(a) does not have actual knowledge of illegal activity or information and, as regards claims for damages, is not aware of facts or circumstances from which the illegal activity or information is apparent; or,
(b) upon obtaining such knowledge or awareness, acts expeditiously to remove or to disable access to the information.
2. Paragraph 1 does not apply where the recipient of the service is acting under the authority or the control of the provider.
3. This Article shall not affect the possibility for a court or an administrative authority, in accordance with the legal system of each Party, to require the service provider to terminate or prevent an infringement, or the possibility for a Party to establish procedures governing the removal or disabling of access to information.
Article 199. No General Obligation to Monitor
1. The Parties shall not impose either a general obligation on providers, when providing the services covered by Articles 196, 197 and 198, to monitor the information which they transmit or store, or a general obligation to actively seek facts or circumstances indicating illegal activity.
2. Each Party may establish obligations for information society service providers to promptly inform the competent public authorities of alleged illegal activities and information provided by recipients of their service or obligations to communicate to the competent authorities, at their request, information enabling the identification of recipients of their service with whom they have storage agreements.
Section G. Exceptions
Article 200. General Exceptions
1. Without prejudice to general exceptions provided for in this Agreement, this Chapter is subject to the exceptions specified in paragraphs 2 and 3.
2. Subject to the requirement that such measures not be applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on establishment or cross-border supply of services, nothing in this Chapter shall be construed as preventing the adoption or enforcement by a Party of measures:
(a) necessary to protect public security or public morals or to maintain public order;
(b) necessary to protect human, animal or plant life or health;
(c) relating to the conservation of exhaustible natural resources if such measures are applied in conjunction with restrictions on domestic entrepreneurs or on the domestic supply or consumption of services;
(d) necessary for the protection of national treasures of artistic, historic or archaeological value;
(e) necessary to secure compliance with laws or regulations which are not inconsistent with this Chapter including those relating to:
(i) the prevention of deceptive and fraudulent practices or to deal with the effects of a default on contracts;
(ii) the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts; or
(iii) safety; or
(f) inconsistent with Articles 144 and 150, provided that the difference in treatment is aimed at ensuring the effective or equitable imposition or collection of direct taxes in respect of economic activities, entrepreneurs or services suppliers of the other Party (1).
3. This Chapter and Annex VIII to this Agreement do not apply to the respective social security systems of the Parties or to activities in the territory of each Party, which are connected, even occasionally, with the exercise of official authority.
Article 201. Taxation Measures
The most-favoured-nation treatment granted in accordance with this Chapter does not apply to the tax treatment that Parties are providing or will provide in future on the basis of agreements between the Parties designed to avoid double taxation.
Article 202. Security Exceptions
Nothing in this Agreement shall be construed as:
(a) requiring any Party to furnish any information, the disclosure of which it considers contrary to its essential security interests;
(b) preventing any Party from taking any action which it considers necessary for the protection of its essential security interests:
(i) connected with the production of or trade in arms, munitions or war material;
(ii) relating to economic activities carried out directly or indirectly for the purpose of provisioning a military establishment;
(iii) relating to fissionable and fusionable materials or the materials from which they are derived; or
(iv) taken in time of war or other emergency in international relations; or
(c) preventing a Party from taking any action in pursuance of obligations it has accepted for the purpose of maintaining international peace and security.
Section H. Investment
Article 203. Review
In order to facilitate bilateral investment, the Parties shall jointly review the environment and the legal framework for investment, no later than three years after the entry into force of this Agreement and at regular intervals thereafter. On the basis of that review, they shall consider the opportunity for starting negotiations with a view to supplementing this Agreement with provisions on investment, including investment protection.
Chapter 6. Current Payments and Movement of Capital
Article 204. Current Payments
The Parties shall impose no restrictions and shall allow, in freely convertible currency and in accordance with the Articles of Agreement of the International Monetary Fund, any payments and transfers on the current account of the balance of payments between the European Union and the Republic of Armenia.
Article 205. Capital Movements
1. With regard to transactions on the capital and financial account of the balance of payments, from the date of entry into force of this Agreement, the Parties shall ensure the free movement of capital relating to direct investments (1) made in accordance with the law of the host country and in accordance with the provisions of Chapter 5, and the liquidation or repatriation of such invested capital and of any profit stemming therefrom.
