Copyright and Related Rights Law No. 4-99

This Law is of public order and of social interest; under its protection are the authors of literary, artistic, and programming works. This Law also protects performing artists or performers, producers of phonograms and broadcasting organizations.

Literary or artistic works are all original creations regardless of their genre and whatever the mode or form of expression, quality or purpose. In particular, those expressed in writing including computer programs, lectures, allocutions, sermons and works expressed orally; musical works with or without lyrics, dramatic and dramatic-musical works, choreographic works and pantomimes, audiovisual works, fine arts works such as drawings, paintings, sculptures, engravings, lithographs, and architecture; photographs; applied art works, illustrations, maps, plans, sketches and three-dimensional works, relating to geography, topography, architecture or the sciences.

The rights recognized to the author and to the holders of related rights are independent of each other. Likewise, such rights are independent of the ownership of the material object in which the intellectual property is incorporated and are not subject to the fulfillment of any formality. CHAPTER II SCOPE OF APPLICATION

This Law protects the rights of Honduran authors, of foreigners residing in the country and foreign works published for the first time in Honduras, audiovisual works whose producer is Honduran or who has his habitual residence or headquarters in Honduras, as well as architectural works erected in Honduras or fine arts works that are part of a building located in Honduras. The rights of non-resident foreigners in the country, whose works have been published for the first time abroad, shall enjoy the protection of this Law in accordance with the international conventions of which Honduras is a party. In the absence of a convention, the principle of reciprocity shall be applied. Stateless persons and refugees shall be given the rights of the State where they have their domicile. Foreign contracts on copyright and related rights that must be performed in Honduras shall be valid against third parties when they are registered with the Administrative Office of Copyright and Related Rights. Such contracts shall be subject to the formalities required in the place of their execution, without prejudice to what is established in Honduran legislation and without prejudice to what is stipulated in international conventions, of which Honduras is a party.

Protection for performing artists or performers shall apply in the following cases:

• 1)

  When the performing artist or performer is Honduran;

• 2)

  When the performance or execution has taken place in the national territory; and,

• 3)

  When the performance or execution has been fixed in a phonogram that meets the requirements prescribed for its protection in Article 6 of this Law or that, not having been fixed, is broadcast by protected broadcast.

Protection of phonograms under this Law shall be applicable in the following cases:

• 1)

  When the producer is Honduran;

• 2)

  When the first fixation was made in the national territory; and,

• 3)

  When the phonogram has been published for the first time in Honduras.

Protection of broadcasting transmissions under this Law shall apply in the following cases: 1) When the headquarters of the broadcasting station is located in Honduras; and, 2) When the broadcast was made from a transmitter located in Honduras.

Performances and executions, phonograms and broadcasts, whose holders are non-resident foreigners in the country, are protected in accordance with the international conventions to which the Republic of Honduras is adhered, or in their absence, when the State of their nationality ensures effective protection to Honduran holders. CHAPTER III DEFINITIONS

For the purposes of this Law, the following is understood:

• 1)

  Individual Work: The work created by a single natural person;

• 2)

  Collective Work: The work created by various authors at the initiative and under the responsibility of a natural or legal person, who publishes it under their name and in which it is not possible to identify the various contributions and their corresponding authors;

• 3)

  Works in collaboration: The work created jointly by two or more natural persons, provided that the work cannot be classified as a collective work;

• 4)

  Original Work: The work originally created;

• 5)

  Derivative Work: The creation that results from the adaptation, translation, arrangement or other transformation of an original work, collections of works and collections of simple data, provided that such collections are original by reason of their selection, coordination or arrangement of their content;

• 6)

  Anonymous Work: One in which the identity of its author is not mentioned by the author's will or when their name is unknown;

• 7)

  Pseudonymous Work: The one published under a name other than that of the author;

• 8)

  Unpublished Work: One that has not been communicated to the public with the author's consent, in any form;

• 9)

  Posthumous Work: The one published at a date after the author's death;

• 10)

  Work Published for the First Time in Honduras: Every work made known for the first time in the national territory. The work shall be considered in the same case if, not having been published in the country initially, it is made available to the public for the first time in Honduras within thirty (30) days following its publication abroad;

• 11)

  Publication: To legally place within the reach of the public with the author's consent, sufficient copies to satisfy reasonable needs according to the nature of the work. Publication does not constitute the performance of a dramatic work, dramatic-musical or cinematographic work, the execution of a musical work, the public recitation of a literary work, the transmission or broadcasting of literary or artistic works, the exhibition of an artwork, nor the construction of an architectural work.

• 12)

  Audiovisual Work: The one consisting of a sequence of associated images, with or without sound, intended for its exhibition by means of devices suitable for public communication of image and sound;

• 13)

  Producer of Audiovisual Work: The natural or legal person who, on their initiative and under their responsibility and coordination, fixes for the first time an audiovisual work;

• 14)

  Applied Art Work: Artistic creations that are two-dimensional or three-dimensional with utilitarian functions or incorporated in a useful article, whether it is a handicraft work or one produced on an industrial scale;

• 15)

  Fixation: The incorporation of images, sounds, or both, the representation or execution thereof on a durable material support, which permits perception, reproduction or communication;

• 16)

  Reproduction: The realization by any means of one or more copies of a work, of a phonogram, or of a sound or audiovisual fixation, in whole or in part, permanent or temporary, on any type of material support, including any storage by electronic means;

• 17)

  Phonogram: Any fixation of the sounds of a performance or interpretation or of other sounds, or of a representation of sounds that is not in the form of a fixation included in a cinematographic or audiovisual work;

• 18)

  Copy of a Phonogram: A support containing sounds taken directly or indirectly from a phonogram and which incorporates all or part of the sounds fixed in that phonogram;

• 19)

  Producer of Phonogram: The natural or legal person who, on their initiative and under their responsibility and coordination, fixes for the first time the sounds of an interpretation, execution or other sounds, or their representation;

• 20)

  Distribution to the public: Any act by which copies of a work are offered, directly or indirectly, to the general public or to a portion thereof;

• 21)

  Performing Artist or Performer: Any actor, singer, musician, dancer or other person who performs a role, sings, recites, declaims, interprets or executes, in any form a literary or artistic work or expressions of folklore;

• 22)

  Variety Artist: The clown, contortionist, magician, trapeze artist and any person who performs in the spectacle exhibiting to the public their artistic ability;

• 23)

  Broadcasting: Communication at a distance of sounds, or of images and sounds, or representations of both by electromagnetic waves propagated in space, without artificial guidance for reception by the public;

• 24)

  Retransmission: The simultaneous or subsequent broadcast by a broadcasting organization of a broadcast by another broadcasting organization;

• 25)

  Cable Transmission: Transmission by wire, cable, fiber optics or any other analogous means of signal transmission;

• 26)

  Fair Use: Those that do not interfere with the normal exploitation of the work nor cause damage to the legitimate interests of the author.

• 27)

  Fraudulent or Illegitimate Reproduction: Reproduction not authorized by the holder of the right;

• 28)

  Public: Means a group of individuals with the intention of being the object and capable of perceiving communications and performances of works, regardless of whether they can do so at the same or at different times or places, provided that this group is larger than a family and their immediate circle, or that it is not a group consisting of a limited number of individuals who have a similar close relationship that was not formed for the principal purpose of receiving the communications and performances of those works;

• 29)

  Droit de Suite or Right of Resale: The right recognized to the author and their heirs, by virtue of which they may claim a portion of the income obtained in each new public sale or through a professional trader of works of art or original manuscripts within the period of protection; and,

• 30)

  Administrative Office of Copyright and Related Rights: Hereinafter referred to as Administrative Office, is the entity in charge of the administration and execution of this Law. TITLE II COPYRIGHT CHAPTER I SPECIAL PROVISIONS AND CERTAIN CATEGORIES OF WORKS

The author of a work shall be presumed, unless proven otherwise, to be the person whose name, pseudonym, initials, mark or conventional sign appears printed in such work or in its reproductions in the usual manner or is announced in the declamation, execution, performance, interpretation or any other form of public dissemination of such work.

Only natural persons can be authors of a work. However, the State, public law entities and legal persons, may be holders of the intellectual rights conferred upon them by this Law as successors in title of the original holder.

Protected as independent works, insofar as they constitute an original creation, without prejudice to the copyright on the original works: 1) Translations, adaptations, musical arrangements and other transformations of a work. In this case, the holder of the right over the derived work shall be the person who has created it; with respect to the original work in the private domain, prior written authorization from the holder of the rights thereto shall be necessary; and, 2) Collective works, such as periodical publications, anthologies, dictionaries and similar, when the selection and arrangement constitute an original creation. TITLE III HOLDERS OF COPYRIGHT CHAPTER I AUTHORSHIP AND OWNERSHIP

The author of the work is the first holder of the moral and patrimonial rights over his work.

Applied art works shall enjoy protection, when their artistic content is separable from the industrial product.

Unless otherwise agreed, in divisible works in collaboration, each collaborator is the holder of the rights over the part of which he is the author. In indivisible works in collaboration the rights belong in common and pro indiviso to the coauthors.

