Chapter I.- General Provisions

Article 1.- This Regulation is formulated in accordance with the “Copyright Law of the People’s Republic of China” (hereinafter referred to as the Copyright Law) so as to regulate the collective administration of copyright, and facilitate both the copyright owners and other right holders relating to copyright (hereinafter referred to as obligees) to exercise their rights as well as for the users to use works.

Article 2.- Collective administration of copyright, which is mentioned in this Regulation, shall mean the following activities carried out by the organizations for collective administration of copyright in their respective own names upon authorization of the obligees, so as to exercise the obligees’ relevant rights in a centralized way:

(1) Concluding with the user a license contract of copyright or of a copyright-related right (hereinafter referred to as license contract);

(2) Charging royalties from the user;

(3) Transferring royalties to the obligee;

(4) Participating in litigation or arbitration, etc. involving copyright or a copyright-related right.

Article 3.- The organization for collective administration of copyright as mentioned in this Regulation shall mean a private organization that is lawfully established for the benefit of the obligees, and conducts collective administration of the obligee’s copyright or other copyright-related rights upon the authorization of the obligees.

An organization for collective administration of copyright shall be registered and carry out activities in accordance with this Regulation and other administrative regulations on registration and administration of social organizations.

Article 4.- Such rights as prescribed in the Copyright Law which are difficult to be effectively exercised by the obligees themselves as the right of performance, projection, broadcasting, lease, dissemination through information network, reproduction, etc., may be subject to collective administration by organizations for collective administration of copyright.

Article 5.- The copyright administration department under the State Council shall take charge of the collective administration of copyright nationwide.

Article 6.- No organization or individual except the organizations for collective administration of copyright which were established under this Regulation may engage in the activities of collective administration of copyright.

Chapter II.- Establishment of Organizations for Collective Administration of Copyright

Article 7.- Chinese citizens, legal persons or other organizations that lawfully enjoy copyright or a copyright-related right, may promote the establishment of an organization for collective administration of copyright.

For the establishment of an organization for collective administration of copyright, the following conditions shall be fulfilled:

(1) There shall be no less than 50 obligees who promote the establishment of the organization for collective administration of copyright;

(2) The scope of business of the organization for collective administration of copyright shall not be overlapped with that of another lawfully registered organization for collective administration of copyright;

(3) The organization for collective administration of copyright may represent the benefits of relevant obligees throughout the country;

(4) The organization for collective administration of copyright has formulated a draft of its articles of association, a draft of royalty rates to be charged, and a draft of the measures for transferring royalties to the obligees (hereinafter referred to as royalty transfer measures).

Article 8.- The articles of association of an organization for collective administration of copyright shall state the following details:

(1) name and domicile;

(2) tenet of establishment;

(3) scope of business;

(4) organizational structure and the powers;

(5) quorum of the general meeting;

(6) duties of the council, conditions for the position of person-in-charge of the council, and the procedures for appointment or removal of the person-in-charge;

(7) measures for drawing and using administrative fees;

(8) conditions and procedures membership or withdrawal;

(9) procedures for amendment of the articles of association;

(10) conditions and procedures for terminating the organization for collective administration of copyright, and disposition of the assets after the termination.

Article 9.- Whoever applies for establishing an organization for collective administration of copyright shall submit to the copyright administration department under the State Council the materials testifying the fulfillment of the conditions as prescribed in Article 7 of this Regulation. The copyright administration department under the State Council shall, within 60 days as of receipt of the materials, make a decision on whether approving the application or not. If it approves the application, it shall issue a permit for collective administration of copyright; if it does not grant the approval, it shall state the reason there for.

Article 10.- The applicant shall, within 30 days after the copyright administration department under the State Council issues a permit for collective administration of copyright, make registration in the civil affairs department under the State Council in accordance with the relevant administrative regulations on registration and administration of social organizations.

Article 11.- A lawfully registered organization for collective administration of copyright shall, within 30 days after the civil affairs department under the State Council issues a registration certificate, submit a counterpart of its registration certificate to the copyright administration department under the State Council for archival purposes; the copyright administration department under the State Council shall then announce the archived counterpart of the registration certificate, the articles of association of the organization for collective administration of copyright, the royalty charging rates, and the royalty transfer measures.

