Copyright Collective Management Regulations

Promulgated by the State Council on 2004-12-28

Chapter I General Principles

Article 1 These regulations are formulated in accordance with the Copyright Law of the People's Republic of China (hereinafter referred to as "Copyright Law") for the purposes of regulating copyright collective management activities, being convenient for the author and obligee relating to copyright (hereinafter referred to as "obligee") to use rights and for the users to use works.

Article 2 Copyright collective management in terms of these regulations means following activities of performing their rights on behalf of their own names carried out by copyright collective management organizations authorized by the obligee.

1. Conclude right license contract of copyright or right license contract that relating to copyright (hereinafter referred to as "right license contract") with the users;

2. Collect charge for use from the users;

3. Shunt charge for use to the obligee;

4. Bring a lawsuit or submit a dispute involving copyright or rights relating to copyright and etc.

Article 3 Copyright collective management organization in terms of these regulations means the society established in accordance with laws for the rights of the obligees, managing collectively the obligees' copyright or the rights relating to copyright according to the authorization of the obligee.

Copyright collective management organization should register and carry out their activities in accordance with the provisions of administrative laws relating to the management of society registration and these regulations.

Article 4 The rights those are difficult for the obligees to perform effectively, such as the rights if performance, broadcast, rent, information network propagation, copy and other rights, may be collectively managed by copyright collective management organization.

Article 5 Copyright management department of the State Council is responsible for nation-wide copyright collective management.

Article 6 Except for the copyright collective management organization established in accordance with the provisions of these regulations, none organizations and individuals may be engaged in copyright collective management activities.

Chapter II The establishment of copyright collective management organization

Article 7 All Chinese citizens, legal persons or other organizations enjoying copyright or the right relating to copyright may initiate to establish copyright collective management organization.

To establish copyright collective management organization should meet with following requirements:

1. The obligees initiating to establish the copyright collective management organization should not be less than 50;

2. The business scope should not cross and mix with the business scope of copyright collective management organizations that have already registered in accordance with laws.

3. May represent the interests of relevant obligees nationwide;

4. Have draft regulations, draft standard of collecting charge for use and measures on shunting charge for use to the obligees (hereinafter referred to as "charge for use shunting measures") of copyright collective management organization.

Article 8 The regulations of copyright collective management organization should include following information:

1. Name and residence;

2. Purpose of establishment;

3. Business scope;

4. Organization structure and its functions and power;

5. Minimum numbers of the membership plenary session;

6. Duties of the executive council, the requirements of the person responsible for the executive council and the procedures of arising and dismissing of the person responsible for the executive council;

7. Ways of drawing and using management fee;

8. The requirements and procedures of joining and withdrawing from copyright collective management organization;

9. The procedures of revising the regulations.

10. The requirements and procedures of terminating a copyright collective management organization and property settlement after termination.

Article 9 Whoever applies for establishing copyright collective management organization should submit the materials stipulated by Article 7 of these regulations to copyright management department of the State Council. The copyright management department of the State Council should make the decision whether or not to approve it within 60 days at the receipt of the materials. Copyright collective management license should be issued to those who get the approval, and reasons should be given to those who do not get the approval.

Article 10 The applicant should go through the registration formalities in the department of civil affairs of the State Council in accordance with the administrative laws and regulations relating to registration management of social organizations within 30 days at the day when the copyright management department of the State Council issues him copyright collective management license.

Article 11 Copyright collective management organization registering in accordance with laws should submit its copy of registration certificate to copyright management department of the State Council for the record within 30 days at the receipt of the registration certificate issued by the department of civil affairs of the State Council. Copyright management department of the State Council should publish the submitted copy of registration certificate and the regulations of copyright collective management organization, standard of collecting the charge for use, measures on shunting the charge for use by announcement.

Article 12 Copyright collective management organization establishes branch organization should be approved by copyright management department of the State Council and go through registration formalities in the department of civil affairs of the State Council in accordance with administrative laws and regulations relating to society registration management. Whoever has registered in accordance with laws should submit the copy of registration certificate of the branch organization to copyright management department of the State Council for the record and the copyright management department of the State Council shall publish it by announcement.