Works published for the first time by the United Nations Organization (UN) and its departments or specialized institutions, and by the Organization of American States (OAS), shall be protected in accordance with the provisions of International Conventions signed and ratified by Honduras.

In anonymous works and in works published under a pseudonym, if the author has not revealed his name, the publisher shall be considered as the derivative holder of the right, until such time as the author reveals his identity.

In collective works, it is presumed, absent agreement to the contrary, that the authors have assigned in unlimited and exclusive form the ownership of patrimonial rights to the natural or legal person who publishes it in his own name, who is equally authorized to exercise moral rights over the work.

In works created for a natural or legal person in fulfillment of an employment relationship or in the exercise of a public function, the original holder of moral and patrimonial rights is the author, but it is presumed, absent agreement to the contrary or regulatory provision, that the patrimonial rights over the work have been assigned to the employer or to the public entity, to the extent necessary for its customary activities at the time of creation of the work, which likewise implies authorization to disclose it and exercise moral rights insofar as it is necessary for the exploitation thereof.

Without prejudice to the rights of the authors of works adapted or included therein, the audiovisual work is protected as an original work.

The co-authors of an audiovisual work are:

• 1)

  The Director or Producer;

• 2)

  The authors of the argument, adaptation, and screenplay; and,

• 3)

  The author of the music specially composed for the work and the author of the drawings, if it is a matter of an animated design. The authors of preexisting works adapted and used for audiovisual works shall be assimilated to the co-authors mentioned above.

Absent stipulation to the contrary, by the production contract of an audiovisual work, the producer acquires the right to fix it, reproduce it, and exploit it publicly by any form or process. It is presumed, absent proof to the contrary, that the producer of the audiovisual work is the natural or legal person so indicated in the work. This presumption does not apply to musical works. The contract with the co-authors and other participants shall be governed in accordance with what is stipulated in national legislation and shall stipulate the following:

• 1)

  Authorization for the fixation of their respective contributions;

• 2)

  The remuneration owed by the producer to the co-authors of the work and to the performing artists or performers who participate therein, as well as the time, place, and form of payment of such remuneration; and,

• 3)

  The deadline for completion of the work.

Each of the co-authors of the work may freely dispose of the part that constitutes his personal contribution for use by a different means of communication, absent stipulation to the contrary. If the producer does not complete the audiovisual work within the agreed deadline, or does not cause it to be shown during the three (3) years following its completion, the co-authors shall be free to use their respective contributions.

If one of the co-authors refuses to continue his contribution to the work or is prevented from doing so by cause of force majeure, he cannot object to another author continuing it, nor to the use of the part corresponding to his contribution already made; in case the work is completed, the first shall not lose his status as author nor the rights belonging to him in relation to his contribution.

The producer shall have the following rights:

• 1)

  To fix and reproduce the work for distribution and exhibition by any means at his disposal, in cinematographic theaters or in places serving the same purpose or by any means of projection or dissemination that may arise, obtaining economic benefit thereby;

• 2)

  To sell or rent copies of the audiovisual work or to make enlargements or reductions in its format for exhibition; and,

• 3)

  To authorize translations and other adaptations or transformations of the work and to exploit them to the extent required for better economic use thereof and to pursue, before competent judicial authorities, any unauthorized reproduction or exhibition.

The moral right of the audiovisual work belongs to its Director, who shall only be able to object to circulation and exhibition by virtue of a final judgment issued by competent judicial authority.

Without prejudice to the co-authors, the producer may, absent stipulation to the contrary, exercise in his own name the moral rights over the audiovisual work, insofar as it is necessary for the exploitation thereof.

The audiovisual work is considered completed when the definitive version has been established, in accordance with what has been agreed between the Director or Producer and the Producer.

The moral right of the co-authors may only be exercised with the definitive version of the original work.

Photography made by commission belongs to the person who commissioned it, who may reproduce and use it freely, absent express agreement to the contrary with the photographer.

The transfer of plans, sketches, and similar works only grants to the person who acquires them the right to execute the work without being able to reproduce them, transfer them, or use them for other works. All these rights belong to the author, except by agreement to the contrary.

It is presumed, absent proof to the contrary, that the person indicated as such in the work in the customary manner is the producer of the computer program.

The contract between the authors of the computer program and the producer, if not otherwise stipulated, implies the unlimited transfer to the producer of patrimonial rights. Moral rights belong to the author. Authorization of the right of use is understood to be that act by virtue of which the holder of the right of exploitation of a computer program authorizes another to use the program, retaining its ownership. The authorization of the right of use is of a non-exclusive and non-transferable character and solely to satisfy the needs of the user.

Technical documentation and user manuals of a program shall enjoy the same protection granted to those programs. All reproduction of the program shall require authorization from the holder of the right except for backup copying. It shall be permitted to make a copy or adaptation of a computer program only if that copy or adaptation is indispensable for:

• 1)

  The use of the computer program;

• 2)

  The use of the program for the purposes for which it has been legally obtained; and,

• 3)

  For archival purposes, if necessary, in the event that those copies are lost, destroyed, or rendered unusable for replacement of the legally obtained copy. The copies or adaptations previously mentioned shall be destroyed in the event that the continued possession of the computer program ceases to be legitimate.

Independently of his patrimonial rights and even after their transfer, the author shall retain over the work a highly personal, inalienable, irrenunciable, and imprescriptible right, called moral right.

The moral right of the author comprises the following powers:

• 1)

  To claim at any time and place the paternity of his work and in particular that his name or pseudonym be mentioned as the author thereof in all its reproductions and uses;

• 2)

  To oppose any deformation, mutilation, or other modification of the work, when it may cause or causes damage to his honor or reputation or the work loses literary, academic, artistic, or scientific merit;

• 3)

  To keep the work unpublished or anonymous, being able to postpone its publication, even until after his death;

• 4)

  To introduce successive modifications to his work; and, 5. To withdraw from circulation or suspend any unauthorized form of use of his work.

The defense of the rights to paternity and integrity of works upon the death of the author, in the absence of testamentary disposition, shall be the responsibility of those who hold the right of succession ab-intestato and, in their absence, the Administrative Office.

The rights mentioned in numerals 4) and 5) of Article 36 of this Law may only be exercised prior to indemnification to third parties for any damages that may be caused to them.

The author has the right to receive economic benefits from the use of the work by any means, form, or process. Consequently, he may carry out or authorize in particular any of the following acts:

• 1)

  Reproduction by any procedure and in any form, whether total or partial, permanent or temporary;

• 2)

  Translation into any language or dialect;

• 3)

  Adaptation, arrangement, or transformation;

• 4)

  The inclusion of the work in a phonogram or in any audiovisual form;

• 5)

  Communication to the public, directly or indirectly, by any known or unknown procedure or means and in particular:

  • a)

    Recitation, performance, or execution;

  • b)

    Public projection or exhibition;

  • c)

    Radio broadcasting, including that carried out by satellite;

  • ch)

    Transmission by wire, cable, optical fiber, or other analogous procedure;

  • d)

    Dissemination by means of speakers, telephony, or similar electronic devices;

  • e)

    Public access to computer databases by means of telecommunications; and, f) Making available to the public the works in such a way that members of the public may access them from the place and at the time each one chooses.

• 6)

  Distribution to the public by means of sale, rental, public lending, or any other transfer of ownership or possession of the original or copies of his work that have not been subject to distribution authorized by him;

• 7)

  The rental of a copy of an audiovisual work, a work incorporated in a sound recording, a computer program regardless of the ownership of the copy; and,

• 8)

  To authorize or prohibit the importation of copies of his work legally manufactured, and to prevent the importation of copies manufactured without his authorization.

The economic remuneration for patrimonial rights is subject to free negotiation between the parties.

Two-thirds of the amount of monetary income received by a natural person for copyright shall be exempt from seizure.

The different forms of use are independent of one another, so authorization for a particular use is not applicable to others.

In case of resale of copies of a work of fine arts or original manuscripts of writers or composers, at public auction or through a professional art dealer, the author enjoys the right to receive from the seller five percent (5%) of the sale price. The aforementioned percentage shall be collected and distributed by a collective management association. The "droit de suite" or right of follow-up shall not be transferable during the life of the author. Upon the death of the author, this right is transmitted for a term of seventy-five (75) years to those who by Law have the right of succession.

Patrimonial rights are protected during the life of the author and seventy-five (75) years after his death. When dealing with works by foreign authors, published for the first time abroad, the term of protection shall not exceed that recognized by the Law of the country where the work was published, provided, however, that if that country grants protection greater than that granted by this Law, the provisions of the latter shall apply.

The terms of protection shall apply as follows:

• 1)

  Works in collaboration: during the life of the last surviving author and seventy-five (75) years after his death;

• 2)

  Anonymous and pseudonymous works: Until the expiration of seventy-five (75) years counted from the date on which the work was first legally published, in the absence of such publication taking place during the seventy-five (75) years of the end of the calendar year in which the work was made available to the public or, in the absence of such events occurring during the seventy-five (75) years following the creation of the work, seventy-five (75) years from the end of the calendar year of that creation. If before the expiration of the aforementioned period the identity of the author is revealed or is no longer in doubt, the provisions corresponding to the known author shall apply.

