Decree No. 18/2014/NĐ-CP on remuneration regimes in the field of journalism and publishing

 

DECREE

Regulations on Royalty System in the Field of Journalism and Publishing

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Civil Code dated June 14, 2005;

Pursuant to the Press Law dated December 28, 1989 and the Law Amending and Supplementing Certain Provisions of the Press Law dated June 12, 1999;

Pursuant to the Intellectual Property Law dated November 29, 2005 and the Law Amending and Supplementing Certain Provisions of the Intellectual Property Law dated June 19, 2009;

On the basis of the Publishing Law 2012;

At the proposal of the Minister of Information and Communications,

The Government promulgates this Decree to regulate the royalty system for authors and copyright owners in the field of journalism and publishing.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree regulates the royalty system for authors and copyright owners for journalistic works (including printed newspapers, radio broadcasts, television broadcasts, online newspapers) and publications as stipulated in Clause 4, Article 4 of the Law on Publishing; remuneration for persons involved in tasks related to journalistic works and publications, collectors of materials, and providers of information serving the creation of journalistic works and publications.

Article 2. Applicability

This Decree applies to authors, copyright owners, journalists, reporters, editors, press agencies, publishers, and state agencies, organizations, and individuals related to journalistic works and publications.

Article 3. Explanation of Terms

1. Royalty is the amount of money paid by the user of the work to the author or copyright owner when the journalistic work or publication (hereinafter referred to as the work) is used.

2. Royalty Fund is the amount of money set aside by the user of the work according to regulations to pay royalties, remuneration, and other material benefits.

3. Remuneration is the amount of money paid by the user of the work to persons performing tasks related to the work as stipulated in this Decree.

4. Material benefits are the benefits that the author or copyright owner enjoys outside of royalties, including receiving complimentary books, newspapers, tickets to view the publication of the work, domestic and international awards...

1. The level of royalties and remuneration paid to the author or copyright owner and those participating in tasks related to journalistic works and publications shall be based on the type and quality of the work, the impact of the work on the economy and society, the contribution to the work, the provisions encouraging the creation of works in this Decree, and the regulations of the press agency using the work or the contract with the publisher for the publication of the work. The author's royalty level shall not be lower than the remuneration level for persons involved in the same type of work.

2. Authors of works for children, ethnic minorities, investigative reports; authors who write directly in foreign languages, Han people writing directly in ethnic minority languages, ethnic minorities writing directly in other ethnic minority languages; authors of works created under difficult and dangerous conditions, and other special cases shall enjoy higher royalties to encourage creativity.

3. Original works of creation and research shall be paid higher royalties than translated, adapted, revised, transformed, compiled, annotated, collected, and edited works. The author shall enjoy royalties according to the regulations of the user of the work when the work is used to create new works or translated into another language. For original works translated into another language to be published in different media formats or publications of the same press agency, the payment of royalties shall be carried out according to the regulations of each press agency.

4. When previously published works are reused, the author or copyright owner shall enjoy royalties according to this Decree and the regulations of the user of the work.

5. Works circulated internally without commercial purposes shall enjoy lower royalty rates than works of the same category with commercial purposes. The level of royalties shall be agreed upon between the author or copyright owner and the user of the work.

6. For co-authored works, the distribution ratio of royalties shall be agreed upon by the authors.

7. For journalistic works reprinted with citations from other press agencies that have agreed to share information according to copyright regulations, the royalties shall be decided through agreements between the press agencies.

8. Press agencies shall establish a royalty fund within the scope of the sources already defined.

The royalty fund shall be used to pay royalties to the author or copyright owner whose works are used; to pay remuneration and material benefits; to organize activities encouraging creativity, and shall not be used for other purposes.

9. For works of categories not specifically regulated in this Decree, the payment of royalties shall be agreed upon through a lump-sum contract between the user of the work and the author or copyright owner.

10. Within no more than 60 days from the date of publication of the work, the user of the work must fully pay the royalties to the author or copyright owner according to the regulations.

In cases where the press agency has contacted and notified at least three times the person entitled to royalties and remuneration but has not received a response, the royalties and remuneration shall be transferred to the next year's royalty fund.

