Copyright fee of nearly 10 billion VND for 2 shows of BlackPink
On July 21, a working session between the Vietnam Center for Music Copyright Protection (VCPMC) and IME Music Company Limited (hereinafter referred to as IME Company - the show organizer) regarding the copyright implementation of the BlackPink show took place.
Minutes of meeting between IME Vietnam Company and VCPMC on July 21.
However, up to now, the two sides have not reached an agreement. In the working minutes, the representative of IME Vietnam Company said that this company is discussing with YG (the management company of the group BlackPink - PV) to request documents but it is not enough.
The company wants to discuss royalties and find a way to calculate them harmoniously so that both sides can reach a common point. Meanwhile, VCPMC wants IME Company to calculate specific ticket prices to come up with the most accurate calculation.
From there, VCPMC offers some options as follows:
Option 1 is calculated according to the rate table: 5% x 60% capacity (40,000 tickets) x average ticket price.
Option two is 5% x total revenue of 20,000 tickets.
Option three is: 20,000 tickets x ticket price x 5%.
These options have not been agreed upon by the BlackPink show organizers.
Minutes of the meeting between IME Vietnam Company and VCPMC on July 26.
During the working session on July 26, the two sides continued to discuss this issue.
IME Company presented difficulties and problems due to preparation for the performance, legal procedures, working with state management agencies, stage preparation, sound, lighting...
BlackPink's Born Pink concert in Hanoi is scheduled to take place on July 29 and 30 at My Dinh National Stadium. Currently, the crew including dancers, technical staff, and band have arrived in Hanoi, ready for the show.
This leads to delays in contacting VCPMC to finalize the copyright implementation plan for the program.
IME Company representative hopes VCPMC shares and sympathizes with this delay.
After reporting to the leadership, IME Company agreed to choose option 2: 5% x total revenue of 20,000 tickets.
The option chosen by IME Company is calculated as follows: 5% x (average ticket price x performance capacity of 20,000 tickets), that is 5% x (5,350,000 x 20,000) VND.
Thus, IME Company must pay 5 billion 350 million VND for one show and 10 billion 700 million VND for 2 shows of BlackPink in Hanoi.
After that, the representative of IME Company proposed that VCPMC support a reduction in the copyright fees for the above 2 shows and the representative of VCPMC agreed to support a reduction of 10-15% of the total value of the 2 shows.
Thus, the copyright fee for BlackPink's 2 concerts after being supported decreased from 9 billion 95 million VND to 9 billion 630 million VND.
Finally, VCPMC requested IME Company to report the results of the contract finalization plan before 3:00 p.m. on July 26.
On the afternoon of July 27, VCPMC sent a document requesting the revocation of BlackPink's performance license in Vietnam.
Immediately after receiving the above document from VCPMC, the Hanoi Department of Culture and Sports held a meeting with a number of relevant units on this issue.
However, VCPMC must provide evidence of the organizer's violations in order to revoke the license.
A representative of the Ministry of Culture, Sports and Tourism confirmed that they had received the document from VCPMC and would request relevant units to explain as requested by VCPMC.
Vietnamese company "complains" about VCPMC's copyright calculation
Regarding the disagreement about the copyright fees for ticketed music shows offered by VCPMC, recently 7 music production units in Vietnam sent a petition to the Ministry of Home Affairs, Ministry of Culture - Sports and Tourism, Ministry of Finance, Copyright Office, Vietnam Musicians Association - requesting the calculation of copyright fees by VCPMC.
Before the controversy between the BlackPink show organizers in Vietnam and VCPMC, many music show production companies in Vietnam disagreed with VCPMC's way of calculating copyright fees.
In the petition, the 7 units said that in 2018, VCPMC issued Decision No. 14/QD-TTBVQTGANVN (hereinafter referred to as Decision No. 14), on promulgating the Table of royalties for the use of music copyright.
The above units said that this decision provides an unreasonable calculation formula, not suitable for the country's economic development situation.
Specifically, 7 units said that VCPMC issued the calculation form without widely consulting the affected subjects. The formula that VCPMC gave was: 5% x 70% of the number of seats x average ticket price.
"With such calculation, VCPMC has intentionally pushed the royalty fee too high compared to developed countries.
For example: A music show at the National Convention Center (3,500 seats), with an average ticket price of about 1.8 million, with 20 songs performed, the fee is calculated as follows: 5% x (3,500x70%) x 1,800,000 VND = 220,500,000 VND.
"Thus, the organizing unit will have to pay copyright fees to VCPMC of about more than 10,000,000 VND/song, 25 times higher than the royalty fee that VCPMC and the organizing units agreed upon in previous contracts of 440,000 VND/song (including VAT)," the petition of 7 Vietnamese companies stated.
From these issues, the above 7 units proposed that the competent authorities request VCPMC to withdraw Decision No. 14.
At the same time, it is recommended that the competent State agency issue legal documents specifying the music copyright fee schedule in accordance with socio-economic life, ensuring the rights of all parties involved in collecting remuneration and royalties for using works, creating conditions for organizations/individuals to fulfill their obligations to pay copyright fees in accordance with regulations.
After 20 years of establishment (2002-2021), VCPMC said it has collected 1,063.2 billion VND in copyright fees for music authors.
In the latest development, the Ministry of Home Affairs has issued a document confirming that it has received petitions from 7 units producing music programs in Vietnam.
The Ministry of Home Affairs has forwarded the petition to the Ministry of Culture, Sports and Tourism and the Inspection Board of the Vietnam Musicians Association to consider and resolve the above issue.
Currently, the Ministry of Culture, Sports and Tourism and the Inspection Board of the Vietnam Musicians Association have not responded.
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