Regulations on the Collective Administration of Copyright (Revised in 2013)

Order of the State Council of the People's Republic of China No. 645

December 7, 2013

(Promulgated according to the Order of the State Council of the People's Republic of China No. 429 on December 28, 2004; revised according to the the Decision of the State Council on Repealing and Amending Certain Administrative Regulations on January 8, 2011; and revised further according to Decision of the State Council on Revising Some Administrative Regulations on December 7, 2013.)

Chapter I General Provisions

Article 1 These Regulations are formulated in accordance with the Copyright Law of the People's Republic of China (hereinafter referred to as the Copyright Law) so as to regulate the collective administration of copyright, and facilitate both the copyright owners and other rights holders relating to copyright (hereinafter referred to as "right owners") to exercise their rights as well as for the users to use works.

Article 2 Collective administration of copyright, which is mentioned in these Regulations, means the following activities carried out by the organizations for collective administration of copyright in their respective own names upon authorization of the right owners, so as to exercise the owners' relevant rights in a centralized way:
1. Concluding a license contract of copyright or of the related rights with the user (hereinafter referred to as "license contract");
2. Charging royalties from the user;
3. Transferring royalties to the right owner;
4. Participating in litigation or arbitration, etc. involving copyright or the related rights.

Article 3 The organization for collective administration of copyright as mentioned in these Regulations means a private organization that is lawfully established for the benefit of the right owners, and conducts collective administration for the right owner's copyright or the related rights upon their authorization. An organization for collective administration of copyright shall be registered and carry out activities in accordance with these Regulations and other administrative regulations on registration and administration of social organizations.

Article 4 The rights prescribed in the Copyright Law which are difficult to be effectively exercised by the right owners themselves such as the right of performance, projection, broadcasting, lease, dissemination through information network, reproduction and other rights may be managed collectively by organizations for collective administration of copyright.

Article 5 The copyright administration department under the State Council shall take charge of the collective administration of copyright nationwide.

Article 6 Except for the organizations which are established under these Regulations for collective administration of copyright, no organization or individual may engage in the activities for collective administration of copyright.

Chapter II Establishment of Organizations for Collective Administration of Copyright

Article 7 Chinese citizens, legal persons or other organizations that lawfully enjoy copyright or the related rights, may initiate the establishment of an organization for collective administration of copyright.
For the establishment of an organization for collective administration of copyright, the following conditions shall be fulfilled:
1. There shall be not less than 50 right owners who initiate the establishment of the organization for collective administration of copyright;
2. The scope of business of the organization for collective administration of copyright shall not overlap with that of another lawfully registered organization for collective administration of copyright;
3. The organization for collective administration of copyright may represent the benefits of relevant right owners throughout the country;
4. The drafts of articles of association, royalty rates to be charged, and measures for transferring royalties to the right owners of the organization for collective administration of copyright shall be prepared (hereinafter referred to as royalty transfer measures).

Article 8 The articles of association of an organization for collective administration of copyright shall contain the following details:
1. name and domicile;
2. objectives of establishment;
3. scope of business;
4. organizational structure and the powers;
5. quorum of the general meeting;
6. duties of the committee, eligibility of the person-in-charge of the council, and the procedures for appointment or removal of the person-in-charge;
7. measures for drawing and using administrative fees;
8. conditions and procedures for membership or withdrawal;
9. procedures for amendment of the articles of association;
10. conditions and procedures for terminating the organization for collective administration of copyright, and disposition of the assets after the termination.

Article 9 Whoever applies for establishing an organization for collective administration of copyright shall submit to the copyright administration department under the State Council the materials that fulfill the conditions as prescribed in Article 7 of these Regulations. The copyright administration department under the State Council shall, within 60 days from the receipt of the materials, make a decision on whether to approve or reject the application. If it approves the application, it shall issue a permit for collective administration of copyright; if it rejects the application, it shall state the reason thereof.