Article 13 Copyright collective management organization should work out the standard of collecting the charge for use in accordance with following factors:

1. Time, ways and area range of using works, audio and video products and etc.；

2. Variety of rights;

3. Degree from complication to simplicity of concluding the contract of using the license and collecting the charge for use.

Article 14 Copyright collective management organization should work out measures on shunting the charge for use according to the information of the obligee's use of works or audio and video products and etc.

Article 15 If any copyright collective management organization revises its regulations, it should submit the draft of regulations revision to copyright management department of the State Council for approval. Copyright management department of the State Council should publish it by announcement after the verification and approval of civil affairs department of the State Council in accordance with laws.

Article 16 If the registration of any copyright collective management organization is cancelled in accordance with laws, it must not be engaged in copyright collective management business as of the day of cancellation.

Chapter III Organ of copyright collective management organization

Article 17 Membership conference of copyright collective management organization (hereinafter referred to as "membership conference") is the power organ of copyright collective management organization.

Membership conference is convened by Board of Directors in accordance with these regulations. Board of Directors should publish the time, place of the conference and issues put forward for discussion 60 days before the opening of the conference. The members that attend the membership conference should put their names down 30 days before the opening of the conference. If the members that put their names down for the conference are fewer than the minimum number stipulated by the regulations, the board of directors should publish the membership numbers that plan to attend the conference, and other members may make supplementary signing up 5 days before the conference. The conference should be held by all the members entering their names to the conference.

Membership conference performs following official functions:

1. Formulate and revise the regulations;

2. Work out and revise the standard of collecting the charge for use;

3. Work out and revise the measures to shunt the charge for use;

4. Elect and dismiss directors;

5. Consider and approve work and financial report of the board of directors;

6. Formulate inner management rules;

7. Decide the plan of shunting charge for use and the proportion of management fee drawn by copyright collective management organization;

8. Make decisions about other important issues.

Membership conference is held annually. On the motion of more than 10 percent of the members or the board of directors, temporary membership conference may be held. Any decisions made at the membership conference should be passed by more than half of the members that attend the conference.

Article 18 The board of directors established in copyright collective management organization should be accountable to the membership conference and execute the decision of the conference. The members of the director board must not be fewer than 9.

The term of the director boarder is 4 years. Re-election should be made at the expiration of the term. Re-election may be made in advance or put off for special reasons, but the extension of re-election should not exceed 1 year.

Chapter IV Copyright collective management activities

Article 19 Obligee may conclude copyright collective management contract in writing with copyright collective management organization, authorize the organization to manage the copyright or the rights relating copyright that the obligee enjoys in accordance with laws. If the obligee meets the requirements of the regulations to join the organization, copyright management organization should conclude copyright collective management contract with him, must not refuse him.

Obligee becomes a member of copyright collective management organization as soon as he concludes copyright collective management contract with copyright collective management organization and perform corresponding formalities in accordance with the provisions of the regulations.

Article 20 After signing copyright collective management contract with copyright collective management organization, the obligee must not perform or allow others to perform the rights agreed in the contract that should be performed by copyright collective management organization within the contracted term.

Article 21 Obligee may withdraw from copyright collective management organization and terminate copyright collective management contract according to the procedures stipulated by the regulations. But if copyright collective management organization has concluded license contract with others, the contract is still effective before the expiration of the term. Within the term of validity, the obligee has the right to obtain corresponding charge for use and may look up related business materials.

Article 22 Foreigners and persons who have no nationalities may authorize Chinese copyright collective management organization to manage their copyright and rights relating copyright that they enjoy in the territory of China through similar organization abroad that has concluded mutual agency agreement with Chinese copyright collective management organization.

Mutual agency agreement in terms of above paragraph means the agreement that Chinese copyright collective management organization and similar organization abroad authorize each other to carry out collective management in the country or area where it locates.

Mutual agency agreement concluded between copyright collective management organization and similar organization abroad should be submitted to copyright management department of the State Council for the record and announced by copyright management department of the State Council.

Article 23 If copyright collective management organization allow others to use the works, audio and video products that it managed, it should conclude license contract in writing with the users.

Copyright collective management organization must not conclude exclusive license contract with the users.

If the user asks for concluding license contract with copyright collective management organization at reasonable requirements, copyright collective management organization must not refuse them.

The term of license contract must not exceed two years. The term of license contract may be renewed at the expiration of it.

