Circular No. 326-BTT guiding the implementation of remuneration for political-social works, cultural-educational works, literary-artistic works, and scientific-technical works.

CIRCULAR

OF THE MINISTRY OF INFORMATION DECREE NO. 326/BTT ON AUGUST 15, 1989
GUIDELINES FOR IMPLEMENTING THE ROYALTY SYSTEM FOR
POLITICAL-SOCIAL, CULTURAL-EDUCATIONAL, LITERARY-ARTISTIC, AND SCIENTIFIC-TECHNOLOGICAL WORKS
BASED ON THE COUNCIL OF MINISTERS' DECREE NO. 59/HĐBT OF JUNE 15, 1989 ON THE ROYALTY SYSTEM FOR POLITICAL-SOCIAL, CULTURAL-EDUCATIONAL, LITERARY-ARTISTIC, AND SCIENTIFIC-TECHNOLOGICAL WORKS;

WITH THE AGREEMENT OF THE MINISTER OF LABOR, INVALIDS, AND SOCIAL AFFAIRS AND THE MINISTER OF FINANCE;

THE MINISTRY OF INFORMATION GUIDES THE IMPLEMENTATION OF THE ROYALTY SYSTEM FOR THE PUBLISHING, PRESS, DISTRIBUTION, AND TELEVISION INDUSTRIES AS FOLLOWS:

ROYALTIES FOR WORKS USED

PART I
IN PUBLICATION FORM
Authors whose works are used in publication form (hereinafter referred to as publications) shall be entitled to basic royalties, quantity royalties, and reprint royalties according to the following provisions:

1. Basic Royalty (BRB):

The basic royalty compensates for the creative labor in producing the work, commensurate with its quality and volume.

The basic royalty of a publication is calculated using the following formula:

- Retail price: is the price printed at the bottom of page 4 of the cover (or recorded on the sales invoice at the retail price at the time of calculating the author's royalties, if not yet printed at the bottom of page 4 of the cover). If subsequently, due to objective reasons, the retail price increases or decreases, the author will not receive additional or reduced royalties based on the already determined amount. For special-purpose publications, if they must be sold below the regular price to cover losses, when calculating royalties, they must be converted to the regular price.

Where:

- 7,000 copies: is the standard number of copies that, when multiplied by the retail price of one copy, ensures the basic royalty for the author.

If a publication is printed less than 7,000 copies, this calculation method does not apply, but rather the agreed-upon royalty rate (as directed in this circular) applies.

- Percentage rate: each type of book has a range of percentage rates for calculating the basic royalty. This range has a minimum and maximum level.

Based on the quality and economic-social effectiveness of the work, the user of the work will negotiate with the author about the percentage rate within the prescribed range to calculate the basic royalty.

2. Quantity Royalty (QR):

The quantity royalty is paid additionally for works used in quantities exceeding the standard number of copies.

The quantity royalty is calculated as a percentage of the basic royalty. From 7,001 copies onwards, every 1,000 copies are calculated as 4% of the basic royalty.

For textbooks specifically, from 7,001 copies onwards, every 1,000 copies are calculated as 2% of the basic royalty, up to a maximum of 40,000 copies (and must exclude the first 7,000 copies, i.e., only calculate the quantity royalty for 33,000 copies).

Calculation of the basic royalty and quantity royalty for a novel consisting of 200 pages, retail price of 1,200 VND per copy, printed in 10,000 copies, with excellent quality (10%).

Example 1:

BRB: 1,200 VND x 7,000 x 10% = 840,000 VND

QR:

- Number of copies subject to QR: 10,000 copies - 7,000 copies = 3,000 copies

- Every 1,000 copies are calculated as 4% BRB

- 3,000 copies are calculated as: 3,000 / 1,000 x 4% BRB = 12% BRB

- The QR amount is: 12% x 840,000 = 100,800 VND

The total amount of BRB and QR for the novel is 840,000 + 100,800 = 940,800 VND

3. Reprint Royalty (RR):

- After the initial print run has been completed for at least 12 months (counted from the date of submission for record keeping), if the publication is reprinted (by any publishing agency), the author shall be entitled to reprint royalties (including basic and quantity royalties). If the initial print run was not for commercial purposes and the subsequent print run is for commercial purposes, the author shall be entitled to the same royalties as the first print run.

- Publications reprinted before 12 months (by any publishing agency) are not considered reprint publications and only qualify for quantity royalties.

