Society is constantly developing, more and more services are being opened for business. Especially the beautiful view cafe serves for entertainment, studying, taking photos, and virtual living. The existence of musical works in coffee shops is no longer strange to us. Music is a source of inspiration as well as an indispensable customer attraction. However, whether or not these venues need to ask permission or pay royalties for music works is a question of many people. Please follow VCD’s article below to understand more about this issue.
1. What is music copyright?
A musical work is a work expressed in the form of musical notes in sheet music or other musical characters or fixed on audio or video recordings with or without lyrics, regardless of whether they are performed or not. Shows.
According to Point d, Clause 1, Article 14 of the Intellectual Property Law 2005, amended and supplemented in 2009 and 2019, regulations on types of works protected by copyright are as follows:
“Article 14. Types of works protected by copyright
1. Protected literary, artistic, and scientific works include:
d) Musical works;”
Thus, what music copyright is the assertion of the author’s rights to the musical work they create, it is a legal document that represents someone’s ownership of the song, Be it singers, musicians, or singing enthusiasts. Copyright affirms the identity of the person who created and composed specific melodies and songs. When a song is copyrighted, their creative efforts will be protected by law, no one can infringe upon it, otherwise, they will be appropriately punished.
2. Does a cafe that plays music to serve customers have to pay royalties?
Music is an endless and indispensable source of inspiration in life. Using music for entertainment is an indispensable thing for us every day, but when using it in commercial business, another aspect needs to be discussed: copyright.
- Pursuant to Point b, Clause 1, Article 33 of the 2005 Intellectual Property Law amended by Clause 9, Article 1 of the 2022 Amended Intellectual Property Law, regulations on royalty payment to cafes that play music for customers are as follows:
1. Cases of using published audio or video recordings that do not require permission but must pay royalties and information about the audio or video recordings include:
b) Organizations and individuals that use published audio or video recordings for commercial purposes in business and commercial activities do not have to ask for permission but must pay royalties as agreed to the performers and publishers. produce audio and video recordings and organize broadcasting since use; In case an agreement cannot be reached, the Government’s regulations will be followed. The Government regulates in detail the business and trade activities specified in this Point.
- In addition, based on Article 34 of Decree 17/2023/ND-CP regulating organizations and individuals that must pay royalties as follows:
1. Using works that have been permitted by the copyright owner to be recorded on audio or video recordings for commercial purposes in business and commercial activities according to the provisions of Point b, Clause 1, Article 26 of Intellectual Property Law; Audio or video recordings that have been published for commercial purposes in business and commercial activities according to the provisions of Point b, Clause 1, Article 33 of the Intellectual Property Law are the use of works by organizations and individuals. , audio and video recordings published for commercial purposes for use in restaurants, cafes, hotels, stores, supermarkets; Amusement and entertainment areas, shopping centers; fitness, health care, and beauty clubs; Karaoke service establishments; bars, dance halls; in aviation, public transport and other business and commercial activities of a similar nature.
2. Organizations and individuals using works, audio, and video recordings according to the provisions of Clause 1, Article 26, and Clause 1, Article 33 of the Intellectual Property Law are obliged to directly contact the copyright owner. Authors, performers, owners of related rights to audio and video recordings, or collective representative organizations of copyright and related rights regarding the exploitation, use, provision of catalogs, and duration of works Products, audio and video recordings have been used and royalties have been paid according to the provisions of law.
In case the copyright owner, performer, or related rights owner of the audio or video recording cannot be found or contacted, the organization or individual using the work or audio recording, record the performance of obligations with competent state agencies according to the provisions of Clause 6, Article 23 of this Decree, the competent state agencies continue to search and manage according to the provisions of Clause 8, Article 23. of this Decree.
Thus, cafes that play music to serve customers do not have to ask for permission but must pay royalties to the performers and song producers. The cafe owner is obliged to contact directly with the copyright owner of the song to negotiate and pay royalties.
In case an agreement cannot be reached, royalties must be paid according to the rate prescribed in Appendix II of Decree 17/2023/ND-CP. Specifically, royalty amount paid (calculated annually) = Base salary x Adjustment coefficient (Adjustment coefficient calculated based on capacity or area/location based on year of use). For coffee/refreshment shops:
- Capacity/area up to 15 m2: Adjustment coefficient is 0.35/15 m2/year.
- Capacity/area from over 15 m2 to 50 m2: For each additional m2, the adjustment coefficient is 0.04/m2/year.
- Capacity/area over 50 m2: For each additional m2, the adjustment coefficient is 0.02/m2/year.
(Maximum royalty amount in a year is: 8 x Base Salary)
- If you do not pay royalties within 90 days from the date of use, you must stop using it. If after the above time limit you continue to use it, this is considered an act of using published audio or video recordings for commercial purposes in commercial business activities without paying the owner for use. exists at Point b, Clause 2, Article 29 of Decree 131/2013/ND-CP.
- When detected, the violator may be fined from 10,000,000 VND to 15,000,000 VND (for individuals) or fined from 20,000,000 VND to 30,000,000 VND (for organizations). , and may be required to pay the above royalty amount.
In the coffee shop business, playing music to create an attractive space is an important factor. However, business owners need to clearly understand music copyright regulations and their responsibilities. Paying royalties for songs and complying with the law will help avoid unwanted legal and financial consequences. At the same time, valuing copyright and paying royalties will motivate creativity and produce better, better-quality works.
