Unfortunately not. The basis for the payment of the licence fee is the agreement that includes the name of the institution, the registration code, the contact details or the details of the private person (pursuant to the Accounting Act). The name and time of the event will also be indicated on the contract and invoice.

The EAÜ collects a synchronisation fee primarily for the use of musical works by Estonian authors in any audiovisual works, such as films and videos. In most cases, the EAÜ can also issue synchronisation licences for the use of foreign music works, but there are cases where this is not possible. In this case, the EAÜ will help you find the contact details to apply for a permit.

The EAÜ does not collect synchronisation fees for original music written for films or in situations where the musical work is to be used in advertising. In both cases, you must contact the author of the musical work or the right holder directly.

The amount of the fee depends on the duration (number of seconds) of the musical work used, the type of audiovisual work (feature film, documentary, etc.), and the desired distribution area of the audiovisual work to be created.

If you want to create an audiovisual work, such as a film, and use a musical work in it, but are not sure how wide a distribution area the film will be shown in, it is recommended that you indicate Estonia as the first distribution area and pay the synchronisation fee. If the opportunity or the need arises later to show the work outside Estonia, you can request that the EAÜ extends the area. 

No, in addition to copyright, so-called neighbouring rights shall also be considered when using a musical work in an audiovisual work – these are rights belonging to the producer of the phonogram and the performer, which are handled by the Estonian Association of the Phonogram Producers and the Estonian Performers Association. 

No. It is a very common misconception that a clip of musical work limited to a certain number of seconds is free of charge. The synchronisation fee is payable from the first second of the work.

Chapter IV of the Estonian Copyright Act contains an exhaustive list of cases where copyright works may be used freely, i.e. without permission and without payment. However, in these cases, it must be ensured on a case-by-case basis that the use of the work does not conflict with its normal use or unduly prejudice the legitimate interests of the author (§ 17 of the Copyright Act).

For example, the use of a musical work for teaching purposes is regulated by clause 2 of subsection 1 of § 19 of the Copyright Act: pursuant to this provision, the use of a lawfully published work (including musical works) for the purpose of illustration for teaching to the extent justified by the purpose and on the condition that such use is not carried out for commercial purposes. The work used shall always be clearly referenced, i.e. its title and author shall be clearly indicated.

The author of a work has the right to receive royalties for the reproduction (use) on an audio carrier of a work that he or she has written. The EAÜ collects royalties for the members of authors’ societies. Before submitting a record order to the factory, the record producer shall obtain a licence from the EAÜ to use the work in a certain edition. To do this, he or she needs to fill in an application form, based on which the EAÜ will issue a royalty invoice to the publisher of the audio carrier. Upon payment of the invoice, the publisher receives a licence to use the work in that edition.

They do not have to, but in this case the publisher shall contact the authors themselves and agree the terms of reproduction.

It is not enough. All tracks written by you shall be registered in the EAÜ’s user interface. Based on the information on works registered with the EAÜ, the EAÜ also collects royalties for other uses of the work.

Use of copyrighted works represented by the EAÜ requires the user to seek a written permission from the EAÜ, usually by agreement. In certain cases, the EAÜ also issues unilateral written permits.

As musical works are the most widely used, an intermediary body is essential to facilitate communication between users and authors. In Estonia, this task is carried out by the EAÜ, which represents not only authors of musical works but also creators of works of art and audiovisual works.

The EAÜ has the right to require users to pay an advance payment, i.e. a deposit of up to 100% of the expected licence fee, or to provide a guarantee in the following cases:

1. when the agreement is entered into for the first time with an undertaking whose equity capital is less than the licence fee expected to be payable;

2. if the licence fee has previously not been paid in a timely manner or to the required extent by the applicant or its representative, or if the applicant or its representative has provided the EAÜ with false information about the facts on which the licence fee is based.

The society may refuse to enter into an agreement with applicants for a licence who are in debt to the EAÜ and not grant them a licence.

All cases where the EAÜ has refused to enter into a licence agreement will be reported in the EAÜ’s transparency report for that year.

• Public performance

We are surrounded by music everywhere: in cafés and restaurants, clubs and concert halls, shops, and other public spaces. When music is performed in public, it must be remembered that every piece of music is considered a work of authorship, which is subject to copyright. Consequently, the person organising the public performance of a work must obtain prior permission (a licence) from the author or the organisation representing the author, i.e. the authors’ society. Permission must also be sought in advance if the work is to be publicly performed by any technical means (such as a CD player) or if the work is to be broadcast via radio, television, or cable. Permission is also needed if the work is to be performed in such a way that people can listen to it at a place and time of their choosing.

Under copyright law, public performance means playing, singing, or otherwise performing a work, either directly or by any technical means or process, in a place open to the public, or in a place not open to the public but in which an indefinite number of persons outside the family and immediate circle of acquaintances are present. It does not matter whether the public perceives the work or not, or whether anyone notices that the music is playing. The technical means used for the performance are also irrelevant.