11. Authors working under contracts with press agencies using the works, creating works beyond the assigned quota of the press agency, shall enjoy 100% of the royalties.

12. Persons within press agencies using the works performing tasks related to journalistic works beyond the assigned quota shall enjoy 100% of the remuneration.

Article 5. Complaints and Reports

The handling of complaints and reports regarding remuneration for literary works and fees in the field of journalism and publishing shall be carried out in accordance with the provisions of the law on complaints and reports.

Chapter II
REMUNERATION AND FEES FOR PRINTED NEWSPAPER AND ONLINE NEWSPAPER WORKS

Article 6. Subjects entitled to remuneration and fees for printed newspaper and online newspaper works

1. Authors or copyright owners whose works are used by news agencies.

2. Leaders of news agencies, editors, and those who participate in tasks related to journalistic works.

3. People collecting materials and providing information to serve the creation of journalistic works.

Article 7. Remuneration for printed newspaper and online newspaper works

1. The framework for remuneration for printed newspaper and online newspaper works is stipulated as follows:

2. The value of one unit of the remuneration coefficient equals 10% of the base salary applicable to officials, civil servants, public employees, and armed forces personnel (hereinafter referred to as the base salary).

For news agencies that self-finance their operations, the payment of higher-than-average remuneration based on the quality, genre, and remuneration coefficient framework shall be decided by the Chief Editor without exceeding the maximum coefficient in the remuneration framework.

3. Remuneration is calculated as follows:

Remuneration = Remuneration Coefficient x Value of one unit of the remuneration coefficient.

4. Other provisions

a) Authors of the lyrics, comic book scripts, and subtitles for Media works shall receive 20-50% of the remuneration of the work.

b) Authors of translations from foreign languages or ethnic minority languages into Vietnamese or vice versa shall receive 40-65% of the remuneration of the corresponding work in Vietnamese. The level of remuneration shall be decided by the Chief Editor.

c) Authors of works for children and ethnic minorities shall receive an additional 10-20% of the remuneration of the work to encourage creativity.

d) Vietnamese authors writing directly in foreign languages, Han people writing directly in ethnic minority languages, and ethnic minority authors writing directly in other ethnic minority languages shall receive an additional 30-50% of the remuneration of the work to encourage creativity.

đ) Authors of works created under difficult and dangerous conditions shall receive an additional amount equal to the remuneration of the work to encourage creativity.

e) For online newspapers, the remuneration and fees for information provided by readers shall be decided by the Chief Editor, except in cases where there are other agreements.

g) For interview articles, both the interviewer and the interviewee shall be paid remuneration according to the regulations of the news agency.

Article 8. Remuneration Fund

1. The remuneration fund of print and online news agencies is formed from the following sources:

a) Revenue from news activities;

b) Revenue from economic activities of the news agency;

c) Support and sponsorship from domestic and foreign organizations and individuals;

d) Support from the state budget (if any).

2. For news agencies that have not ensured operational costs, the managing authority has the responsibility to provide funds for the news agency to establish the remuneration fund based on the annual budget prepared in accordance with the following provisions:

Annual remuneration fund = Total remuneration payable for all issues of newspapers and magazines published in the year + Additional remuneration to encourage creative works + Fees.

- Total remuneration payable for all issues of newspapers and magazines in the year = Average remuneration coefficient per issue of newspapers and magazines x Value of one unit of the remuneration coefficient x number of issues of newspapers and magazines in the year.

- Additional remuneration to encourage creative works shall not exceed 30% of the total remuneration payable for all issues of newspapers and magazines published in the year.

- Total fees shall not exceed 50% of the total remuneration payable for all issues of newspapers and magazines published in the year.

3. For news agencies that self-finance their operations, the remuneration fund shall be decided by the news agency based on the financial balance of the unit.

Chapter III
REMUNERATION AND FEES FOR AUDIO AND VIDEO NEWS WORKS

1. Authors or copyright owners whose works are used by radio and television agencies.

2. Screenwriters, directors, musicians (excluding music from recorded tapes) - for radio.

3. Screenwriters, directors, cinematographers, film editors, musicians (excluding music from recorded tapes), artists - for television.

