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Interim Measures for Payment of Remuneration by Radio and Television Stations for Broadcasting Sound Recordings

 Provisions on the Implementation of the International Copyright Treaties

Decree of the State Council of the People’s Republic China

No. 566

Interim Measures for Payment of Remuneration by Radio and

Television Stations for Broadcasting Sound Recordings, adopted at the

62nd Executive Meeting of the State Council on May 6, 2009, are hereby

promulgated and shall be effective as of January 1, 2010.

Premier, Wen Jiabao

November 10, 2009

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Interim Measures for Payment of Remuneration by Radio

and Television Stations for Broadcasting Sound Recordings

Article 1 These Measures are formulated in accordance with the

provisions of Article 43 of the Copyright Law of the People’s Republic of

China (hereinafter referred to as the Copyright Law), for the purpose of

ensuring that copyright owners exercise their right of broadcasting in

accordance with law and facilitating broadcasting of sound recordings by

radio and television stations.

Article 2 For broadcasting published musical works, a radio or

television station may, on matters regarding the method for paying

remuneration and the amount to be paid to copyright owners, etc.,

conclude an agreement with the copyright collective administration

organization which administers the relevant rights.

A radio or television station which, for broadcasting a published

sound recording, has concluded a licensing contract with the copyright

owner, shall pay remuneration by the method and at the rates agreed in

the contract.

A radio or television station which broadcasts a published sound

recording (hereinafter referred to as broadcasting a sound recording)

without permission from the copyright owner, as provided for in Article

43 of the Copyright Law, shall pay remuneration to the copyright owner

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in accordance with these Measures.

Article 3 The term “broadcasting” in these Measures means

broadcasting for the first time, deferred broadcasting or rebroadcasting by

a radio or television station, whether by wireless means or by wire.

Article 4 For broadcasting a sound recording, a radio or television

station may conclude an agreement with the copyright collective

administration organization which administers the relevant rights on

payment of a fixed amount of remuneration to the copyright owner each

year; in the absence of such an agreement, or if it fails to reach such an

agreement, the radio or television station may consult with the said

copyright collective administration organization for payment of

remuneration to the copyright owner on the basis of one of the following

methods:

(1) the amount of payment shall be calculated by deducting, as the

cost, 15% of the advertising income of that station or of each channel or

frequency of that station in the current year, and then multiplying the

remainder by the rate of payment provided for in Article 5 or 6 of these

Measures; or

(2) the amount of payment shall be calculated by multiplying that

station’s total time for broadcasting sound recordings in the current year

by the rate of payment for a unit time provided for in Article 7 of these

Measures.

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Article 5 Where it is determined to calculate the amount of

remuneration paid to a copyright owner by the method provided for in

subparagraph (1) of Article 4 of these Measures, the amount of

remuneration shall, for five years beginning from the date on which these

Measures become effective, be paid at the following rates after

consultation:

(1) where the ratio between the time for broadcasting sound

recordings and the total time for broadcasting programs (hereinafter

referred to as the ratio of broadcasting time) of a given station or of the

channel or frequency of that station is less than 1%, the rate of payment

shall be 0.01%;

(2) where the ratio of broadcasting time is not less than 1% but less

than 3%, the rate of payment shall be 0.02%;

(3) where the ratio of broadcasting time is not less than 3% but less

than 6%, the rate of payment shall be 0.09% to 0.15%; whenever the ratio

rises by 1%, the rate of payment shall increase by 0.03% accordingly;

(4) where the ratio of broadcasting time is not less than 6% but not

more than 10%, the rate of payment shall be 0.24% to 0.4%; whenever

the ratio rises by 1%, the rate of payment shall increase by 0.04%

accordingly;

(5) where the ratio of broadcasting time is more than 10% but less

than 30%, the rate of payment shall be 0.5%;

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(6) where the ratio of broadcasting time is not less than 30% but less

than 50%, the rate of payment shall be 0.6%;

(7) where the ratio of broadcasting time is not less than 50% but less

than 80%, the rate of payment shall be 0.7%; or

(8) where the ratio of broadcasting time is not less than 80%, the rate

of payment shall be 0.8%.