- The payment level for reprint royalties:

+ Basic royalty of reprint publications:

If the reprint publication is not revised or supplemented, the basic royalty of the reprint publication is calculated as 40% of the initial basic royalty calculation method.

If the reprint publication is revised or supplemented, depending on the extent of revision or supplementation, the basic royalty of the reprint publication is calculated from 41% to 80% of the initial basic royalty calculation method.

+ Quantity royalty of reprint publications:

From 7,001 copies onwards, every 1,000 copies are calculated as 4% of the initial basic royalty. Specifically for general education textbook reprints, depending on the extent of revision or supplementation, the author may receive from 10% to 40% of the initial basic royalty and quantity royalty, provided that previous print runs have not exceeded 40,000 copies.

(Note: The basic royalty and quantity royalty of reprint publications are calculated according to the initial calculation method, not based on the amount of the initial basic royalty and quantity royalty, because compared to the initial publication, factors such as the number of copies printed, the number of pages, and the retail price may fluctuate, making it impossible to use the initial royalty amounts as a basis for calculating reprint royalties.)

Calculation of reprint royalties for a novel based on Example 1.

Example 2: - Factors for the initial publication:

+ Consisting of 200 pages

+ Printed in 10,000 copies

+ Retail price of 1,200 VND per copy

- Factors for the reprint:

+ Printed in 12,000 copies

+ Printed in 10,000 copies

+ Retail price of 1,500 VND per copy

The reprint royalties for that book are:

BRB = (1,500 VND x 7,000 x 10%) = 1,050,000 x 40% = 420,000 VND

QR = 5,000 copies / 1,000 x 4% x 1,050,000 = 210,000 VND

Total reprint royalties:

420,000 VND + 210,000 VND = 630,000 VND

- For the same book, if reprinted before 12 months, only quantity royalties are calculated as follows:

QR: 12,000 copies / 1,000 copies x 4% x 1,050,000 = 504,000 VND.

4. Other Provisions:

a) For publications derived from original domestic works through translation, adaptation, parodies, or revisions, the original author shall be entitled to 25% to 30% of the total royalties of the translated, adapted, parodied, or revised work.

b) The author of the lyrics of songs, comic books, or photo stories shall be entitled to 25% to 30% of the total royalties of the work.

c) For publications intended for children and ethnic minorities, the author shall be entitled to an additional 10% to 20% of the total royalties of the work.

c) For children's publications and those serving ethnic minorities, the author shall receive an additional 10% to 20% of the total remuneration for that work.

d) For non-commercial publications of non-professional publishing agencies, the author shall be entitled to receive royalties not exceeding 90% of the basic royalty compared to commercial publications of the same type and shall not receive quantity-based royalties.

e) Vietnamese authors writing directly in foreign languages, Han Chinese authors writing in ethnic minority languages, or ethnic minority authors writing in other ethnic minority languages shall be paid an additional 50% to 80% of the total royalties.

g) Royalties shall not be paid for Party, State, and mass organizations' documents, laws, regulations, etc.; excerpts printed in publications.

h) Specifically, for textbooks and teaching materials with complex formats, publishers may apply the terms stipulated through negotiation with the author.

5. Royalty percentage framework:

Below is the royalty percentage framework for various types of publications. This framework applies only to color-printed publications on regular paper (such as Bai Bang paper, Soviet newspaper paper, Viet Tri paper, Tan Mai paper) and those printed in quantities of 7,000 copies or more.

Publications printed in quantities less than 7,000 copies or in multiple colors, on special paper, or using complex printing techniques shall be paid according to the agreed terms specified in Section 6 of this Circular.

The percentage framework for the above categories does not specify specific levels. The lowest percentage is applied to publications that meet quality requirements.

