Hotels, restaurants, cafes, supermarkets, and entertainment areas during business opening hours are often indispensable in using musical works to create atmosphere, add highlights, and help attract customers to create comfort, ease, and fun for them. Using appropriate music in each space with a certain theme is a method to increase service quality, impress customers, make customers buy more, use more services, and have a good experience to come back next time. Two common forms that can be mentioned today are using audio, and video recordings to play background music and performing directly at business establishments. Whether using musical works for commercial purposes as above requires paying royalties or not, we would like to clarify in the article below.
1. Legal regulations on the use of audio and video recordings for commercial purposes
According to Article 33 of the Intellectual Property Law, cases of using published audio or video recordings do not require permission but must pay royalties and information about the audio or video recordings include:
- Organizations and individuals using published audio or video recordings for commercial purposes for sponsored broadcasts, advertising, or collecting money in any form;
- Organizations and individuals that use published audio or video recordings for commercial purposes to broadcast without sponsorship, advertising, or collection of money in any form;
- Organizations and individuals use published audio and video recordings for commercial purposes in business and commercial activities.
Article 32 of Decree 22/2018/ND-CP specifically explains the above cases, in which the case of using audio or video recordings that have been announced in business and commercial activities is the organization of individuals directly or indirectly use published audio and video recordings for use at restaurants, hotels, stores, and supermarkets; establishments providing karaoke services, postal services, telecommunications, and digital environment; in tourism, aviation, and public transportation activities.
Thus, establishments providing accommodation, food, and entertainment services when using musical works during business opening hours are required to pay royalties to performers and record producers, audio, video recording, and broadcast organizations since its use. The royalty level and payment method are agreed upon by the parties. In case an agreement cannot be reached, it shall comply with the Government’s regulations. At the same time, the use of audio and video recordings as above must not conflict with the normal exploitation of performances, audio or video recordings, or broadcasts and must not cause unreasonable damage. to the legitimate interests of performers, audio and video recording producers, and broadcasting organizations.
However, is it true that these businesses have purchased original copyrighted tapes and discs, audio and video recordings that have been legally released online to play background music while opening for business? Pay additional royalties for using the work in business activities? Because there is a difference in nature between listening to and viewing regular works and using them in business activities to create profits, there is also a big difference in copyright fees. Vietnamese law does not have clear regulations on this issue. Therefore, businesses and legal owners of audio and video recordings should proactively learn and contact each other to agree on royalties.
2. Regulations on performing musical works
According to Article 25, Clause 1 (g) of the Intellectual Property Law, using published works to perform theatrical works, music, dance, and other types of artistic performances in cultural events and activities. Propaganda activities for non-commercial purposes do not require permission or pay royalties but must provide information about the author’s name and the origin of the work.
The right to perform a work is one of the property rights under copyright. Authors and copyright owners have the right to “Perform their works to the public directly or indirectly through audio or video recordings or any other technical means at a place where the public can access them accessible”, but the public cannot freely choose the time, and each part of the work” (Article 20, Clause 1, Point b of the Intellectual Property Law).
At the same time, Article 20, Clause 2 of the Intellectual Property Law also stipulates that when organizations and individuals exploit and use performance rights, they must obtain permission from the copyright owner and pay royalties and other fees. Other material benefits (if any) to the copyright owner.
From the above regulations, accommodation, catering, and entertainment service establishments that organize musical performances do not have to ask for permission or pay royalties only if that performance brings The nature of cultural activities and propaganda activities is not for commercial purposes. For the rest, the above business establishments organizing music performances, whether with or without a fee, to attract many customers to use the service to make a profit, must be permitted by the Department of Justice copyright owner and pay royalties and other material benefits (if any) to the copyright owner.
Above is the article “Do accommodation, dining, and entertainment service establishments using songs during business opening hours have to pay royalties or not?”. We hope this article is useful to you.