Article 12.- An organization for collective administration of copyright shall, if establishing a branch, be approved by the copyright administration department under the State Council, and make registration in the civil affairs department under the State Council in accordance with the relevant administrative regulations on registration and administration of social organizations. If the branch is lawfully registered, the said organization shall submit a counterpart of the branch’s registration certificate to the copyright administration department under the State Council for archival purposes, and the copyright administration department under the State Council shall announce the establishment of the branch.

Article 13.- An organization for collective administration of copyright shall formulate its royalty charging rates on the basis of the following factors:

(1) time, method and area for the works, audio or video products, etc. to be used;

(2) varieties of the rights;

(3) extent of complexity for concluding the license contract and charging royalties.

Article 14.- An organization for collective administration of copyright shall formulate its royalty transfer measures on the basis of the obligees’ use of the works or audio or video products, etc.

Article 15.- An organization for collective administration of copyright shall, if amending its articles of association, submit the draft of amendment of the articles of association to the copyright administration department under the State Council for approval. Such draft shall, after lawfully ratified by the civil affairs department under the State Council, be announced by the copyright administration department under the State Council.

Article 16.- Where the registration of an organization for collective administration of copyright is lawfully cancelled, this organization shall no longer carry out any activity of collective administration of copyright as of the date when its registration is cancelled.

Chapter III.- Organizational Structure of the Organization for Collective Administration of Copyright

Article 17.- The general assembly of an organization for collective administration of copyright (hereinafter referred to as the general assembly) shall be the office of power of this organization.

The responsibility to convene the general assembly under this Regulation shall remain with the council. The council shall, 60 days before the general meeting is convened, announce the time and place of the meeting and the matters to be deliberated. The members who are to be present at the general meeting shall enter their names 30 days before the general meeting is convened. If the members who enter their names to be present at the general assembly are less than the quorum prescribed in the articles of association, the council shall announce the registry of names for attending the general assembly, and the members may supplement their names 5 days before the meeting is convened, while the general assembly shall be held by all the members who have registered their names to be present at the general assembly.

The general assembly may exercise the following powers:

(1) Formulating and amending the articles of association;

(2) Formulating and amending the royalty charging rates;

(3) Formulating and amending the royalty transfer measures;

(4) Electing and removing council members;

(5) Deliberating and approving the council’s work reports and financial reports;

(6) Formulating internal management systems;

(7) Deciding on royalty transfer plans and the proportion for the organization for collective administration of copyright to charge the administrative fee;

(8) Deciding on other major issues.

The general assembly shall be convened once every year. A temporary general assembly may be convened if so proposed either by no less than 10% of the members or by the council. The decision made by the general assembly shall be adopted by vote by more than a half of the members present at the meeting.

Article 18.- An organization for collective administration of copyright shall set up a council to be responsible for the general assembly, and to execute the decisions of the general assembly. There shall be no less than 9 members in the council.

The term of each session of the council shall be 4 years, and election shall be held for the next session if the present session expires. In case of a particular circumstance, the election for the next session may be held in advance or be postponed, provided that the time delayed shall not exceed 1 year.

Chapter IV.- Activities of Collective Administration of Copyright

Article 19.- An obligee may conclude in written form with an organization for collective administration of copyright a contract for collective administration of copyright, authorizing this organization to administer the copyright or copyright-related rights which he lawfully enjoys. If the obligee meets the conditions prescribed in articles of association for joining the organization for collective administration of copyright, the said organization shall conclude with him a contract for collective administration of copyright and may not refuse to do so.

After the obligee has concluded with the organization for collective administration of copyright a contract for collective administration of copyright and has performed the corresponding formalities pursuant to the articles of association, he shall become a member of this organization for collective administration of copyright.