It should be emphasised that the notion that no fee is payable for the presentation of a radio programme (e.g. when radio music is played in the background in a shop) because the radio service provider has already paid for the use of the works performed is false. In actuality, only the radio broadcaster has paid royalties for the right to broadcast the work. However, if someone wants to use the same radio programme as background music in their business premises, it constitutes a public performance of the work and a separate fee must be paid. Also, if you’ve bought a CD or created a Spotify account, you can use the music associated with them for personal purposes, but not commercial purposes such as setting the mood in a restaurant or bar.

EAÜ represents the rights of over 4 million authors and music publishers. Entering into an agreement with EAÜ is a quick and easy way for event organisers, businesses, and other interested parties to legally use works by authors represented by the society.

• Transmission of musical works

Under the Copyright Act, the author has the exclusive right to authorise the communication of his or her works by radio, television, cable, satellite, and other technical devices.

Eesti Raadio broadcasts more than 230,000 musical works in one year. As it would be cumbersome to apply for individual licences from each author and music publisher, it has become common practice around the world to obtain the necessary licences for the distribution of musical works through authors’ societies.

Therefore, radio and television organisations, cable operators, and anyone else who broadcasts programmes (including films) shall obtain a licence from an authors’ society (in Estonia- EAÜ) to broadcast musical works included in those programmes. In other words, they have to enter into an agreement with the society.

Pursuant to the Copyright Act, it makes no difference whether a musical work is transmitted for the first time or is retransmitted. Thus, for example, cable TV companies that broadcast programmes from other TV stations shall obtain a permission from both the TV station to show its programme and from the EAÜ to use musical works included in that programme.

• Recording (reproduction) of musical works

The author has the exclusive right to authorise the reproduction of his or her work, i.e. to make a copy of it. For making a copy, the music is stored on a storage medium (such as a CD, computer hard disk, USB stick, or other storage device).

If you want to record a piece of music for use in advertising, or if you want to modify the work (for example, to make an arrangement or to replace the foreign-language lyrics with Estonian), you need to obtain permission directly from the author or publisher of the musical work. EAÜ can help you find the contact details.

Recording a musical work from an existing audio carrier to another audio carrier also requires permission from the producer of that audio carrier and the performers of the musical work.

Without permission, recordings (for example, radio broadcasts) may be made only for private use (for example for research, teaching).

EAÜ’s permission is not required in the following cases:

1. for the recording of musical works where all the authors (composer, lyricist, arranger) died more than 70 years ago;

2. for the recording of works of folklore (if they are not arrangements);

3. for recording works by authors who are not members of EAÜ or other organisations representing authors; permission must be sought directly from such authors.

Therefore, you should always check with EAÜ’s recording and online use department before making an audio or video carrier, whether the use of the work is free of charge and whether the authors of the work are represented by EAÜ.

• Online use of musical works

Online use of works includes the use of streaming services (e.g. Spotify, YouTube) and download services (e.g. iTunes).

EAÜ can give a permission to make the musical works of its members available to the public in the following ways:

downloading the works;
listening to the works via a streaming service;
making the works available to the public for the purpose of public performance (for example playing background music in a shop);
making the musical works used in audiovisual works available to the public (e.g. digital video rental).

Copyright relates to literary, artistic, and scientific works and the rights of the authors of these works to authorise, restrict, and profit from the use of their works (source: intellektuaalomand.ee).

Pursuant to the Estonian Copyright Act, copyright in a work is created with the creation of the work and no formalities are required for the creation or exercise of copyright.

Membership of the EAÜ is voluntary and authors shall register their works in the association’s database after becoming a member. Registration is required to ensure that the royalties collected can be properly distributed by the EAÜ.

The work shall clearly indicate the person who owns the copyright in the work. The © sign has lost its former significance and there is no longer any obligation or need to use it under Estonian copyright law. The © sign is used purely out of habit.

Copyright can be expressed, for example, in the following manner: ‘Copyright: Jüri Kass, 2021’, which could be supplemented by ‘All rights reserved’.

Copyright protects literary, artistic, and scientific works. These terms cover a very wide range of creative works, as illustrated by the list of examples in subsection 3 of § 4 of the Copyright Act. It can be said that all creative results that meet the following characteristics are protected: 

1. the work shall be original, i.e. it shall be the result of the author’s own intellectual creation. Copyright protection does not require the work to be original in the sense of worldwide novelty, but the work to be protected shall not be a direct copy, executed or adapted in a purely technical way, or be recognisably similar to any existing work. The author’s own individual approach and creative contribution shall be clearly visible. The value of the work, its purpose, and other such criteria are not relevant for protection;
   
2. the work was created in the field of literature, art, or science. The field of technology is not protected by copyright;
3. the work shall be expressed in an objective form (for example, an audio or video recording, a musical score, or a performance);
4. the work shall be in an objective form which allows it to be perceived and reproduced through that format, either directly (by sight or by hearing) or by means of a technical device (recording or reproduction device). Thus, copyright cannot protect an idea, that is, a work that exists in the author’s imagination, or its content. Copyright protection is based on the objective form of expression. 

Pursuant to the Estonian Copyright Act, protection of a work by copyright is presumed except if, based on this Act or other copyright legislation, there are apparent circumstances which preclude this. 

