixation, through an individual procedure, of a tariff applicable to a

concrete user or concrete and determined set of users, in

virtue of repertoire uses, which should be covered by a tariff

general.

6-A The decision is to be delivered within a maximum of six months from the date of

constitution of the committee of experts.

7-The decisions of the committee of experts are taken taking into account the provisions of the

n. paragraphs 2 and 3 of Article 36 para.

8-A committee of experts fixes the pecuniary amount to be paid to its members, which

is supported in equal amounts, by the parties.

9-The decisions of the committee of experts integrate the general tariff of the entity of

collective management, being the object of deposit under the terms of Article 39 para.

10-It is up to appeal, with merely devolutive effect, to the court of the property

intellectual of the decisions of the committee of experts.

CHAIR OF THE COUNCIL OF MINISTERS

37

Article 43.

Collective procedure for the setting of a tariff

1-Collective management entities and representative entities of users who have

participated in the negotiations can resort to the collective procedure for the fixation of

a tariff, provided that they prove their effective representativeness.

2-The collective procedure can only take place in the wake of a negotiation process

carried out in accordance with Article 38 and, when the expiry of the period provided for in paragraph 2 of the

article 41, the parties have not reached agreement.

3-In the collective procedure, the appeal to the commission of experts depends on the filling

of the circumstances referred to in Article 37 (6) and of the non-verification of the

circumstances provided for in Article 38 (8).

4-Unless otherwise agreed, the tariff rates set through collective procedure

may be deposited with the IGAC, by either party, within 30

days from the decision handed down by the committee of experts.

5-A From the date of the deposit, the tariff rates link the collective management entities

actors in the collective procedure and the users who fill the

the objective assumptions of its application, replacing the general tariff respects.

6-The provisions of paragraphs 4 and 5 shall not apply when the collective management entities have

invoked and demonstrated lack or reduced representativeness of the entities

representative of users intervening in the collective procedure in relation to the

number of potential users of the respected sector covered by the general tariff

agreed.

CHAIR OF THE COUNCIL OF MINISTERS

38

Article 44.

Individual procedure for the setting of a tariff

The collective management entities and the users who have participated in the negotiations

may use the individual procedure for the setting of a tariff when,

cumulatively:

a) Do not find yourself in invigorating an agreement deposited, pursuant to Article 39, that

has by object the definition of a tariff applicable to the uses in question;

b) It has not been deposited with the IGAC under the terms of paragraph 4 of the preceding Article,

less than two years ago, decision by committee of experts to have the object to

definition of a tariff applicable to the uses in question;

c) A collective procedure for the setting of a tariff is not pending

under the terms of the previous article which has by object the definition of a tariff

applicable to the uses in question;

d) Users are not members or represented by any entity

representative of users who maintain with the collective management entity

agreements in force for the setting of tariff rates applicable to the uses in question,

regardless of whether or not such agreements have been the object of deposit with the

IGAC.

Article 45.

Effects of the pendency of tariff-fixing procedures

1-In the pendency of collective or individual tariff-setting procedures

remain provisionally in force:

a) The general tariff rates determined by agreement with the representative entities

of users;

CHAIR OF THE COUNCIL OF MINISTERS

39

b) The tariff rates resulting from agreements previously firmed up with users

that have had intervention in individual procedure;

c) The tariff rates that have been the subject of prior deposit with IGAC;

d) The tariff rates determined in the sequence of decisions previously handed down

in collective procedure.

2-The provisions of the preceding paragraph shall apply even if the said agreements, acts of

deposit or decisions have left to invigorate by virtue of their complaint or

expiry.

3-Out of the cases provided for in paragraph 1, when the tariff rates in question have been set

unilaterally by the collective management entities, is applicable, with the necessary

adaptations, the provisions of the b ) of Article 40 (2) and (4), and the licences shall

interim to be issued by the deadline of 15 days from the expiry of the period referred to in the

n Article 42 (5) if another shorter one is not requested by the user.

4-Determined by the commission of experts the tariff to be applied in relation to the use or type of

use in question, shall owe the missing or excess amounts by virtue of the

application of provisional tariff or suspension of collection in the terms of the numbers

previous to be, depending on the cases, paid or returned, since:

a) The beginning of the negotiation, dealing with collective procedure;

b) The commencement of the use in question, dealing with individual procedure.

5-The recourse to any of the procedures for the setting of a tariff provided for in the

previous articles do not waiver the obtaining, on the part of the users, of the authorisation or

licence required for the respect of the use of works, benefits, phonograms,

videograms or emissions, nor does it prejudice the recourse to the judicial courts by the

holders of rights or collective management entities representing them for

to react against the illicit use of protected repertoire.

