Lietuviškai
                   THE CONSTITUTIONAL COURT OF                 
                    THE REPUBLIC OF LITHUANIA                    

                           R U L I N G                           

        On the compliance of Paragraph 1 of Article 21410        
              of the Republic of Lithuania Code of               
            Administrative Violations of Law with the            
            Constitution of the Republic of Lithuania            

                      Vilnius, 5 July 2000                       

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  Judges  of  the  Constitutional Court Egidijus
Jarašiūnas,   Egidijus   Kūris,   Zigmas   Levickis,   Augustinas
Normantas,   Vladas   Pavilonis,   Jonas   Prapiestis,   Vytautas
Sinkevičius, Stasys Stačiokas, and Teodora Staugaitienė,
     with the secretary of the hearing-Daiva Pitrėnaitė,
     in the presence of:
     the  representative  of  the  party  concerned-the Seimas of
the  Republic  of  Lithuania-Dr.  Pranas  Petkevičius,  a  senior
consultant  to  the  Law  Department of the Office of the Seimas,
and Assoc. Prof. Dr. Alfonsas Vileita,
     pursuant  to  Paragraph 1 of Article 102 of the Constitution
of  the  Republic  of  Lithuania  and Paragraph 1 of Article 1 of
the  Republic  of  Lithuania  Law on the Constitutional Court, on
30  June  2000  in its public hearing conducted the investigation
of  Case  No.  28/98  subsequent to the petition submitted to the
Court  by  the  petitioner-the Vilnius City District Court of the
Third  District-requesting  to  investigate  if  Paragraph  1  of
Article   21410   of   the   Republic   of   Lithuania   Code  of
Administrative  Violations  of Law was in conformity with Article
23  of  the  Constitution  of  the  Republic of Lithuania and the
Republic of Lithuania Civil Code.

     The Constitutional Court
                        has established:                         

                                I                                
     On  14  August  1998, the Vilnius City District Court of the
Third   District   was   investigating   a   case   regarding  an
administrative  violation  of law where a person had been brought
to   responsibility  on  a  charge  of  illegal  trade  in  video
recordings,  i.e.,  the  violation provided for in Paragraph 1 of
Article   21410   of   the   Republic   of   Lithuania   Code  of
Administrative  Violations  of  Law (hereinafter also referred to
as the CAVL).
     By  its  ruling the court suspended the investigation of the
case  and  appealed  to  the Constitutional Court with a petition
requesting  to  investigate whether Article 21410 of the CAVL was
in  compliance  with  Article  23  of  the  Constitution  of  the
Republic  of  Lithuania  and the Republic of Lithuania Civil Code
(hereinafter also referred to as the CC).

