Vietnam: 06 rules of payment of royalties for exploitation and use of artistic works

Rules  of payment of royalties for exploitation and use of artistic works (Illustration)

According to Decree No. 21/2015/ND-CP of Vietnam’s Government, payment of royalties and rewards for creation, exploitation and use of cinematographic, art, theatrical works and other forms of art performance must comply with the following rules:

1. Royalties and rewards shall be paid on the basis of negotiation between the users and authors or owners of copyrights. In case the works are ordered or bid by the State, royalties and rewards shall be paid under the purchase order or bidding contract.

2. Level of royalties and rewards is determined on the basis of forms, quality, quantity and fashion of exploitation and socio-economic outcomes of the works.

3. Division of royalties and rewards among authors, co-owners of copyrights shall be based on negotiation or level of contribution to the creation of works.

4. Royalty incentives shall be paid to authors or owners of copyrights of the works intended for children and ethnic minorities; Vietnamese persons who create works in foreign language or in ethnic minority languages; ethnic persons who create works in other ethnic minority languages or create works in difficult and dangerous conditions and other special cases.

5. In case original works are used in the form of derivatives, the authors or owners of copyrights thereof shall enjoy part of the total royalties when derivative works are exploited and used.

6. Organizations and individuals using state-budget based budget shall carry out formulation, payment and settlement of the budget for payment of royalties, rewards within the scope of state-budget based budget, receipts from public service activities, receipts from permission for use of state-owned works allocated to management units, sponsorships from organizations and individuals, and other lawful receipts according to law provisions.

More details can be found in Decree No. 21/2015/ND-CP of Vietnam’s Government, which takes effect from April 15, 2015.

Le Hai

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