Article 20.- An obligee shall not, after concluding a contract for collective administration of copyright with the organization for collective administration of copyright, and within the time limit stipulated in the contract, exercise by himself or permits others to exercise the rights that are stipulated in the contract to be exercised by the organization for collective administration of copyright.

Article 21.- An obligee may, pursuant to the procedures prescribed in the articles of association, withdraw from the organization for collective administration of copyright, and terminate the contract for collective administration of copyright. However, if the organization for collective administration of copyright has concluded with any other person a license contract, the said contract shall continue to be effective prior to the expiry of its duration; within the duration of validity of this contract, the obligee shall have the right to receive corresponding royalties and may consult relevant business materials.

Article 22.- A foreigner or stateless person may, through an overseas organization of the same kind, which has concluded with a Chinese organization for collective administration of copyright a reciprocal representing agreement, and may authorize a Chinese organization for collective administration of copyright to administer his copyright or the rights related to copyright that he may lawfully enjoys inside China.

The reciprocal representing agreement as mentioned in the preceding paragraph shall mean an agreement under which a Chinese organization for collective administration of copyright and an overseas organization of the same kind reciprocally authorize each other to carry out collective administration activities within its country or region.

The reciprocal representing agreement concluded between an organization for collective administration of copyright and an overseas organization of the same kind shall be reported to the copyright administration department under the State Council for archival purposes, and the copyright administration department under the State Council shall announce such an agreement.

Article 23.- An organization for collective administration of copyright shall, if permitting others to use the works, audio or video products, etc. under its administration, conclude with the user in written form a license contract.

An organization for collective administration of copyright shall not conclude with any user a contract of license for exclusive use.

Where any user requests with reasonable conditions to conclude with the organization for collective administration of copyright a license contract, the organization for collective administration of copyright shall not refuse such request.

The duration of a license contract shall not exceed 2 years; and the contract may be renewed at expiry of its duration.

Article 24.- An organization for collective administration of copyright shall set up a system for inquiry of information on rights, for the obligees’ and the users’ inquiry. The system for inquiry of information on rights shall include the categories of rights under administration of the organization for collective administration of copyright, the names of the works, audio and video products, etc. and of the obligees, as well as the duration of authorized administration.

When an obligee or user is inquiring the information on rights under administration of the organization for collective administration of copyright, this organization shall give a reply.

Article 25.- Except for the royalties payable as prescribed in Article 23, Paragraph 2 of Article 32, Paragraph 3 of Article 39, Paragraph 2 of Article 42, and Article 43 of the Copyright Law, an organization for collective administration of copyright shall negotiate with the user according to the royalty charging rates announced by the copyright administration department under the State Council, so as to stipulate the specific amount of chargeable royalties with the user.

Article 26.- Where two or more organizations for collective administration of copyright charge royalties from the same user regarding the same method of use, they may negotiate in advance to determine which one of them shall charge the royalties in a unified way. The royalties charged in a unified way shall be distributed through negotiations between the involved organizations for collective administration of copyright.

Article 27.- A user shall, when paying royalties to an organization for collective administration of copyright, provide the title of the works, audio or video product, etc. in his use, the names of the obligees, the method of use, quantity, time and other relevant details on use; unless it is otherwise stipulated in the license contract.

Where the details provided by the user on use involve the user’s commercial secret, the organization for collective administration of copyright shall bear confidentiality obligations.

Article 28.- An organization for collective administration of copyright may draw a certain proportion from the charged royalties as its administrative fee, which shall be used for maintaining its normal business activities.

The proportion for an organization for collective administration of copyright to draw the administrative fee shall gradually decrease with the increase of the income of royalties.

Article 29.- The royalties charged by an organization for collective administration of copyright shall, after the administrative fees have been drawn, be totally transferred to the obligees, instead of being used for any other purpose.

An organization for collective administration of copyright shall, if transferring royalties, compile royalty transfer records. The royalty transfer records shall state the total amount of royalties, the amount of administrative fees, the names of the obligees, the titles of the works or audio or video product, etc., the relevant details on use, the specific amount of the royalties transferred to each obligee, etc., and shall be preserved for ten years or longer.