• 3)

  Collective, audiovisual, and labor relationship works, the term of protection of seventy-five (75) years shall be calculated from the date the work is first published or, in the absence of such event occurring during the seventy-five (75) years following the creation of the work, seventy-five (75) years from the end of the calendar year in which the work became accessible to the public or, in the absence of such events occurring during the seventy-five (75) years following the creation of the work, seventy-five (75) years from the end of the calendar year of that creation;

• 4)

  Works of applied art, calculated from the end of the calendar year of their creation; and,

• 5)

  Photographic works, fifty (50) years calculated from the end of the calendar year of their creation.

It shall be permissible, without authorization of the rights holder and without payment of remuneration, with the obligation to mention the source and the name of the author, when indicated in the work, to perform the following acts:

• 1)

  Reproduce and distribute through the press or broadcast by radio, cable transmission, information, news, and current affairs articles, in cases where reproduction, broadcasting, or public transmission has not been expressly reserved;

• 2)

  Reproduce and make available to the public, in connection with information relating to current events by means of photography, audiovisual work, radio broadcasting, or cable transmission, fragments of works seen or heard in the course of such events, to the extent justified by the purpose of the information; and,

• 3)

  Use by any form of public communication, political speeches, judicial speeches, dissertations, allocutions, sermons, and other similar works, pronounced in public, for purposes of information regarding matters of current interest, with authors retaining the exclusive right to publish them for other purposes.

With respect to lawfully divulged works, reproduction of a single copy of the work for the personal and exclusive use of the user is permitted without authorization of the author or payment of remuneration, carried out by the interested party with his own means.

Photomechanical reproductions for exclusive personal use are also permissible, such as photocopying and microfilming, provided they are limited to small portions of a protected work or to out-of-print works.

When it is not possible to acquire a copy under reasonable conditions, public libraries may reproduce for the exclusive use of their readers and when necessary for their conservation and for the service of loans to other public libraries, one copy of protected works deposited in their archival collections that are out of print. These copies may also be reproduced, in a single copy, by the library that receives them in the event it is necessary for their conservation, and for the sole purpose that they be used by its readers, provided that the act of reprographic reproduction is an isolated case which, if repeated, occurs on isolated and unrelated occasions.

Reproduction by reprographic means for teaching or conducting examinations in educational institutions is permitted, provided there is no profit motive and to the extent justified by the objective pursued of articles, lectures, lessons, brief excerpts or brief lawfully published works, provided that such use is made in accordance with honest practices.

Free reproduction of a single handwritten or typewritten copy made personally and exclusively by the interested party of a didactic or scientific work for his own use and without direct or indirect profit motive is permissible.

Reproduction of a work of art permanently exhibited in streets, plazas, or other public places by means of an art form different from that employed in the elaboration of the original is permissible. With respect to buildings, this right is limited to the exterior façade.

Reproduction of a single copy of a computer program exclusively for purposes of backup or security is permissible, as well as the introduction of the computer program into the internal memory of the equipment solely for purposes of its use by the user.

Laws, regulations, agreements, and other provisions emanating from the corresponding organs of the State may be published separately or in compilation by private individuals, after they have been published in the Official Gazette La Gaceta, respecting their complete official text. Likewise, they may be inserted without authorization in newspapers and in works in which by their nature or purpose it is appropriate to cite them, comment on them, criticize them, or copy them verbatim.

Free performance of phonograms and reception of radio and television transmissions in commercial establishments that sell receiving apparatus, electrodomestic appliances, or phonograms for demonstration to their clientele is permissible, to the extent necessary for the demonstration purposes pursued.

Theatrical performance and musical execution are free when carried out in the home for the exclusive benefit of the family circle or its guests in celebration of parties or gatherings. It shall also be free when carried out in educational establishments for didactic purposes, civic celebrations, or activities of social, cultural, and sports benefit, provided there is no profit motive nor any type of economic compensation.

The person holding the rights over an architectural work may alter the plans and projects, as well as order at any time its total or partial demolition, enlargement or reduction or any other modification. When the author of the original plan and project has not given consent to such modifications, he may demand the suppression of his name, if it appears recorded in the modified work.

When the title of a work is not generic, but individual and characteristic, it may not be used for another similar work without the corresponding authorization of the author.

Private letters are the property of the person to whom they are sent, but not for the purpose of their publication. This right belongs to the author of the correspondence, except in the case that a letter must serve as evidence in a judicial or administrative matter and its publication is authorized by the competent official. Letters of deceased persons may not be published within seventy-five (75) years following their death without the express permission of the surviving spouse or descendants, or in their absence, of the father or mother of the author. When there are several persons whose consent is necessary for publication and there is disagreement, the competent judge shall decide after hearing all interested parties.

The portrait or bust of a person may not be placed in commerce without the consent of the person himself, and at his death of his heirs. However, publication of the portrait is free when it relates to scientific, didactic, cultural, political, economic purposes, or in general, to matters or events of public interest or that have been developed in public.

This Law protects as national patrimony the traditional and popular Honduran culture manifested in all those expressions and folklore productions that do not have known author or authors. Its use is free. Also protected by the general provisions of this Law are creations of popular or artisanal art. CHAPTER IV

ON THE TRANSMISSION OF PATRIMONIAL RIGHTS

Patrimonial rights may be transferred by assignment inter vivos, by testamentary disposition, or by operation of law.

The transmission of the right of author and of related rights is limited to the right or rights assigned, to the modes of exploitation expressly provided for, and to the time and territorial scope that are determined. In the case that time is not mentioned, the transmission is for five (5) years and that of territorial scope to the country to which the transmission is made. If the modes of exploitation are not specified, the assignment shall be limited to that which is necessarily deduced from the contract itself and is indispensable to fulfill its purpose. The assignment of exploitation with respect to the totality of works that the author may create in the future is null, as are provisions by which the author commits not to create works; the assignment does not include modes or means of exploitation that are non-existent or unknown at the time of creation. The assignment contract must be formalized in writing.

An assignment granted for valuable consideration confers a proportional participation in the income from exploitation, to the extent agreed upon with the assignee. However, a lump-sum remuneration may be stipulated when, given the mode of exploitation, it is not possible to determine the income, when the use of the work has an accessory character with respect to the activity to which it is intended or in extraordinary cases. If there occurs a disproportion between the remuneration of the author and the benefits obtained by the assignee, the author may request a revision of the contract and the competent Judge shall fix an equitable remuneration; in the absence thereof, the matter may be resolved by an arbitrator appointed by common agreement between the parties.

The author of a work may grant in writing licenses to third parties to perform acts comprised in the author's patrimonial rights. In all cases, these licenses may or may not be exclusive; no license shall be considered exclusive unless expressly indicated in the respective contract.

If the assignee or licensee do not exercise the rights or acts transferred within the twelve months following, to the detriment of the legitimate interests of the author, the author may rescind the contract.

Obligations arising from assignment or license of copyright have the same privilege as labor benefits over other creditors, except for spousal support and alimony.

The person who acquires a right of exploitation must fulfill the obligations contracted by the transferor by virtue of the contract with the author. The acquirer shall be jointly and severally liable to the author with the transferor for the obligations contracted by the latter in the respective contract, as well as for compensation for damages that the transferor may cause to the author by non-compliance with any of said contractual obligations.

Except as otherwise stipulated in the contract, it shall not be considered that the author who transfers by sale the original or a copy of the work has assigned any of the author's patrimonial rights, nor that the author has granted any license for the performance of the acts contemplated by patrimonial rights.

Except as otherwise agreed, the assignment of articles for written press, magazines or other media of social communication, only grants the publisher or owner of the publication the right to insert or disseminate it once, with all other patrimonial rights of the assignor reserved.

If the assigned article must appear with the signature of the author or the author's pseudonym, the assignee cannot modify it and if the publisher or owner of the media modifies it without the consent of the assignor, the assignor may request the complete and faithful insertion or dissemination of the assigned article, without prejudice to the assignor's eventual right to claim indemnification. When the assigned article must appear without the author's signature, the publisher or owner of the media may make modifications or changes of form without the consent of the assignor.

The provisions established in Articles 70 and 71 of this Law apply in an analogous manner to drawings, caricatures, jokes, graphics, photographs and other works susceptible of being published in newspapers, magazines and other media of social communication. TITLE V ON CONTRACTS CHAPTER I

PUBLISHING CONTRACT

By virtue of the publishing contract, the holder of the copyright of a literary or artistic work authorizes a publisher, in exchange for payment of remuneration, to publish, promote and distribute it at the publisher's account and risk.

Without prejudice to the ancillary stipulations that the parties deem convenient, the publishing contract must include:

• 1)

  Identification of the author, publisher and work;

• 2)

  Whether the work is unpublished;

• 3)

  Date of authorization;

• 4)

  The form, amount or manner of calculating the agreed remuneration;

• 5)

  The term and conditions in which the original must be delivered;

• 6)

  The agreed term for placing the copies of the edition for sale;

• 7)

  The quality of the edition and the number of copies that must be printed;

• 8)

  The number of editions;

• 9)

  The manner in which the selling price of each copy to the public shall be fixed; and,

• 10)

  The term of the contract. In the absence of any of the foregoing stipulations, the provisions of the following articles shall apply.

