Criminal liability for infringement of copyright and related rights in Ukraine

Infringement of copyright and related rights in the digital age has become one of the most common offenses in the field of intellectual property. Illegal reproduction of content, pirated online resources, unauthorized use of computer programs, music, photos or videos - all of this not only harms the rights holders, but also entails real legal consequences. In Ukraine, such actions are subject not only to civil and administrative liability, but also to criminalunder Article 176 of the Criminal Code of Ukraine.

In this article, we will look at what actions are considered a crime, what sanctions may be applied, who is responsible, and what businesses should do to avoid risks.

1. What is considered an infringement of copyright and related rights?

Violations include any unlawful actions in relation to intellectual property without the permission of the right holder, in particular:

• reproduction, copying, distribution of works in any form;

• placing music, movies, programs, or images in the public domain without a license;

• sale of counterfeit disks, flash drives, and goods using other people's content;

• illegal use of computer programs in business;

• publishing photos or texts without the author's consent;

• broadcasting or retransmission of television programs without the appropriate rights.

Violations are especially common in the IT, marketing, education, and e-commerce sectors.

2. What actions fall under criminal liability?

Article 176 of the Criminal Code of Ukraine establishes criminal liability in cases of violation:

1) are committed intentionally;
2) cause significant material damage to the right holder.

Material damage is considered significant if its amount is 20 or more tax-free minimum incomes (in practice, about UAH 34,000 or more).
The threshold is much higher for qualified corpus delicti - in large and especially large amounts.

3. Sanctions under Article 176 of the Criminal Code of Ukraine

3.1 Basic elements of the crime (part 1 of Art. 176)

Intentional infringement of copyright or related rights is punishable if substantial damage is caused:

• a fine of up to UAH 3,400;

• or correctional labor for up to 2 years;

• or imprisonment for up to 2 years;

• with the possibility of confiscation of counterfeit products and equipment.

3.2. Acts committed repeatedly or for mercenary motives (part 2 of Article 176)

The punishment is much more severe:

• a fine of up to UAH 17,000;

• or correctional labor for up to 2 years;

• or imprisonment for up to 2 years.

3.3 Large-scale damage or organized group (Art. 176(3))

The most serious crime:

• imprisonment for 2 to 5 years;

• mandatory confiscation of counterfeit copies and equipment.

This is especially dangerous for businesses, because sometimes it is enough to install unlicensed software on several work computers to make the damage, according to the calculations of the copyright holders, reach a "large amount."

4. Who can be held liable?

Individuals

Any person over 16 years old.

Business officials

Usually, they are responsible:

• Director;

• IT manager;

• persons responsible for the purchase of software;

• employees who intentionally uploaded and distributed content.

Employees who violated their rights on their own initiative

If they acted without the company's knowledge, criminal proceedings are opened against them.

The company as a legal entity is not responsible forbut its property can be seized.

5. How is the amount of damage determined?

Investigative authorities use:

• expert opinions;

• market value of licensed products;

• losses from illegal distribution;

• the number of illegal copies.

In practice, the amount of damage is often disputed and can be significantly overstated. In such cases, the participation of a lawyer is required, who initiates his own examination and challenges the calculation methodology.

6. Why should businesses pay special attention to copyright compliance?

Violations are easily detected:

• rights holders are actively monitoring;

• law enforcement can receive information from hosting providers;

• competitors often file complaints;

• police and cyber police conduct searches and seizures.

For a company, the consequences can be catastrophic:

• seizure of computers, servers, and media;

• suspension of work;

• reputational losses;

• criminal proceedings against the management.

7. What actions can help to avoid criminal liability?

1. Regular software audits

Verification of licenses, subscriptions, contracts, acceptance certificates.

2. Availability of an internal content use policy

Clearly regulate downloads, use of photos, videos, fonts, music, and third-party libraries.

3. Training of employees

Marketers, SMM specialists, designers, and content managers should understand the risks.

4. Verification of content received from contractors

Outsourced designers, photographers, or programmers sometimes use "pirated" materials.

5. Timely response to claims of rights holders

Voluntary elimination of the violation often allows avoiding criminal proceedings.

8. How can a lawyer help in copyright infringement cases?

Professional support includes:

• analysis of criminal proceedings;

• participation in searches and investigations;

• appealing against unlawful actions of law enforcement officers;

• appointment of alternative examinations;

• minimizing risks and penalties;

• protection of the manager and employees;

• Preparation of pre-trial agreements with right holders.

Conclusion.

Criminal liability for infringement of copyright and related rights is real and quite severe, especially in the case of significant losses or systemic violations. It is important for businesses not only to have licensed programs, but also to build a comprehensive copyright compliance policy.

If a company or individual has already received a request, claim, or has become the subject of an investigation, it is necessary to engage a lawyer as soon as possible to protect your interests and minimize risks.