4. Leaders of radio and television agencies, announcers, editors, stage actors, film actors, and other types of performing artists, program directors, musical ensemble conductors, lighting designers, artistic assistants, sound directors and technical specialists, special effects cinematographers are entitled to remuneration.

1. The framework for remuneration for radio and television works is defined as follows:

2. The value of one unit of remuneration coefficient equals 10% of the base salary level.

3. Authors or copyright owners under Clause 1 of Article 9 of this Decree shall receive remuneration according to the defined remuneration framework.

4. Remuneration paid to authors or copyright owners under Clause 2 of Article 9 of this Decree is as follows:

a) For categories 1, 2, 3, 5, and 6 within the remuneration framework, authors or copyright owners shall receive remuneration equal to 20 - 30% of the corresponding category's remuneration rate;

b) For category 4 within the remuneration framework, authors or copyright owners shall receive remuneration equal to 50 - 150% of the corresponding category's rate;

c) For theatrical works and other performance art forms, authors or copyright owners shall receive remuneration equal to 50 - 70% of the remuneration rate prescribed by laws on remuneration for theatrical works and other performance art forms, as well as for film and video works.

5. Remuneration paid to authors or copyright owners under Clause 3 of Article 9 of this Decree is as follows:

a) For categories 1, 2, 3, 5, and 6 within the remuneration framework, authors or copyright owners shall receive remuneration equal to 50 - 100% of the corresponding category's remuneration rate;

b) For category 4 within the remuneration framework, authors or copyright owners shall receive remuneration equal to 100 - 200% of the corresponding category's rate;

c) For theatrical works and other performance art forms, film works, authors or copyright owners shall receive remuneration at the corresponding rate prescribed by laws on remuneration for theatrical works and other performance art forms, as well as for film and video works. The General Director (or Director) of the Television Station has the authority to pay higher remuneration to authors or copyright owners, but the total remuneration and fees must not exceed 20% for feature films and television dramas, and not more than 60% for documentary and educational films in the total production costs of the work (excluding television equipment costs).

6. Other provisions

a) Works broadcast multiple times on air shall receive remuneration as agreed upon in the contract.

b) For radio and television call-in shows, live radio programs, live television programs, and other unspecified categories in this Decree, the General Director (or Director) of Radio and Television Stations shall determine the remuneration and fees for authors or copyright owners and related individuals based on the nature and scale of the programs.

Article 11. Royalty Fund

1. The royalty fund for radio and television newspapers shall be formed from the following sources:

a) Revenue from news activities;

b) Revenue from economic activities of the news agency;

c) Support and sponsorship from domestic and foreign organizations and individuals;

d) Support from the state budget (if any).

2. For broadcasting stations and television stations that have not ensured operational costs, the managing authority shall be responsible for providing funds to establish the royalty fund based on the following budget:

Annual Royalty Fund = Total royalties payable in the year + Additional royalties aimed at encouraging creative works + Fees.

- Total royalties payable in the year = Average royalty per program x Total broadcast time of programs in the year.

- Additional royalties aimed at encouraging creative works shall not exceed 30% of the total royalties payable in the year.

- Maximum fees shall not exceed 70% of the total royalties payable in the year.

3. For broadcasting stations and television stations that self-fund their operations or operate under a special financial mechanism, the royalty fund shall be determined by the broadcasting station or television station based on the unit's financial balance.

Chapter IV
ROYALTIES AND FEES FOR PUBLICATIONS

Article 12. Recipients of royalties and fees for publications

1. Authors and copyright owners of publications shall be paid royalties by the agencies or organizations using the publications.

2. Collectors, editors, and providers of works, texts, and materials shall be paid fees by the agencies or organizations using the publications for:

a) Folk literary and artistic works;

b) Texts of state agencies, political organizations, socio-political organizations, social organizations, occupational social organizations, economic organizations, and translations of those texts.

3. Editors shall be paid fees by the agencies or organizations using the publications according to their contribution to the manuscript content.

