Vietnam: Which authority approves the royalty rate? What are the solutions for developing the royalty rate?
Which authority approves the royalty rate in Vietnam?
The royalty rate is specified in Article 46 of Decree 17/2023/ND-CP as follows:
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 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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According to this regulation, the Minister of Culture, Sports and Tourism will approve the royalty rate and payment methods before application.
What are the solutions for developing the royalty rate in Vietnam?
The solutions for developing the royalty rate in Vietnam are specified in Clause 2, Article 46 of Decree 17/2023/ND-CP as follows:
Royalty rate
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2. Application for approval of royalty rate and payment methods consists of:
a) Form No. 7 under Appendix III attached hereto;
b) Solutions for developing royalty rate include:
Analysis of the proposed royalties: Properties (format, type, quality, quantity, structure, scale, use frequency, and other basis); factors constituting royalties; local socio-economic conditions; time and location of use (accompanied by classification and assessment); analysis of impact of royalty rate/amount on creating, using, and benefiting from results of creative works; and fulfillment of obligations with the state budget;
Issues that have not been settled with users (if any);
Proposed royalty rate and payment methods, other recommendations (if any).
3. Organizations and individuals using works, performances, audio recordings, video recordings, broadcasting programs, and organizations acting as collective representatives of copyright and related rights are responsible for reaching an agreement on royalty amount and payment methods.
4. Costs for reviewing and approving royalty rate, payment methods shall be incurred by the applicants as per the law.
Thus, the application for approval of royalty rate and payment methods consists of:
- The application form for approval of royalty rate and payment methods - Form No. 7 under Appendix III attached hereto;
- Solutions for developing royalty rate include:
+ Analysis of the proposed royalties:
++ Properties (format, type, quality, quantity, structure, scale, use frequency, and other basis);
++ Factors constituting royalties;
++ Local socio-economic conditions;
++ Time and location of use (accompanied by classification and assessment);
++ Analysis of impact of royalty rate/amount on creating, using, and benefiting from results of creative works;
++ And the fulfillment of obligations with the state budget;
Issues that have not been settled with users (if any);
Proposed royalty rate and payment methods, other recommendations (if any).
What are the cases of consideration for revision to the royalty rate in Vietnam?
Approval of royalty rate and payment methods is specified in Article 47 of Decree 17/2023/ND-CP as follows:
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 an 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 royalty rate in case of changes to consumer price index and national economic growth relevant to the basis for determining 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 Minister of Culture, Sports and Tourism shall consider revision to royalty rate in case of changes to consumer price index and national economic growth relevant to the basis for determining 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.
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