2. With regard to transactions on the capital and financial account of the balance of payments not covered by paragraph 1, from the entry into force of this Agreement and without prejudice to other provisions of this Agreement, each Party shall ensure the free movement of capital with regard to:
(a) credits relating to commercial transactions, including the provision of services, in which a resident of one of the Parties is participating;
(b) financial loans and credits by investors of the other Party; and
(c) capital participation in a juridical person, as defined in Article 142, with no intention of establishing or maintaining lasting economic links.
3. Without prejudice to other provisions of this Agreement, the Parties shall not introduce any new restrictions on the movement of capital and current payments between residents of the European Union and the Republic of Armenia and shall not make the existing arrangements more restrictive.
Article 206. Exceptions
Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on capital movements, nothing in this Chapter shall be construed as preventing the adoption or enforcement by either Party of measures:
(a) necessary to protect public security, public morals or to maintain public order; or
(b) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Title, including those relating to:
(i) the prevention of criminal offences, deceptive and fraudulent practices, or necessary to deal with the effects of a default on contracts, such as bankruptcy, insolvency and protection of the right of creditors;
(ii) measures adopted or maintained to ensure the integrity and stability of a Party's financial system;
(iii) issuing, trading or dealing in securities, options, futures or other derivatives;
(iv) financial reporting or record keeping of transfers when necessary to assist law enforcement or financial regulatory authorities; or
(v) ensuring compliance with orders or judgments in juridical or administrative proceedings.
Article 207. Safeguard Measures
Where, in exceptional circumstances, there are serious difficulties with regard to, in the case of the Republic of Armenia, the operation of exchange-rate policy or monetary policy or, in the case of the European Union, the operation of the economic and monetary union, or where a Party experiences serious balance of payments or external financing difficulties, or where there is the threat of such difficulties, the Party concerned may take safeguard measures that are strictly necessary with regard to capital movements, payments or transfers between the European Union and the Republic of Armenia for a period not exceeding one year. The Party adopting or maintaining safeguard measures shall inform the other Party forthwith of the adoption of any safeguard measure and present, as soon as possible, a time schedule for its removal.
Article 208. Facilitation
The Parties shall consult each other with a view to facilitating the movement of capital between the Parties in order to promote the objectives of this Agreement.
Chapter 7. Intellectual Property
Section A. Objectives and Principles
Article 209. Objectives
The objectives of this Chapter are:
(a) to facilitate the production and commercialisation of innovative and creative products between the Parties, contributing to a more sustainable and inclusive economy for each Party; and
(b) to achieve an adequate and effective level of protection and enforcement of intellectual property rights.
Article 210. Nature and Scope of Obligations
1. The Parties shall ensure the adequate and effective implementation of international treaties concerning intellectual property to which they are parties, including the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights contained in Annex 1C to the WTO Agreement ("the TRIPS Agreement"). This Chapter shall complement and further specify the rights and obligations between the Parties under the TRIPS Agreement and other international treaties in the field of intellectual property.
2. For the purpose of this Agreement, the term "intellectual property" refers at least to all categories of intellectual property referred to in Section B of this Chapter.
3. The protection of intellectual property includes protection against unfair competition as referred to in Article 10bis of the Paris Convention for the Protection of Industrial Property of 1883, as last revised by Stockholm Act of 1967 ("the Paris Convention (1967)").
Article 211. Exhaustion
Each Party shall provide for a regime of national or regional exhaustion of intellectual property rights.
Section B. Standards Concerning Intellectual Property Rights
Subsection I. Copyright and Related Rights
Article 212. Protection Granted
1. The Parties shall comply with the rights and obligations set out in:
(a) the Berne Convention for the Protection of Literary and Artistic Works ("the Berne Convention");
(b) the Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations ("the Rome Convention");
(c) the TRIPS Agreement;
(d) the WIPO Copyright Treaty (WCT); and
(e) the WIPO Performances and Phonograms Treaty (WPPT).
2. The Parties shall make all reasonable efforts to accede to the Beijing Treaty on Audiovisual Performances.
Article 213. Authors
Each Party shall, as regards authors, provide for the exclusive right to authorise or prohibit:
(a) direct or indirect, temporary or permanent reproduction by any means and in any form, in whole or in part, of their works;
(b) any form of distribution to the public, by sale or otherwise, of the original of their works or of copies thereof;
(c) any communication to the public of their works, by wire or wireless means, including the making available to the public of their works in such a way that members of the public may access them from a place and at a time individually chosen by them; and
(d) rental and lending of the original and copies of their works.