                               II                                
     The  request  of  the  petitioner  is based on the following
motives.
     1.   Article   21410  of  the  CAVL  provides  that  illegal
reproduction,  circulation,  public performance, other use by any
means  for  commercial  purposes  of works of literature, science
or  art  (including  computer  software  and  data  bases) and/or
video  recordings  (i.e.  without  permission  of  the author, or
producer   of   audio  and/or  video  recording,  or  that  of  a
successor  of  their  rights)  as  well  as their storage for the
said  purposes  shall  incur  a fine together with seizure of the
items  illegally  produced,  reproduced,  circulated  or  used in
other way or stored.
     In  the  opinion  of  the  petitioner,  video recordings, as
things,  are  regular  items  of  the right of ownership. Laws do
not  provide  for special rules of or restrictions on acquisition
or  sale  of  video  or  audio  recordings, therefore they may be
freely disposed of as one's property.
     2.  Paragraph  1  of Article 23 of the Constitution provides
that  property  shall  be  inviolable.  The  petitioner maintains
that  this  is  an imperative provision with which other laws and
practice  of  their  application  must  be  coordinated.  Article
21410   of  the  CAVL  conflicts  with  the  said  norms  of  the
Constitution  and  groundlessly  restricts  the rights of persons
to property.
     In  the  opinion  of  the  petitioner,  under Paragraph 3 of
Article  23  of the Constitution, items belonging by the right of
ownership  may  only be seized for the needs of society according
to  the  procedure  established  by  law  and  must be adequately
compensated  for.  Article 21410 of the CAVL does not provide for
compensation   for   the   owners  for  seized  audio  and  video
recordings.  The  legislator  is  entitled  to  change  the legal
treatment  of  respective  items of property but he may not seize
items  from  the  owner  which  belong  to  him  by  the right of
ownership,  nor  may  he  punish  the  owner for storage, use and
sale of lawfully acquired items.
     3.  The  disposition  of the disputed article means that the
legislator  strives  to  protect  the  copyright  of  authors and
producers  when  their  works  are  recorded  into audio or video
data  retention  items.  Paragraph  2  of  Article  515 of the CC
provides:  "The  copyright to a work shall not be associated with
ownership   to   a   substantive   item   wherein  this  work  is
manifested."  From  this  the  petitioner draws a conclusion that
the  items  wherein  works  are  recorded  belong by the right of
ownership  to  persons  who  have  acquired  them  but not to the
author  of  the  work or the producer of the recording. According
to   the   petitioner,  the  author  implements  his  rights,  as
provided  by  the  law,  by giving his consent to record his work
into  data  retaining  items.  The  laws  do  not provide for the
author's   consent   regarding  sale  of  his  recordings,  i.e.,
contrary  to  the  disposition  of  the  disputed norm of Article
21410  of  the  CAVL,  the  ownership rights of the author to the
recorded work belong to the producer (Article 526 of the CC).
     Paragraph  2  of  Article  561  of  the  CC provides that in
cases  when  a  recording  is  lawfully  circulated through trade
system,  then  it is permitted to use it in public places without
a consent of the producer.
     4.  In  the  opinion  of  the  petitioner,  at present video
recordings  produced  in  foreign  countries  are  not covered by
legal  protection  yet,  as  Lithuania  has not ratified the 1961
Rome  convention.  Article  21410  of  the CAVL does not consider
this  circumstance  and  this  provides grounds for punishment of
persons  and  seize  their  video  and  audio recordings produced
abroad and legally sold in Lithuania.
     The  copyright  is  an  institute  of  private  law and such
relations  are  regulated  by  norms of civil (Articles 539, 540,
565  of  the  CC)  but  not administrative law. By the regulation
established  in  Article  21410  of  the  CAVL  one  of  the main
principles  of  civil law, i.e. that of disposition, is violated.
The  said  norm  denies  the  right  of  entities of civil law to
implement  the  rights granted to them by the law-this is done by
police officers without the knowledge of the said entities.