Article 10 The applicant shall go through the registration procedure in the civil affairs department under the State Council in accordance with the relevant administrative regulations on registration and administration of social organizations within 30 days after the copyright administration department under the State Council issues a permit for collective administration of copyright.

Article 11 A lawfully registered organization for collective administration of copyright shall, within 30 days after the civil affairs department under the State Council issues a registration certificate, submit a duplicate of the registration certificate to the copyright administration department under the State Council for archival purposes; the copyright administration department under the State Council shall then release the duplicate registration certificate, the articles of association of the organization for collective administration of copyright, the royalty charging rates, and the royalty transfer measures.

Article 12 If an organization for collective administration of copyright is establishing a branch, it shall apply for approval from the copyright administration department under the State Council, and shall register with the civil affairs department under the State Council in accordance with the relevant administrative regulations on registration and administration of social organizations. If the branch is lawfully registered, the said organization shall submit a duplicate of the branch's registration certificate to the copyright administration department under the State Council for archival purposes, and the copyright administration department under the State Council shall announce the establishment of the branch.

Article 13 An organization for collective administration of copyright shall formulate its royalty charging rates based on the following factors:
1. time, method and area for the works, audio or video products, etc. to be used;
2. varieties of the rights;
3. extent of complexity for concluding the license contract and charging royalties.

Article 14 An organization for collective administration of copyright shall formulate its royalty transfer measures based on the circumstances of the use of the works or audio or video products, etc. of the right owners.

Article 15 Where the organization of collective administration of copyright revises its articles of association, it shall be subject to the review of the civil affairs department under the State Council according to law. The department of collective administration of copyright under the State Council shall make an announcement.


Article 16 In the event that the registration of an organization for collective administration of copyright is cancelled pursuant to the law, the organization shall no longer carry out any activity of collective administration of copyright as of the date when its registration is cancelled.

Chapter III Organizational Structure of the Organization for Collective Administration of Copyright

Article 17 The general meeting of an organization for collective administration of copyright (hereinafter referred to as the general meeting) shall hold the authority of this organization.
The responsibility to convene the general meeting under these Regulations shall remain with the committee. The committee shall, 60 days before the general meeting is convened, announce the time and place of the meeting and the matters to be deliberated. The members who are to be present at the general meeting shall enter their names 30 days before the general meeting is convened. If the members who enter their names to be present at the general assembly are less than the quorum prescribed in the articles of association, the committee shall announce the list of names for attending the general assembly, so that the members may supplement their names 5 days before the meeting is convened, and the general meeting shall be held by all the members who have registered their names to be present at the general assembly.
The general meeting may exercise the following powers:
1. Formulating and amending the articles of association;
2. Formulating and amending the royalty charging rates;
3. Formulating and amending the royalty transfer measures;
4. Electing and removing committee members;
5. Deliberating and approving the committee's work reports and financial reports;
6. Formulating internal management systems;
7. Deciding on royalty transfer plans and the proportion of administrative fee for the organization for collective administration of copyright to charge;
8. Deciding on other major issues.
The general meeting shall be convened once every year. An interim general meeting may be convened if it is proposed by not less than 10% of the members or by the committee. The decision made by the general meeting shall be adopted by a vote of more than a half of the members present at the meeting.

Article 18 An organization for collective administration of copyright shall set up a committee to be responsible for the general meeting, and to execute the decisions of the general assembly. There shall be no less than 9 members in the committee.
The term of each session of the committee shall be 4 years, and election shall be held for the next session if the current session expires. In special circumstances, the election for the next session may be held in advance or be postponed, provided that the extension shall not exceed 1 year.

Chapter IV Activities of Collective Administration of Copyright

Article 19 A right owner may conclude a written contract with an organization for collective administration of copyright for the collective administration of copyright, authorizing the organization to administer the copyright or the related rights which he lawfully enjoys. If the right owner meets the conditions prescribed in the articles of association for joining the organization for collective administration of copyright, the said organization shall not reject the right owner and shall conclude a contract for collective administration of copyright with the right owner.
After the right owner has concluded a contract with the organization for collective administration of copyright for the collective administration of copyright and has performed the corresponding formalities pursuant to the articles of association, he shall become a member of the organization.