Chapter V.- Supervision over Organizations for Collective Administration of Copyright

Article 30.- An organization for collective administration of copyright shall lawfully set up financial and accounting systems, as well as asset management systems, and shall also set up accounting books according to relevant provisions of the State.

Article 31.- The use and financial management of the assets of an organization for collective administration of copyright shall be under the supervision of the copyright administration department and the department of civil affairs under the State Council.

An organization for collective administration of copyright shall, in the end of each accounting year, make a financial and accounting report, and entrust an accounting firm to lawfully conduct auditing and publicize the auditing result.

Article 32.- An organization for collective administration of copyright shall record the following information for the obligees’ and users’ inquiry:

(1) information on license for use of works;

(2) information on charging and transfer of royalties;

(3) information on drawing and use of administrative fee.

An obligee shall have the right to consult and copy the financial reports, work reports and other business materials of the organization for collective administration of copyright; while the organization for collective administration of copyright shall offer convenience.

Article 33.- Where an obligee considers that the organization for collective administration of copyright is in any of the following circumstances, he may make exposure to the copyright administration department under the State Council:

(1) The obligee meets the conditions as prescribed in the articles of association for joining the organization for collective administration of copyright and requests for joining it, or a member requests pursuant to the procedures as prescribed in the articles of association withdrawing from the organization for collective administration of copyright, but the organization for collective administration of copyright refuses such request;

(2) The organization for collective administration of copyright does not comply with the provisions to charge or transfer royalties, or to draw or use the administrative fees;

(3) When an obligee requests for consulting the records or business materials as prescribed in Article 32 of this Regulation, the organization for collective administration of copyright refuses to provide them.

Article 34.- Where a user considers that the organization for collective administration of copyright is in any of the following circumstances, he may make exposure to the copyright administration department under the State Council:

(1) The organization for collective administration of copyright violates Article 23 of this Regulation by refusing to conclude with the user a license contract;

(2) The organization for collective administration of copyright fails to stipulate the specific amount of the chargeable royalties according to the announced royalty charging rates;

(3) When a user requests for consulting the records prescribed in Article 32 of this Regulation, the organization for collective administration of copyright refuses to provide them.

Article 35.- Where any citizen, legal person or other organization besides the obligees and the users considers that an organization for collective administration of copyright has any act in violation of this Regulation, he/it may make exposure to the copyright administration department under the State Council.

Article 36.- The copyright administration department under the State Council shall, within 60 days as of receipt of the exposure, investigate into the exposed matter and deal with it in accordance with the law.

Article 37.- The copyright administration department under the State Council may supervise the organizations for collective administration of copyright in the following ways, and shall make records on the supervision activities:

(1) Inspecting whether the business activities of the organizations for collective administration of copyright conform to this Regulation and their respective articles of association;

(2) Checking the accounting books, annual budget reports, final accounting reports and other relevant business materials of the organizations for collective administration of copyright;

(3) Sending its staff members to attend the important meetings of the general assemblies and councils, etc. of the organizations for collective administration of copyright.

Article 38.- The organizations for collective administration of copyright shall lawfully accept the supervision of the civil affairs department under the State Council and other relevant departments.

Chapter VI.- Legal Liabilities

Article 39.- Where an organization for collective administration of copyright is under any of the following circumstances, it shall be ordered by the copyright administration department under the State Council to make a correction within a time limit:

(1) It violates Article 22 of this Regulation by failing to report the reciprocal representing agreement concluded with an overseas organization of the same kind to the copyright administration department under the State Council for archival purposes;

(2) It violates Article 24 of this Regulation by failing to set up the system for inquiry of information on rights;

(3) It fails to stipulate the specific amount of the chargeable royalties according to the announced royalty charging rates.

Where an organization for collective administration of copyright administers the obligees’ rights in excess of the scope of its business, it shall be ordered by the copyright administration department under the State Council to make corrections within a time limit, and the license contract which it concludes with the user shall be ineffective; if it causes any loss to the obligees or the users, it shall bear civil liabilities in accordance with the law.