                               III                               
     In   the   course   of  preparation  of  the  case  for  the
Constitutional   Court   hearing,   written  explanation  of  the
representatives    of    the    party   concerned-the   Seimas-P.
Petkevičius and A. Vileita, were received.
     1.  The  representatives  of  the  party concerned point out
that  the  provision "Property shall be inviolable" of Article 23
of   the   Constitution   is   applicable   to   all   types   of
property-private,  public,  substantive  as well as intellectual.
Intellectual   property   is   inviolable   too.  It  must  enjoy
protection  to  the same extent as substantive property. Thus the
persons   who   have  infringed  intellectual  property  must  be
subjected  to  measures as strict as those applied to persons who
have  infringed  substantive  property.  Besides,  while applying
sanctions  to  offenders  against  intellectual property, one has
to  take  account  of  the  specific  character  of  intellectual
property.  The  owner  either  himself  manages substantive items
that  belong  to  him by the right of private ownership or he can
exert  control  over  their  management  after he has transferred
these  items  to  other  persons  to  manage.  The  author cannot
control   the   use  of  his  published  works  by  himself.  The
published  works  become  accessible not only on the territory of
one  state  but  also on the international level. Therefore there
exist  international  agreements  on  protection  of intellectual
property.  The  provisions  of  agreements  which  Lithuania  has
joined become mandatory.
     2.  A  person  may  acquire  the  right of ownership only by
lawful   ways.   Everything   that   is  acquired  unlawfully  by
infringing  the  rights of other persons or in violation of legal
norms  may  not  enjoy  protection.  Violation  of law may not be
protected.  Depending  on  its  character,  degree of danger, the
content   of   legal  norms  establishing  liability  for  it,  a
violation  of  law  may  incur  civil, administrative or criminal
liability.  The  institute  of  the  right  of  ownership  is  an
institute   of   civil  law,  therefore  it  is  reasonable  that
infringement  of  private property incurs not only civil but also
criminal and administrative liability.
     Legal  protection  of  intellectual  property  is of no less
importance  than  that  of  substantive  property, therefore such
protection  must  be ensured by norms of penal and administrative
law   alike.   Safeguarding   of  such  protection  is  not  only
safeguarding  of  the  interests of authors and those of entities
of  related  rights  but  also  safeguarding  of law and order in
Lithuania  along  with international obligations of this country.
This is a public interest.
     3.   The  provisions  of  Article  21410  of  the  CAVL  are
applicable  to  unlawful  use  of works or their recordings only.
Persons  who  reproduce illegally and/or those who acquire copies
or  recordings  of  works  that have been reproduced illegally do
not  acquire  nor  may  acquire  any  right  of  ownership to the
recordings.  Such  recordings  must  be  seized and destroyed. In
such  a  way actions violating law are terminated (Paragraph 1 of
Article 6 of the CC).
     In   the   opinion  of  the  representatives  of  the  party
concerned,  the  statement  of  the petitioner that the ownership
right  of  the  author  to  the  recorded  work  belongs  to  the
producer  conflicts  with the imperative provision of Paragraph 1
of  Article  558  of  the  CC  whereby the rights of producers of
audio  and  video  recordings  are  protected  in as much as this
does  not  violate  the  rights of the authors (copyright) of the
performed  works.  Therefore,  in  case  producers  of recordings
infringe  the  rights  of  the  authors  (copyright) of performed
works,   such   producers   of   recordings  acquire  no  rights,
including  the  right  of  ownership to produced recordings, thus
their   rights   do   not   enjoy  protection.  The  works  under
protection  of  copyright  may  be  recorded only under agreement
with  the  author or successor of his rights. It is not permitted
to  reproduce  lawfully  produced  recordings  where  works under
protection  of  copyright  are  employed  without  consent of the
author  or  successors  of  his  rights  or  the producers of the
recording.  In  any  case  of  a  commercial use of the recording
remuneration  must  be paid to the authors of the recorded works.
The  recordings  (cassettes,  discs)  produced  in  violation  of
these  requirements  are  illegal  (pirate)  and  are  liable  to
seizure and destruction.
     4.  The  representatives  of  the  party concerned point out
that   under   the   Berne   Convention   Lithuania  must  ensure
protection   of   copyright   for  the  works  of  authors  until
expiration  of  application  of  copyright.  Under Paragraph 6 of
Article  519  of  the CC as well as Articles 11 bis and 13 of the
Berne  Convention,  authors  enjoy  the right to remuneration for
their  works.  Paragraph  3 of Article 13 of the Berne Convention
provides  that  recordings made in accordance with the provisions
of   this  article  and  imported  without  permission  from  the
parties  concerned  into  a  country  where  they  are treated as
infringing recordings shall be liable to seizure.
     5.   On   the   grounds   of   the  motives  set  forth  the
representatives  of  the  party  concerned draw a conclusion that
Article   21410   of   the   CAVL   is  in  conformity  with  the
Constitution.

                               IV                                
     In  the  course  of  the  preparation  of  the  case for the
Constitutional  Court  hearing,  explanations  were received from
N.   Matulevičienė,   Head  of  the  Copyright  Division  of  the
Ministry  of  Culture,  Chairperson  of the Lithuanian Council of
Copyright   and  Related  Rights,  and  E.  Vaitekūnas,  Director
General  of  the Lithuanian Association for Protection of Authors
Rights.

                                V                                
     In  the  Constitutional Court hearing the representatives of
the  party  concerned  virtually  reiterated  their arguments set
down in writing.
     The   representatives  noted  that  the  related  rights  to
authors'   rights   (copyright),   special  legal  protection  of
databases,  enforcement  of  copyright  and related rights, their
collective  administration  and  protection  are regulated by the
Republic  of  Lithuania  Law  on  Copyright  and  Related  Rights
passed  on  18 May 1999. After the said law had gone into effect,
Chapter  Four  of  the  CC  entitled  "Copyright" and its Chapter
Five   entitled  "The  Rights  of  Directors  of  Plays,  Actors,
Producers  of  Audio  and  Video  Recordings  (Related  Rights to
Copyright)" became null and void.