Article 20 A right owner shall not, after concluding a contract for collective administration of copyright with the organization for collective administration of copyright, and within the time limit stipulated in the contract, exercise the rights that are stipulated in the contract to be exercised by the organization personally or by authorizing a third party.

Article 21 A right owner may withdraw from the organization or terminate the contract pursuant to the procedures prescribed in the articles of association. However, if the organization for collective administration of copyright has concluded a license contract with a third party, the said contract shall continue to be effective prior to the expiry of its duration; within the duration of validity of this contract, the right owner shall have the right to receive corresponding royalties and may refer to relevant business materials.

Article 22 A foreigner or stateless person may, through an overseas organization of the similar capacity which has concluded a reciprocal representation agreement with a Chinese organization for collective administration of copyright, authorize a Chinese organization for collective administration of copyright to administer his copyright or the rights related to copyright that he may lawfully enjoys inside China.
The reciprocal representation agreement mentioned in the preceding paragraph means an agreement under which a Chinese organization for collective administration of copyright and an overseas organization of the similar capacity reciprocally authorize each other to carry out collective administration activities within its country or region.
The reciprocal representation agreement concluded between an organization for collective administration of copyright and an overseas organization of the same kind shall be filed to the copyright administration department under the State Council for archival purposes, and the copyright administration department under the State Council shall announce such an agreement.

Article 23 An organization for collective administration of copyright shall conclude a written license contract with a user in the event of permitting the user to use the works, audio or video products, etc. under its administration.
An organization for collective administration of copyright is not allowed to conclude a contract of license for exclusive use.
If a user requests to conclude a license contract with the organization for collective administration of copyright with reasonable conditions, the organization for collective administration of copyright shall not refuse such request.
The duration of a license contract shall not exceed 2 years; and the contract may be renewed at the expiry of its duration.

Article 24 An organization for collective administration of copyright shall set up a system for inquiry of information on rights for the right owners and the users. The system for inquiry of information on rights shall include the categories of rights under administration of the organization, the names of the works, audio and video products, etc. and of the right owners, as well as the duration of authorized administration.
When a right owner or user inquires about the information on rights under administration of the organization for collective administration of copyright, the organization shall give a reply.

Article 25 Except for the royalties/remuneration payable as prescribed in Article 23, Paragraph 2 of Article 32, Paragraph 3 of Article 40, Paragraph 2 of Article 43, and Article 44 of the Copyright Law, an organization for collective administration of copyright shall negotiate with the user based on the royalty charging rates announced by the copyright administration department under the State Council, so as to stipulate the specific amount of chargeable royalties with the user.

Article 26 Where two or more organizations for collective administration of copyright charge royalties from the same user for the same use, they may negotiate in advance to determine which one of them shall charge the royalties all together. The royalties charged shall be distributed upon negotiations between the involved organizations for collective administration of copyright.

Article 27 A user shall, when paying royalties to an organization for collective administration of copyright, provide the title of the works, audio or video product, etc. in his use, the names of the right owners, the method of use, quantity, time and other relevant details on use; unless it is otherwise stipulated in the license contract.
Where the details provided by the user on the use involve the user's commercial secret, the organization for collective administration of copyright shall bear the duty to maintain the confidentiality.

Article 28 An organization for collective administration of copyright may draw a certain proportion from the charged royalties as its administrative fee, which shall be used for maintaining its normal business activities.
The proportion drawn by the organization shall gradually decrease with the increase of the income of royalties.

Article 29 The royalties charged by an organization for collective administration of copyright shall, after the administrative fees have been drawn, be totally transferred to the right owners, instead of being used for any other purpose.
An organization for collective administration of copyright shall compile royalty transfer records for transferring royalties. The royalty transfer records shall state the total amount of royalties, the amount of administrative fees, the names of the right owners, the titles of the works or audio or video product, etc., the relevant details on the use, the specific amount of the royalties transferred to each right owner, etc., and shall be preserved for ten years or longer.