If the author has previously entered into a publishing contract concerning the same work or if the work has been published with the author's authorization or knowledge, the author must disclose this circumstance to the publisher before the celebration of the new contract. Concealing such facts and acts shall imply the payment of damages that may be caused to the publisher.

The originals shall be presented in typewritten copies, double-spaced, duly corrected, without interpolations or additions in a form suitable for reproduction. If it is a work already published, the original may be delivered in a printed copy with the modifications, additions, or deletions duly indicated.

The author's failure to meet the date and manner of delivery of the originals shall give the editor the option to rescind the contract, or to return the originals to the author so that their presentation may be adjusted to the agreed-upon terms. In case of return of the originals, the period or periods that the editor has for the initiation and completion of the edition shall be extended by the time in which the author delays the delivery of the same duly corrected.

The editor may not modify the originals by introducing abbreviations, additions, or modifications without express authorization from the author. Except as otherwise agreed, when it comes to works that by their nature must be updated, the preparation of the new originals shall be done by the author.

The author shall have the right to make corrections, additions, or improvements that he or she deems appropriate before the work enters into printing. The editor may not make a new edition authorized in the contract without giving the corresponding notice to the author, so that the author has the opportunity to make the reforms, additions, or improvements that he or she deems pertinent, which, if introduced when the work is already corrected in proof, the author shall reimburse the editor for the costs incurred. This rule shall also apply when the reforms, corrections, or expansions are of great magnitude and make the printing process more burdensome, except when it comes to works updated through periodic submissions.

When the originals of the work, after having been delivered to the editor, are lost through the editor's fault, the editor is obligated to pay the sums agreed upon contractually, except in the case that the holder or author possesses a copy of the lost originals, which shall be made available to the editor.

If before completing the preparation and delivery of the originals of the work, the author dies or without fault becomes unable to complete it, the editor may terminate the contract without prejudice to the rights that have accrued in favor of the author. If the editor chooses to publish the part received of the original, the agreed-upon remuneration may be proportionally reduced. If the nature of the work permits, with authorization from the author, his or her heirs, or his or her successors in interest, the editor may entrust a third party with the completion of the work, mentioning this fact in the edition in which a clear typographic distinction of the texts thus added must be made.

Author's royalties shall be paid on the date, in the manner, and at the place agreed upon in the contract. If such remuneration equals a fixed sum independent of the results obtained from the sale of the published copies and nothing else has been stipulated, it is presumed that it is payable from the moment when the work in question is ready for distribution and sale to the public. If the remuneration has been agreed upon in proportion to the copies sold, it may be paid in settlements that do not exceed periods longer than six (6) months, by means of accounts that must be delivered to the author by the editor, which may be verified by the author in the form provided for in this Law. Any agreement to the contrary that increases the six-month period and the payment due date of this obligation shall be void, giving the author the right to rescind the contract, without prejudice to the recognition of damages and losses that may have been caused.

If the editor delays the publication of any of the agreed-upon editions without just cause, the editor shall indemnify the damages caused to the author, who may exercise the right of contract rescission established in this Law.

The author or holder of the right may corroborate the truthfulness of the number of editions and copies printed, sales, subscriptions, courtesy gifts, and in general the income caused by the work, through verification of the print run in the editor's or printer's workshop and inspection of the editor's warehouses. This control may be exercised by the author personally or through a person authorized in writing.

In the absence of a contractual stipulation, the following provisions shall govern:

• 1)

  The delivery of the originals by the editor must be made within a period of sixty (60) days from the signing of the contract;

• 2)

  If the number of editions is not indicated, only one may be made;

• 3)

  The deadline for initiating an edition shall be two months from the delivery of the originals for the first edition or from when the previous edition is exhausted;

• 4)

  The number of copies per edition shall be one thousand;

• 5)

  The sale price shall be fixed by the editor;

• 6)

  The language of publication is the original language of the work; and,

• 7)

  The editor is authorized to request the registration of the work.

Any increase or decrease in the sale price of a work, the editor must communicate it in writing to the author, sending it by certified mail, before the date of its effectiveness.

If the term of the contract expires before the published copies have been sold, the author or his or her successors in interest have the right of first refusal to purchase the unsold copies at the price fixed for sale to the public with a discount to be agreed upon between the parties. If the authorized copies have been exhausted, the contract shall be deemed expired.

In the event that the work disappears in whole or in part in the hands of the editor after printing, the author shall be entitled to the agreed-upon sum if it was agreed upon without consideration of the number of copies sold. If the remuneration has been agreed upon in proportion to the copies sold, the author shall be entitled to it when the causes of the loss or destruction of the work, or part of it, are attributable to the editor.

Every editor or person who publishes a work is obligated to include in a visible place on all copies published, including those eventually intended to be distributed free of charge, the following information:

• 1)

  Title of the work;

• 2)

  Name and pseudonym of the author or authors and name of the translator, unless they have decided to remain anonymous;

• 3)

  Name of the compiler, adapter, or author of the version where applicable;

• 4)

  If the work is anonymous, this shall be noted;

• 5)

  Name and address of the editor and printer; and,

• 6)

  Date on which the printing was completed.

If after three (3) years of the work being on sale to the public no more than thirty percent (30%) of the published copies have been sold, the editor may terminate the contract and liquidate the remaining copies at a price lower than the agreed-upon price, reducing the author's remuneration proportionally to the new price if it was agreed upon in proportion to the copies sold. In this case, the author shall have the right of first refusal to purchase the unsold copies at the retail sale price, less a discount to be agreed upon between the parties, for which the author shall have a period of sixty (60) days from the date on which the editor has notified the author of its decision to liquidate such copies. If the author exercises this right of purchase, the author may not collect payment for such copies if the remuneration was agreed upon in proportion to sales.

The right to publish separately one or more works by the same author does not confer upon the publisher the right to publish them jointly. Likewise, the right to publish the joint works of an author does not confer upon the publisher the faculty to publish them separately.

During the term of the publishing contract, the publisher shall have the right to initiate and pursue all actions established by this Law against acts that it deems harmful to its duties, unless these have been reserved for the author or his successors in title.

The bankruptcy of the publisher, when the work has not been printed, shall terminate the contract. In case of complete printing, the contract shall subsist until the sale of the printed copies. If printing has been initiated and the publisher or the receiver requests it, giving sufficient guarantees, in the judgment of the Judge, the execution of the contract may be continued.

In addition to the obligations already indicated in this Law, the publisher shall have the following:

• 1)

  To give wide publicity to the work in the manner most appropriate to ensure its rapid dissemination;

• 2)

  To supply to the author, free of charge without affecting the royalties, a minimum of one percent (1%) of the copies published in each edition or reprint with a maximum of fifty (50) copies for each of them. The copies received by the author in accordance with this provision shall remain outside of commerce and shall not be considered as copies sold for the purposes of the settlement of royalties;

• 3)

  To render promptly to the author the accounts or reports and to permit inspection by him or by his delegate in accordance with what is provided by this Law;

• 4)

  To comply with the obligation regarding legal deposit if the author has not done so; and,

• 5)

  Those otherwise expressly designated in the contract.

By the musical publishing contract, the author of a musical composition, with or without lyrics, grants to the publisher a participation in the economic product of the work as a consequence of its obligation to promote and disseminate it. This contract gives the publisher the right to print scores and sheet music, with the corresponding lyrics, as well as to authorize the inclusion of works in sound and audiovisual fixations and their public performance. In the same contract the author may grant other rights to the publisher, such as the rights of adaptation, arrangement, and translation.

The musical publishing contract must be in writing and shall specify the indication of the parties, with their general qualities, the title of the work, the territory of application, and the date of execution. To be valid against third parties, the publisher shall register it in the Register of Copyright and Related Rights.

The author has the right that the publisher supply him with written information of its activity in the promotion and dissemination of the respective work and the exhibition of the pertinent documentation. The refusal of the request or the silence maintained thereto for more than three (3) months shall be deemed as proof of the publisher's inactivity in the fulfillment of its obligations.

When the publisher, duly authorized to do so, gives the work in sub-publishing for a foreign country, it shall notify the author thereof previously. In no case may the publisher execute the sub-publishing contract without having previously produced the minimum initial print run of copies stipulated in the original contract. Noncompliance by the publisher of the obligations established in this Article shall cause the rescission of said original contract. CHAPTER II CONTRACT FOR INCLUSION OF THE WORK IN A PHONOGRAM

By the contract for phonographic inclusion, the author of a literary or artistic work authorizes a natural or legal person, by means of a previously agreed remuneration, to fix the work in a phonogram for its reproduction and distribution. This authorization does not include the right of public performance of the work by the acquirer of the sound carrier. The phonogram producer shall make this reservation on a label affixed to the copy.

In the contract for the inclusion of the work in a phonogram, unless otherwise agreed, the remuneration and form of payment to the author shall be made in accordance with what is agreed by the parties, and in the absence of agreement the remuneration shall be established by a competent Judge.

The author or his successors in title, personally or by means of an authorized representative or agent, may verify the accuracy of the settlement through inspection of the workshops, warehouses, deposits, and offices of the producer.

The author or his representative may pursue before ordinary courts the unlawful use of phonograms and audiovisual works.

