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Regulations on collective administration of Copyright (2004)

2007-01-09

Chapter I General Provisions
Article 1 in order to regulate the collective management of copyright, facilitate the exercise of rights and users of works by the copyright owners and the obligees (hereinafter referred to as the obligee), this article is formulated in accordance with the copyright law of the people's Republic of China (hereinafter referred to as the copyright law).
Article 2 the term "collective administration of copyright" as mentioned in these Regulations refers to the following activities of the collective administration organization of copyright, authorized by the obligee, to exercise the relevant rights of the obligee and to carry out the following activities in its own name:
(1) To conclude a contract for the use of copyright or the right license related to the copyright with the user (hereinafter referred to as the license contract);
(2) Collect the user's fee;
(3) Transfer the royalties to the obligee;
(4) To conduct litigation, arbitration, etc. involving copyright or rights related to copyright.
Article 3 the collective administration organization for copyright as mentioned in these Regulations refers to a social organization established in accordance with law for the benefit of the obligee and which is authorized by the obligee to collectively manage the copyright of the obligee or the rights related to the copyright.
The collective administration organization of copyright shall register and carry out activities in accordance with the administrative regulations on the registration and administration of social organizations and the provisions of these regulations.
Article 4. Rights that the obligee who has the right to perform, show, broadcast, rent, information network communication and copy rights as stipulated in the copyright law cannot exercise effectively by himself may be under collective management by the collective management organization of copyright.
Article 5 the copyright administration department under the State Council shall be in charge of the collective administration of copyright throughout the country.
Article 6 no organization or individual shall engage in collective administration of copyright except for the collective administration organization for copyright established in accordance with the provisions of these regulations.
Chapter II Establishment of collective management organization of copyright
Article 7 Chinese citizens, legal persons or other organizations that enjoy the rights of copyright or related to copyright according to law may initiate the establishment of collective management organizations for copyright.
The establishment of a collective organization for the administration of copyright shall meet the following conditions:
(1) No less than 50 persons are entitled to initiate the establishment of collective management organizations for copyright;
(2) It shall not cross and coincide with the business scope of the collective management organization of copyright registered according to law;
(3) Can represent the interests of the relevant obligees nationwide;
(4) Draft articles of association of collective administration organizations with copyright, draft standards for collection of royalties and methods for transferring royalties to the obligee (hereinafter referred to as the transfer of royalties).
Article 8 the articles of association of collective administration of copyright shall state the following:
(1) Name and residence;
(2) Purpose of establishment;
(3) Business scope;
(4) Organization and its functions and powers;
(5) Minimum number of members' meetings;
(6) The duties of the Council and the conditions of the head of the Council and the procedures for the generation and removal of the Council;
(7) Methods for drawing and using management fees;
(8) The conditions and procedures for members to join or withdraw from the collective management organization of copyright;
(9) Procedures for amendment of the articles of Association;
(10) The conditions, procedures and disposal of assets after the termination of the collective management organization of copyright.
Article 9 when applying for the establishment of a collective organization for the administration of copyright, it shall submit to the copyright administration department under the State Council materials proving that the conditions prescribed in Article 7 of these Regulations are met. The copyright administration department under the State Council shall, within 60 days from the date of receipt of the materials, make a decision on approval or disapproval. If the approval is granted, a license for collective administration of copyright shall be issued; if the approval is not granted, the reasons shall be given.
Article 10 the applicant shall, within 30 days from the date when the copyright administration department under the State Council issues a license for collective administration of copyright, go through the registration formalities with the civil affairs department under the State Council in accordance with the administrative regulations on the registration and administration of social organizations.
Article 11 The collective administration organization for copyright registered according to law shall, within 30 days from the date of issuing the registration certificate by the civil affairs department under the State Council, submit a copy of the registration certificate to the copyright administration department under the State Council for the record; the copyright administration department under the State Council shall announce the copies of the registration certificate submitted, the articles of association of the collective administration organization for copyright, the standards for collecting the use fee and the transfer of the use fee.
Article 12 the establishment of a branch of a collective administration organization for copyright shall be approved by the copyright administration department under the State Council and shall go through the registration procedures with the civil affairs department under the State Council in accordance with the administrative regulations governing the registration of relevant social organizations. If the registration is made in accordance with law, a copy of the registration certificate of the branch shall be submitted to the copyright administration department under the State Council for the record, and the copyright administration department under the State Council shall make a public announcement.
Article 13 the collective administration organization of copyright shall formulate the standards for collecting royalties according to the following factors:
(1) The time, method and regional scope of using works, audio and video products, etc;
(2) The type of rights;
(3) The simplification of the work of signing license and using contract and collecting the use fee.
