The State Council

Decree of the State Council of the People’s Republic of China

No. 429

Copyright Collective Management Regulations were adopted by 74th Standing Conference of the State Council on December 22, 2004. The
regulations are hereby promulgated and implemented as of March 1, 2005.

Minister of the State Council Wen Jiabao

December 28, 2004

Copyright Collective Management Regulations

Chapter I General Principles

Article 1

These regulations are formulated in accordance with the Copyright Law of the People’s Republic of China (hereinafter referred to as
“Copyright Law”) for the purposes of regulating copyright collective management activities, being convenient for the author and obligee
relating to copyright (hereinafter referred to as “obligee”) to use rights and for the users to use works.

Article 2

Copyright collective management in terms of these regulations means following activities of performing their rights on behalf of their
own name carried out by copyright collective management organizations authorized by the obligee.

1.

Conclude right license contract of copyright or right license contract that relating to copyright (hereinafter referred to as “right
license contract”) with the users;

2.

Collect charge for use from the users;

3.

Shunt charge for use to the obligee;

4.

Bring a lawsuit or submit a dispute involving copyright or rights relating to copyright and etc.

Article 3

Copyright collective management organization in terms of these regulations means the society established in accordance with laws for
the rights of the obligees, managing collectively the obligees’ copyright or the rights relating to copyright according to the authorization
of the obligee.

Copyright collective management organization should register and carry out their activities in accordance with the provisions of administrative
laws relating to the management of society registration and these regulations.

Article 4

The rights that are difficult for the obligees to perform effectively, such as the rights if performance, broadcast, rent, information
network propagation, copy and other rights, may be collectively managed by copyright collective management organization.

Article 5

Copyright management department of the State Council is responsible for nation-wide copyright collective management.

Article 6

Except for the copyright collective management organization established in accordance with the provisions of these regulations, none
organizations and individuals may be engaged in copyright collective management activities.

Chapter II The establishment of copyright collective management organization

Article 7

All Chinese citizens, legal persons or other organizations enjoying copyright or the right relating to copyright may initiate to establish
copyright collective management organization.

To stablish copyright collective management organization should meet with following requirements:

1.

The obligees initiating to establish the copyright collective management organization should not be less than 50;

2.

The business scope should not cross and mix with the business scope of copyright collective management organizations that have already
registered in accordance with laws.

3.

May represent the interests of relevant obligees nationwide;

4.

Have draft regulations, draft standard of collecting charge for use and measures on shunting charge for use to the obligees (hereinafter
referred to as “charge for use shunting measures”) of copyright collective management organization.

Article 8

The regulations of copyright collective management organization should include following information:

1.

Name and residence;

2.

Purpose of establishiment;

3.

Business scope;

4.

Organization structure and its functions and power;

5.

Minimum numbers of the membership plenary session;

6.

Duties of the executive council, the requirements of the person responsible for the executive council and the procedures of arising
and dismissing of the person responsible for the executive council;

7.

Ways of drawing and using management fee;

8.

The requirements and procedures of joining and withdrawing from copyright collective management organization;

9.

The procedures of revising the regulations.

10.

The requirements and procedures of terminating a copyright collective management organization and property settlement after termination.

Article 9

Whoever applies for establishing copyright collective management organization should submit the materials stipulated by Article 7
of these regulations to copyright management department of the State Council. The copyright management department of the State Council
should make the decision whether or not to approve it within 60 days at the receipt of the materials. Copyright collective management
license should be issued to those who get the approval, and reasons should be given to those who do not get the approval.

Article 10

The applicant should go through the registration formalities in the department of civil affairs of the State Council in accordance
with the administrative laws and regulations relating to registration management of social organizations within 30 days at the day
when the copyright management department of the State Council issues him copyright collective management license.

Article 11

Copyright collective management organization registering in accordance with laws should submit its copy of registration certificate
to copyright management department of the State Council for the record within 30 days at the receipt of the registration certificate
issued by the department of civil affairs of the State Council. Copyright management department of the State Council should publish
the submitted copy of registration certificate and the regulations of copyright collective management organization, standard of collecting
the charge for use, measures on shunting the charge for use by announcement.

Article 12

Copyright collective management organization establishes branch organization should be approved by copyright management department
of the State Council and go through registration formalities in the department of civil affairs of the State Council in accordance
with administrative laws and regulations relating to society registration management. Whoever has registered in accordance with laws
should submit the copy of registration certificate of the branch organization to copyright management department of the State Council
for the record and the copyright management department of the State Council publish it by announcement.