Unless otherwise agreed, the authorization granted by the author and publisher or their representatives to include their work in a phonogram grants to the producer the right to reproduce or license the reproduction of its phonogram, from the time it complies with the agreed obligations and until the expiration of the protection period of the work. CHAPTER III OF REPRESENTATION CONTRACTS AND PUBLIC PERFORMANCE AND OTHER PROVISIONS APPLICABLE TO PERFORMANCE AND REPRESENTATION RIGHTS

By virtue of a contract of representation or public performance, the author or his successor in title assigns or authorizes a natural or legal person the right to represent or perform publicly a literary, dramatic, musical, dramatic-musical, pantomimic, or choreographic work, gratuitously or by means of remuneration, the assignee obligating itself to carry out the public communication of the work under the conditions agreed.

Public representation or performance shall be deemed any representation, broadcasting, interpretation, or performance carried out in theaters, cinemas, concert halls, dance halls, restaurants, social, recreational, or sports clubs, shops, commercial, industrial, and banking establishments, hotels, means of transport, stadiums, gymnasiums, amphitheaters, radio and television, and finally all those performed outside of the private home, with or without direct or indirect profit motive, whether with the participation of artist-performers or interpreters or by means of phonomechanical, audiovisual, or electronic processes.

The parties may contract: 1) The assignment for a definite term or for a determined number of communications to the public. In any case, the duration of the assignment may not exceed five (5) years; and, 2) The term within which the unique or first communication of the work must be carried out, which may not be longer than two (2) years from the date of the contract. If the term was not fixed, it shall be understood to be one (1) year.

The obligations of the author are: 1) To deliver to the corresponding natural or legal person the text of the work, with the score, if applicable, fully instrumented, when it has not been assigned; and, 2) To respond to the assignee for the authorship and originality of the work and for the peaceful exercise of the rights that have been assigned to it.

The obligations of the assignee are:

• 1)

  To return to the author the text of the work, with the score if applicable, fully instrumented when it has not been published in printed form;

• 2)

  To effect the communication without making variations, additions, cuts or deletions in the work that do not have the consent of the author, and under technical conditions that do not prejudice the integrity of the work and the honor and reputation of the author;

• 3)

  To permit the author or their representative to inspect the public performance of the work and to attend it free of charge;

• 4)

  To announce to the public the title of the work accompanied by the name or pseudonym of the author, translator, and adapter;

• 5)

  To pay to the author, unless otherwise agreed, ten percent (10%) of the income from each performance if the remuneration was fixed as a percentage; and,

• 6)

  To perform the work within a maximum term of one (1) year counted from the date the right was assigned to it; if it fails to do so, it must return the copy of the work to the author and indemnify damages and losses.

Unless otherwise provided, the author and the assignee may mutually agree to choose the principal performers and, in the case of orchestras, choirs, dance groups and similar artistic groups, their director.

Without the authorization of the holder of copyright or neighboring rights, any musical compositions, with or without lyrics, may not be transmitted by radio, television, loudspeaker services or other similar electronic media or performed at public auditions or spectacles, and the user must pay the corresponding economic remuneration. The owner, partner, manager, director or person in charge of administration of establishments shall not be jointly liable with the organizer of the spectacle for violations of the respective rights that occur in such places. The foregoing shall be stated in the contract executed for such purpose. At public spectacles with the live intervention of the performer, the companies and persons responsible for their organization and the competent public authorities are obliged to prohibit attendees from recording the spectacle, by any means, without the written authorization of the author, performing artist, phonographic or videographic producer, as applicable. If the assignee does not pay the corresponding participation to the author upon being required to do so by the author or their representative, when remuneration has been agreed upon, the author retains the right to resort to the corresponding courts of justice and request, including, precautionary measures.

Broadcasting stations may, for technical or schedule reasons and for the purpose of a single subsequent transmission, previously record the programs.

The protection offered by the provisions concerning performing artists or performers, phonogram producers and broadcasting organizations does not affect in any way the protection of copyright over literary and artistic works established by this Law. Consequently, none of the provisions contemplated in it may be interpreted to the detriment of the respective protection.

Performing artists or performers have the exclusive right to perform or authorize the following acts:

• 1)

  The broadcasting of their performances or executions, except when such broadcasting: a) Takes place from a fixation of the performance or execution other than a fixation made in Article 71 of this Law; and, b) Is a rebroadcast authorized by the broadcasting organizations that first broadcast the performance or execution;

• 2)

  The communication to the public of their performances or executions, except when such communication: a) Takes place from a fixation of the performance or execution; and, b) Takes place from a broadcasting of the performance or execution.

• 3)

  The fixation of their unfixed performances or executions;

• 4)

  The reproduction of a fixation of their performances or executions;

• 5)

  The first distribution to the public of a fixation of their performances or executions, by means of sale or by any other type of transfer of ownership;

• 6)

  The rental to the public or the loan to the public of a fixation of their performances or executions; and,

• 7)

  The making available to the public, by wire or by wireless means, of their performances or executions fixed in a phonogram, in such a way that each person may have access to them from the place and moment of their choosing individually.

Unless otherwise stipulated, it shall be understood that:

• 1)

  Authorization for broadcasting does not imply authorization to permit other broadcasting organizations to retransmit the performance or execution;

• 2)

  Authorization for broadcasting does not imply authorization to fix the performance or execution for a purpose other than broadcasting;

• 3)

  Authorization for broadcasting and for fixing the performance or execution does not imply authorization to reproduce the fixation; and,

• 4)

  Authorization to fix the performance or execution, and to reproduce this fixation, does not imply authorization to transmit the performance or execution from the fixation of its reproductions.

When several performing artists or performers participate in the same execution, it shall be understood that the required consent shall be given by the legal representative of the group or of its majority.

Variety artists shall have the right to object to the fixation, reproduction, exhibition and broadcasting of their performances.

Performing artists shall have the moral rights recognized in numerals 1 and 2 of Article 36 of this Law; the provisions of Article 35 of the same shall equally apply to the moral rights of performing artists or performers.

Phonogram producers have the exclusive right to authorize or prohibit the reproduction, direct or indirect, the communication and distribution to the public, of the original and copies of their phonograms by means of sale or transfer of ownership, rental, loan, importation, the making available to the public of the phonograms by any means, such that members of the public may have access to them from the place and at the moment of their choosing, or any other form of utilization of their phonograms.

Broadcasting organizations are radio or television companies that transmit programs to the public. Broadcasting organizations shall enjoy the exclusive right to authorize or prohibit:

• 1)

  The fixation of their broadcasts;

• 2)

  The reproduction of fixations of their broadcasts without their consent, except:

  • a)

    When it is a use for private use;

  • b)

    When fragments with a maximum duration of sixty (60) seconds have been used for the purpose of reporting on current events;

  • c)

    When it is an ephemeral fixation made by a broadcasting organization by its own means and for its own broadcasts; and, ch. When it is a use for exclusively educational or research purposes.

• 3)

  The retransmission of their broadcasts; and,

• 4)

  The communication to the public of their broadcasts when it is television and takes place in places accessible to the public, upon payment of an entrance fee.

The duration of the intellectual property rights of performing artists or performers, phonogram producers and broadcasting organizations shall be seventy-five (75) years counted from:

• 1)

  The end of the year of fixation, with respect to phonograms and performances or executions recorded in them;

• 2)

  The end of the year in which the performance took place with respect to performances or executions that are not recorded in a phonogram; and,

• 3)

  The end of the year in which the broadcast took place with respect to broadcasting broadcasts.

The following shall constitute limitations to the rights contained in Articles 113, 118, and 119 of this Law, when the acts referred to in these articles have as their object:

• 1)

  Their use for private use;

• 2)

  Reporting on current events provided that only fragments with a maximum duration of sixty (60) seconds of an interpretation or performance of a phonogram or a broadcasting emission are used;

• 3)

  Use made for teaching purposes or scientific research; and,

• 4)

  Ephemeral recordings made by a broadcasting organization by its own means and for its own broadcasts. TITLE VII OF REPRODUCTION AND TRANSLATION OF WORKS CHAPTER I OF LICENSES

The State, through the Administrative Office, may grant non-exclusive licenses for reproduction and translation of foreign works in accordance with the provisions of Articles 2 and 3 of the Annex to the Berne Convention, subscribed by the Republic of Honduras.

Domestic reproduction in a single copy made by the user solely for private use, or for educational purposes, without profit motive, directly from another medium containing a phonogram or audiovisual work published or from broadcasting or another form of communication shall be permitted. TITLE VIII OF ADMINISTRATION CHAPTER I ADMINISTRATIVE OFFICE OF COPYRIGHT AND RELATED RIGHTS

The ADMINISTRATIVE OFFICE OF COPYRIGHT AND RELATED RIGHTS is hereby created in the capital of the Republic, attached to the Secretariat of State in the Offices of Industry and Commerce, as a dependency of the General Directorate of Intellectual Property.