Article 24 Copyright collective management organization should establish right information consultation system for the obligees and users to look up the information. Right information consultation system should include variety of rights managed by copyright collective management organization, the names of works, audio and video products, obligee's name and authorized management term.

When obligee and the users consult the right information managed by copyright collective management organization, the organization should answer them.

Article 25 Apart from paying the charge for use in accordance with Article 23, Article 32, Section 2, Article 39 Section 3, Article 42 Section 2 and Article 43 of Copyright Law, copyright collective management organization should agreed with the user on the exact sum of collecting charge for use in accordance with the standard of collecting charge for use published by copyright management department of the State Council.

Article 26 If two or more copyright collective management organizations collect the charge for use from the same user in the same way; they may consult in advance to determine one of them to collect it uniformly. The charge for use collected uniformly should be allocated after consultation.

Article 27 When the users pay charge for use to copyright collective management organization, they should provide the names of the works, audio and video products, the name of the obligee and the ways, numbers and time they use them except for those that have separate agreements.

If the information of use provided by the users involves the user's business secret, copyright collective management organization has the duty to keep secret.

Article 28 Copyright collective management organization may draw a certain proportion from charge for use as management fee for maintaining normal business activities.

The proportion of charge for use drawn by copyright collective management organization should be reduced gradually following the increasing of the income of charge for use.

Article 29 All the charge for use collected by copyright collective management organization should be shunted to the obligees after management fee is drawn and must not be diverted to any other purpose.

When copyright collective management organizations shunt charge for use, they should work out the record of it. The record of shunting charge for use should show clearly the total amount of charge for use, amount of management fee, name of the obligee, name of works or audio and video products, relevant information of using them, the detailed amount of charge for use that is shunted to the obligee and as well as other issues. The record should be kept for more than 10 years.

Chapter V The supervision over copyright collective management organization

Article 30 Copyright collective management organization should establish financial and accounting rules and as well as property management rules in accordance with laws, and establish account book in accordance with related national rules.

Article 31 The use of property and financial management of copyright collective management organization are supervised by the departments of copyright management and civil affairs of the State Council.

Copyright collective management organization should work out financial account report at the end of a fiscal year, entrust accounting firm to audit it in accordance with laws and publish the audit result.

Article 32 Copyright collective management organization should record following issues for the obligees and users to look up:

1. Information of using license of works;

2. Information of collecting and shunting charge for use;

3. Information of drawing and using management fee.

The obligees have the rights to look up and copy financial report, work report and other business materials of copyright collective management organization. Copyright collective management organization should offer convenient

Article 33 The obligees may report to copyright management department of the State Council if they deem any copyright collective management organization has one of following circumstances:

1. If the obligees meet with the requirements stipulated by the regulations and ask for joining copyright collective management organization, or the members ask for drawing from copyright collective management organization in accordance with the provisions of the regulations, copyright collective management organization refuse them to do so;

2. Copyright collective management organizations do not collect, shunt charge for use in accordance with the stipulations, or do not draw and use charge for use in accordance with the stipulations;

3. The obligees ask for looking up the record or business materials stipulated in Article 32 of these regulations, but copyright collective management organizations refuse to provide them.

Article 34 The users may report to copyright management department of the State Council if they deem that any copyright collective management organization has one of following circumstances:

1. Copyright collective management organization violates Article 23 of these regulations, refusing to conclude license contract with the users;

2. Copyright collective management organization does not collect the amount of charge for use in accordance with announced standard of collecting charge for use;

3. Users ask for looking up the record stipulated in Article 32 of these regulations, but copyright collective management organization refuses to provide it.

Article 35 Citizens, legal persons or other organizations, except for the obligees and the users, may report to copyright management department of the State Council if they deem any copyright collective management organization has the activities that violating the provisions of these regulations.

Article 36 Copyright management department of the State Council should investigate and deal with the reported cases in accordance with laws within 60 days at the receipt of the report.

Article 37 Copyright management department of the State Council should supervise copyright collective management organization in following ways and keep a record of the supervision:

1. Check whether the business activities of copyright collective management organization meet with the provisions of these regulations;

2. Verify account book, annual budget, final report and other related business materials of copyright collective management organizations;

3. Send persons to attend membership conference of copyright collective management organizations as no-voting delegates.

Article 38 Copyright collective management organization should accept the supervision of the civil affairs department of the State Council and other relevant departments.

