More than 100 KTVs in Shenzhen agreed to pay for music in a deal with the local branch of the Music Copyright Society of China (MCSC) recently, after a local KTV was sued over copyright infringement, a Daily Sunshine report said yesterday.
Shenzhen Tiannaicun KTV offered to pay 100,000 yuan (US$12,300) to the MCSC on Tuesday, three months after it was brought to court Jan. 23, the report said.
The MCSC, the plantiff, said the KTV had been using 20 songs without its approval and had not paid for the music. It claimed 200,000 yuan in compensation.
Du Baoping, head of the city's entertainment trade association, a major mediator in the lawsuit, said: "Using music is not free.lunch."
According to Du, most local KTV operators are aware of this, but don't know who to pay and how much.
According to national law, a dining hall, bar or cafe no bigger than 40 square meters in size needs to pay 0.025 yuan (US$0.003) per square meter each day while the fee is 0.02 yuan per square meter for those bigger than 40 square meters.
A KTV normally has to pay an annual fee of 100,000 yuan, or 300 yuan per day, which is the equivalent of the charge for a private room per night.
In June 2003, Crowne Plaza Shenzhen became the city's first hotel to pay for background music to the local branch of the MCSC.
The two signed an agreement, which allows the hotel the rights to use works by domestic and international composers as background music.
(Shenzhen Daily April 27, 2006)