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DECREE

REGULATIONS ON LOYALTIES AND REWARDS FOR CINEMATOGRAPHIC, ART, THEATRICAL WORKS AND OTHER FORMS OF ART PERFORMANCE

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

Pursuant to Civil Code dated June 14, 2005;

Pursuant to the Law on Intellectual property dated November 29, 2005 and Law on amendments to the Law on Intellectual property dated June 19, 2009;

At the request of the Minister of Culture, Sports and Tourism,

The Government promulgates the Decree regulating royalties and rewards for cinematographic, art, theatrical works and other forms of art performance.

Chapter I

GENERAL PROVISIONS

Article 1. Governing scope

This Decree regulates royalties and rewards for creation, exploitation and use of cinematographic, art, theatrical works and other forms of art performance according to the Law on Intellectual property.

Article 2. Regulated entities

This Decree applies to organizations and individuals creating, exploiting and using such works sponsored by state budget or organizations and individuals creating, exploiting and using the works with the copyrights thereon being owned by the State.

Article 3. Interpretation of terms

1. Royalties mean an amount of money paid to authors, owners of copyrights by organizations and individuals that exploit and use the works thereof (hereinafter referred to as the users)

2. Royalty incentive means an amount of money paid to authors or owners of copyrights by the users aimed at encouraging the creation of the works pertaining to topics and special cases as prescribed hereof.

3. Rewards mean an amount of money paid by the users to those who perform the tasks in connection with creation of works.

Article 4. Payment of royalties and rewards

1. Royalties and rewards shall be paid on the basis of negotiation between the users and authors or owners of copyrights. In case the works are ordered or bid by the State, royalties and rewards shall be paid under the purchase order or bidding contract.

2. Level of royalties and rewards is determined on the basis of forms, quality, quantity and fashion of exploitation and socio-economic outcomes of the works.

3. Division of royalties and rewards among authors, co-owners of copyrights shall be based on negotiation or level of contribution to the creation of works.

4. Royalty incentives shall be paid to authors or owners of copyrights of the works intended for children and ethnic minorities; Vietnamese persons who create works in foreign language or in ethnic minority languages; ethnic persons who create works in other ethnic minority languages or create works in difficult and dangerous conditions and other special cases.

5. In case original works are used in the form of derivatives, the authors or owners of copyrights thereof shall enjoy part of the total royalties when derivative works are exploited and used.

6. Organizations and individuals using state-budget based budget shall carry out formulation, payment and settlement of the budget for payment of royalties, rewards within the scope of state-budget based budget, receipts from public service activities, receipts from permission for use of state-owned works allocated to management units, sponsorships from organizations and individuals, and other lawful receipts according to law provisions.

Chapter II

ROYALTIES AND REWARDS FOR CINEMATOGRAPHIC WORKS

Article 5. Royalties for cinematographic works

Royalties for cinematographic works (feature films, documentaries, scientific films, newsreel, and cartoons) regardless of recording materials shall be paid to positions involved in the creation of cinematographic works by percentage (%) of the approved production cost on the basis of genres and quality.

1. Feature films

2. Documentaries, scientific films

3. Newsreel

4. Cartoons

Article 6. Other regulations on royalties and rewards for cinematographic works

1. In case a screenplay is adapted from a literary, theatrical work or other works of similar forms, the screenwriter thereof shall enjoy from 60-70% of the royalties for screenwriting of the same genre as prescribed in Article 5 hereof. The remaining part shall be paid to authors or owners of copyrights of the work used for adaptation.

2. Authors of cinematographic works intended for children, ethnic minorities shall receive from 5-10% of the royalties for works of the same genre as royalty incentives.

3. The users shall pay rewards to actors, actresses, royalties and rewards to other positions as not prescribed in Article 5 hereof through an agreement.

4. In case a cinematographic work involves high production cost due to special requirements for equipment, materials or when film settings are made abroad, highest level of royalties, rewards shall not exceed twice the level of royalties, rewards for a cinematographic work with average production cost approved by competent agencies.