Article 6 Where it is determined to calculate the amount of

remuneration paid to a copyright owner by the method provided for in

subparagraph (1) of Article 4 of these Measures, the amount of

remuneration shall, beginning from the date on which five years expire

after these Measures become effective, be paid at the following rates after

consultation:

(1) where the ratio of broadcasting time is less than 1%, the rate of

payment shall be 0.02%;

(2) where the ratio of broadcasting time is not less than 1% but less

than 3%, the rate of payment shall be 0.03%;

(3) where the ratio of broadcasting time is not less than 3% but less

than 6%, the rate of payment shall be 0.12% to 0.2%; whenever the ratio

rises by 1%, the rate of payment shall increase by 0.04% accordingly;

(4) where the ratio of broadcasting time is not less than 6% but not

more than 10%, the rate of payment shall be 0.3% to 0.5%; whenever the

ratio rises by 1%, the rate of payment shall increase by 0.05%

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accordingly;

(5) where the ratio of broadcasting time is more than 10% but less

than 30%, the rate of payment shall be 0.6%;

(6) where the ratio of broadcasting time is not less than 30% but less

than 50%, the rate of payment shall be 0.7%;

(7) where the ratio of broadcasting time is not less than 50% but less

than 80%, the rate of payment shall be 0.8%; or

(8) where the ratio of broadcasting time is not less than 80%, the rate

of payment shall be 0.9%.

Article 7 Where it is determined to calculate the amount of

remuneration paid to a copyright owner by the method provided for in

subparagraph (2) of Article 4 of these Measures, the amount of

remuneration shall be paid at the following rates after consultation:

(1) the rate of unit-time payment by radio stations shall be 0.30 yuan

per minute; or

(2) the rate of unit-time payment by television stations shall be 1.50

yuan per minute for five years beginning from the date on which these

Measures become effective, and shall be 2 yuan per minute from the date

on which five years expire after these Measures become effective.

Article 8 Where a radio or television station, for broadcasting

sound recordings, fails either to reach an agreement with the copyright

collective administration organization which administers the relevant

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rights, on payment of a fixed amount of remuneration, or to decide on,

through consultation, the remuneration payable, as provided for in Article

4 of these Measures, it shall determine the amount of remuneration to be

paid to the said copyright collective administration organization by the

method provided for in subparagraph (1) of Article 4 and at the rates

provided for in Article 5 or 6 of these Measures.

Article 9 Where a radio or television station rebroadcasts sound

recordings broadcasted by another radio or television station, the time for

rebroadcasting sound recordings shall be calculated at 10% of the actual

time for such rebroadcasting.

Article 10 The amount of remuneration to be paid by the method

provided for in these Measures to the copyright owners by radio or

television stations in the central regions shall, for five years beginning

from the date on which these Measures become effective, be 50% of the

amount calculated in accordance with the provisions of these Measures.

The amount of remuneration to be paid by the method provided for

in these Measures to the copyright owners by radio or television stations

in the west regions and by all the specialized channels or frequencies

throughout the country which broadcast programs specially for children,

ethnic minorities or rural areas shall, for five years beginning from the

date on which these Measures become effective, be 10% of the amount

calculated in accordance with the provisions of these Measures; and it

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shall, beginning from the date on which five years expire after these

Measures become effective, be 50% of the amount calculated in

accordance with the provisions of these Measures.

Article 11 The finance department of a people’s government at or

above the county level shall make the expenditure on paying

remuneration to copyright owners for broadcasting sound recordings by a

radio or television station established by the people’s government at the

corresponding level one of the factors in verifying its revenue and

expenditure, which the said department shall, in light of the local

financial conditions, take into overall consideration and for which it shall

make comprehensive arrangements.

Article 12 With respect to payment of remuneration to copyright

owners, a radio or television station shall take a calendar year as the

period of account.

A radio or television station shall, in the first quarter of each year,

deliver the remuneration payable in the previous year to the copyright

collective administration organization, which shall transfer the same to

copyright owners.

When paying remuneration to copyright owners through the

copyright collective administration organization, a radio or television

station shall provide it with such information as the titles of the works

which it broadcasts, the names or titles of the copyright owners and the

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broadcasting time, unless the parties have agreed otherwise.

Article 13 Where a radio or television station, for broadcasting

sound recordings, fails to pay remuneration to copyright owners who are

not members of the copyright collective administration organization

which administers the relevant rights, it shall, in accordance with the

provisions of Article 12 of these Measures, deliver the remuneration

payable to the said copyright collective administration organization,

which shall transfer the same to the copyright owners.

Article 14 Apart from the provisions of these Measures, the

relevant provisions of the Regulations on Copyright Collective

Administration shall apply where the copyright collective administration

organization transfers remuneration to copyright owners.

Article 15 After delivering the remuneration payable to copyright

owners to the copyright collective administration organization in

accordance with the provisions of these Measures, a radio or television

station shall bear no liability for any dispute between the copyright

collective administration organization and copyright owners.

Article 16 Where a dispute arises over the remuneration paid in

accordance with the provisions of these Measures between a radio or

television station and the copyright owners or the copyright collective

administration organization, either party may bring civil proceedings in a

people’s court in accordance with law or apply to an arbitration body for

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arbitration under a written arbitration agreement reached between the

parties.

Article 17 These Measures shall be effective as of January 1,

2010.