Royalties and fees are included in the cost price of publications.

Article 13. Publication Royalties

Framework for payment of royalties: Royalties for publications are based on genre, quality, quantity, and percentages within the following royalty framework:

2. Agencies and organizations using publications and authors, copyright owners shall base on actual conditions and usage needs to agree on the calculation method and amount of royalties for the following types of publications:

a) Electronic publications as prescribed in Clause 9, Article 4 of the Law on Publishing 2012;

b) Publications with high theoretical, scientific, and practical value;

c) Publications transferring permanent ownership rights;

d) Other cases agreed upon voluntarily by both parties.

3. Other provisions

a) Proofreaders of translated works shall receive 5 - 30% of the royalties of the translated work depending on the degree and quality of proofreading.

If proofreading exceeds 30% of the translated work, the proofreader is considered a co-author.

b) Editors, collectors, providers of works, and materials shall receive fees according to agreements with agencies and organizations using the publications.

c) For publications classified as translations, adaptations, revisions, transformations, compilations, annotations, collections, agencies and organizations using the publications must obtain permission and pay royalties to the author of the original work. The amount of royalties shall be agreed upon by the agency or organization using the publication and the author or owner of the original work.

d) Authors of lyrics for songs and comic books shall receive 30 - 50% of the royalties of the publication.

e) For publications using state budget funds to serve political tasks, national defense security, foreign information, serving ethnic minorities, areas with extremely difficult socio-economic conditions, remote areas, mountainous regions, border areas, islands, children, and other important tasks, in addition to the royalties specified in Clause 1, Article 13 of this Decree, they shall also receive an additional 10 - 30% of the royalties of the publication.

f) Royalties for bilingual publications are 50% of the royalties of similar translated publications as specified in the royalty framework.

g) Royalties for reprinted publications shall receive 50 - 100% of the initial publication royalties and shall be calculated based on the new retail price.

h) In addition to royalties, authors shall receive 05 - 10 copies of the publication. In cases where there are multiple authors, the number of publications received by the authors or copyright owners shall be decided by the agency or organization using the publication.

i) Heads of agencies and organizations using publications shall specify the percentage of royalties and fees for publications as prescribed in this Decree.

Article 14. Method for Calculating Royalties

1. Royalties for publication products shall be calculated as follows:

Royalties = Percentage Rate x Retail Price of Publication Product x Number of Prints

Where:

a) The percentage rate (%) is the royalty payment ratio;

b) The retail price of the publication product is the price printed at the bottom of page 4 of the cover or the retail price recorded on the sales invoice of the publication product (for publication products without a marked retail price) at the time of payment of royalties to the author or copyright owner;

In case the retail price changes thereafter, unless otherwise agreed upon in the publication product usage contract, the retail price for calculating royalties remains unchanged;

c) The number of prints is the quantity specified in the work usage contract.

2. For publication products ordered by the State, royalties shall be calculated as follows:

Royalties = Percentage Rate x Production Cost x Number of Prints

Where:

a) The percentage rate (%) and the number of prints are as stipulated in Clause 1 of this Article;

b) The production cost is the total expenses of the publication product excluding distribution costs.

3. For non-commercial materials (internal circulation or free distribution), royalties shall be calculated as follows:

Royalties = Percentage Rate x Production Cost x Number of Prints.

4. For textbooks, exercise books, workbook books, teacher's books, and target program books according to the curriculum of the Ministry of Education and Training as specified in Item 12 of Group I of the royalty framework set forth in Clause 1 of Article 13 of this Decree, royalties shall be calculated as follows:

Royalties = Percentage Rate (%) x Basic Salary Level x Number of Teaching Hours as prescribed by the curriculum.

Chapter V
IMPLEMENTING PROVISIONS

Article 15. Effective Date

This Decree takes effect from June 1, 2014.

From the date this Decree takes effect, Chapters II, V, and VI of Decree No. 61/2002/NĐ-CP dated June 11, 2002 of the Government on the Royalty System shall cease to be effective.

Article 16. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under the Central Government, authors, copyright owners, and press agencies, publishers are responsible for implementing this Decree./.