The Administrative Office shall have the following powers:

• 1)

  To promote and disseminate knowledge and practice of copyright and related rights and to serve as an information and liaison agency with National and International Organizations;

• 2)

  To comply with and enforce the legal system governing this matter;

• 3)

  To maintain, supervise, and preserve the register of copyright and related rights;

• 4)

  To inform the Executive Directorate of Revenue (DEI), dependent on the Secretariat of State in the Offices of Finance, of contracts concerning copyright and related rights, for the corresponding purposes;

• 5)

  To intervene in a conciliatory manner in conflicts that arise: a) Between authors, the different rights holders, and users; and, b) Between associations of authors;

• 6)

  To promote institutions that benefit authors, such as associations, cooperatives, mutuals, or similar entities; and,

• 7)

  To hear administratively claims for violations of this Law and to impose the sanctions established herein.

In the event that a controversy arises concerning the rights protected by this Law, the Administrative Office shall seek reconciliation between the parties, without prejudice to the right of the parties or of the Public Ministry to exercise legal actions before the corresponding courts.

The Administrative Office shall be responsible for maintaining the Register of Copyright and Related Rights, in which the following shall be registered:

• 1)

  Works requested for registration by their authors;

• 2)

  Agreements or contracts that in any form confer, modify, transmit, encumber, or restrict the patrimonial rights of authors or that authorize modifications to a work;

• 3)

  Documents of incorporation and bylaws that certify the legal personality of collective management associations, as well as their amendments;

• 4)

  Powers of attorney granted by members of collective management associations in their favor;

• 5)

  Pacts, agreements, or accords entered into by Honduran collective management associations with foreign ones;

• 6)

  Agreements or contracts relating to related rights;

• 7)

  Powers granted to natural or legal persons to manage matters before the Administrative Office when the authority conferred covers all matters that the agent must process therein and is not limited to the management of a single matter; and,

• 8)

  Powers granted for the collection of revenues derived from copyright or of other rights holders.

The Registrar of Copyright and Related Rights shall deny registration of acts and documents that in their content or form contravene or are foreign to the provisions of this Law, without prejudice to the corresponding remedies available to the interested party.

When two or more persons request registration of the same work, it shall be registered in accordance with the terms of the first request, without prejudice to the right to challenge the registration.

The register is declarative and not constitutive of right. Nevertheless, entries in the register establish the presumption that the facts and acts recorded therein are true, absent contrary proof. Every entry is made without prejudice to the rights of third parties. If a controversy arises, the effects of the entry shall be suspended until a final resolution is issued by the competent authority.

When it concerns the registration of any document in which the transmission of copyright of an unregistered work is recorded, its registration shall be made ex officio through the exhibition of a copy thereof.

To register a work written under a pseudonym, the applicant shall accompany the request with identification data of the Author in a sealed envelope, under the responsibility of the applicant.

Whoever requests the registration of a work shall deliver to the Registrar two (2) copies of the work produced, published, or reproduced. One of the copies shall be returned to the interested party with the appropriate annotations, and the other shall remain on deposit in the Register. For the fulfillment of the obligation provided for in this article, when it concerns audiovisual works, if the work is audiovisual, as many photographs as there are main scenes shall be deposited, together with a statement of the plot, dialogue, setting, and music. The name of the scriptwriter, producer, director, composer, and principal artists shall also be indicated, as well as the footage. When it concerns paintings, sculptures, and analogous works, photographs shall be presented.

Every natural or legal person engaged habitually and commercially in publishing or printing activities shall accredit before the Administrative Office:

• 1)

  That it has registered its emblem or seal with the Industrial Property Register;

• 2)

  Its name, corporate name, and address; and,

• 3)

  Changes to the above information. It shall also inform said Office annually of all works it has published or printed.

The Registrar has the following obligations:

• 1)

  To register, when appropriate, works and documents whose registration is requested;

• 2)

  To permit persons who request it to become acquainted with the entries and documents in the register;

• 3)

  To issue certificates as requested; and,

• 4)

  To issue certificates of non-existence of entries.

National authors or their legal representatives are obligated, if the literary or scientific work is printed, to deliver three (3) copies thereof, as follows:

• 1)

  One to the National Library;

• 2)

  One to the National Archives; and,

• 3)

  One to the Library of the National Autonomous University of Honduras (UNAH). The delivery must be made within a period of sixty (60) days after the publication of the work.

Non-compliance with the obligation established in the preceding article shall result in the payment of a sum equivalent to ten (10) times the commercial value of the copies not delivered, which shall be collected by the Administrative Office, which shall proceed to make the corresponding purchase and delivery.

If the work is unpublished, a single copy thereof shall be presented to the Registry in typewritten copy, double-spaced, properly bound, without erasures or interlines and with the authentic signature of the author. If the unpublished work is theatrical or musical, the deposit of a copy of the bound manuscript with the authentic signature of the author shall be sufficient.

If the work is unique, such as a painting, portrait, or architectural work, registration shall be made by presenting a description thereof, which shall be accompanied by photographs that, in the case of architectural and sculptural works, must be of the front and side views. To register plans, sketches, maps and photographs, a copy of the same shall be presented. For models and works of art, a written and detailed description of the characteristics that cannot be appreciated in the copies or photographs.

If the work is audiovisual, as many photographs as there are main scenes shall be deposited, together with a description of the plot, dialogue, scenery and music. The name of the screenwriter, the producer, the director, the composer and the principal artists shall also be indicated, as well as the length. TITLE IX COLLECTIVE MANAGEMENT CHAPTER I ORGANIZATION AND OPERATION

The holders of copyright and neighboring rights may establish non-profit collective management associations of copyright and neighboring rights, with legal personality, for the defense of the patrimonial rights recognized in the present Law, of their associates or represented parties or of those affiliated with foreign entities of the same nature, without prejudice to the actions that may be exercised personally by the holder of such rights. These associations require, for purposes of their operation, an authorization from the State through the Administrative Office and shall be subject to the corresponding inspection and supervision, based on the provisions established in this Law, its regulations, as well as in the bylaws of the association.

The recognition of legal personality to collective management associations of copyright and neighboring rights shall be conferred by the Ministry of State in the Departments of Governance and Justice, which prior to issuing the final resolution, shall request a mandatory opinion from the Administrative Office, which shall be issued within a maximum period of sixty (60) days.

The bylaws of collective management entities shall include:

• 1)

  The name of the association;

• 2)

  The object or purposes, with indication of the rights administered;

• 3)

  The classes of rights holders included in the management;

• 4)

  The conditions for the acquisition and loss of the status of associate;

• 5)

  The rights of associates and represented parties;

• 6)

  The duties of associates and represented parties and their disciplinary regime;

• 7)

  The governing bodies and their respective competencies;

• 8)

  The procedure for the election of authorities;

• 9)

  The initial assets and the economic resources foreseen;

• 10)

  The rules for the approval of collection and distribution standards;

• 11)

  The control and oversight regime of the economic and financial management of the entity;

• 12)

  The time for the presentation of the balance sheet and the report of activities carried out annually, as well as the procedure for the verification of the balance sheet and its documentation; and,

• 13)

  The destination of the entity's assets in case of dissolution and liquidation.

Collective management associations shall have, at minimum, the following bodies:

• 1)

  The General Assembly;

• 2)

  A Board or Governing Council;

• 3)

  A Supervisory Committee; and,

• 4)

  An Auditor. The General Assembly shall be the supreme body of the association and shall designate the members of the other bodies. Its attributions, operation and convocation shall be established in the bylaws of the association.

Collective management associations of copyright and neighboring rights that are established from the date this Law comes into force may not be established with fewer than twenty (20) members, who must belong to the same field of activity and only one association per genre of works may be established. Likewise, collective management associations are empowered to deduct for administrative expenses an amount that may not exceed, in any case, thirty percent (30%) of the total amount of remuneration effectively collected for the use of the managed rights. Furthermore, in order to satisfy social and cultural purposes, previously defined by the respective bodies of the collective management association, it may allocate for these purposes up to ten percent (10%) of the amounts collected.

Collective management associations established and registered in accordance with the provisions of this Law shall be entitled, in the terms resulting from their own bylaws and from the contracts they enter into with foreign entities of the same nature, to exercise the rights entrusted to their administration and to enforce them in all kinds of administrative and judicial proceedings.

Without prejudice to other stipulations, the attributions of collective management associations are as follows:

• 1)

  To negotiate and grant authorizations to users of non-exclusive use licenses of protected and registered works or repertories, performances or productions, in the terms of the corresponding legal mandate, whose rights have been assigned by authors and rights holders to the collective management association;

• 2)

  To enter into agreements with foreign collective management associations of the same field or management;

• 3)

  To collect the corresponding fees in concept of remuneration required for the use of the rights granted through the respective use licenses. Likewise, to collect the remunerations stipulated in the present Law. Notwithstanding, those classes of singular uses of one or more works of any category that require the individualized authorization of their holder shall always be reserved;

• 4)

  To distribute in proportion to the actual use of the assigned rights, among authors and other holders of copyright and neighboring rights, the remuneration derived from the rights administered, in accordance with a predetermined and authorized system, in the terms of the present Law and of the bylaws of the association;

• 5)

  To have available at the address of the association, for the use of users, the repertories of works or rights that it administers;

• 6)

  To supervise the use of authorized licenses;

• 7)

  To exercise the legal actions necessary for the effective enforcement of the rights administered by it; and,

• 8)

  To perform any other act authorized by authors and other holders of copyright and neighboring rights, by the bodies that represent them, or by those who administer their exclusive patrimonial rights or their rights to equitable remuneration.

