Article (15)
Collective Management
1. The Collective Management shall obtain a permit from the Ministry before practicing such
activity.
2. The Collective Management shall, before submitting the permit application referred to in
Clause (1) above, obtain the necessary approval from the Competent Authority in the
State according to the conditions prescribed in this regard.
3. In order to obtain the Collective Management permit, the following documents and
details shall be submitted:
a. A copy of the permit applicant's articles of association and memorandum of
association;
b. The form of the contract concluded between the applicant and right holder associates
of the permit applicant, and the mechanism of distributing dividends to such
associates;
c. The form of agreements related to the financial collection between the Permit
applicant and any other beneficiary with the details of the financial agreement and the
collection mechanism;
d. A report containing the relevant data and details, including financial rights, such as
tables, statements ... etc. with beneficiaries and the mechanism of collection and
distribution; and
e. An ID copy of the permit applicant's director-in-charge.
4. The Ministry shall examine, approve and issue the permit application after fulfilling the
requirements and approving the data and documents referred to in Clause (3) above.
Where the permit application requires any necessary data or modification to any of the
submitted data and documents, the permit applicant shall address the same and provide
the Ministry with the aforesaid requirements for issuing the permit.
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5. The Collective Management shall:
a. Submit an annual report to the Ministry, at least (30) thirty days before the permit
expiry, containing the following information:
1. A list of members (right holders) and their capacities and addresses;
2. Details of collected funds, with a reference to the user's classification from whom
the collection is made;
3. A list of employees, their duties and the national employment rate;
4. A list of job titles of the board of directors;
5. A summary of key activities in which the Collective Management is involved, such
as board meetings, conferences organized or attended by the same and awards
ceremonies;
6. A summary and description of the objective and status of any existing dispute,
including litigation proceedings or other proceeding;
7. A list of foreign entities with which the Collective Management enters into
contracts;
8. Details of total amounts distributed over the past year;
9. Key objectives of the next year; and
10. A report on their accession to international memberships.
b. Retain a copy of the agreement concluded between it and utilizers of financial rights
in which the agreed financial collection costs are identified;
c. Take all administrative and legal actions to protect rights of contracting parties;
d. Prepare final accounts and distribute dividends to contracting parties at least once a
year;
e. Allow contracting parties to review final accounts and the method of dividend
distribution;
f. Draw up regular reports to be submitted to right holders, showing entities that have
used their Works and amounts collected;
g. Submit the information and documents set out in this Resolution to the Ministry,
where required, and the Competent Authority may inspect the Collective
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Management to access to such information and documents; and
h. Make no discrimination among members.
6. The Collective Management shall pay annual fees of the Permit, which shall be annually
renewed after the prescribed fees are paid.
7. The Ministry may revoke the permit after being issued if the Collective Management fails
to comply with the provisions of the Law and the implementing resolutions thereof;
however, its obligations towards contracting parties shall remain in place without any
responsibility on the Ministry.
8. The Collective Management may not refuse to manage financial rights of Authors or
Holders of Neighboring Rights without a justifiable reason.
9. The Collective Management shall ensure that the financial return goes to Authors or
Holders of Neighboring Rights, as per the internal distribution mechanism, show the
documents confirming the same and submit them to the Ministry where required.
10. The Collective Management may deduct a percentage of total collected amounts for
managing the collection and distribution of returns for use; provided that the deduction
percentage does not exceed 25% of total amounts collected. Such percentage may be
deducted only for administrative expenses, and the Ministry may reduce such percentage
when it deems appropriate.
11. No other amounts shall be deducted, other than administrative expenses, without the
consent of associate members.
12. The Ministry may request the applicant to show a document proving that he is a member
of the international union concerned with the Collective Management activity, when it
deems required.
13. The Collective Management may not introduce any modification to data or documents
submitted for obtaining the permit, including the imposition or adjustment of matters
related to financial rights, before being approved by the Ministry.
14. The Collective Management's working mechanism shall include a mechanism for
settlement of internal disputes and complaints by independent persons experienced in
such field.
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15. Administrative sanctions to be imposed due to the permittee's violation of the provisions
of this Law and this Resolution shall be identified by a Cabinet resolution at the Minister's
proposal.