System of “Temporary Payment” to be Established to Prevent Users from Infringement. Rate of Royalty for Copyright Users Shall be Reported to TIPO.

　The Executive Yuan on March 26, 2008 passed the draft amendment, “Statute of Collective Management Organization of Copyright” (著作權集體管理團體條例).  According to this amendment, the rate of royalty for using copyrighted works under management by intermediary organizations shall be “reported” instead of “examined” as originally prescribed.  Also, a system of “temporary payment” is to be established and added to prevent users from getting involved in copyright infringement. 

　“Copyright Intermediary Organization Act” (著作權仲介團體條例) will be renamed as “Statute of Collective Management Organization of Copyright” (著作權集體管理團體條例).  To seek a resolution of the most common dispute of royalty rate between the collective management organizations and copyright users, the amendment provides that the collective management organizations shall in advance negotiate with users or take their opinions into consideration to decide on a rate of royalty, and the rate shall not be changed within 2 years after being practiced.

　When negotiating for and deciding on a rate of royalty, the collective management organizations shall take into considerations the following factors: users’ opinions, profits gained by users through the use of copyrighted works, use of copyrighted works for cultural, educational, or other public welfare purposes, or use for non-profit making purposes.  Use of copyrighted works for public welfare purposes would have a reduction in the rate of royalty. 

　This amendment also provides that collective management organizations should announce the rate of royalty by a public notice, carry it out 30 days after notice, and also report it to TIPO.  TIPO will intervene to examine the rate when and only when users raise an objection, if any, against the rate of royalty set by the collective management organizations.

　To avoid any possibility of infringement during the period of TIPO’s examination, users should in advance pay “temporary royalty” calculated in accordance with the originally prescribed rate, or in the amount originally agreed upon or set by the copyright competent authority.  The mechanism of “temporary royalty” is expected to exempt users from being alleged to commit intentional or malicious infringement and from bearing civil or criminal liabilities therefor. 

　With respect to the establishment of collective management organizations, this amendment permits a collective management organization to manage different categories of copyrighted works, provides a disqualification standard to regulate those organizations of inefficient operations, and to allow two or more organizations to share a unified charge system.  These reorganized policies are established to improve the working of collective copyright management and further to invigorate and simplify copyright authorization and alleviate users’ burden. (2008.03)

/CCS