The fees in concept of remuneration of the public performance or representation rights provided for in this law shall be prepared by the collective management associations, prior agreement with promoters and media, taking into account, among others, the category of the establishments, their economic capacity, the volume or value of their sales or their revenues from the respective performance, the purpose or duration thereof and other pertinent circumstances. Said tariffs and their subsequent modifications shall be approved by resolution of the Administrative Office, must be published in the Official Gazette La Gaceta and in a newspaper of broad national circulation. The publication of these tariffs and their modifications must be made within a period of thirty (30) days after the date of approval, without prejudice to the right of opposition that corresponds to third parties.

The tariffs or fees agreed upon in contracts with users and with entities that represent them for the public performance and representation of their works shall be registered in the Administrative Office.

Collective management associations must provide their associates and represented parties with periodic, complete and detailed information on all activities of the association that may be of interest to the exercise of their rights. Similar information must be sent to foreign entities with which they maintain reciprocal representation contracts for the national territory.

Collective management entities are obligated to register with the Administrative Office the appointments and changes of their administrators and authorized representatives, the general tariffs and their modifications, the contracts executed with user associations, those entered into with foreign entities of the same nature, and all others that correspond in accordance with this Law. Likewise, they are obligated to provide the Administrative Office and other competent authorities with the information and documentation required of them in accordance with the Law.

Municipal authorities, the Secretariats of State in the Offices of Governance and Justice; and Security, shall only permit the performance of spectacles and public auditions upon prior proof of having obtained authorization from the holders of the rights contemplated in this Law and from management associations as applicable, and payment of the remuneration established in the terms of the Law and corresponding bylaws. In the absence of an authorized holder, proof from the Administrative Office establishing the non-existence thereof shall be sufficient. In public musical spectacles with live performance by the performer or artist, it shall be the obligation of the companies and persons responsible for their organization and of the competent public authorities to:

• 1)

  Prohibit the attending public from recording the same, entry with recording devices, video cameras or film cameras without prior written authorization from the author, performing artists and phonographic or videographic producers as applicable;

• 2)

  Place in the venue where the spectacle takes place a visible sign with the following inscription: "SOUND AND/OR AUDIOVISUAL RECORDING PROHIBITED";

• 3)

  In the case that written programs exist, ensure that the inscription mentioned in paragraph 2) appears in them; and,

• 4)

  If there is an announcer or host, they must warn at the beginning of the spectacle of the legend indicated in paragraph 2). CHAPTER II SANCTIONS AND LIQUIDATION

The Administrative Office, once it has verified that a violation of the Law and statutory provisions has been committed by the collective management association, may impose through a reasoned resolution any of the following sanctions:

• 1)

  Written warning to the association;

• 2)

  Imposition of fines; and,

• 3)

  Request to the corresponding authority the suspension or cancellation of Legal Personality.

Once the resolution canceling the Legal Personality of a collective management association becomes final, the assets and actions belonging to it shall be disposed of as provided in the bylaws; and if nothing has been stipulated in them, the assets and actions shall be considered as property belonging to the State and shall be applied by the Executive Power preferentially to objectives analogous to those of the association.

The Administrative Office, through a reasoned resolution, shall order the liquidation of the association's assets and the termination of its duration. The General Assembly or the Administrative Office shall designate a liquidator, who in all cases shall be a private individual, who may be a depository of the assets, and shall have the right to the remuneration determined in the act of appointment, chargeable to the association's budget, being obligated to submit the reports requested of him.

The Administrative Office shall sanction with a fine of ten (10) to two hundred (200) minimum salaries, in accordance with the gravity of the infraction, those responsible for violations of copyright and neighboring rights established in this Law or to collective management associations. In case of recidivism, double the fine imposed shall be applied, and furthermore sanctions shall be imposed consisting of the temporary suspension or definitive cancellation of the permit granted to operate by the corresponding authority, in those cases in which a permit is required. The amount of the fine shall be applied depending on the gravity of the infraction and the economic capacity of the infractor. In no case shall employees, commission agents or any other person performing any class of work activity, under remuneration, for the person committing acts of violation of copyright, be responsible for such acts, nor even in a subsidiary manner.

The fines referred to in the preceding article shall be applied by the Administrative Office and shall be deposited into the General Treasury of the Republic. Pecuniary sanctions shall be enforced through the means of compulsion, without prejudice to being able to pursue other actions as may be appropriate under the law.

The Administrative Office shall know of any violation of this Law ex officio or by complaint and shall initiate the instruction of the case file.

The complaint shall be formulated in writing and shall express and be accompanied by the following:

• 1)

  A summary indicating its content or the matter being processed;

• 2)

  The indication of the body to which it is addressed;

• 3)

  The name and surname, civil status, profession or occupation and address of the applicant or of their representative, in which case they must present the document proving their representation;

• 4)

  The facts and reasons on which it is based and the clear expression of what is being requested; and,

• 5)

  Place, date and signature or digital fingerprint when they cannot sign. Furthermore, the written complaint shall be accompanied by the documents on which the complainant bases themselves and if they do not have them at their disposal, they shall indicate with precision the place where they are located. They shall also enumerate the other means of proof with which they would like to justify their request.

Once the complaint has been received in the terms of the preceding article, the accused shall be cited to make known to them the infraction imputed, giving them the right to defend themselves by presenting their arguments in writing, in the same terms as the preceding Article.

The citation shall be made to the alleged infractor by means of a notice that shall be delivered to them personally and if they cannot be found, the delivery shall be made to any of their family members or employees who are present.

If the cited party does not appear, either personally or through a representative, at the place, time and date referred to in the citation, they shall be cited again. In the event that they do not appear, the facts imputed to them shall be taken as proven and the corresponding resolution shall be issued.

If the cited party appears, they shall be delivered a copy of the complaint or the inspection report when the proceeding was initiated ex officio, as well as the evidence available, so that within the term of five (5) days they may present their defense arguments, recording what has been done.

The Administrative Office, once the complaint has been answered, and when the evidence presented by the complainant or that contained in the report drawn up ex officio is considered sufficient or the accused admits the charges formulated, shall issue the corresponding resolution.

If the evidence is insufficient and the accused denies the charges, the case shall be opened to evidence for the term of ten (10) days, after which the Administrative Office shall issue the corresponding resolution.

The Administrative Office may declare the action filed to be admissible or inadmissible. If the resolution is admissible, it shall order: 1) The determination of the violation of this Law and the imposition of the corresponding sanction against the infringer; and, 2) The prohibition of continuing with the acts that violate the Law. The period for enforcing the sanction shall be fifteen (15) business days, counted from the day following notification.

Any illicit act that in any form restricts or harms the moral or patrimonial rights of the author and rights holders constitutes a violation of copyright and neighboring rights, and shall therefore be subject to sanction, such as:

• 1)

  Public presentation, performance or audition or the transmission, communication, broadcasting and distribution of a protected literary or artistic work, without the authorization of its author, heirs or assignees, except in the cases provided for in this Law;

• 2)

  Public transmission or performance of a protected phonogram, without the authorization of its producer, except in the cases provided for in this Law;

• 3)

  Including in a work as one's own, fragments or parts of a protected foreign work;

• 4)

  Appropriating another's protected original title;

• 5)

  Attempting to register as one's own, a literary or artistic work, phonogram, interpretation, performance or transmission of another;

• 6)

  Reproducing or renting copies of protected literary, artistic or scientific works without authorization of its author;

• 7)

  Reproducing or renting copies of protected phonograms, without the authorization of its producer;

• 8)

  Fixing and reproducing or transmitting protected interpretations or performances without authorization of the artist;

• 9)

  Fixing and reproducing or retransmitting protected broadcasts without authorization of the broadcasting organizations;

• 10)

  The printing by the publisher of a greater number of copies than agreed with the holder of the right, except for the excess that is necessary to comply with the obligations contained in this Law;

• 11)

  The adaptation, transformation, translation, modification or incorporation of a foreign work or part of it, without the authorization of the author or his assignees;

• 12)

  The publication of a protected foreign work with the title changed or suppressed or with the text altered, as if it were by another author;

• 13)

  Selling, distributing, renting, storing or keeping, making available to the public, importing or exporting copies of protected works or phonograms, fraudulently reproduced;

• 14)

  The rental of a copy of an audiovisual work, of a work incorporated in a sound recording, a computer program regardless of the ownership of the copy;

• 15)

  The unauthorized importation for distribution, sale or rental of copies of the work, even when the imported copies were made with the authorization of the author;

• 16)

  Holding oneself out as a collective management association without having obtained the corresponding registration with the Administrative Office;

• 17)

  Unjustifiably refusing to provide the Administrative Office, being an administrator of a collective management association, the reports and documents required of it.

