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The Civil Code of the Russian Federation

(with the Additions and Amendments of February 20, August 12, 1996,
October 24, 1997, July 8, December 17, 1999, April 16, May 15,
November 26, 2001, March 21, November 14, 26, 2002,
January 10, March 26, November 11, December 23, 2003)

Part II
Section IV
Chapter 57
Public Competition

Chapter 57. Public Competition

Article 1057. The Organization of a Public Competition


1. A person who has announced in public the payment of a pecuniary remuneration or the issue of a different reward (the payment of a reward) for the best performance of work or the achievement of other results (public competition) shall pay (issue) the stipulated reward to the person who has been recognized as its winner in keeping with the terms of holding the competition.
2. A public competition shall be aimed at the attainment of some socially useful objectives.
3. A public competition may be open, when the offer of the competition organizer for the participation in it is addressed to all those who desire to take part by announcing in the press or other mass media, or may be closed, when the offer for the participation in the competition is sent to a definite range of persons at the option of the competition organizer. An open competition may be stipulated by the preliminary qualification of its participants at a time when the competition organizer holds a preliminary selection of the persons who desire to take part in it.
4. An announcement of a public competition shall contain at least the conditions providing for the substance of an assignment, the criteria and procedure for the appraisal of the results of work or any other achievements, the place, period of time and procedure for their presentation, the amount and form of rewards, and also the procedure and date of announcing the results of the competition.
5. The rules, provided for by this Chapter, shall be applicable to public competitions containing the obligation of concluding with the competition winner a contract inasmuch as Articles 447-449 of this Code do not stipulate otherwise.

Article 1058. Changes in the Terms of a Public Competition and Its Revocation


1. A person who has announced a public competition shall have the right to change its terms or to revoke it only during the first half of the period of time fixed for the presentation of works.
2. A notice about changes in the terms of the competition or its revocation shall be made by the same method of announcing the competition.
3. In cases of changes in the terms of the competition or its revocation the person who has announced the competition shall have the right to reimburse the expenses incurred by any person who has performed the work, envisaged in the announcement before he knew or should have known about the changes on the terms of the competition and about its revocation. A person who has announced the competition shall be released from the obligation of reimbursing the expenses, if he proves that the work has been fulfilled not in connection with the competition, in particular before the announcement of the competition or when obviously the work has not complied with the competition terms.
4. If the requirements, referred to in Items 1 or 2 of this Article have been violated in case of changing the terms of the competition or of its revocation, the person who has announced the competition shall be obliged to pay the reward to those who fulfilled the work that satisfies the terms indicated in the announcement.

Article 1059. The Decision on the Payment of a Reward


1. A decision on the payment of a reward shall be passed and communicated to the public competition participants in the procedure and in the period of time fixed by the announcement of the competition.
2. If the results, referred to in the announcement, have been achieved in the work performed jointly by two or more persons, the reward shall be distributed in keeping with the agreement reached by them. If such agreement is not achieved, the procedure for the distribution of the reward shall be determined by a court of law.

Article 1060. The Use of the Works of Science, Literature and Art Awarded with Rewards


If the creation of a work of science, literature or art makes up the subject of a public competition and unless its terms provide for otherwise, the person who has announced the public competition shall acquire the preferential right to he conclusion with the author of the rewarded work of a contract for the use of the work and to the reception of relevant remuneration for it.

Article 1061. The Return of the Works to the Participants in a Public Competition


A person who has announced the public competition shall be obliged to return to the competition participants the works not awarded with rewards, unless otherwise stipulated by the announcement of he competition and unless the contrary follows from the nature of the performed work.

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