LAWS AND REGULATIONS

Chapter I General rules

Article 1 These Regulations are formulated in accordance with the Copyright Law of the People's Republic of China (hereinafter referred to as the Copyright Law) in order to regulate the collective management of copyright and facilitate the exercise of rights by copyright owners and copyright-related right holders (hereinafter referred to as "right holders") and the use of works by users.

Article 2 The term "collective management of copyright" as mentioned in these Regulations refers to the following activities that collective management organizations of copyright, authorized by the right holder, centrally exercise the relevant rights of the right holder and carry out in their own name:

(1) To conclude a license contract for copyright or copyright-related rights with the user (hereinafter referred to as a license contract);

(2) Collecting fees from users;

(3) Transfer the royalties to the right holder;

(4) To engage in litigation or arbitration involving copyright or copyright-related rights.

Article 3 The term "copyright collective management organization" as mentioned in these Regulations refers to the social organization established according to law for the benefit of the right holder and, in accordance with the authorization of the right holder, exercises collective management over the right holder's copyright or copyright-related rights.

Copyright collective management organizations 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 The right of performance, right of projection, right of broadcasting, right of leasing, right of information network transmission, right of reproduction and other rights stipulated in the Copyright Law which are difficult for the owners to effectively exercise by themselves may be collectively managed by copyright collective management organizations.

Article 5 The copyright administration department under The State Council shall be responsible for the collective administration of copyright throughout the country.

Article 6 Except for the collective copyright administration organizations established in accordance with the provisions of these Regulations, no organization or individual may engage in collective copyright administration activities.

Chapter II Establishment of collective copyright administration organizations

Article 7 Chinese citizens, legal persons or other organizations enjoying copyright or copyright-related rights in accordance with the law may initiate the establishment of collective copyright administration organizations.

To establish a collective copyright administration organization, the following conditions shall be met:

(1) There are no less than 50 rights holders who initiated the establishment of a collective copyright management organization;

(2) It does not overlap or overlap with the business scope of copyright collective management organizations that have been registered according to law;

(3) Be able to represent the interests of the relevant right holders throughout the country;

(4) Draft articles of association of collective copyright management organizations, draft standards for the collection of royalties and draft measures for the transfer of royalties to the right holders (hereinafter referred to as the Measures for the transfer of royalties).

Article 8 The articles of association of copyright collective management organizations shall specify the following matters:

(1) Name and domicile;

(2) The purpose of establishment;

(3) The scope of business;

(4) The organizational structure and its functions and powers;

(5) The minimum number of members of the general Assembly;

(6) The duties of the Board of Directors and the conditions for the head of the Board of Directors and the procedures for the election and dismissal;

(7) Methods for the withdrawal and use of management fees;

(8) The conditions and procedures for a member to join or withdraw from a collective copyright management organization;

(9) Procedures for amending the articles of association;

(10) Conditions and procedures for the termination of the collective copyright administration organization and the disposal of assets after termination.

Article 9 An application for the establishment of a collective copyright administration organization shall submit to the copyright administration department under The State Council materials proving that the conditions provided for 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 approved, a copyright collective management license shall be issued; If approval is not granted, reasons shall be given.

Article 10 The applicant shall, within 30 days from the date when the copyright administration department of The State Council issues the copyright collective administration license, go through the registration formalities at the Civil affairs department of The State Council in accordance with the administrative regulations on the registration and administration of social organizations.

Article 11 Copyright collective administrative organizations registered according to law shall, within 30 days from the date of issuance of registration certificates by the civil affairs department under The State Council, submit their registration certificates to the copyright administrative department under The State Council for the record; The copyright administration department under The State Council shall publish the copy of the registration certificate as well as the articles of association of the collective copyright administration organization, the standards for collecting royalties and the methods for transferring royalties.

Article 12 The establishment of a branch of a collective copyright administration organization shall be subject to the approval of the copyright administration department under The State Council and shall go through the registration formalities with the Civil affairs department under The State Council in accordance with the administrative regulations on the registration of social organizations. Where it is registered according to law, 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 announce it.

Article 13 Copyright collective administrative organizations shall set the standards for collecting royalties based on the following factors:

(1) The time, manner and geographical scope of the use of the work, sound recording or video recording;

(2) Types of rights;

(3) The complexity of the work of concluding licensing contracts and collecting royalties.

Article 14 Copyright collective management organizations shall formulate methods for transfer of royalties according to the use of the works or sound and video products of the right holders.