Chapter III

ROYALTIES FOR ART, PHOTOGRAPHIC WORKS

Article 7. Royalties for art works

1. The users shall negotiate with authors or owners of copyrights on level of royalties but not in excess of prescribed levels as follows:

a) For works valued up to VND 10,000 million

b) For works valued over VND 10,000, level of royalties is same as royalties of the works valued VND 10,000 million plus one percent (1%) of value of the works valued over VND 10,000 million.

2. In case the author just performs a sample painting which does not constitute a complete work, the author shall enjoy from 50-70% of the level of royalties as prescribed in Clause 1 of this Article. The remaining part shall be paid to others who complete the work on the basis of such sample painting.

3. Authors of derivative art works shall enjoy from 40 - 55% of the level of royalties as prescribed in Clause 1 of this Article. The remaining part shall be paid to authors or owners of copyrights of original works.

Article 8. Royalties for art, photographic works used for display, exhibition

1. Users of art, photographic works for display, exhibition shall pay royalties to authors or owners of copyrights thereof as follows:

Unit: Basic pay

2. In case art, photographic works are used for display and exhibition in charitable events, festivals, exchanges or other non-commercial activities, level of royalties shall be negotiated with authors or owners of copyrights thereof.

Chapter IV

ROYALTIES AND REWARDS FOR THEATRICAL WORKS AND OTHER FORMS OF ART PERFORMANCE

Article 9. Payment of royalties, rewards for theatrical works and other forms of art performance

Users of theatrical works and other forms of art performance shall negotiate with authors or owners of copyrights on level of royalties, rewards according to prescribed range of royalties, rewards or percentage of performance revenues.

Article 10. Royalties and rewards under prescribed range of royalties, rewards

1. Royalties, rewards for theatrical works such as classical dramas, melodramas, plays, versified plays, folk-song plays, pantomimes, and puppetry shall be paid as follows:

Unit: Basic pay

2. Royalties, rewards for general art performance programs shall be paid to creators thereof on the basis of scale and quality as follows:

a) Indoor art performance programs:

Unit: Basic pay

b) Outdoor art performance programs, art parades, carnivals, festivals

Unit: Basic pay

c) Art programs performed in stadiums:

Unit: Basic pay

3. Royalties and rewards for dance works shall be paid based on scale and quality for creators thereof as follows:

a) Dance works performed by few people

Unit: Basic pay

b) Dance acts featuring facts, plots; poetry dances (dance works with four people and over involved)

Unit: Basic pay

c) Dances for dance suites

Unit: Basic pay

d) Dances for poetry dances

Unit: Basic pay

dd) Dances for ballets

Unit: Basic pay

e) Dances for circus, puppetry, plays, operas, dances accompanying songs, instrumentals, films, lively scenes...

Unit: Basic pay

4. Royalties, rewards for musical works shall be paid on the basis of scale and quality to composers thereof as follows:

a) Musical works intended for symphony orchestras or popular music orchestras

Unit: Basic pay

b) Musical works intended for concert hall instrumental music

Unit: Basic pay

c) Musical works for solo instruments

Unit: Basic pay

d) Pieces of vocal music

Unit: Basic pay

dd) Opera works

Unit: Basic pay

Article 11. Royalties and rewards according to performance revenues

Royalties, rewards shall be paid by percentage of performance revenues as follows:

1. For theatrical works such as classical dramas, melodramas, plays, versified plays, folk-song plays, pantomimes, puppetry and art programs:

a) Screenwriters enjoy from 4.2-6% of revenues;

b) Directors: from 3.5-5% of revenues;

c) Choreographers: from 0.85-1.25% of revenues;

d) Music composers (including composition, instrumentation and editing): from 1.4-2% of revenues;

dd) Conductors: from 0.7-1% of revenues;

e) Artist (including stage, costumes, and props...): from 2.1 – 3% of revenues;

g) Light designers: from 0.7 – 1% of revenues;

h) Sound designers: from 0.35 - 0.5% of revenues;

i) Authors of puppet acts, puppetry techniques, new puppets shall enjoy according to proportion stated in the contract;