Article 40.- Where an organization for collective administration of copyright is in any of the following circumstances, it shall be ordered by the copyright administration department under the State Council to make corrections within a time limit; if it refuses to make corrections within the time limit, the general assembly or the council shall be ordered to remove or dismiss the directly responsible person in charge upon the scope of power prescribed in this Regulation:

(1) It violates Article 19 of this Regulation by refusing to conclude with the obligee a contract for collective administration of copyright, or violates Article 21 of this Regulation by refusing a member’s request for withdrawing from this organization;

(2) It violates Article 23 of this Regulation by refusing to conclude with the user a license contract;

(3) It violates Article 28 of this Regulation when drawing the administrative fee;

(4) It violates Article 29 of this Regulation when transferring the royalties;

(5) It refuses to provide the accounting books, annual budget reports, final accounting reports or other relevant business materials, or provides false ones.

Article 41.- Where an organization for collective administration of copyright fails to carry out the activities of collective administration of copyright without any justifiable reason within 6 months as of the day when the civil affairs department under the State Council issues the registration certificate, or suspends its activities of collective administration of copyright for no less than 6 consecutive months, the copyright administration department under the State Council shall revoke its permit for collective administration of copyright, and the civil affairs department under the State Council shall cancel its registration.

Article 42.- Where an organization for collective administration of copyright engages in profitable business activities, it shall be banned by the administration for industry and commerce in accordance with the law, who shall concurrently confiscate its illegal proceeds; if a crime is constituted, it shall be subject to criminal liabilities in accordance with the law.

Article 43.- Where a user violates Article 27 of this Regulation by refusing to provide the information on its use when it is possible for him to do so, or by practicing frauds when providing relevant information on use, he shall be ordered by the copyright administration department under the State Council to make corrections; while the organization for collective administration of copyright may suspend the license contract.

Article 44.- Whoever unlawfully establishes an organization for collective administration of copyright or a branch, or discretionarily engages in the activities of collective administration of copyright, shall be banned by the copyright administration department under the State Council or the department of civil affairs pursuant to their division of duties, and his/its illegal proceeds shall be confiscated; if any crime is constituted, he/it shall be subject to criminal liabilities in accordance with the law.

Article 45.- Where any functionary of a State administrative organ who engages in the examination, approval and supervision of organizations for collective administration of copyright under this Regulation neglects his duties, abuses his powers, or practices frauds for personal gains, and a crime is constituted, he shall be subject to criminal liabilities in accordance with the law; if no crime is constituted, he shall be imposed an administrative sanction in accordance with the law.

Chapter VII.- Supplementary Provisions

Article 46.- The organizations for collective administration of copyright which has been established before this Regulation comes into force shall, within 3 months as of effectiveness of this Regulation, report their respective articles of association, royalty charging rates, royalty transfer measures and other relevant materials to the copyright administration department under the State Council for check, and shall also report the reciprocal representing agreements concluded with their respective overseas organizations of the same kind to the copyright administration department under the State Council for archival purposes.

Article 47.- Whoever uses the works of any other person in accordance with Article 23, Paragraph 2 of Article 32 or Paragraph 3 of Article 39 of the Copyright Law, but fails to pay royalties to the obligees in accordance with Article 32 of the “Regulation for the Implementation of the People’s Republic of China the Copyright Law”, shall submit the royalties along with the postage and the relevant information on use of the works to the organization for collective administration of copyright which administers the related rights, and this organization for collective administration of copyright shall transfer the royalties to the obligees.

The organization for collective administration of copyright which is responsible for transferring royalties shall set up a system for inquiry of information on the use of works for the obligees’ and users’ inquiry.

The organization for collective administration of copyright which is responsible for transferring royalties may draw administrative fees from the royalties it has charged. The administrative fees shall be drawn at the reduced half rate of the collective administration organization’s administrative fees as determined by the general assembly. Except for the administrative fees, this organization for collective administration of copyright shall not draw any other fees from the royalties it has charged.

Article 48.- This Regulation shall come into force on March 1, 2005.

Premier Wen Jiabao,  December 28, 2004