The remuneration of the actors and their intellectual property rights in the Actors’ Activity Act and its regulatory decree
On October 28, 2015 Law No. 27,203 was enacted (“Actors’ Activity Act”) published in the Official Gazette on November 26, 2015, which regulates the employment contract of actors and related activities. The regulation is applicable to actors-interpreters, i.e. people who carry out activities of performance of characters, fictional situations o based on real events, or that substitute, replace or imitate characters, as well as performances of themselves, through a screenplay, book, script or ideas, in public performances o aimed at audiences, regardless of the format and medium used for the diffusion, whatever the place or form under which is carried out.
Moreover, the regulation applies to the people in charge of the direction of the shows, rehearsal aides, choir members and dancers/dance groups.
Regarding the intellectual property rights, section 8 of the Actors’ Activity Act sets forth that in no case it shall be included in the remuneration agreed upon the intellectual property rights of the actors and other people included in the legislation under analysis. This implies that the remuneration for an employment contract entered into by an artist included in the regulation does not include any amount in concept of intellectual property rights. Although the Actors’ Activity Act is not clear regarding which intellectual property rights are included, Decree 616/16 clarifies the wording of the act and establishes that are excluded from the remuneration of the artist, and as a consequence should be in a separate agreement, the intellectual property rights contain in Law No. 11,723, Decrees 746/73 and 1,914/06, its modifying and complementary regulation as well as image rights.
Regarding advertising, section 9 sets forth that the employment contract of the people under Actors’ Activity Act shall not be considered to contain an implicit obligation to perform advertising acts, except those cases where the object of the employment contract consist mainly in an advertising agreement or the acts involved are advertising interventions aimed at the communication of the professional activity of the actor.
For further information on this topic please contact Pablo A. Palazzi