Article 13

Copyright collective management organization should work out the standard of collecting the charge for use in accordance with following
factors:

1.

Time, ways and area range of using works, audio and video products and etc.;

2.

Variety of rights;

3.

Degree from complication to simplicity of concluding the contract of using the license and collecting the charge for use.

Article 14

Copyright collective management organization should work out measures on shunting the charge for use according to the information
of the obligee’s use of works or audio and video products and etc..

Article 15

If any copyright collective management organization revises its regulations, it should submit the draft of regulations revision to
copyright management department of the State Council for approval. Copyright management department of the State Council should publish
it by announcement after the verification and approval of civil affairs department of the State Council in accordance with laws.

Article 16

If the registration of any copyright collective management organization is cancelled in accordance with laws, it must not be engaged
in copyright collective management business as of the day of cancellation.

Chapter III Organ of copyright collective management organization

Article 17

Membership conference of copyright collective management organization (hereinafter referred to as “membership conference”) is the
power organ of copyright collective management organization.

Membership conference is convened by Board of Directors in accordance with these regulations. Board of Directors should publish the
time, place of the conference and issues put forward for discussion 60 days before the opening of the conference. The members that
attend the membership conference should put their names down 30 days before the opening of the conference. If the members that put
their names down for the conference are fewer than the minimum number stipulated by the regulations, the board of directors should
publish the membership numbers that plan to attend the conference, and other members may make supplementary signing up 5 days before
the conference. The conference should be held by all the members entering their names to the conference.

Membership conference performs following official functions:

1.

Formulate and revise the regulations;

2.

Work out and revise the standard of collecting the charge for use;

3.

Work out and revise the measures to shunt the charge for use;

4.

Elect and dismiss directors;

5.

Consider and approve work and financial report of the board of directors;

6.

Formulate inner management rules;

7.

Decide the plan of shunting charge for use and the proportion of management fee drawn by copyright collective management organization;

8.

Make decisions about other important issues.

Membership conference is held annually. On the motion of more than 10 percent of the members or the board of directors, temporary
membership conference may be held. Any decisions made at the membership conference should be passed by more than half of the members
that attend the conference.

Article 18

The board of directors established in copyright collective management organization should be accountable to the membership conference
and execute the decision of the conference. The members of the director board must not be fewer than 9.

The term of the director boarder is 4 years. Re-election should be made at the expiration of the term. Re-election may be made in
advance or put off for special reasons, but the extension of re-election should not exceed 1 year.

Chapter IV Copyright collective management activities

Article 19

Obligee may conclude copyright collective management contract in writing with copyright collective management organization, authorize
the organization to manage the copyright or the rights relating copyright that the obligee enjoys in accordance with laws. If the
obligee meets the requirements of the regulations to join the organization, copyright management organization should conclude copyright
collective management contract with him, must not refuse him.

Obligee becomes a member of copyright collective management organization as soon as he concludes copyright collective management contract
with copyright collective management organization and perform corresponding formalities in accordance with the provisions of the
regulations.

Article 20

After signing copyright collective management contract with copyright collective management organization, the obligee must not perform
or allow others to perform the rights agreed in the contract that should be performed by copyright collective management organization
within the contracted term.

Article 21

Obligee may withdraw from copyright collective management organization and terminate copyright collective management contract according
to the procedures stipulated by the regulations. But if copyright collective management organization has conclude license contract
with others, the contract is still effective before the expiration of the term. Within the term of validity, the obligee has the
right to obtain corresponding charge for use and may look up related business materials.

Article 22

Foreigners and persons who have no nationalities may authorize Chinese copyright collective management organization to manage their
copyright and rights relating copyright that they enjoy in the territory of China through similar organization abroad that has concluded
mutual agency agreement with Chinese copyright collective management organization.

Mutual agency agreement in terms of above paragraph means the agreement that Chinese copyright collective management organization
and similar organization abroad authorize each other to carry out collective management in the country or area that it locates.

Mutual agency agreement concluded between copyright collective management organization and similar organization abroad should be submitted
to copyright management department of the State Council for the record and announced by copyright management department of the State
Council.

Article 23

If copyright collective management organization allow others to use the works, audio and video products that it managed, it should
conclude license contract in writing with the users.

Copyright collective management organization must not conclude exclusive license contract with the users.

If the user asks for concluding license contract with copyright collective management organization at reasonable requirements, copyright
collective management organization must not refuse them.