CHAIR OF THE COUNCIL OF MINISTERS

40

6-The provisions of the preceding paragraph shall apply where the remuneration or compensation

to be determined is not the counterpart of a free use or a licence

compulsive expressly provided for in law.

Article 46.

Special regimes

1-Without prejudice to the duties of fixing, disclosure, reasonableness and transparency of the

tariff rates, are not covered by the planned scheme for the fixing of general tariff

the following uses:

a) Uses of works, benefits, phonograms, videograms and emissions from

broadcasting which imports distinct acts of exploitation from those referred to in ( d)

of Article 2;

b) Uses of literary, dramatic, dramatic-musical, choreographic works or

pantomimes;

c) Singular and specific use of one or several works, benefits, phonograms,

videograms and emissions;

d) Uses of works, benefits, phonograms, videograms and emissions for whose

authorization to the respect management entity do not find themselves mandated, do not exercise

effectively the respect management or for which permission is required

individualized of its holder;

e) Uses corresponding to private copying subject to the payment of compensation

to holders of rights.

2-The envisaged scheme for setting general tariff rates applies, with the necessary

adaptations, to tariffs relating to equal pay or compensation rights.

CHAIR OF THE COUNCIL OF MINISTERS

41

CHAPTER IV

Tutela inspection and surveillance

SECTION I

Inspection tutelage

Article 47.

Inspection tutelage

1-The member of the Government responsible for the area of culture, through IGAC, exercises tutelage

inspections on the collective management entities.

2-For the normal performance of the powers set out in the preceding paragraph, shall the enti-

collective management colleges provide annually to IGAC the following elements:

a) Indication of the members who make up the social bodies;

b) Copy of the statutes and respects amendments;

c) Copy of the management reports and accounts of the exercise, as well as of the plans of

activity and the budget.

d) List of prices and tariffs in force at the institution;

e) List of contracts concluded with foreign entities for the purpose of

representation;

f) List of agreements concluded with representative entities of users.

3-Collective management entities must inform IGAC, within a maximum of 30 days,

count of your verification, any change to the elements referred to in the number

previous.

CHAIR OF THE COUNCIL OF MINISTERS

42

Article 48.

Scope of the tutelage

The tutelage exercised by the member of the Government responsible for the area of culture on the

collective management entities comprises the following powers:

a) Conduct of surveys, syndications and inspections, whenever you show

necessary and, specifically, when there are indications of irregularities;

b) Sending to the competent entities of reports, opinions and other elements that if

show necessary for the purposeful or pursuit of lawsuits, civilians or

penal, which have because of the existence of irregularities and wrongdoings practiced

by the entities of collective management.

Article 49.

Removal of the managers ' bodies

1-A practice by the managerial bodies of the collective management entities constituted in

Portugal of acts of management seriously detrimental to the interests of the entity, of the

associates or cooperators and third parties constitute grounds for the submission of

judicial request for removal of the social organs.

2-In the case provided for in the preceding paragraph, it is incumbent upon the associates or cooperators

inform the competent entities of all available elements required to

Purpose of the judicial action, to which follows the terms of the Code of Procedure

Civil.

3-The judge shall decide the final, and shall appoint a provisional management commission, by the deadline

maximum of one year, charged with ensuring the day-to-day management of the entity and of

convene the general assembly to elect the new social bodies.

CHAIR OF THE COUNCIL OF MINISTERS

43

Article 50.

Extinction of collective management entities

1-A IGAC shall ask the competent entities for the extinction of the managing entities

collective constituted in Portugal:

a) Who violate the law, in a very serious or repeated manner;

b) Whose activity does not co-incl with the object provided for in the statutes;

c) That they repeatedly use illicit means for the pursuit of their object;

d) Who unduly rehave the remuneration due to the rightholders.

2-The provisions of the preceding paragraph shall apply to other entities that exercise effectively

the collective management, regardless of its legal nature, authorization, registration or

communication.

3-Without prejudice to possible civil, criminal and counterordinational liability of such

entities and the persons acting on account or in representation of these constitutes

also cause of extinction the lack of authorization, registration or communication of the entities

that effectively exercise collective management.

SECTION II

Sanctions

Article 51.

Counterorders

1-Without prejudice to criminal liability, the collective management entities that violate the

access requirements to the activity and its exercise incur punishable counterordinance

with fine of € 2 500.00 a € 25 000.00.

CHAIR OF THE COUNCIL OF MINISTERS

44

2-Incharge still in counterordinance to natural persons acting on account or in

representation of the collective management entities, being the minimum and maximum limit of the

coima predicted in the previous number reduced to one third.