6. Royalties based on agreement:

Royalties based on agreement are paid according to the agreement between the author and the user of the publication, through an economic contract, applicable to the following types of publications:

a) Publications printed in quantities less than 7,000 copies:

In these cases, due to low print runs, the author only receives basic royalties and no quantity-based royalties. Basic royalties can be calculated as a percentage of the retail price multiplied by the actual number of copies printed or agreed upon as a specific amount. The payment of royalties based on the agreement must not be unreasonable in relation to the author's creative labor and should not excessively impact the economic efficiency of the publication user, while also not affecting the purchasing power of the publication consumer.

b) For publications with too many authors or too many types: single, double, triple, quadruple framed paintings; calendar sheets, label calendars, butterfly calendars, butterfly music, music tapes, record albums, couplets, book covers, illustrations in books, prefaces, comments, or introductions in publications not written by the publication's author, annotations in books, textbooks with many fonts and drawings, different font sizes, or many excerpts from works, translations of song lyrics; publications printed on special paper with complex printing techniques, translations of books co-authored with foreign countries. These types of publications are very difficult to calculate royalties as a percentage of the retail price, thus the method of paying royalties based on agreement between the author and the publication user is applied. Royalties can be paid individually to each author in the publication or for the entire publication. Royalties based on agreement are only one type and do not separately calculate basic and quantity-based royalties.

When reprinting the types of publications mentioned in items a and b above, royalties based on agreement shall also be applied.

Example 3: Calculate the royalties for an author who draws the cover of a 200-page book priced at retail for 1,200 VND per copy.

Book cover royalties are calculated based on the retail price of 3,000 to 5,000 pages of books.

Retail price per page:

1,200: 200 pages = 6 VND per page

Therefore:

+ High-quality book cover: 3,000 pages x 6 VND = 18,000 VND

+ Good book cover: 4,000 pages x 6 VND = 24,000 VND

+ Excellent book cover: 5,000 pages x 6 VND = 30,000 VND

From the book cover royalties, calculate the royalties for other publications using the following coefficients:

- Coefficient 1:

Cover design, calendar sheets, wall-mounted calendars, couplets, slogans.

- Coefficient 2 to 5:

Postcards, loose photos (6x9 cm, 9x12 cm...).

- Coefficient 6: Single painting

- Coefficient 9: Double painting

- Coefficient 12: Triple painting

- Coefficient 15: Quadruple painting

- Coefficient 6 to 9: Photo for wall-mounted calendar sheet

- Coefficient 0.40 to 1: Photo for pocket calendar, butterfly calendar, calendar book, desk calendar, supplementary material in publications.

- Coefficient 0.10 to 0.25: Illustrations in publications (if colored illustrations, additional payment may be made. If simple illustrations, reduced payment may be given).

Example 4: The highest rate for one piece of fine art or photography publication is as follows:

- Single painting: 30,000 VND x 6 = 180,000 VND

- Double painting: 30,000 VND x 9 = 270,000 VND

- Triple painting: 30,000 VND x 12 = 360,000 VND

- Quadruple painting: 30,000 VND x 15 = 450,000 VND

- GENERAL PROVISIONSFor wall-mounted calendar sheets: from 180,000 VND to 360,000 VND

- Illustrations: from 3,000 VND to 7,500 VND (i.e., 10% to 25% of the book cover).

- GENERAL PROVISIONSFor pocket calendar, butterfly calendar, calendar book, desk calendar, supplementary material in publications: from 12,000 VND to 30,000 VND (i.e., 40% to 100% of the book cover).

If the quality is good, the royalties will be approximately two-thirds; if the quality meets the requirements, it will be approximately half of the aforementioned amount.

The above are some references for determining the payment of royalties according to agreement for publications. In practice, the amount of royalties shall be determined based on specific circumstances and mutual agreement between the publication user and the author. The agreed royalty rate may differ from the examples provided but should not be excessively high or low.

7. Time limit for paying royalties:

Within sixty days from the date of submission for recordation in accordance with the regulations of the publication, the publication user must pay all royalties to the author.

If payment is delayed, the publication user must obtain the author's consent.

In addition to royalties, the author of the publication (regardless of whether it is creative writing, compilation, or translation...) shall receive ten copies. If the publication has eleven or more authors, each author shall receive one copy.

PART TWO
IN PUBLICATION FORM
UNDER THE FORM OF PRESS

(Printed newspapers, magazines, radio, television)

I. FOR PRINTED NEWSPAPERS AND MAGAZINES

A. Provisions on the index among different genres:

Authors whose works are used by press agencies shall enjoy royalties according to the following indexes depending on the genre:

B. Standards and quality coefficients:

Works used by press agencies shall be evaluated for quality according to the scale:

Level 1, coefficient 1: work meets requirements.

Level 2, coefficient 2: work is good.

Level 3, coefficient 4: work is excellent.

C. Regulations on establishing the royalty fund:

1. Royalty fund for printed newspapers:

Where:

Total revenue = Number of newspapers published multiplied by (x) retail price.