Article 14 the collective administration organization of copyright shall formulate the method for transferring the royalties according to the use of the works of the obligee or the use of audio-visual recordings and video products.
Article 15 when a collective administration organization for copyright modifies its articles of association, it shall submit the draft amendment to the copyright administration department under the State Council for approval, and shall, after being approved by the civil affairs department under the State Council in accordance with law, make a public announcement by the copyright administration department under the State Council.
Article 16 Where a collective administration organization for copyright is revoked its registration in accordance with law, it shall not carry out any further business activities of collective administration of copyright from the date of cancellation of registration.
Chapter III organizations of collective administration of copyright
Article 17 the general meeting of the collective management organization of Copyright (hereinafter referred to as the general meeting) is the authority organ of the collective management organization of copyright. The general meeting of members shall be convened by the Council in accordance with the provisions of these regulations. The Council shall announce the time, place and matters to be considered 60 days before the general meeting of members; members attending the meeting shall register 30 days before the meeting. When the number of members who have registered for the general meeting is less than the minimum number specified in the articles of association, the Council shall announce the registration of the general meeting. Members may add their registration 5 days before the meeting, and all the members who have registered for the meeting shall hold the general meeting.
The General Assembly shall exercise the following functions and powers:
(1) To formulate and amend the articles of Association;
(2) To formulate and modify the charging standards of the use fee;
(3) Formulate and modify the transfer method of the use fee;
(4) Election and removal of directors;
(5) To consider and approve the work and financial reports of the Council;
(6) To formulate internal management system;
(7) To determine the proportion of the transfer scheme of the royalties and the administrative fees drawn by the collective administration organization of copyright;
(8) Decide other major matters.
The general meeting of members shall be held once a year; the interim general meeting may be held upon the proposal of more than 10% of the members or the Council. A decision made by the general meeting of members shall be adopted by a majority of the members present at the meeting.

Article 18 the collective administration organization for copyright shall establish a Council, be responsible for the general meeting and implement the decisions of the general assembly. The Council shall have no less than 9 members.
The term of office of the Council is 4 years, and the term of office shall be renewed. The term may be renewed in advance or extended due to special circumstances, but the renewal shall not exceed one year.
Chapter IV collective management activities of copyright
Article 19 the obligee may conclude a collective administration contract for copyright with the collective administration organization of copyright in writing, authorizing the organization to manage the copyright or the rights related to the copyright enjoyed by the organization according to law. If the obligee meets the conditions for accession as stipulated in the articles of association, the collective administration organization of copyright shall conclude a contract with it for collective administration of copyright, and shall not refuse it. After the obligee and the collective management organization of copyright conclude a contract for collective administration of copyright and perform the corresponding procedures in accordance with the articles of association, they will become members of the collective management organization of copyright.
Article 20 after the obligee and the collective administration organization of copyright conclude a collective management contract for copyright, they shall not exercise or permit others to exercise the rights stipulated in the contract exercised by the collective administration organization of copyright within the time limit prescribed in the contract.
Article 21 the obligee may, in accordance with the procedures prescribed in the articles of association, withdraw from the collective administration organization of copyright and terminate the collective administration contract of copyright. However, if the collective administration organization of copyright has concluded a license use contract with others, the contract shall continue to be valid before the expiration of the term; within the validity period of the contract, the obligee has the right to obtain the corresponding royalties and can consult relevant business materials.
Article 22 foreigners and stateless persons may, through the same overseas organizations that have concluded mutual representative agreements with the collective administration organization of copyright in China, authorize the collective administration organization of copyright in China to manage the copyright or copyright related rights enjoyed by them in accordance with law in China.
The term "mutual representative agreement" as mentioned in the preceding paragraph refers to the agreement between the collective administration organization of copyright in China and the similar organizations outside China authorizing the other party to conduct collective management activities in the country or region where it is located.
The mutual representative agreement concluded between the collective administration organization of copyright and the similar organizations abroad shall be reported to the copyright administration department under the State Council for the record, and shall be announced by the copyright administration department under the State Council.
Article 23 a collective administration organization for copyright shall conclude a license contract with the user in writing for the use of the works under its administration, audio and video recordings, etc. The collective administration organization of copyright shall not conclude a contract for exclusive license use with the user. The user requires that a license contract be concluded with the collective administration organization of copyright on reasonable conditions, and the collective administration organization of copyright shall not refuse it. The term of the contract for the permitted use shall not exceed 2 years; the contract may be renewed upon the expiry of the contract term.
Article 24 the collective administration organization of copyright shall establish a system for the inquiry of rights information for the obligee and the user. The system for the inquiry of rights information shall include the types of rights under the collective administration of copyright, the names of works, audio and video products, the names of the obligees, and the period of authorization management.