Chapter V Supervision over Organizations for Collective Administration of Copyright

Article 30 Organizations for collective administration of copyright shall lawfully set up financial and accounting systems, as well as asset management systems, and shall also set up the accounting books according to the relevant provisions of the State.

Article 31 The utilization and financial management of the assets of an organization for collective administration of copyright shall be under the supervision of the copyright administration department and the department of civil affairs under the State Council.
An organization for collective administration of copyright shall, at the end of each accounting year, make a financial and accounting report, and engage an accounting firm to lawfully conduct the audit and release the auditing result.

Article 32 An organization for collective administration of copyright shall record the following information for the reference of the right owners and users:
1. information on license for use of works;
2. information on charging and transferring of royalties;
3. information on withdrawal and utilization of administrative fee.
A right owner shall have the right to consult and make copies of the financial reports, work reports and other business materials of the organization for collective administration of copyright; while the organization for collective administration of copyright shall offer the respective convenience.

Article 33 If a right owner finds that the organization for collective administration of copyright falls under any of the following circumstances, he may notify the copyright administration department under the State Council:
1. The right owner meets the conditions as prescribed in the articles of association for joining the organization for collective administration of copyright and requests for joining it, or a member requests to withdraw from the organization for collective administration of copyright pursuant to the articles of association, but the organization for collective administration of copyright refuses such request;
2. The organization for collective administration of copyright does not comply with the provisions to charge or transfer royalties or the withdrawal of utilization of the administrative fees;
3. When aright owner requests for the records or business materials as prescribed in Article 32 of these Regulations and is rejected by the organization for collective administration of copyright.

Article 34 If a user finds that the organization for collective administration of copyright falls under any of the following circumstances, he may make notify the copyright administration department under the State Council:
1. The organization for collective administration of copyright violates Article 23 of these Regulations by refusing to conclude a license contract with the user;
2. The organization for collective administration of copyright fails to stipulate the specific amount of the chargeable royalties according to the announced royalty charging rates;
3. When a user requests for the records prescribed in Article 32 of these Regulations, and is rejected by the organization for collective administration of copyright.

Article 35 Where any citizen, legal person or other organization besides the right owner right owners and the users considers that an organization for collective administration of copyright has violated any of these Regulations, he/it may notify the copyright administration department under the State Council.

Article 36 The copyright administration department under the State Council shall, within 60 days of receipt of the report or notification, investigate the matter and deal with it in accordance with the law.

Article 37 The copyright administration department under the State Council may supervise the organizations for collective administration of copyright in the following ways, and shall record the supervision activities:
1. Inspecting whether the business activities of the organizations for collective administration of copyright conform to these Regulations and their respective articles of association;
2. Checking the accounting books, annual budget reports, final accounting reports and other relevant business materials of the organizations for collective administration of copyright;
3. Sending its staff members to attend the important the general meetings, committee meetings, and other important meetings of the organizations for collective administration of copyright.

Article 38 The organizations for collective administration of copyright shall lawfully accept the supervision of the civil affairs department under the State Council and other relevant departments.

Chapter VI Legal Liabilities

Article 39 Where an organization for collective administration of copyright falls under any of the following circumstances, it shall be ordered by the copyright administration department under the State Council to make a correction within a time limit:
1. Violates Article 22 of these Regulations by failing to report the reciprocal representation agreement concluded with an overseas organization of the similar capacity to the copyright administration department under the State Council for archival purposes;
2. Violates Article 24 of these Regulations by failing to set up the system for inquiry of information on the rights;
3. Fails to stipulate the specific amount of the chargeable royalties according to the royalty charging rates announced.
In the event that an organization for collective administration of copyright administers the owners' rights out of the scope of its business, it shall be ordered by the copyright administration department under the State Council to make corrections within a time limit, and the license contract which it concludes with the user shall be ineffective; if it causes any loss to the right owners or the users, it shall bear civil liabilities in accordance with the law.