- The percentage rate for setting up the royalty fund ranges from 1-5%.

- For newspapers with circulation under 10,000 copies, the number is multiplied by 10,000 copies.

- For magazines with circulation under 5,000 copies, the number is multiplied by 5,000 copies.

Newspaper and magazine royalty expenses are included in cost price.

- For works used in newspapers that are not listed in the genre classification and index table, the payment shall be made according to the mutual agreement between the press agency and the author.

- For those responsible for special sections, programs, or other tasks such as layout design, proofreading... the royalties shall be paid according to the mutual agreement between the press agency and the collaborator.

- Works published in multiple installments shall be counted once for royalties according to the genre and overall quality of the work.

- Authors who write lyrics for comic strips, picture stories, or songs shall receive from 25% to 30% of the picture story or song royalty rate.

- Works translated from foreign languages or minority ethnic languages into Vietnamese shall receive royalties ranging from 25% to 50% of the corresponding Vietnamese language genre rate.

- Works translated from Vietnamese into foreign languages, from one minority ethnic language to another, or from Vietnamese to a minority ethnic language shall receive royalties ranging from 60% to 70% of the corresponding Vietnamese language genre rate.

- Works already used by press agencies, if reused or used in other formats such as books, exhibitions... when reprinted in newspapers shall receive newspaper royalties (except for cases broadcast on radio and television which do not require payment of royalties - point 4, Article 3 of the Law on Copyright).

- Photographers of color photographs shall receive an additional 70% of the basic black and white photograph royalty.

- GENERAL PROVISIONSReproduced photographs, reproduced drawings from archives, exhibits, books, and other information publications, or works previously used by press agencies and now reused shall receive newspaper royalties.

D. Reward system:

In addition to the royalties paid for creative labor, the General Editor may consider awarding quality bonuses periodically monthly or quarterly to outstanding works with significant impact. The bonus is drawn from the royalty fund.

The reward system applies to both works within and outside the regular workload of reporters and editors in the press agency's staff.

E. Encouragement system:

In addition to royalties, press agencies can allocate part of the royalty fund to encourage difficult, complex, or dangerous topics, children's topics, and ethnic minority topics.

- Reporters belonging to the press agency's staff shall receive royalties for news and articles beyond their assigned workload at the same rate as external authors whose works are used.

- Official documents, texts from state agencies, Party organizations, mass organizations, professional associations, speeches, and statements at rallies and meetings when published in newspapers do not require payment of royalties.

- For artistic photographs published on the cover or large supplements, and photographs taken according to the content and artistic requirements of the press agency, the royalties shall be paid according to the mutual agreement between the press agency and the author.

II. FOR RADIO AND TELEVISION

1. Royalty fund for radio and television programs

Where:

a) According to the first method:

- Single price of royalties like newspapers: Central Radio and Television calculate according to the single price of the People's Daily newspaper royalties; regional and provincial radio and television stations calculate according to the single price of the provincial or municipal party committee newspaper royalties.

- Performance royalties for radio:

+ From 20% to 30% for genres in the press category.

+ From 30% to 60% for genres in the literature and arts category.

- Performance royalties for television:

+ From 50% to 100% for genres in the press category.

+ From 100% to 150% for genres in the literature and arts category.

b) By the second method: Remuneration for radio and television programs can be calculated as a percentage of the total budget allocated. The percentage for establishing the remuneration fund of central radio and television stations shall be agreed upon by the Ministry of Finance; that of local radio and television stations shall be agreed upon by the Department of Finance.

2. The beneficiaries of remuneration are as follows:

- For radio:

+ Categories belonging to the press form, individuals who present their works through their voice on air (excluding announcers).

+ Literary and artistic categories: directors, music (excluding recorded music portions).

- For television:

+ Categories belonging to the press form, individuals who present their works through both their voice and image on air (excluding announcers).

+ Literary and artistic categories: directors, cinematographers, music (excluding recorded music portions), fine arts, technical effects.

3. For categories not included in the classification table of print media or those with specific characteristics of radio and television, the Chief Editor may apply the following remuneration forms:

- A lump-sum agreement form.

- An additional category classification table form.

4. All provisions regarding standards and quality scales, reward systems, incentive systems, management systems, and items within other provisions for print media shall also apply to radio and television.

This Circular takes effect from July 1, 1989.

During implementation, any difficulties encountered should be promptly reported to the Ministry of Information for resolution.