     The Constitutional Court
                           holds that:                           

                                I                                
     Article   21410   of  the  CAVL  entitled  "Infringement  of
Copyright and Related Rights" provides:
     "Illegal   reproduction,  circulation,  public  performance,
other  use  by  any  means  for  commercial  purposes of works of
literature,  science  or  art  (including  computer  software and
data  bases)  and/or  a  video recording (i.e. without permission
of  the  author,  or producer of audio and/or video recording, or
that  of  a  successor  of their rights) as well as their storage
for the said purposes
     shall  incur  a  fine  from  1000  to  3000 Lt together with
seizure   of   the   items  illegally  manufactured,  reproduced,
circulated or used in other way or stored.
     The  same  actions  performed by a person who has been given
an  administrative  punishment  for  violations  provided  for in
Paragraph 1 of this Article
     shall  incur  a  fine from 2000 to 3000 Lt together with the
seizure  of  the items illegally produced, reproduced, circulated
or  used  in other way or stored as well as that of the equipment
of the illegal reproduction."
     Taking  account  of  the  arguments  of  the petitioner, the
Constitutional   Court   will   investigate   the  compliance  of
Paragraph 1 of Article 21410 of the CAVL with the Constitution.

                               II                                
     1. Article 23 of the Constitution provides:
     "Property shall be inviolable.
     The rights of ownership shall be protected by law.
     Property  may  only  be  seized  for  the  needs  of society
according  to  the  procedure  established  by  law  and  must be
adequately compensated for."
     By  norms  of  Article  23 of the Constitution protection of
the  rights  of  ownership  is secured. Inviolability of property
as  established  in  this  article obligates other persons not to
infringe  the  rights  of the owner, while it obligates the state
to  safeguard  and  protect the rights of ownership. Intellectual
property  enjoys  protection under Article 23 of the Constitution
as well.
     2.  Intellectual  property covers authors rights (copyright)
to  works  of  literature,  science  and  art  (books, brochures,
articles,   diaries,   other   pieces   of  literature,  computer
software,  speeches,  lectures,  sermons  and other verbal works,
pieces  of  music  either  with a text or without it, audiovisual
pieces  (cinema  films,  television  films,  video  films,  slide
films,   other  works  made  by  means  of  cinematography)  etc.
Intellectual  property  also  covers  the  rights  of performers,
producers   of   phonograms,   broadcasting   organisations   and
producers  of  the  first  fixation of an audiovisual work (film)
(related rights).
     The  Constitution  is  an  integral  and directly applicable
statute,  therefore,  while  investigating  the compliance of the
disputed  norms  with Article 23 of the Constitution, one is also
to  take  account of the fact that safeguarding and protection of
the  rights  and  interests of authors is provided by Paragraph 3
of  Article  42  of  the  Constitution  as  well,  wherein  it is
established  that  the law shall protect and defend the spiritual
and   material   interests   of  authors  which  are  related  to
scientific, technical, cultural, and artistic work.
     3.   By   the   Constitution   protection   of  property  is
guaranteed.   Property   acquired   unlawfully  does  not  become
property  of  the  person who has acquired it. Thus such a person
does  not  acquire the rights of ownership which are protected by
the Constitution.
     By  illegal  reproduction,  circulation, public performance,
other  use  by  any  means  for  commercial  purposes of works of
literature,  science  or  art  (including  computer  software and
data  bases)  and/or video recordings (i.e. without permission of
the  author,  or  producer  of  audio  and/or video recording, or
that  of  a  successor  of their rights) as well as their storage
for  the  said  purposes  the  rights  of authors (copyright) and
those of subjects of related rights are infringed.
     4.  The  petitioner also doubts whether seizure of the items
pointed  out  in  the  sanction  of  the  norm  of Paragraph 1 of
Article   21410   of   the   CAVL   is  in  conformity  with  the
Constitution.
     As   mentioned,   the   actions   are  pointed  out  in  the
disposition  of  Paragraph  1  of  Article  21410  of the CAVL by
which  the  rights  of  authors (copyright) and those of subjects
of  related  rights  are  infringed.  These  infringements  incur
seizure  of  the items illegally produced, reproduced, circulated
or  used  in other way or stored as well as that of the equipment
of  the  illegal  reproduction.  In  case  the said items are not
seized,  the  person  in  question would be able to use them in a
way that damage may be inflicted on other persons and society.
     Paragraph  1  of  Article  26  of the CAVL provides that the
item   which  was  either  an  instrument  or  direct  object  of
administrative  violation  of  law shall be liable to seizure. In
its  ruling  of  8  April  1997,  while  taking  account  of  the
importance  of  protected  public  relations,  the Constitutional
Court  held  that  seizure  of  either  an  instrument  or direct
object  of  administrative  violation  of  law  was in conformity
with the Constitution.
     5.  The  petitioner  points  out  that  under Paragraph 1 of
Article  21410  of  the  CAVL  video recordings and phonograms do
not  enjoy  legal protection in Lithuania as at the moment of the
infringement   Lithuania   had  not  ratified  the  International
Convention   for  the  Protection  of  Performers,  Producers  of
Phonograms  and  Broadcasting  Organizations done in Rome. Such a
stance  of  the  petitioner  is groundless. In the present ruling
of  the  Constitutional Court it has been held that protection of
the  rights  of  authors (copyright) is entrenched in Articles 23
and  Paragraph  3  of  Article 42 of the Constitution, thus, even
in  absence  of  ratification  of  a  corresponding international
agreement,  safeguarding  and  protection  of  rights of property
must be implemented.
     6.  On  the  grounds  of  the arguments set forth, one is to
draw  a  conclusion that Paragraph 1 of Article 21410 of the CAVL
is in compliance with Article 23 of the Constitution.

