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Extended collective license

The Nordic extended collective license is an additional support mechanism for freely negotiated licensing agreements between a user of copyrighted material and a collective management organization (copyright society). The extended collective license itself does not authorize a user to use works protected by copyright. Therefore an agreement between the user and the authorized collective management organization is needed. Once the agreement is concluded it will be legally binding on non-represented right holders too. This is the so-called extension effect of the extended collective license, and it will also cover foreign works and orphan works.

The licensee (the user) must make sure that the license covers all rights holders and there is no risk of a claim (legal or financial) from rights holders who have not given a mandate to the collective management organization to represent them. The user may legally use all the works in the field included in the license.

In any case, a non-represented right holder has the right, based on the law, to individual remuneration from the collective management organization. The claim can be directed only towards the licensing organization and must be made within a certain period of time, based on the law.

The approval of The Ministry of Education and Culture is required in order for an organization to conclude agreements with the extension effect of the extended collective license. The organization must have representation in the specific field in which it will operate.

It is required by the law that the collective management organization represents a substantial number of authors of works used in Finland in the specific field. The wide bilateral agreement networks solve the question of representation in those fields in which numerous amounts of foreign works are used.

Originally the extended collective license was decreed for the licensing of literary and music works in radio and television broadcasting in the early 1960s. Nowadays it has been extended to other mass use areas too. The extended collective license is used mainly in the same sectors in all Nordic countries.

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