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China to Collect Royalties on Internet Café Film Viewings

Beijing Business Today, 8/23/10

The public online review period for the "Standards for the Collection of Royalty Fees for Public Use of Copyrighted Film Works" recently ended, and the National Copyright Administration of the People's Republic of China (NCAC) will make an official announcement regarding the standards in the near future. Zhu Yongde, board chair of the Film Copyright Society of China (FCSC), revealed that the FCSC could begin receiving royalties for internet café viewings of films as soon as Q4 in some regions; for the majority of regions, royalty payments will take effect on January 1 of next year. In addition to internet café and long-distance bus viewings of films, the FCSC will also gradually expand to collect royalties for online, on-demand, in-flight, train, non-profit LAN, stereo rental, and other usages of film properties.

Per-day costs for internet cafes will be calculated as 7.5% of the number of computers in the internet café times the per-hour internet café charge.

Zhu said that the FCSC will withhold 10% of collected royalties for management fees, and distribute the remaining 90% to member work units.

For any long-distance bus showing films, Zhu said, per-day royalties will be assessed at RMB 365-500 per bus per day, regardless of the number or category of films shown. This system is now expected to take effect on January 1.

Editor's Note: For more background on this topic, please see "New China Film Copyright Society to Collect Royalties" MD 4/21/10 issue.

Keywords: in-vehicle display film Internet royalty copyright National Copyright Administration Film Copyright Society of China Internet cafe

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