Art. 1
The following Act covers use of books in public lending libraries, cf. Act no. 50/1976, in the National Archive - University Library of Iceland, cf. Act no. 71/1994, in school libraries, cf. the Primary Schools Act no. 66/1995, with subsequent amendments, and the Secondary Schools Act no. 80/1996, and in libraries of institutions funded by the treasury or municipal authorities. The Act covers books in printed, audio and digital format.

Art. 2
An annual contribution shall be made to the Writers' Library Fund in the treasury budget and allocated in accordance with the provisions of this Act to writers, authors of visual artworks and other copyright holders, provided their books are used in the libraries covered by this Act.

Art. 3
The following are entitled to an allocation for the use of books in libraries under this Act:

1. Authors, provided their books are published in Icelandic, apart from translations or rewritten works, retellings or adaptations of texts from a foreign language.
2. Translators, including those who rework, retell or adapt foreign books in Icelandic.
3. Authors of visual artworks and composers, provided their intellectual property is part of the books stated in item 1 or published as a separate work in Iceland.
4. Others who have participated in writing books as specified in item 1 or item 3, provided their contribution is recorded in the Icelandic register of books from the National Archive - University Library of Iceland.
   
   

Paragraph 1 also applies to books in audio format or recorded for use and lending by other means.

Art. 4
The following are entitled to an allocation after the death of a copyright holder in accordance with Art. 3:

1. Spouse.
2. An individual cohabiting with the copyright holder at the time of the copyright holder's death, providing they had been cohabiting for at least five years.
3. Children under the age of 18, if their other parent is deceased or not entitled by the provisions of this Act.

When there is more than one heir according to the above, the allocation shall be shared equally among them. Copyright holders in accordance with this Article receive only half the payment which would have been due to a copyright holder under Art. 3.

Art. 5
Grants shall be awarded annually from the Writers' Library Fund as decided further by the fund with reference to a regulation, cf. paragraph 2 of Art. 6. Furthermore, allocations shall be made to copyright holders in accordance with this Act on the basis of lendings per book according to a register for the use of library books which are covered by this Act. Allocations are made for audio books and digital publications in the same manner. Allocations under Arts. 3 and 4 shall be decided on the basis of reports from public lending libraries, the National Archive - University Library of Iceland, school libraries and other libraries and document archives, insofar as their lending activities are computerized. Sums below ISK 1,000 are not paid. The ceiling for payment to an individual copyright holder is ISK 300,000. These limits shall be reviewed annually with reference to changes in the price index.

Art. 6
The board of the Writers' Library Fund shall make allocations in accordance with this Act. The board is appointed by the Minister of Education and Culture for a term of four years, as follows: two members on the nomination of the Icelandic Writers' Union, one on the nomination of Hagthenkir - the Society of Authors of Academic Works and Textbooks, one on the nomination of Myndstef - the Visual Artists' Copyright Association of Iceland, and one without prior nomination, who sits as chairman. Deputy board members shall be appointed in the same manner. The same persons shall not be nominated to the board for two consecutive terms. The Minister of Education and Culture shall issue a regulation specifying provisions for allocations and other activities of the fund, together with the obligation of libraries and other document archives to keep records and make reports.

Art. 7
This Act enters into effect on January 1, 1998. At the same time, Art. 14 of the Public Libraries Act is rescinded.

Passed by the Althingi, May 7 1997.