Chapter VI Legal responsibility

Article 39 Copyright collective management organizations are instructed by copyright management department of the State Council to make corrections in case of one of following circumstances:

1. Not reporting the mutual agency agreement concluded with similar organization abroad to copyright management department of the State Council for the record in violation of the provision of Article 22 of these regulations;

2. Not establishing right information inquiry system in violation of the provision of Article 24 of these regulations;

3. Collecting the charge for use in violation of the announced standard of charge for use.

Copyright collective management organizations managing the obligee’s rights beyond business scope are instructed by copyright management department of the State Council to make corrections, and the license contract that they concluded with the users is invalid. If they cause any injury to the obligees or the users, they should bear civil liability in accordance with laws.

Article 40 Copyright collective management organizations are instructed by copyright management department of the State Council to make corrections in case of one of following circumstances. Whoever does not make any corrections beyond the time limit, membership conference or board of directors are instructed to recall or dismiss the competent person who is directly responsible for it:

1. Refusing to conclude copyright collective management contract with the obligee in violation of the provisions of Article 19 of these regulations, or refusing the members' requirements of withdrawing from the organization in violation of the provision of Article 21 of these regulations,

2. Refusing to conclude license contract with the users in violation of the provision of Article 23 of these regulations,

3. Drawing charge for use in violation of the provision of Article 28 of these regulations;

4. Shunting charge for use in violation of the provision of Article 29 of these regulations;

5. Refusing to provide account book, annual budget, final report or other relevant business materials or provide false ones.

Article 41 If any copyright collective management organization does not carry out copyright collective management activities without proper reasons for 6 months after the department of civil affairs of the State Council issued the registration certificate, or stops copyright collective management activities for more than 6 months, its copyright collective management license will be recalled by copyright management department of the State Council and the registration will be revoked by the department of civil affairs of the State Council.

Article 42 If any copyright collective management organization is engaged in profit-seeking activities, it is cancelled by industrial and commercial administrations in accordance with laws, and its illegal income is confiscated. Whoever commits a crime will be ascertained criminal responsibility.

Article 43 If any user violates the provisions of Article 27 of these regulations, refusing to provide relevant information of use when he could provide it, or practicing fraud while he is providing relevant information, he will be instructed to make corrections by copyright management department of the State Council, and copyright collective management organization may terminate the license contract with him.

Article 44 Whoever establishes copyright collective management organization or branches or is engaged in copyright collective management activities without permission is cancelled by the copyright management department or the department of civil affairs of the State Council according to their own responsibilities. Illegal income is confiscated. Whoever commits a crime is ascertained criminal responsibility.

Article 45 If the staffs of national administrative organ who are engaged in approval and supervision of copyright collective management organization neglect their works, abuse their power, practice favoritism and engage in irregularities, and commit a crime, they will be ascertained criminal responsibilities. Whoever does not commit a crime will be given administrative disciplinary measures.

Chapter VII Supplementary Articles

Article 46 Copyright collective management organizations established before the implementation of these regulations should submit their regulations and rules, standard of collecting charge for use, measures on shunting charge for use and other relevant materials to copyright management department of the State Council for verification and approval within 3 months from the date when these regulations become effective, and also report the mutual agency agreement concluded with similar organizations abroad to copyright department of the State Council for the record.

Article 47 According to the provisions of Article 23, Article 32 Section 2, Article 39 Section 3, whoever uses others' works without paying charge for fee to the obligee in accordance with Article 32 of Implementation Regulations of Copyright Law of the PRC should submit charge for fee along with postage and relevant information of using the works to the copyright collective management organizations that manage relevant rights. Charge for fee is shunted to the obligee by copyright collective management organization.

Copyright collective management organization responsible for shunting charge for use should establish information inquiry system of using the works for the obligee and users to look up.

Copyright collective management organization responsible for shunting charge for use may draw management fee from charge for use received by it. Management fee is drawn from half proportion of the management fee stipulated by membership conference according to the proportion of the management fee of the collective management organization. Except for management fee, the copyright collective management organization must not draw other fees from charge for use they received.

Article 48 These regulations come into effect as of March 1, 2005