Vietnam: Methods of royalty calculation for a publication applicable from June 01, 2014

According to Decree No. 18/2014/ND-CP of Vietnam’s Government, methods of royalty calculation are as follows:

1. The royalty for a publication shall be calculated as follows:

Royalty = Percentage % x Retail price of publication x Quantity of printed copies

In which:

- The percentage (%) is the percentage of royalty payment;

- The retail price of the publication is the price printed at the bottom of cover 4 of the publication or the retail price written in the publication sale invoice (for publications without printed price) issued at the time of payment of royalties to the author or copyright owner;

- In case the retail price changes later, if there is no other agreement in the publication use contract, the retail price used for royalty calculation shall still be the old one;

- The quantity of printed copies is the quantity written in the publication use contract.

2. The royalty for a publication ordered by the State shall be calculated as follows:

Royalty = Percentage % x Production cost x Quantity of printed copies

In which:

- The percentage (%) and quantity of printed copies must with the above provision;

- The production cost is the total expenses for the production, excluding circulation expense.

3. The royalty for a non-commercial publication (for internal circulation or free distribution) shall be calculated as follows:

Royalty = Percentage % x Production cost x Quantity of printed copies

4. Royalties for textbooks, workbooks or notebooks, teachers’ books and target program books under programs of the Ministry of Education and Training listed at Point 12, Section I of the royalty bracket shall be calculated as follows:

Royalty = Percentage (%) x Minimum wage level x Number of periods set by the program.

More details can be found in Decree No. 18/2014/ND-CP of Vietnam’s Government, which takes effect from June 01, 2014.

Thu Ba

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