2. For performances of dance works as prescribed in Clause 3, Article 10 hereof:

c) Choreographers: from 4.0 – 6% of revenues;

b) Screenwriter (including literary scripts, shooting scripts): from 1 – 1.5% of revenues;

c) Music composers (including composition, instrumentation and editing) enjoy from 0.4 - 6% of revenues;

d) Artist (including stage, costumes, and props...): from 1 – 2% of revenues;

3. For performances of musical works as prescribed in Clause 4, Article 10 hereof:

a) Authors of musical works: from 4 - 6% of revenues;

b) Composers of music accompanying songs with general use for concert hall orchestras, popular music orchestras or for piano accompaniment: from 1.22 – 1.8% of revenues;

c) Composers adapting musical works for concert hall orchestras, symphony orchestras, popular music instrumental orchestras or other forms of orchestra performances: from 1.4 – 2.1% of revenues;

d) Orchestra and choir conductors for genres of musical plays, operas, great chorus: from 0.8 - 1.2% of revenues;

4. For circus performances:

Unit: percentage of performance revenues

Article 12. Other regulations on royalties and rewards for theatrical works and other forms of art performance

1. In case a musical work includes music and lyrics, the author of music enjoys 70% and the author of lyrics 30% of the royalties for such musical work.

2. In case a theatrical work is adapted from a literary work, the person who performs adaptation (hereinafter referred to as the adapting author) enjoys from 50-70% of the royalties for the script writing of the work with genres and scale as prescribed in Article 10 hereof. The remaining part shall be paid to authors or owners of copyrights of original work.

3. In case a theatrical work of this form is adapted from theatrical works of other forms, the adapting author enjoys from 50-70% of the royalties for the script writing of the work with genres and scale as prescribed in Article 10 hereof. The remaining part shall be paid to authors or owners of copyrights of original work.

4. In case lyrics in operas, operet, oratorios and other similar forms are adapted from literary scripts, the adapting author enjoys from 30-40% of the royalties for the script writing of the work with genres and scale as prescribed in Article 10 hereof. The remaining part shall be paid to authors or owners of copyrights of the original work.

5. In case works of traditional art forms such as classical dramas, melodramas, plays, versified plays, folk-song plays, pantomimes, puppetry, symphonies, operas, ballets, works intended for children, ethnic minorities, the authors thereof shall receive royalty incentives valued from 10 – 20% of the royalties for the work of the same genre and scale.

6. Assistants to choreographer, director and conductor for theatrical works, musical works, dance works and general art performance programs shall receive a reward valued 20% of the royalties paid to such choreographer, director or conductor for the work of the same genre and scale.

7. Composers of music accompanying songs with general use for concert hall orchestra, popular music orchestra shall receive 30% of the royalties for the composer of such song.

8. Composers adapting songs for concert hall orchestras, symphony orchestras, popular music instrumental orchestras or other forms of orchestra performances shall receive 35% of the royalties paid to the composer of the song of the same genre and scale.

9. Symphony and choir conductors, conductors for musical works intended for symphony orchestra, popular music orchestra, concert hall instrumental orchestra, solo instruments with orchestra, ballets, chorus, multi-chapter chorus, cantata and other genres not prescribed in Article 10 hereof shall receive from 15 – 25% of the royalties paid to composers of the works of the same genre and scale.

10. Actors, actresses, performers, occupational titles of other art performance forms not prescribed in Articles 10 and 11 hereof shall be paid royalties and rewards through an agreement.

Chapter V

IMPLEMENTARY PROVISIONS

Article 13. Effect

This Decree takes effect since April 15, 2015.

Chapters I, III, IV, VII, VIII, IX and X of the Government's Decree No. 61/2002/NĐ-CP dated June 11, 2002 on royalties shall become invalid since the effective date of this Decree.

Article 14. Responsibilities

1. The Ministry of Culture, Sports and Tourism shall preside over and cooperate with relevant ministries, sectors in providing guidance and organizing the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of governmental agencies, presidents of People’s committees of central-affiliated cities and provinces, relevant organizations and individuals shall be responsible for executing this Decree.

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