Article 40 In the event that an organization for collective administration of copyright falls under any of the following circumstances, it shall be ordered by the copyright administration department under the State Council to make corrections within a time limit; if it fails to make corrections within the time limit, the members of the general meeting or the committee shall be ordered to remove or dismiss the directly responsible person in charge pursuant to these Regulations:
1. Violates Article 19 of these Regulations by refusing to conclude a contract for collective administration of copyright with the right owner, or violates Article 21 of these Regulations by refusing a member's request to withdraw from this organization;
2. Violates Article 23 of these Regulations by refusing to conclude a license contract with the user;
3. Violates Article 28 of these Regulations for withdrawal of the administrative fee;
4. Violates Article 29 of these Regulations for the transfer of the royalties;
5. Refuses to provide or provides false accounting books, annual budget reports, final accounting reports or other relevant business materials.

Article 41 In the event that an organization for collective administration of copyright fails to carry out the activities of collective administration of copyright without any justifiable reason within 6 months as of the day when the civil affairs department under the State Council issues the registration certificate, or the activities of collective administration of copyright has been suspended for more than 6 consecutive months, the copyright administration department under the State Council shall revoke its permit for collective administration of copyright, and the civil affairs department under the State Council shall remove the organization from the register.

Article 42 In the event that an organization for collective administration of copyright engages in profitable business activities, it shall be banned by the administration department of industry and commerce in accordance with the law, and its illegal proceeds confiscated; if a crime is constituted, it shall be subject to criminal liability in accordance with the law.

Article 43 Where a user violates Article 27 of these Regulations by refusing to provide the information on its use when it is possible for him to do so, or by committing fraud when providing the relevant information on the use, he shall be ordered by the copyright administration department under the State Council to make corrections; the organization for collective administration of copyright may suspend the license contract.

Article 44 Whoever unlawfully establishes an organization for collective administration of copyright or a branch, or engages in the unauthorized activities of collective administration of copyright, shall be banned by the copyright administration department under the State Council or the department of civil affairs pursuant to their division of duties, and the illegal proceeds shall be confiscated; if any crime is constituted, criminal liabilities shall be imposed in accordance with the law.

Article 45 Where any functionary of a State administrative organ who engages in the examination, approval and supervision of organizations for collective administration of copyright under these Regulations neglects the duties, abuses the powers, or commits fraud for personal gains, if a crime is constituted, shall be subject to criminal liabilities in accordance with the law; if no crime is constituted, administrative sanction shall be imposed in accordance with the law.

Chapter VII Supplementary Provisions

Article 46 The organizations for collective administration of copyright which has been established before these Regulations comes into force shall, within 3 months as of effectiveness of these Regulations, report their respective articles of association, royalty charging rates, royalty transfer measures and other relevant materials to the copyright administration department under the State Council for checking, and shall also file the reciprocal representation agreements concluded with their respective overseas organizations of the similar capacity to the copyright administration department under the State Council for archival purposes.

Article 47 Whoever uses the works of any other person in accordance with Article 23, Paragraph 2 of Article 33 or Paragraph 3 of Article 40 of the Copyright Law, but has yet to pay the royalties to the right owners in accordance with Article 32 of the "Implementing Regulations of the Copyright Law of the People's Republic of China", shall submit the royalties along with the postage and the relevant information on the use of the works to the organization for collective administration of copyright which administers the related rights, and the organization shall transfer the royalties to the right owners.
The organization for collective administration of copyright which is responsible for transferring royalties shall set up a system for inquiry of information on the use of works for the right owners and users.
The organization for collective administration of copyright which is responsible for transferring royalties may draw administrative fees from the royalties it has charged. The administrative fees shall be drawn at half of the ratio of the collective administration organization's administrative fees as determined at the general meeting. Except for the administrative fees, the organization shall not draw any other fees from the royalties it has charged.

Article 48 These Regulations shall come into force as of March 1, 2005.