• 18)

  The manufacturing or importation, for sale or rental, of a device or means specifically designed or adapted to render inoperative, any device or means intended to prevent or limit the reproduction of a work or to deteriorate the quality of copies made;

• 19)

  The manufacturing or importation, for sale or rental of a device or means that permits or facilitates the reception of a coded program, broadcast or communicated in any other form to the public, by persons who are not authorized to receive it;

• 20)

  The suppression or modification, without being authorized to do so, of any information relating to rights management that is presented in electronic form; and,

• 21)

  The distribution or importation for purposes of distribution, the radio distribution, the broadcasting, the communication to the public or the making available to the public, without being authorized to do so, of works, interpretations or performances, phonograms or broadcasting emissions, knowingly that information relating to rights management that is presented in electronic form has been suppressed or modified without authorization. Any device or means mentioned in this Article, and any copy in which information on the management of rights has been suppressed or modified, shall be assimilated to counterfeit copies or examples of works.

For the purposes of the preceding Article, "information on the management of rights" shall be understood as the information that permits the identification of the author, the work, the performing artist or performer, the performance or interpretation, the phonogram producer, the broadcasting organization and every holder of rights by virtue of this Law, or any information relating to the conditions and modalities of use of the work and of the productions contemplated by this Law, and of any number or code that represents such information, when any of those elements of information have been attached to the copy of a work, of a fixed performance or interpretation, to the copy of a phonogram or to a fixed broadcasting emission, or that appears in relation to the broadcasting, communication to the public or making available to the public of a work, of a fixed performance or interpretation, of a phonogram or of a broadcasting emission.

Without prejudice to the sanctions established in this Law, actions constituting crimes against copyright and neighboring rights shall be subject to the penalties determined by the Penal Code.

The authorization of the holder of Copyright and Neighboring Rights shall always be express and written, with any reproduction or use made by one who does not have it presumed to be illicit.

Whoever without being an author, publisher, assignee, or representative of any of them, falsely claims any of these qualities and by means of the precautionary action established by Law, obtains that the authority orders the suspension of a performance or public execution of a work, shall be sanctioned with a fine of ten (10) to one hundred (100) minimum wages, without prejudice to the criminal sanctions and economic damages and losses that his fraudulent action may cause.

Every illicit edition or reproduction of copies of literary, artistic works or phonograms shall be seized and awarded in the criminal conviction judgment to the person whose copyright or neighboring rights were defrauded by it. The criminal liability arising from the exercise of the actions provided for in this Law is extinguished and prescribes in accordance with what is prescribed in the Penal Code. CHAPTER III CIVIL ACTIONS AND PROCEDURES

The civil actions exercised by reason of this Law, whether in the application of its provisions or as a consequence of the acts and legal facts linked to Copyright and Neighboring Rights, shall be under the jurisdiction of the Civil Courts, in accordance with what is prescribed in the current Code of Civil Procedures, without prejudice to what is established in the Code of Criminal Procedures.

The holder of the corresponding rights or whoever has the legal or conventional representation of them may request from the judicial authority, as a precautionary measure the preventive seizure of:

• 1)

  Every work, edition and copies fraudulently reproduced;

• 2)

  The product that has been obtained from the sale or rental of such works, edition or copies;

• 3)

  The product of theatrical, cinematographic, philharmonic or any other similar spectacles. This without prejudice to the right to demand compensation for damages and losses arising from the infraction.

• 4)

  The seizure of copies of works or sound recordings of which there is rational indication that they have been made or imported without authorization of the holder of the right protected by virtue of this Law, when the making or importation of the copies are subject to authorization, as well as, the packaging of such copies, of the means that may have been used to make them, and of the documents, accounts or business papers relating to such copies, as well as, the deposits of the income obtained from infringing activity; and,

• 5)

  The provisions of the Customs Code relating to the suspension of the release into free circulation of merchandise of which there is rational indication that may be illegal, shall apply equally to the objects or material protected by virtue of this Law.

Indemnities for damages and losses are applicable in the case where the injured party or its assignees exercise civil or criminal actions jointly or separately.

The persons indicated in Article 174 of this Law may request before the competent courts that the public performance, execution or exhibition of a work or phonogram be prohibited or suspended when made without the proper authorization of the holder of the copyright or Neighboring Rights.

In order to be able to exercise the action indicated in the preceding articles, it is necessary: 1) That the person requesting the seizure, prohibition or suspension of the act, has filed the corresponding judicial action; and, 2) That the person provide sufficient security, to assure, the possible damages that the action might cause to the defendant.

The competent court shall immediately decree the precautionary measures referred to, in accordance with what the Code of Civil Procedures provides. This same Code shall govern all procedures including arbitral proceedings. The creditors of a theatrical company or any other similar enterprise, cannot seize the portion of the product of the spectacles that corresponds to the author or to the artists, a sum that shall not be considered included in the Embargo Decree ordered by the judicial authority.

The civil actions provided for in this Law may be exercised during the three (3) years following the knowledge of the facts that motivate them.

The author of a work, his assignees or his representatives, may request from the competent courts, without prejudice to the pertinent civil liabilities, that the suspension of a theatrical performance or execution of instrumental or vocal music, broadcast, be ordered, when made without the consent of the author, except in the cases provided for in this Law. TITLE XI FINAL, TRANSITORY, REPEALING AND EFFECTIVE PROVISIONS CHAPTER I FINAL PROVISIONS

When the author dies leaving the work unfinished, the publisher may, by mutual agreement with the spouse and blood heirs thereof, commission its completion to a third party, deducting in favor of such third party a remuneration proportional to his work and mention of his name in the publication.

In the event of the situation provided for in Article 81 of this Law, when there are several successors of the author and they cannot agree regarding the publication of the work, the manner of editing it, disseminating it or selling it, the Judge shall resolve in summary judgment, after hearing all parties.

The provisions of the Administrative Procedure Law, the Commercial Code, the Mercantile Laws, commercial uses and customs, and the Civil Code shall be applied as supplementary to this Law.

It is strictly prohibited, even when paying the corresponding copyright fees, the transmission or reproduction of programs, printed materials, films or novels and other media that violate culture, morality, family integrity and good customs, at the discretion of the Censorship Commission dependent upon the State Secretariat of the Interior and Justice Offices. Non-compliance with the established prohibition shall be sanctioned by the State Secretariat of the Interior and Justice Offices, at the proposal of the Censorship Commission, with the fines established in Article 156 of this Law.

The contracts or agreements entered into under this Law shall be granted in non-exclusive form to all interested parties and the rights contracted shall be identifiable by work, program, event, performance or segments.

In all fields to which this Law refers, relationships that could be considered monopolistic are strictly prohibited.

Gross income obtained from Honduran sources by natural or legal persons not resident or not domiciled in the country shall pay the Income Tax in accordance with the percentages detailed below: 1) Royalties and other sums paid for the use of patents, designs, procedures and secret formulas, trademarks and copyright, except those listed in numeral 2) of this Article, 25%; and, 2) Films and videotape for cinemas, television, video clubs and rights for cable television, 10%.

The Administrative Office may request reports, data or technical cooperation from any other unit of the Public Administration, the Public Ministry or any other State institution in order to comply with and enforce this Law.

The Executive Power through the State Secretariat of the Industry and Commerce Offices shall issue the Regulation of this Law, within a period of sixty (60) days, from its effective date. Until the Regulation is issued, proceedings shall be conducted in accordance with the provisions of the Administrative Procedures Law.

The provisions of this Law shall also apply to works that have been created, to performances or executions that have taken place or that have been fixed to phonograms that have been fixed and to broadcasts that have taken place, before the date of entry into force of this Law, provided that these works, performances or executions, phonograms and broadcasts are not yet in the public domain due to expiration of the duration of the protection to which they were subject under preceding legislation or under the legislation of their country of origin. The legal effects of acts and contracts entered into or stipulated before the entry into force of this Law shall remain intact.

Associations or societies of authors, artist-performers or executants existing at the time this Law enters into force and that choose to become a collective management association shall adjust their bylaws, organization and operation to the provisions of this Law, within the period of one (1) year counted from the date of its effective date.

All companies that transmit television programming through the open television system, cable or other analogous means that operate legally in the country shall be obligated to present to the Administrative Office the duly legalized contracts that prove the authorization of the copyright holders and holders of Related Rights over intellectual property to be broadcast or transmitted to the public, whether such transmission originates abroad or within Honduran territory.

To companies that have not registered the contracts referred to in the preceding Article within a period of six (6) months, from the entry into force of this Law, the Administrative Office shall apply a fine of two hundred (200) minimum salaries. The National Telecommunications Commission (CONATEL) shall suspend their respective operating permit, without prejudice to other sanctions that may be applicable.

This Law repeals Decree No. 141-93 of August 30, 1993, and any other provision that conflicts with it.

This Decree shall enter into force from the date of its publication in the Official Gazette La Gaceta. Given in the City of Tegucigalpa, Municipality of the Central District, in the Session Hall of the National Congress, on the second day of the month of December of nineteen hundred ninety-nine. RAFAEL PINEDA PONCE President JOSE ALFONSO HERNANDEZ CORDOVA Secretary HERIBERTO FLORES LAGOS Secretary To the Executive Power. Therefore: Let it be executed. Tegucigalpa, M.D.C., December 13, 1999. CARLOS ROBERTO FLORES FACUSSE Constitutional President of the Republic The Secretary of State of the Industry and Commerce Offices, REGINALDO PANTING P.