Copyrights and Related Rights in Intellectual Property

Accordingly, copyright and related rights fees are colloquially understood as royalties, remuneration, or material benefits paid by those who exploit and use the works, performances, recordings, films, or broadcasts to authors, performers, producers of audio and video recordings, and broadcasting organizations.

According to regulations, organizations or individuals exploiting or using any of the rights specified in Clause 1 of Article 20 and Clause 3 of Article 19 of the Intellectual Property Law must obtain permission and pay royalties, remuneration, and other material benefits to the copyright owner. However, according to the Draft Decree, the terms "royalties," "remuneration," and "other material benefits" will no longer be used, replaced by the collective term "copyright and related rights fees." The use of this new term is more concise, succinct, and elevates the solemnity and value of the payment to the author and the work itself.

The Draft Decree introduces several regulations regarding copyright and related rights fees as follows:

Agreements and negotiations on the schedule of copyright and related rights fees

Organizations representing collective copyright and related rights are obligated to develop a schedule for copyright and related rights fees, negotiating with those exploiting and using the works, performances, recordings, films, and broadcasts specified in Clause 3 of Article 20, Clause 4 of Article 29, Clause 2 of Article 30, and Clause 2 of Article 31 of the Intellectual Property Law.

In case the collective representative organization for copyright and related rights fails to reach an agreement with the exploiters and users on the schedule of fees:

- For the exploitation and use of cinematographic works, fine arts, photography, theater, and other performance arts as specified in Decree 21/2015/ND-CP: The parties shall comply with Decree 21 and any amended, supplemented documents (if any) until an agreement is reached;- For the field of journalism and publishing as specified in Decree 18/2014/ND-CP: The parties shall comply with Decree 18 and any amended, supplemented documents (if any) until an agreement is reached.

Agreements on the sharing ratio of copyright and related rights fees

The collection and distribution of copyright and related rights fees shall be implemented according to the operational regulations of the collective representative organization for copyright and related rights and the authorization documents that include agreements on the amount or percentage ratio, method, and time of distribution of such fees.

The collective representative organization may retain an appropriate amount of the total collected copyright and related rights fees to cover its operational costs, based on agreements with the authorizing party. The retained amount shall be adjusted in accordance with the efficiency of collective representation activities based on agreements with the authorizing party and may be determined as a percentage of the total collected fees.

The collection and distribution of copyright and related rights fees from corresponding foreign or international organizations shall be executed in compliance with foreign exchange management regulations.

In case the author or owner of copyright or related rights has not authorized the collective representative organization to collect and distribute copyright and related rights fees for the exploitation and use of works, recordings, films, and broadcasts as stipulated in Clause 1 of Article 26 and Clauses 1, 2 of Article 33 of the Intellectual Property Law:

- The exploiting party must submit a written request to the collective representative organization for copyright and related rights to collect and distribute the fees;- The collective representative organization for copyright and related rights is responsible for contacting and notifying the author, copyright owner, or related rights owner regarding this request.

The collective representative organization for copyright and related rights may only collect fees upon obtaining written consent from the author, copyright owner, or related rights owner.

If the fees cannot be distributed due to objective reasons, the collective representative organization for copyright and related rights shall proceed as follows:

- The organization collecting the copyright and related rights fees is responsible for contacting the rights owner, sending correspondence to related individuals or organizations, and posting announcements in public media to seek permission for exploitation and use.- After a period of 3 years without finding the rights owner, the collective representative organization must report to the competent state agency to decide on remitting the copyright and related rights fees to the state budget after deducting administrative management expenses.

Authorization for licensing and collection of copyright and related rights fees

Collective representative organizations for copyright and related rights shall agree, unify, and authorize negotiations for licensing and collecting copyright and related rights fees. The distribution ratio of the collected fees shall be agreed upon by these organizations.

- The authorized organization is responsible for creating a list of members, works, recordings, films, and broadcasts of the members and is accountable when signing authorization contracts with the receiving organization for representative negotiations for licensing and fee collection.- The receiving organization is responsible for negotiating licenses and collecting copyright and related rights fees according to the members, works, performances, recordings, and films stipulated in the authorization contract.

Transparency of copyright and related rights fees

Collective representative organizations for copyright and related rights shall publicly disclose information about the management of copyright and related rights, including licensing activities, collection, and distribution of copyright and related rights fees.

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