The term of license contract must not exceed two years. The term of license contract may be renewed at the expiration of it.

Article 24

Copyright collective management organization should establish right information consultation system for the obligees and users to
look up the information. Right information consultation system should include variety of rights managed by copyright collective management
organization, the names of works, audio and video products, obligee’s name and authorized management term.

When obligee and the users consult the right information managed by copyright collective management organization, the organization
should answer them.

Article 25

Apart from paying the charge for use in accordance with Article 23 , Article 32 , Section 2, Article 39 Section 3, Article 42 Section
2 and Article 43 of Copyright Law, copyright collective management organization should agreed with the user on the exact sum of
collecting charge for use in accordance with the standard of collecting charge for use published by copyright management department
of the State Council.

Article 26

If two or more copyright collective management organizations collect the charge for use from the same user in the same way, they may
consult in advance to determine one of them to collect it uniformly. The charge for use collected uniformly should be allocated after
consultation.

Article 27

When the users pay charge for use to copyright collective management organization, they should provide the names of the works, audio
and video products, the name of the obligee and the ways, numbers and time they use them except for those that have separate agreements.

If the information of use provided by the users involves the user’s business secret, copyright collective management organization
has the duty to keep secret.

Article 28

Copyright collective management organization may draw a certain proportion from charge for use as management fee for maintaining normal
business activities.

The proportion of charge for use drawn by copyright collective management organization should be reduced gradually following the increasing
of the income of charge for use.

Article 29

All the charge for use collected by copyright collective management organization should be shunted to the obligees after management
fee is drawn and must not be diverted to any other purpose.

When copyright collective management organizations shunt charge for use, they should work out the record of it. The record of shunting
charge for use should show clearly the total amount of charge for use, amount of management fee, name of the obligee, name of works
or audio and video products, relevant information of using them, the detailed amount of charge for use that is shunted to the obligee
and as well as other issues. The record should be kept for more than 10 years.

Chapter V The supervision over copyright collective management organization

Article 30

Copyright collective management organization should establish financial and accounting rules and as well as property management rules
in accordance with laws, and establish account book in accordance with related national rules.

Article 31

The use of property and financial management of copyright collective management organization are supervised by the departments of
copyright management and civil affairs of the State Council.

Copyright collective management organization should work out financial account report at the end of a fiscal year, entrust accounting
firm to audit it in accordance with laws and publish the audit result.

Article 32

Copyright collective management organization should record following issues for the obligees and users to look up:

1.

Information of using license of works;

2.

Information of collecting and shunting charge for use;

3.

Information of drawing and using management fee.

The obligees have the rights to look up and copy financial report, work report and other business materials of copyright collective
management organization. Copyright collective management organization should offer convenient

Article 33

The obligees may report to copyright management department of the State Council if they deem any copyright collective management organization
has one of following circumstances:

1.

If the obligees meet with the requirements stipulated by the regulations and ask for joining copyright collective management organization,
or the members ask for drawing from copyright collective management organization in accordance with the provisions of the regulations,
copyright collective management organization refuse them to do so;

2.

Copyright collective management organizations do not collect, shunt charge for use in accordance with the stipulations, or do not
draw and use charge for use in accordance with the stipulations;

3.

The obligees ask for looking up the record or business materials stipulated in Article 32 of these regulations, but copyright collective
management organizations refuse to provide them.

Article 34

The users may report to copyright management department of the State Council if they deem that any copyright collective management
organization has one of following circumstances:

1.

Copyright collective management organization violates Article 23 of these regulations, refusing to conclude license contract with
the users;

2.

Copyright collective management organization does not collect the amount of charge for use in accordance with announced standard of
collecting charge for use;

3.

Users ask for looking up the record stipulated in Article 32 of these regulations, but copyright collective management organization
refuses to provide it.

Article 35

Citizens, legal persons or other organizations, except for the obligees and the users, may report to copyright management department
of the State Council if they deem any copyright collective management organization has the activities that violating the provisions
of these regulations.

Article 36

Copyright management department of the State Council should investigate and deal with the reported cases in accordance with laws within
60 days at the receipt of the report.

Article 37

Copyright management department of the State Council should supervise copyright collective management organization in following ways
and keep a record of the supervision:

1.

Check whether the business activities of copyright collective management organization meet with the provisions of these regulations;

2.

Verify account book, annual budget, final report and other related business materials of copyright collective management organizations;

3.