Article 214. Performers
Each Party shall, as regards performers, provide for the exclusive right to authorise or prohibit:
(a) the fixation (1) of their performances;
(b) direct or indirect, temporary or permanent, reproduction by any means and in any form, in whole or in part, of fixations of their performances;
(c) the distribution to the public, by sale or otherwise, fixations of their performances;
(d) the making available to the public, of fixations of their performances by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them;
(e) the broadcasting by wireless means and the communication to the public of their performances, except where the performance is itself already a broadcast performance or is made from a fixation;
(f) rental and lending of fixations of their performances.
Article 215. Producers of Phonograms
Each Party shall, as regards producers of phonograms, provide for the exclusive right to authorise or prohibit:
(a) direct or indirect, temporary or permanent, reproduction by any means and in any form, in whole or in part, of their phonograms;
(b) the distribution to the public, by sale or otherwise, their phonograms, including copies thereof;
(c) the making available of their phonograms to the public, by wire or wireless means, in such a way that members of the public may access them from a place and at a time individually chosen by them; and
(d) rental and lending in respect of their phonograms.
Article 216. Broadcasting Organisations
Each Party shall, as regards broadcasting organisations, provide for the exclusive right to authorise or prohibit:
(a) the fixation of their broadcasts, whether those broadcasts are transmitted by wire or over the air, including by cable or satellite;
(b) the direct or indirect, temporary or permanent reproduction, by any means and in any form, in whole or in part, of fixations of their broadcasts, whether those broadcasts are transmitted by wire or over the air, including by cable or satellite;
(c) the making available to the public, by wire or wireless means, of fixations of their broadcasts in such a way that members of the public may access them from a place and at a time individually chosen by them;
(d) the distribution to the public, by sale or otherwise, of fixations of their broadcasts; and
(e) the rebroadcasting of their broadcasts by wireless means, as well as the communication to the public of their broadcasts if such communication is made in places accessible to the public against payment of an entrance fee.
Article 217. Broadcasting and Communication to the Public
Each Party shall provide a right in order to ensure that a single equitable remuneration is paid by the user to the performers and producers of phonograms if a phonogram published for commercial purposes, or a reproduction of such phonogram, is used for broadcasting by wireless means or for any communication to the public. Each Party shall ensure that such remuneration is shared between the relevant performers and phonogram producers. Each Party may, in the absence of agreement between the performers and phonogram producers, lay down the conditions as to the sharing of such remuneration between them.
Article 218. Term of Protection
1. The economic rights of an author of a literary or artistic work within the meaning of Article 2 of the Berne Convention shall run for the life of the author and for no less than 70 years after his death, irrespective of the date when the work is lawfully made available to the public.
2. In the case of a work of joint authorship, the term referred to in paragraph 1 shall be calculated from the death of the last surviving author.
3. In the case of anonymous or pseudonymous works, the term of protection shall run for no less than 70 years after the work is lawfully made available to the public. However, when the pseudonym adopted by the author leaves no doubt as to his identity, or if the author discloses his identity during the period referred to in the first sentence, the term of protection applicable shall be that laid down in paragraph 1.
4. Where a Party provides for particular rights in respect of collective works or for a legal person to be designated as a right holder, the term of protection shall be calculated in accordance with paragraph 3, except if the natural persons who have created the work are identified as such in the versions of the work which are made available to the public. This paragraph is without prejudice to the rights of identified authors whose identifiable contributions are included in such works, to which contributions paragraph 1 or 2 shall apply.
5. Where a work is published in volumes, parts, instalments, issues or episodes and the term of protection runs from the time when the work was lawfully made available to the public, the term of protection shall run for each separately.
6. In the case of works for which the term of protection is not calculated from the death of the author or authors and which have not been lawfully made available to the public within 70 years from their creation, the protection shall terminate.
7. The term of protection of cinematographic or audiovisual works shall expire not earlier than 70 years after the death of the last of the following persons to survive, whether or not such persons are designated as co-authors: the principal director, the author of the screenplay, the author of the dialogue and the composer of the music specifically created for use in the cinematographic or audiovisual work.
8. Each Party shall ensure that any person who, after the expiry of copyright protection, for the first time lawfully publishes or lawfully communicates to the public a previously unpublished work benefits from a protection equivalent to the economic rights of the author. The term of protection of such rights shall be 25 years from the time when the work was first lawfully published or lawfully communicated to the public.
9. The economic rights of audiovisual performers shall expire not less than 50 years after the date of the performance. However, if a fixation of the performance is lawfully published or lawfully communicated to the public within that period, the rights shall expire not less than 50 years from the date of the first such publication or the first such communication to the public, whichever is the earlier.