Article 15 Where a copyright collective administrative organization amending its articles of association shall submit the draft amendment to the copyright administrative department under The State Council for approval, and after it has been approved by the civil affairs department under The State Council according to law, the copyright administrative department under The State Council shall make a public announcement.

Article 16 Where the registration of a collective copyright administration organization is revoked according to law, it shall not engage in collective copyright administration business activities from the date of the cancellation of registration.

Chapter III The organization of collective copyright administration

Article 17 The general assembly of the collective copyright administration organization (hereinafter referred to as the general assembly) shall be the authority of the collective copyright administration organization. The General Assembly shall be convened by the Council in accordance with the provisions of these Regulations. The Council shall, 60 days before the convening of the general assembly, announce the time and place of the meeting and the matters to be considered; Members attending the general meeting shall register 30 days before the meeting is held. If the number of members registered to attend the general meeting is less than the minimum number stipulated in the articles of association, the Council shall announce the registration status of the general meeting. Members may make additional registration 5 days before the meeting is held, and the general meeting shall be held by all the members who have registered to attend 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 revise the standards for the collection of user fees;

(3) To formulate and modify the methods for the transfer of royalties;

(4) To elect and remove directors;

(5) To examine and approve the work report and financial report of the Council;

(6) To formulate internal management systems;

(7) To decide on the royalty transfer scheme and the proportion of the management fee extracted by the collective copyright administration organization;

(8) To decide on other major matters.

The general assembly shall be held once a year; At the proposal of more than 10% of the members or the Council, an extraordinary general meeting may be convened. A decision made by the general Assembly shall be approved by a majority vote of the members present at the meeting.

Article 18 A collective copyright management organization shall establish a board of directors, which shall be responsible to the general Assembly and implement the decisions of the general assembly. There shall be no less than 9 members of the Council.

The term of office of the Council shall be four years, at the end of which a new election shall be held. Due to special circumstances, the change of the term may be advanced or postponed, but the extension of the change of the term shall not exceed 1 year.

Chapter IV Collective copyright management activities

Article 19 A right holder may conclude a collective management contract for copyright with a copyright collective management organization in written form, authorizing the organization to manage the copyright or copyright-related rights it enjoys according to law. Where the right holder meets the conditions for accession as stipulated in the articles of association, the copyright collective management organization shall conclude a collective management contract with the right holder and shall not refuse to do so. After concluding a copyright collective management contract with the copyright collective management organization and fulfilling the corresponding formalities in accordance with the articles of association, the right holder shall become a member of the copyright collective management organization.

Article 20 After concluding a copyright collective administration contract with a copyright collective administration organization, a right holder may not exercise or permit others to exercise the rights agreed upon by the copyright collective administration organization within the period stipulated in the contract.

Article 21 The right holder may withdraw from the collective copyright administration organization and terminate the collective copyright administration contract in accordance with the procedures stipulated in the articles of Association. However, where a copyright collective administration organization has concluded a license contract with another person, the contract shall remain valid before the expiration of the term; During the term of validity of the contract, the right holder shall have the right to receive the corresponding royalty and have access to the relevant business materials.

Article 22 Foreigners and stateless persons may, through similar overseas organizations that have concluded mutual representation agreements with Chinese collective copyright administration organizations, authorize Chinese collective copyright administration organizations to manage their Copyrights or copyright-related rights lawfully enjoyed within the territory of China.

The mutual representation agreement mentioned in the preceding paragraph refers to an agreement between a collective copyright administration organization in China and a similar organization outside China to authorize each other to carry out collective management activities in the country or region in which they are located.

Mutual representation agreements concluded between collective copyright administration organizations and similar overseas organizations shall be reported to the copyright administration department under The State Council for the record, which shall be announced by the copyright administration department under The State Council.

Article 23 Where a copyright collective management organization permits others to use a work, sound recording or video recording product, etc. under its management, it shall conclude a license contract with the user in written form. Copyright collective management organizations shall not conclude exclusive licensing contracts with users. If a user requests a license contract with a collective copyright administration organization on reasonable terms, the collective copyright administration organization shall not refuse. The term of the license contract shall not exceed 2 years; The contract may be renewed upon expiration.

Article 24 Copyright collective management organizations shall establish rights information inquiry systems for rights owners and users to inquire. The rights information inquiry system shall include the types of rights managed by the collective copyright management organization, the names of works, sound recordings and video products, the names or names of the right holders, and the term of authorization management.