In Estonia, copyright is protected during the lifetime of the author and an additional 70 years after his or her death. In the case of joint authorship (where a work has several authors), the 70-year period starts when the last of the co-authors dies. The deadline is calculated from 1 January of the year following the year of the author’s death.

Once the copyright term expires, any interested party is free to use the work. This means that the work is now in the public domain.

However, for works in the public domain, the rules on authorship, protection of the author’s name, honour and dignity, and protection of the title shall be respected. This means that the title and author of the work shall be indicated even for works in the public domain.

Private copying levy is a payment made to authors, performers, producers of phonograms, and producers of the first recording of a film to compensate them for the loss of revenue they incur when people make copies of audiovisual or sound recordings of their works. The fees collected shall ensure that right holders are fairly compensated for the use of their work in this way. In order to avoid having to collect a fee from each end-user for each copying transaction, the fee is collected through the sale of recording devices and storage media used for copying films, music, and other content. The fee is paid by manufacturers and importers of recording equipment and storage media, who add it to the selling price of the product.

The private copying levy is not a tax. It is a component of the value of the goods and therefore does not need to be shown as a separate line on the invoice submitted by the seller to the buyer.

The Estonian Tax and Customs Board is of the opinion that since the private copying levy is part of the taxable amount of the goods supplied to the customer, it should also be subject to VAT.

The EAÜ has the right to request documents on which the levies are based. In the case of import, the invoices, which bear the invoice number, the names of the sender and receiver, the delivery terms, the currency code, and the value, quantity and description of the goods, are the documents used as proof for the levy.

The data submitted is confidential and the levy collector (i.e. the EAÜ for the period of 2021‒2023) is only entitled to use or disclose it in connection with the collection of the levy.

No private copying levy applies to goods entering a customs warehouse. The levy is calculated when the goods are released for free circulation. Goods from third countries intended for placement on the market in the European Union or intended for private use or consumption in the customs territory of the European Union are subject to the customs procedure for release for free circulation.

As an exemption from the general rule, an importer shall not be required to report and pay the private copying levy if they import recording devices to a legal person who is the end-user of such recording devices or storage media and with whom a supply contract has been concluded before 1 March 2021, provided that the recording devices or storage media are imported no later than 30 June 2021. During this period, the importer will have the opportunity to inform its contracting partners about the changes in legislation and to make the necessary amendments to the agreements. After 30 June 2021, all deliveries shall include the private copying levy.

Under copyright law, undertakings are not always entitled to recover the private copying levy paid for a recording device and storage media. This is only possible if the recording device or storage media is used in the course of activities specified in the articles of association. The Copyright Act (clause 3 of subsection 5 of § 27) uses the term ‘activities specified in the articles of association of an undertaking’ but does not define it. Current law (the Commercial Code) does not oblige undertakings to state in their articles of association their field of activity. It is generally understood that an activity specified in the articles of association is the economic activity of an undertaking. The Commercial Code states:

• every undertaking, upon entry in the commercial register, shall specify its planned principal activity and shall keep the register informed of any changes to the principal activity, using the Estonian Classification of Economic Activities;
• a company required to file the annual report with the commercial register, shall indicate the areas of activity of the year ended and the areas of activity intended for the new accounting year in its annual report and shall not make a separate announcement of any change in these.

Recovery of the private copying levy is therefore justified in cases where the recording devices or storage media are used for a purpose that is clearly different from copying for private use and avoids possible harm to right holders. Therefore, if an undertaking buys a computer or smartphone for its employees, which the employees are allowed to use for both work and private activities – in other words, the employees do not use the computer or smartphone solely for activities specified in the articles of association of the legal person, i.e. for economic activities – the undertaking is not entitled to recover the private copying levy.

Yes, samples used to promote a product are considered own consumption as they belong to the undertaking and are not in the possession of private individuals. Consequently, there is no infringement of anyone’s copyright in the context of private copying. As long as the samples remain the property of the undertaking, the private copying levy paid for them can be recovered, but if the samples are later sold to a consumer, the levy will still be due.

Yes, if they have been reported in the same period, netting will be done on the invoice. This means that the undertaking sends a report to the EAÜ on both imports and exports and is required to pay the difference between imports and exports.

Yes, you must. Resale to a commercial user is subject to the private copying levy. The commercial user has the right to request the levy to be refunded later. The importer cannot guarantee that the devices are intended solely for professional use, this can only be confirmed by the end user.

Yes, the replacement device qualifies for the exemption because the customer uses the device for a short period, only during the repair of the device, and then returns it.

No, but in the cases specified by law, the undertaking may be entitled to recover the levy. If the device is sold or rented to a private individual, the levy is payable. Renting equipment as a commercial activity does not change the fact that the end user is a private person.

If an undertaking exports or sells goods to Member States, it will be entitled to recover the private copying levy paid on exported products as from 1 April 2021. For this purpose, the import report shall be accompanied by an export report, which shall indicate, by groups of goods, the names of the products exported from Estonia, the quantities, the customs declaration/invoice number, the date of export, and the country of destination. This reporting format will be made available on the EAÜ’s website, together with explanatory notes. If a company submits both reports at the same time for the same period, the difference between imports and exports is paid as the private copying levy.