When the obligee and user consult the information about the rights of the collective management organization of copyright, the organization shall reply.
Article 25 except for the royalties that should be paid in accordance with Article 23, Article 32, paragraph 2, Article 39, paragraph 3, Article 42, and Article 43 of the copyright law, the collective administration organization of copyright shall, in accordance with the standards for the collection of royalties announced by the copyright administration department under the State Council, agree with the user about the specific amount of the royalties.
Article 26 two or more collective organizations for copyright administration may, through consultation in advance, determine that one of the collective organizations for copyright administration shall collect the use fee from the same user in the same way of use. The unified fees for the use of copyright shall be distributed through consultation among the relevant collective copyright management organizations.
Article 27 when a user pays the use fee to a collective administration organization of copyright, he shall provide the name of the work, audio and video products used by him, the name of the obligee, the method, quantity and time of use, etc. of the use; unless otherwise stipulated in the license contract.
If the relevant use provided by the user involves the trade secret of the user, the collective administration organization of copyright shall have the obligation of confidentiality.
Article 28 a copyright collective management organization may draw a certain proportion of the fees collected as management fees, which shall be used to maintain its normal business activities.
The proportion of administrative fees drawn by collective management organizations of copyright shall be gradually reduced with the increase of the income from the use fees.
Article 29 the royalties collected by the collective administration organization of copyright shall, after drawing the administrative fees, be transferred to the obligee in full and shall not be misappropriated for other purposes.
When a collective administration organization of copyright transfers the use fee, it shall prepare a record of the transfer of the royalties. The record of transfer of the use fee shall include the total amount of the use fee, the amount of the management fee, the name of the obligee, the name of the work or the audio-visual recording products, the relevant use, the specific amount of the transfer fee to the obligee, etc., and shall be kept for more than 10 years.
Chapter V Supervision over collective management organizations of copyright
Article 30 the collective management organization of copyright shall establish financial, accounting and asset management systems in accordance with law, and set up accounting books in accordance with the relevant provisions of the state.
Article 31 the use of assets and financial management of a collective copyright management organization shall be supervised by the copyright administration department and the civil affairs department under the State Council.
The collective management organization of copyright shall, at the end of each accounting year, produce financial and accounting reports, entrust accounting firms to conduct audit according to law and publish the audit results.
Article 32 the collective administration organization of copyright shall record the following matters for the obligee and the user to consult:
(1) The use of the work permit;
(2) Collection and transfer of royalties;
(3) The withdrawal and use of management fees.
The obligee has the right to consult and copy the financial reports, work reports and other business materials of the collective management organization of copyright; the collective management organization of copyright shall provide convenience.
Article 33 The obligee may report to the copyright administration department under the State Council if he believes that the collective administration organization for copyright has any of the following circumstances:
(1) The obligee shall join the collective management organization of copyright in accordance with the conditions for accession stipulated in the articles of association, or the member shall withdraw from the collective management organization of copyright in accordance with the procedures prescribed in the articles of association, and the collective management organization of copyright refuses to do so;
(2) The collective administration organization of copyright fails to collect or transfer the use fee in accordance with the provisions, or fails to draw or use the administrative fee in accordance with the provisions;
(3) Where the obligee requests to refer to the records and business materials prescribed in Article 32 of these regulations, the collective administration organization of copyright refuses to provide them.
Article 34 If the user believes that the collective administration organization of copyright has any of the following circumstances, he may report to the copyright administration department under the State Council:
(1) The collective administration organization of copyright refuses to conclude a license use contract with the user in violation of the provisions of Article 23 of these regulations;
(2) The collective administration organization of copyright fails to collect the specific amount of the royalties according to the standards for the collection of the announced royalties;
(3) Where the user requests to consult the records prescribed in Article 32 of these regulations, the collective administration organization of copyright refuses to provide it.
Article 35 If a citizen, legal person or other organization other than the obligee or user thinks that the collective administration organization of copyright has committed any act in violation of the provisions of these regulations, it may report to the copyright administration department under the State Council.
Article 36 the copyright administration department under the State Council shall, within 60 days from the date of receiving the report and report, investigate and deal with the matters concerning the prosecution and reporting according to law.
Article 37 the copyright administration department under the State Council may supervise the collective administration of copyright in the following ways and shall record the supervision activities:
(1) To check whether the business activities of the collective management organization of copyright conform to the provisions of these regulations and the articles of Association;
(2) To check the accounting books, annual budget and final accounts reports and other relevant business materials of the collective management organization of copyright;
(3) To send members to attend the important meetings of the members' meeting and the Council of the collective management organization of copyright.