When the right holder and user inquire about the information of the rights under the management of the collective copyright administration organization, the organization shall give a reply.

Article 25 In addition to the royalties to be paid as provided for 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, copyright collective administrative organizations shall agree with users on the specific amount of royalties to be collected in accordance with the standards for collecting royalties announced by the copyright administrative department under The State Council.

Article 26 Where two or more collective copyright administration organizations collect royalties from the same user for the same use mode, they may, through consultation in advance, determine that one of the collective copyright administration organizations shall collect the royalties uniformly. The uniformly collected royalties shall be distributed among the relevant copyright collective management organizations through consultation.

Article 27 In paying royalties to the collective copyright administration organization, a user shall provide the title of the work, sound recording or video recording product, etc., the name or title of the right holder, and the mode, quantity and time of use. Except as otherwise agreed in the license contract.

Where the relevant usage information provided by the user involves the trade secrets of the user, the copyright collective management organization shall have the obligation of confidentiality.

Article 28 Copyright collective management organizations may use a certain percentage of the royalties collected as management fees to maintain their normal business activities.

The proportion of management fees extracted by copyright collective management organizations shall gradually decrease with the increase of royalty income.

Article 29 The royalties collected by a collective copyright administration organization shall, after extracting the management fees, be fully transferred to the right holder and shall not be diverted for other purposes.

Where copyright collective administrative organizations transfer royalties, they shall compile records of the transfer of royalties. The record of the transfer of royalties shall contain the total amount of royalties, the amount of management fees, the name of the right holder, the name of the work or sound recording or video recording product, the relevant usage information, the specific amount of the transfer of royalties to each right holder, and shall be kept for more than 10 years.

Chapter V Supervision of collective copyright management organizations

Article 30 Copyright collective management organizations shall establish financial and accounting systems and asset management systems according to 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 collective copyright administration organizations shall be subject to the supervision of the copyright administration department and the civil affairs department under The State Council.

Copyright collective management organizations shall, at the end of each fiscal year, prepare financial and accounting reports, entrust accounting firms to conduct audits according to law, and publish the audit results.

Article 32 Copyright collective management organizations shall keep records of the following matters for the right holders and users to consult:

(1) the licensed use of the work;

(2) collection and transfer of royalties;

(3) The withdrawal and use of management fees.

The right holder shall have the right to consult and reproduce the financial reports, work reports and other business materials of the copyright collective management organization; Copyright collective management organizations shall provide convenience.

Article 33 Where a right holder considers that a collective copyright administration organization is under any of the following circumstances, he may report it to the copyright administration department under The State Council:

(1) Where the right holder requests to join the copyright collective administration organization in accordance with the conditions for membership stipulated in the Articles of Association, or the member requests to quit the copyright collective administration organization in accordance with the procedures stipulated in the articles of association, and the copyright collective administration organization refuses;

(2) The collective copyright administration organizations fail to collect or transfer royalties, or fail to withdraw or use management fees in accordance with regulations;

(3) Where the right holder requests access to the records and business materials provided for in Article 32 of these Regulations, and the collective copyright administration organization refuses to provide them.

Article 34 A user may report to the copyright administration department under The State Council any of the following circumstances in the opinion of the collective copyright administration organization:

(1) The collective copyright administration organization refuses to conclude a license contract with the user in violation of Article 23 of these Regulations;

(2) The collective copyright administration organization fails to agree on the specific amount of royalties to be collected in accordance with the published standards for the collection of royalties;

(3) Where the user requests access to the records provided for in Article 32 of these Regulations and the collective copyright administration organization refuses to provide them.

Article 35 Where any citizen, legal person or other organization other than the right owner or user considers that a collective copyright administration organization has violated 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 or report, investigate the matter and handle it according to law.

Article 37 The copyright administration department under The State Council may exercise supervision over collective copyright administration organizations in the following ways, and shall keep records of the supervision activities:

(1) To check whether the business activities of collective copyright management organizations comply with the provisions of these Regulations and its articles of association;

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

(3) Sending representatives to attend important meetings such as the general assembly and the Board of directors of copyright collective management organizations.