                               III                               
     The  petitioner  requests  to  investigate the compliance of
Article  21410  of  the  CAVL  with  the  norms of the Civil Code
establishing copyright.
     Under  Paragraph  1  of  Article 105 of the Constitution and
Item  1  of  Paragraph  1  of  Article  63  of  the  Law  on  the
Constitutional  Court,  the  Constitutional  Court  shall examine
cases  concerning  the  compliance  of laws and other acts of the
Seimas  with  the  Constitution of the Republic of Lithuania. The
Constitutional  Court  does not consider whether one or other law
is  in  conformity  with  another  law, therefore the petition of
the   Vilnius   City   District   Court  of  the  Third  District
requesting  to  investigate  the  compliance  of Article 21410 of
the  CAVL  is  not  under  the jurisdiction of the Constitutional
Court.  Under  Item  2 of Paragraph 1 of Article 69 of the Law on
the  Constitutional  Court, this constitutes grounds to refuse to
investigate  the  compliance  of  Article  21410 of the CAVL with
the  norms  of  the  CC.  The  case  in  this  section  is  to be
dismissed   (Paragraph  3  of  Article  69  of  the  Law  on  the
Constitutional Court).

     Conforming  to  Article  102  of  the  Constitution  of  the
Republic  of  Lithuania and Articles 53, 54, 55, 56 and Paragraph
3  of  Article  63  of  the  Republic  of  Lithuania  Law  on the
Constitutional  Court,  the  Constitutional  Court has passed the
following
                             ruling:                             

     1.  To  recognise  that  Paragraph 1 of Article 21410 of the
Republic  of  Lithuania  Code of Administrative Violations of Law
is  in  compliance  with  the  Constitution  of  the  Republic of
Lithuania.
     2.  To  dismiss  the  section  of  the  case  concerning the
request  to  investigate  the  compliance of Article 21410 of the
Republic  of  Lithuania  Code of Administrative Violations of Law
with the Republic of Lithuania Civil Code.

     This  Constitutional  Court  ruling is final and not subject
to appeal.
     The  ruling  is  promulgated  on  behalf  of the Republic of
Lithuania.