Send persons to attend membership conference of copyright collective management organizations as no-voting delegates.

Article 38

Copyright collective management organization should accept the supervision of the civil affairs department of the State Council and
other relevant departments.

Chapter VI Legal responsibility

Article 39

Copyright collective management organizations is instructed by copyright management department of the State Council to make corrections
in case of one of following circumstances:

1.

Violate the provision of Article 22 of these regulations, do not report the mutual agency agreement concluded with similar organization
abroad to copyright management department of the State Council for the record;

2.

Violate the provision of Article 24 of these regulations, do not establish right information inquiry system;

3.

Do not collect the amount of charge for use in accordance with announced standard of collecting charge for use.

Copyright collective management organizations managing the obligee’s rights beyond business scope is instructed by copyright management
department of the State Council to make corrections, and the license contract that they concluded with the users is invalid. If they
cause any injury to the obligees or the users, they should bear civil liability in accordance with laws.

Article 40

Copyright collective management organizations are instructed by copyright management department of the State Council to make corrections
in case of one of following circumstances. Whoever does not make any corrections beyond the time limit, membership conference or
board of directors are instructed to recall or dismiss the competent person who is directly responsible for it:

1.

Violate the provisions of Article 19 of these regulations, refusing to conclude copyright collective management contract with the
obligee, or violate the provision of Article 21 of these regulations, refusing the members’ requirements of withdrawing from the
organization;

2.

Violate the provision of Article 23 of these regulations, refusing to conclude license contract with the users;

3.

Do not draw charge for use in accordance with the provision of Article 28 of these regulations;

4.

Don not shunt charge for use in accordance with the provision of Article 29 of these regulations;

5.

Refuse to provide account book, annual budget, final report or other relevant business materials or provide false ones.

Article 41

If any copyright collective management organization does not carry out copyright collective management activities without proper reasons
for 6 months after the department of civil affairs of the State Council issued the registration certificate, or stop copyright collective
management activities for more than 6 months, its copyright collective management license will be recalled by copyright management
department of the State Council and the registration will be revoked by the department of civil affairs of the State Council.

Article 42

If any copyright collective management organization is engaged in profit-seeking activities, it is cancelled by industrial and commercial
administrations in accordance with laws, and its illegal income is confiscated. Whoever commits a crime will be ascertained criminal
responsibility.

Article 43

If any user violates the provisions of Article 27 of these regulations, refusing to provide relevant information of use when he could
provide it, or practicing fraud while he is providing relevant information, he will be instructed to make corrections by copyright
management department of the State Council, and copyright collective management organization may terminate the license contract with
him.

Article 44

Whoever establish copyright collective management organization or branches or is engaged in copyright collective management activities
without permission is cancelled by the copyright management department or the department of civil affairs of the State Council according
to their own responsibilities. Illegal income is confiscated. Whoever commits a crime is ascertained criminal responsibility.

Article 45

If the staffs of national administrative organ who are engaged in approval and supervision of copyright collective management organization
neglect their works, abuse their power, practice favoritism and engage in irregularities, and commit a crime, they will be ascertained
criminal responsibilities. Whoever does not commit a crime will be given administrative disciplinary measures.

Chapter VII Supplementary articles

Article 46

Copyright collective management organizations established before the implementation of these regulations should submit their regulations
and rules, standard of collecting charge for use, measures on shunting charge for use and other relevant materials to copyright management
department of the State Council for verification and approval within 3 months from the date when these regulations become effective,
and also report the mutual agency agreement concluded with similar organizations abroad to copyright department of the State Council
for the record.

Article 47

According to the provisions of Article 23 , Article 32 Section 2, Article 39 Section 3, whoever uses others’ works without paying
charge for fee to the obligee in accordance with Article 32 of Implementation Regulations of Copyright Law of the PRC should submit
charge for fee along with postage and relevant information of using the works to the copyright collective management organizations
that manage relevant rights. Charge for fee is shunted to the obligee by copyright collective management organization.

Copyright collective management organization responsible for shunting charge for use should establish information inquiry system of
using the works for the obligees and users to look up.

Copyright collective management organization responsible for shunting charge for use may draw management fee from charge for use received
by it. Management fee is drawn from half proportion of the management fee stipulated by membership conference according to the proportion
of the management fee of the collective management organization. Except for management fee, the copyright collective management organization
must not draw other fees from charge for use they received.

Article 48

These regulations come into effect as of March 1, 2005