10. The economic rights of performers and producers of phonograms shall expire 70 years after the date of the first publication or the first communication to the public, whichever is the earlier. A Party may adopt effective measures to ensure that profits generated during the 20 years of protection beyond 50 years are shared fairly between performers and producers.
11. The economic rights of producers of the first fixation of a film shall expire not less than 50 years after the fixation is made. However, if the film is lawfully published or lawfully communicated to the public during that period, the rights shall expire not less than 50 years after the date of the first such publication or the first such communication to the public, whichever is the earlier.
12. The economic rights of broadcasting organisations shall expire not less than 50 years after the first transmission of a broadcast, whether that broadcast is transmitted by wire or over the air, including by cable or satellite.
13. The terms laid down in this Article shall be calculated from the first of January of the year following the event which gives rise to them.
Article 219. Protection of Technological Measures
1. Each Party shall provide adequate legal protection against the circumvention of any effective technological measures which the person concerned carries out in the knowledge, or with reasonable grounds to know, that he is pursuing that objective.
2. Each Party shall provide adequate legal protection against the manufacture, import, distribution, sale, rental, advertisement for sale or rental, or possession for commercial purposes of devices, products or components or the provision of services which:
(a) are promoted, advertised or marketed for the purpose of circumventing any effective technological measures;
(b) have only a limited commercially significant purpose or use other than to circumvent any effective technological measures; or
(c) are primarily designed, produced, adapted or performed for the purpose of enabling or facilitating the circumvention of any effective technological measures.
3. For the purposes of this Chapter, the expression "technological measures" means any technology, device or component that, in the normal course of its operation, is designed to prevent or restrict acts, in respect of works or other subject matter, which are not authorised by the right holder of any copyright or related right as provided for by domestic legislation. Technological measures shall be deemed "effective" where the use of a protected work or other subject matter is controlled by the right holders through application of an access control or protection process, such as encryption, scrambling or other transformation of the work or other subject matter or a copy control mechanism, which achieves the protection objective.
Article 220. Protection of Rights Management Information
1. Each Party shall provide adequate legal protection against any person knowingly performing without authority any of the following acts:
(a) the removal or alteration of any electronic rights-management information;
(b) the distribution, importation for distribution, broadcasting, communication or making available to the public of works or other subject matter protected under this Chapter from which electronic rights-management information has been removed or altered without authority,
if such person knows, or has reasonable grounds to know, that by so doing this person is inducing, enabling, facilitating or concealing an infringement of any copyright or any related rights as provided by national legislation.
2. For the purposes of this Chapter, the term "rights-management information" means any information provided by right holders which identifies the work or other subject matter referred to in this Chapter, the author or any other right holder, or information about the terms and conditions of use of the work or other subject matter, and any numbers or codes that represent such information.
3. Paragraph 1 applies where any such information is associated with a copy of, or appears in connection with the communication to the public of, a work or other subject matter referred to in this Chapter.
Article 221. Exceptions and Limitations
1. Each Party may provide for limitations or exceptions to the rights set out in the Articles 213 to 218 only in certain special cases which do not conflict with a normal exploitation of the subject matter and do not unreasonably prejudice the legitimate interests of the right holders, in accordance with the conventions and international treaties to which they are parties.
2. Each Party shall provide that temporary acts of reproduction referred to in Articles 213 to 217, which are transient or incidental, which are an integral and essential part of a technological process, and the sole purpose of which is to enable: (a) a transmission in a network between third parties by an intermediary, or (b) a lawful use of a work or other subject matter to be made, and which have no independent economic significance, shall be exempted from the reproduction right provided for in Articles 213 to 217.
Article 222. Artists' Resale Right In Works of Art
1. Each Party shall provide, for the benefit of the author of an original work of art, a resale right, to be defined as an inalienable right, which cannot be waived, even in advance, to receive a royalty based on the sale price obtained for any resale of the work, subsequent to the first transfer of the work by the author.
2. The right referred to in paragraph 1 shall apply to all acts of resale involving as sellers, buyers or intermediaries art-market professionals, such as salesrooms, art galleries and, in general, any dealers in works of art.
3. Each Party may provide that the right referred to in paragraph 1 does not apply to acts of resale where the seller has acquired the work directly from the author less than three years before that resale and where the resale price does not exceed a certain minimum amount.
4. The royalty shall be paid by the seller. Each Party may provide that one of the natural or legal persons referred to in paragraph 2 other than the seller shall alone be liable or shall share liability with the seller for payment of the royalty.
5. The procedure for collection and the amounts of the royalty shall be determined by domestic legislation.