3-A violation of the duties provided for in points a ) a g ) of paragraph 1 in Article 26 and in the paragraphs a )

a l ) of Article 27 (2) constitutes counterordinate punishable with fine of € 250.00 a

€ 3 to 750.00.

4-Failure to comply with the obligations set out in Article 34 (4), 5 and 7 of the Article 34 constitutes

counterordinance punishable with fine of € 250.00 a € 2 500.00.

5-A negligence is punishable, being the minimum and maximum limits of the applicable fines

reduced to half.

6-A attempt is punishable by the fine applicable to the consumptive counterordinance,

especially attenuated.

Article 52.

Ancillary sanctions

1-Depending on the seriousness of the infraction and the fault of the agent, may be applied to the entities

of collective management, concurrently with the fine, the following ancillary sanctions:

a) Interdiction of the exercise of activity;

b) Cancellation or suspension of registration.

2-The ancillary sanctions have the maximum duration of two years.

Article 53.

Instruction of the processes and application of fines and ancillary sanctions

It is incumbent upon IGAC to the instruction of the counterordinate processes, and the decision on

the application of the fine and the ancillary sanctions to the inspector general of cultural activities.

CHAIR OF THE COUNCIL OF MINISTERS

45

Article 54.

Product of the fines

The product of the fines reverses:

a) 40% for IGAC;

b) 60% for the State.

CHAPTER V

Supplementary, transitional and final provisions

Article 55.

Dematerialization of procedures

1-All requests, communications and notifications, or, in general, any statements

between those concerned and the competent authorities in the procedures laid down in the

present law must be effected by means of an electronic means through the one-stop shop

electrolyte of the services, referred to in Article 6 of the Decree-Law No. 92/2010, 26 of

July, accessible through the Citizen Portals and the Company.

2-The provisions of the preceding paragraph shall not apply to counterordinational procedures and

to the collective or individual procedures for setting up tariff rates.

3-When, on the grounds of unavailability of the electrolytic platforms, it is not possible

the fulfillment of the provisions of paragraph 1, the transmission of the present information is effected

by electro-mail to address created specifically for the purpose by IGAC,

Advertised in the respect site in the Internet and on the existing computer platform for

tramping of the procedure.

CHAIR OF THE COUNCIL OF MINISTERS

46

4-Whenever the facility to the electro-mail is not technically possible, the

transmission of the information can be done by delivery to IGAC, by any means

dematerialized electrolytic, or by any other legally permissible means.

5-It shall also apply to the procedures referred to in this Article to the provisions of paragraph 1 of the

article 7 of the Decree-Law No 92/2010 of July 26.

6-Whenever an element that should instruct one of the requests, communications and

notifications or statements referred to in paragraph 1 already found in the possession of any

national administrative entity, may the official reviewer of accounts or society of

reviewers officers of accounts choose to replace their delivery with the express indication of the

identification and location of the same, cabling to IGAC its officious achievement.

7-The one-stop shop provided for in this Article complies with the provisions of Law No. 36/2011, of 21

of June.

Article 56.

Administrative cooperation

The competent authorities pursuant to this Law shall participate in the cooperation

administrative, in the context of the procedures for providers from another

Member State, pursuant to Chapter VI of Decree-Law No 92/2010 of July 26,

particularly through the IMI.

Article 57.

Transitional provisions

1-In situations where the competent administrative authority on the grounds of the matter of

a Member State or of the European Economic Area still do not participate in the

mechanism of administrative cooperation, through the IMI, competes with IGAC to check the

veracity of the information provided with respect to the administrative authority

competent.

CHAIR OF THE COUNCIL OF MINISTERS

47

2-Collective management entities constituted in Portugal shall:

a) Proceed to the adaptation of its statutes within six months after entry into

vigour of this Law;

b) Ensuring the implementation and commissioning of procedures

required to comply with the provisions of Article 35 (2 a) (35) within the period of

one year from the date of entry into force of this Law.

3-Joint licensing balconies provided for in Article 35 shall be effectively

implemented within the maximum period of one year after the entry into force of this Law.

4-Fishing the deadline provided in the preceding paragraph without the licensing balconies

set have been effectively implemented, IGAC adopts, within 30 days,

the measures provided for in Article 35 (4).

Article 58.

Regulation

The Government regulates this Act within 30 days of the date of its entry

in force.

Article 59.

Abrogation standard

It is repealed the Act No 83/2001 of August 3.

CHAIR OF THE COUNCIL OF MINISTERS

48

Article 60.

Entry into force

This Law shall come into force 30 days after the date of its publication.

Seen and approved in Council of Ministers of August 21, 2014

The Prime Minister

The Minister of the Presidency and Parliamentary Affairs