Article 38 the collective administration organization for copyright shall, in accordance with law, accept the supervision of the civil affairs department under the State Council and other relevant departments.
Chapter VI Legal Liability
Article 39 in case of any of the following circumstances in the collective administration organization of copyright, the copyright administration department under the State Council shall order it to make corrections within a time limit:
(1) Failing to report the mutual representative agreement with similar organizations outside the country to the copyright administration department under the State Council for the record in violation of the provisions of Article 22 of these regulations;
(2) Violating the provisions of Article 24 of these regulations, and failing to establish a rights information inquiry system;
(3) The specific amount of the toll not charged according to the standard of the use fee announced.
Where a collective organization for the administration of copyright exceeds its business scope to manage the rights of the obligee, the copyright administration department under the State Council shall order it to make corrections within a time limit, and the license contract concluded with the user shall be invalid; if damage is caused to the obligee or user, it shall bear civil liability in accordance with law.
Article 40 in any of the following circumstances, the copyright administration department under the State Council shall order the collective administration of copyright to make corrections within a time limit; if it fails to make corrections within the time limit, it shall order the general assembly or the Council to remove or dismiss the persons in charge who are directly responsible according to the authority prescribed in these Regulations:
(1) Refusing to conclude a collective administration contract with the obligee in violation of the provisions of Article 19 of these regulations, or refusing to withdraw from the organization in violation of the provisions of Article 21 of these regulations;
(2) Refusing to conclude a license contract with the user in violation of the provisions of Article 23 of these regulations;
(3) Drawing management fees in violation of the provisions of Article 28 of these regulations;
(4) The transfer of the use fee in violation of the provisions of Article 29 of these regulations;
(5) Refusing to provide or provide false accounting books, annual budget and final accounts reports or other relevant business materials.
Article 41 If the collective administration organization of copyright fails to carry out the collective management of copyright without any justified reason for more than 6 months from the date of issuing the registration certificate by the civil affairs department under the State Council, or has suspended the collective management of copyright for more than 6 months, the copyright administration department under the State Council shall revoke its license for collective administration of copyright and the civil affairs department under the State Council shall cancel the registration.
Article 42 Where a collective copyright management organization engages in profit-making business activities, it shall be banned by the administrative department for Industry and Commerce in accordance with law and its illegal gains shall be confiscated; if a crime is constituted, criminal responsibility shall be investigated according to law.
Article 43 in violation of the provisions of Article 27 of these regulations, users who can provide relevant use conditions and refuse to provide them, or make false use when providing relevant use conditions shall be ordered to make corrections by the copyright administration department under the State Council; the collective administration organization for copyright may suspend the license use contract.
Article 44 Where a collective organization or branch of copyright administration is established without authorization or engaged in collective administration of copyright without authorization, the copyright administration department under the State Council or the civil affairs department shall ban it according to the division of responsibilities and confiscate the illegal gains; if a crime is constituted, criminal responsibility shall be investigated according to law.
Article 45 If any member of the state administrative organ engaged in the examination and approval and supervision of the collective administration of copyright in accordance with the provisions of these regulations neglects his duty, abuses his power, commits malpractices for personal gain, and thus constitutes a crime, he shall be investigated for criminal responsibility according to law; if the case does not constitute a crime, he shall be given administrative sanctions according to law.
Chapter 7 supplementary provisions
Article 46 the collective administration organization for copyright established before the implementation of these Regulations shall, within 3 months from the date of entry into force of these regulations, report its articles of association, standards for collection of royalties, transfer of royalties and other relevant materials to the copyright administration department under the State Council for examination and approval, and report the mutual representative agreement concluded between them and similar organizations abroad to the copyright administration department under the State Council for the record.
Article 47 If another person's work is used in accordance with the provisions of Article 23, Article 32, paragraph 2 and Article 39, paragraph 3 of the copyright law, and fails to pay the royalties to the obligee in accordance with the provisions of Article 32 of the regulations on the implementation of the copyright law of the people's Republic of China, the royalties, postage and the relevant information about the use of the works shall be sent to the collective administration of the copyright under the administration of the relevant rights The organization, the collective administration organization of copyright, shall transfer the royalties to the obligee.
The collective administration organization of copyright responsible for transferring the royalties shall establish a system for the inquiry of the use of works for the obligee and the user.
The copyright collective management organization responsible for transferring the royalties may draw the management fee from the Royalties Received by the organization, and the management fee shall be halved according to the proportion of the management fee of the collective management organization determined by the general meeting. Except for the management fee, the collective administration organization of copyright shall not draw any other expenses from the royalties it receives.
Article 48 these Regulations shall come into effect as of March 1st, 2005.


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