“Rules on the Collective Administration on Copyright” implemented on March 1, 2005, Copyright Bureau replies to relevant questions

March 15, 2005
It is specified in the “Rules on Collective Administration on Copyright” which implemented on March 1 that, with authorization by th e right holder, the copy right collective administrative organization can centralizedly execute the right holder's relevant rights and conduct the following activities in its own name: conclude license agreements with users regarding the use of copyright or copyright-related rights; collect royalty fee from the user; distribute royalty fee to the right holder; and institute legal proceedings or conduct arbitrations on copyrights or copyright-related rights. Such organizations can also collectively administrate the performance right, and duplication right specified in the Copyright Law. Over 50 right holders can initiate and set up copyright collective administration organization.

Recently, State Copyright Bureau responded reporters regarding relevant questions.

Question: What are the conditions and procedures for setting up collective administrative organization? How to guarantee the effective collection and distribution of royalty fee?

Answer: According to the Rules, any Chinese citizens, legal entities or other organizations entitled to copyrights or copyright-related rights based on law can initiate and set up copyright collective administrative organizations. However, the prerequisite for establishing such organization includes: no less than 50 right holders to initiate; no crossover or overlapping of business scope with existing registered collective administrative organizations; be able to represent owner's rights and interests nationwide; and submit draft of rules, draft of standard for collecting royalty fees and draft of distributing royalty fees.

According to the Rules, the applicant for establishing collective administrative organization shall submit relevant supporting documents to the copyright administrative bureau under the State Council, which will then decide whether to approve or not within 60 days of receiving such documents; the applicant shall register with the civil affairs department under the State Council within 30 days of approval, and record the duplicate of registration certificate to the copyright administrative bureau under the State Council within 30 days of receiving the registration certificate.

In order to guarantee the collection and distribution of royalty fee, it is specified in the Rules that the amount of royalty fee to be collected shall be decided through consultation in accordance with the standard stipulated by the collective administrative organization, and the standard shall be published by the copyright administrative bureau under the State Council; fees collected by the collective administrative organization shall all be distributed to the right holders except for drawing a certain amount of administration fee, and no impropriation is allowed.

Question: collective administration is a newly emerging thing in China, and the collective administrative organization is deemed as a non-profit organization in the Rules, how to carry out effective supervision over the copyright collective administrative organization?

Answer: By conducting centralized administration for many right holders, the collective administrative organization has relative monopoly on the implementation of certain rights, so the supervision and management over the collective administrative organization must be strengthened to prevent abuse of rights and any damage to the lawful rights and interests of the right holders and users. The Rules specified the supervision and management over the collective administrative organization from five aspects: 1. It clarifies the lawful rights and interests of the right holders, and the measures and channels for protecting such rights and interests are specified, so as to reach an interest balance between the right holders and the collective administrative organization; 2. It clarifies that the general meeting is the decision-making organ in the collective administrative organization, so that the owners hold the rights; 3. It clarifies that the administrative institution has functions and duties in carrying out supervision and management; 4. It regulates the supervision over the collective administrative organization by users and other social organizations; 5.It regulates various rules and regulations on operation of the collective administrative organization.

Question: What measures will be taken by the State Copyright Bureau to guarantee the effective implementation of the Rules?

Answer: As the copyright administrative department under the State Council, the State Copyright Bureau will take charge of the copyright collective administrations nationwide as provided in the Rules. In order to guarantee the effective implementation of the Rules, the State Copyright Bureau will strengthen their work, rigorously enforce the standard, regulate the procedures, and greatly promote the approval of relevant copyright collective administrative organizations and personnel training, including the re-approval and recording of the existing collective administrative organizations.

The State Copyright Bureau will also organize and implement propaganda activities, widely popularize the new Rules, so as to create a good social atmosphere for the sound development of the copyright collective administrative organizations in China.

　

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