Provisions on collection and distribution of royalties and remuneration

On 23 February 2018, the Government promulgated Decree 22/2018/ND-CP detailing a number of articles and measures for implementation of the 2005 Law on Intellectual Property and the Law amending and supplementing a number of articles of the Law on Intellectual Property (the “Law on IP”) on copyright and related rights (“Decree 22”).

Accordingly, Decree 22 specifies that the collection and distribution of the royalties, remuneration, material benefits will comply with the provisions of the operational charter of the organization acting as collective representative of copyright and related rights and the power of attorney of from the owner of the copyright, the owner of related rights setting out agreement on the rate or percentage, methods and time of the distribution of royalties, remuneration or material benefits. The organizations acting as collective representatives of copyright or related rights may agree and authorize others to negotiate and collect the royalties, remuneration or material benefits in accordance with the laws. The percentage of the distribution of royalties, remuneration or material benefits collected will be internally agreed by such organizations. The collection and distribution of the royalties, remuneration, material benefits generated from the exploited and used works, performances, audio and visual fixations, and broadcasts will comply with the principles of publicity and transparency and in accordance with the laws.

In addition, Decree 22 also provides the obligation to pay royalties, remuneration, material benefits to the holders of the copyright or related rights with respect to the exploitation and use of audio and visual records by the organizations and individuals directly or indirectly using audio and visual records in accordance with Articles 33.1 and 33.2 of the Law on IP.

Moreover, Decree 22 also regulates the collection and distribution of the royalties, remuneration, material benefits from the corresponding foreign organizations or international organizations and details other related provisions of the Law on IP.

Decree 22 will take effect as from 10 April 2018