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KTV Royalty Fee Finally Set
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Karaoke bar owners will pay up to of 12 yuan (US$1.50) per room a day to cover the copyright fees of music videos, according to the ultimate decision made by the National Copyright Administration on its websites.

A precise implementation date will depend on negotiations between the China Audio & Video Association, the Music Copyright Society of China and karaoke bar owners, an administration official said yesterday.

The administration said the fee can be adjusted according to the scale of the karaoke industry in different cities. The copyright fee will first undergo a trial in big cities, including Beijing, Shanghai and Guangzhou.

Zhu Nan, an official with the Shanghai's Karaoke Industry Committee, said the minimum charge had not been discussed yet by the Committee, but soon would be.

Zhu, also the general manager of a local karaoke bar, said the company will not pass the fee onto its customers until the policy is carried out.

Zhou Jing, a director of Haoledi Music & Entertainment Co, one of the city's biggest karaoke companies, said any price hikes for customers will depend on how much the company is charged.

The country has required KTV bars, shopping malls, hotels and other entertainment venues to pay copyright fees to music producers. However, most producers are yet to receive any benefits since the regulation has not been fully implemented.

The administration began collecting opinions in August on a standard copyright fee.

(Shanghai Daily November 10, 2006)

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