Article 38 Copyright collective management organizations 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 any of the following circumstances, the copyright administration department under The State Council shall order the collective copyright administration organization to make corrections within a time limit:

(1) Failing to report the mutual representation agreement concluded with similar overseas organizations to the copyright administration department under The State Council for the record in violation of Article 22 of these Regulations;

(2) Failing to establish a rights information inquiry system in violation of Article 24 of these Regulations;

(3) The specific amount of the fee to be collected is not prescribed in accordance with the announced standards for the collection of the fee.

Where a collective copyright administration organization manages the rights of the right holder beyond the scope of its business, the copyright administration department under The State Council shall order rectification within a time limit, and the licensing contract concluded between the collective copyright administration organization and the user shall be invalid; If damage is caused to the right holder or user, civil liability shall be borne according to law.

Article 40 Where a collective copyright administration organization falls under any of the following circumstances, the copyright administration department under The State Council shall order it to make corrections within a time limit; If the party fails to make corrections within the time limit, the member assembly or the council shall be ordered to recall or dismiss the directly responsible person in charge according to the authority prescribed in these Regulations:

(1) refusing to conclude a collective copyright management contract with the right holder in violation of Article 19 of these Regulations, or refusing to withdraw from the organization as a member in violation of Article 21 of these Regulations;

(2) refusing to conclude a license contract with a user in violation of Article 23 of these Regulations;

(3) withdrawing management fees in violation of Article 28 of these Regulations;

(4) the transfer of royalties in violation of Article 29 of these Regulations;

(5) refusing to provide or providing false accounting books, annual budget and final account reports or other relevant business materials.

Article 41 Where a collective copyright administration organization fails to carry out collective copyright administration activities without justifiable reasons for more than six months from the date of the registration certificate issued by the Civil affairs department of The State Council, or suspends collective copyright administration activities for more than six consecutive months, the copyright administration department of The State Council shall revoke its collective copyright administration license, and the Civil Affairs department of The State Council shall revoke its registration.

Article 42 Where copyright collective management organizations engage in profit-making business activities, the administrative departments for industry and commerce shall ban them according to law and confiscate their illegal gains. If the case constitutes a crime, criminal responsibility shall be investigated according to law.

Article 43 Where, in violation of the provisions of Article 27 of these Regulations, a user is able to provide the relevant information of use but refuses to do so, or commits fraud in providing the relevant information of use, the copyright administration department under The State Council shall order it to make corrections; The collective copyright administration organization may suspend the license contract.

Article 44 Those who, without authorization, establish collective copyright administration organizations or branches, or engage in collective copyright administration activities without authorization, shall be banned by the copyright administration department under The State Council or the civil affairs department in accordance with the division of functions and duties, and their illegal gains shall be confiscated. If the case constitutes a crime, criminal responsibility shall be investigated according to law.

Article 45 Any functionary of a state administrative organ engaged in the examination, approval and supervision of a collective copyright administration organization in accordance with the provisions of these Regulations who neglects his duty, abuses his power or engages in malpractices for personal gain, if the case constitutes a crime, shall be investigated for criminal responsibility according to law; If the case does not constitute a crime, administrative sanctions shall be imposed according to law.

Chapter VII Supplementary Provisions

Article 46. Copyright collective management organizations established before the implementation of these Regulations shall, within three months from the date of the effective date of these Regulations, submit their articles of association, royalty collection standards, royalty transfer methods and other relevant materials to the copyright administration department under The State Council for examination and approval, and submit the mutual representation agreements concluded between them and similar overseas organizations to the copyright administration department under The State Council for the record.

Article 47 Where, in accordance with the provisions of Article 23, paragraph 2 of Article 32, or paragraph 3 of Article 39 of the Copyright Law, he uses a work of another person and fails to pay the royalties to the right holder in accordance with the provisions of Article 32 of the Regulations for the Implementation of the Copyright Law of the People's Republic of China, The royalties, together with the postage and relevant information about the use of the work, shall be delivered to the copyright collective administration organization in charge of the relevant rights, and the copyright collective administration organization shall transfer the royalties to the right holder.

The copyright collective management organization responsible for the transfer of royalties shall establish a system for inquiring about the use of works for the right holders and users to inquire about.

The copyright collective management organization responsible for the transfer of royalties may withdraw a management fee from the royalties received by it, which shall be halved according to the proportion of the management fee of the collective management organization determined by the general assembly of its members. In addition to the management fee, the copyright collective management organization shall not withdraw any other expenses from the royalties it receives.

Article 48 These Regulations shall come into force as of March 1, 2005.

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