The rules for issuing film distribution certificates were changed on 21 December 2016. Now films that have not received a Russian distribution certificate cannot be shown not only in a movie theater in Russia, but also on the Internet.
In accordance with the Federal Law on State Support for Cinematography of the Russian Federation1(the "Law"), it is necessary to obtain a distribution certificate in order to show a film in Russia. Films can be shown without a distribution certificate only at international film festivals. There is a separate exemption for television showing of films specially created for television.
The Rules for Issuing, Refusing to Issue and Revoking a Film Distribution Certificate were approved in early 20162 (the "Rules"). According to the Rules, a distribution certificate was issued for showing a film in a movie theater and distribution of a film on a tangible medium. At the end of 2016 3 a third way of using a film was added to those two ways: "showing a film by other technical means." This new wording is very broad and covers nearly all possible ways of showing films, from on air broadcasting to posting on the Internet. While the Law contains a specific exemption from the requirement to obtain distribution certificates for television showing, there is no such exemption for Internet services.
On 27 February 2017 the Ministry of Culture published its clarifications 4 on how to apply the Rules. According to this document showing a film by other technical means includes showing a film using the Internet. It was clarified that activity of online stores is not considered as showing a film in the context of the Law, since films are made available to users for downloading. At the same time activity of Internet-services which allow online streaming (VOD streaming) should be considered as showing a film. The requirements apply to films posted on the Internet after the amendments came into force. At the same time, the Ministry of Culture's clarifications did not explain how foreign companies' compliance with these requirements will be monitored.
This change will affect both film makers and Internet services. In this regard we must note the proposal made by the Ministry of Culture in January 2017 to increase the state duty for issuance of distribution certificates to RUB 5 million5. So far this initiative is still in the discussion stage.
Showing a film without a distribution certificate may lead to administrative liability (Article 14.58 of the Administrative Code) in the form of a fine of up to RUB 100,000 for the first violation by legal entities, and up to RUB 200,000 for repeat violation.
Footnotes
1. Federal Law No. 126-FZ of 22 August 1996 (version of 1 December 2014).
2. Approved by RF Government Resolution No. 143 of 27 February 2016.
3. RF Government Resolution No. 1421 of 21 December 2016.
4. Clarifications of the Ministry of Culture of Russia on the issue of enforcing the Rules for Issuing, Refusing to Issue and Revoking a Film Distribution Certificate approved by Russian Federation Government Resolution No. 143 of 27 February 2016.
5. http://www.vedomosti.ru/technology/articles/2017/01/24/674573-sokratit-chislo-gollivudskih-filmov.
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