Vietnam: Which authorities will receive the application for approval of royalty rate and payment methods thereof submitted by organizations acting as collective representatives of copyright and related rights?

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• Which authorities will receive the application for approval of royalty rate and payment methods thereof submitted by organizations acting as collective representatives of copyright and related rights in Vietnam?
• May the approved royalty rate and payment methods thereof in Vietnam be revised?
• Do organizations acting as collective representatives of copyright and related rights in Vietnam have the right to collect and distribute royalties?

Which authorities will receive the application for approval of royalty rate and payment methods thereof submitted by organizations acting as collective representatives of copyright and related rights in Vietnam?

Under Article 46 of Decree 17/2023/ND-CP on royalty rate:

Royalty rate

1. Organizations acting as collective representatives of copyright and related rights shall develop royalty rate and payment methods depending on use methods and principles under Clause 3 Article 44a of the Law on Intellectual Property to serve as the basis for negotiation and payment of royalties specified under Clause 2 Article 20, Clause 1 Article 26, Clause 4 Article 29, Clause 2 Article 30, Clause 2 Article 31, and Clause 1 Article 33 of the Law on Intellectual Property.

Organizations acting as collective representatives of copyright and related rights shall submit application for approval of royalty rate and payment methods to the Minister of Culture, Sports and Tourism prior to implementation.

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Thus, organizations acting as collective representatives of copyright and related rights in Vietnam shall submit the application for approval of royalty rate and payment methods thereof to the Minister of Culture, Sports and Tourism prior to implementation.

May the approved royalty rate and payment methods thereof in Vietnam be revised?

Under Article 47 of Decree 17/2023/ND-CP on the approval of royalty rate and payment methods:

Approval of royalty rate and payment methods

1. The Minister of Culture, Sports and Tourism shall review and promulgate documents on approval within 90 days from the date on which they receive adequate application for approval of royalty rate and payment method sent by organizations acting as collective representatives of copyright, related rights in accordance with Clause 1 Article 46 hereof.

2. If necessary, the Minister of Culture, Sports and Tourism shall establish Advisory council for copyright and related rights to review royalty rate and payment methods under Clause 1 of this Article and promulgate Regulations on operation of the Advisory council for copyright and related rights.

3. Royalty rate and payment methods upon being approved must be applied for at least 3 years.

The Minister of Culture, Sports and Tourism shall consider revision to the royalty rate in case of changes to the consumer price index and national economic growth relevant to the basis for determining the royalty rate. Organizations requesting revision to royalty rate include: Organizations acting as collective representatives of copyright, related rights, Vietnam Chamber of Commerce and Industry; state authorities governing copyright, related rights affiliated to the Ministry of Culture, Sports and Tourism.

Thus, the royalty rate and payment methods thereof upon being approved must be applied for at least 3 years.

In addition, the Minister of Culture, Sports and Tourism shall consider revision to the approved royalty rate in case of changes to the consumer price index and national economic growth relevant to the basis for determining the royalty rate.

Organizations requesting a revision to royalty rate include:

+ Organizations acting as collective representatives of copyright, related rights,

+ Vietnam Chamber of Commerce and Industry;

+ State authorities governing copyright, related rights affiliated to the Ministry of Culture, Sports and Tourism.

Do organizations acting as collective representatives of copyright and related rights in Vietnam have the right to collect and distribute royalties?

Under Point d, Clause 3, Article 56 of the Law on Intellectual Property 2005 amended by Clause 18, Article 1 of the Law on Amendments to Law on Intellectual Property 2022 on organizations acting as collective representatives of copyright or related rights:

Organizations acting as collective representatives of copyright or related rights

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3. A representative organization shall have the following rights and duties:

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c) Formulate a royalty rate and decide on payment methods; submit them to the Minister of Culture, Sports and Tourism for approval. the Minister of Culture, Sports and Tourism shall approve the royalty rate and payment methods on the basis of the principles specified in Clause 3 Article 44a of this Law;

d) Collect and distribute royalties under its charter and the authorization letter which contains specific rates or percentages, method, and time of royalty distributions; ensure transparency as prescribed by law.

The collection and distribution of royalties from corresponding foreign counterparts or international organizations shall comply with regulations of law on foreign exchange management;

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Thus, organizations acting as collective representatives of copyright and related rights in Vietnam have the right to collect and distribute royalties under their charter and the authorization letter which contains specific rates or percentages, methods, and time of royalty distributions;

The collection and distribution of royalties must ensure transparency as prescribed by law.

The collection and distribution of royalties from corresponding foreign counterparts or international organizations shall comply with regulations of law on foreign exchange management.