REGULATIONS GOVERNING APPLICATION FOR APPROVAL OF COMPULSORY LICENSE OF MUSICAL WORKS AND ROYALTIES FOR USE THEREOF
Promulgated on February 23, 1998 per Letter No. Tai-(87)-Nei-Chu-Tze 8785263.
Article 1
These Regulations are prescribed pursuant to Paragraph 2 of Article 69 of the Copyright Law (hereinafter referred to as "the Law").
Article 2
In applying for approval of a compulsory license, the following documents shall be presented:
1. A written application form;
2. One sample copy of the musical work; and
3. Other relevant evidential documents.
Article 3
Except as otherwise provided under these Regulations, the written application form in Item 1 of the preceding Article shall indicate the following matters and be signed or sealed by the applicant or his/her agent.
1. Applicant's name, nationality, date of birth or establishment, and domicile or residence, and, if the applicant is a juridical person, the name of its representative.
2. The agent's name and domicile or residence if the application is made by an agent, or, the name of its representative if the agent is a juridical person.
3. The title of the musical work.
4. The name and nationality of the author of the musical work.
5. The name, nationality, and domicile or residence of the owner of the economic rights to the musical work.
6. The title of the sound recording for sale which has been recorded with the musical work and a statement indicating that the sound recording has been publicly published for over six months.
7. A statement indicating that the applicant wishes to exploit the musical work to record and produce other sound recordings for sale.
8. The kind of carrier which will be recorded with the sound recording to be published and the retail price thereof.
9. The quantity of the sound recording to be published.
Where the musical work does not indicate the matters in Item 3 or 4 of the preceding Paragraph, the matters may be omitted. The domicile or residence of the owner of the economic rights thereof may also be omitted if it is unknown.
Where the musical work is in conformance with the situation provided by Item 1 of Article 4 of the Law, the written application form shall indicate the country or area of its first publication and the date of publication as prescribed in that Item.
Where the musical work is in conformance with the situation provided by the proviso of Article 4 of the Law, the written application form shall indicate the relevant facts complying with that proviso.
Article 4
Except as otherwise provided under these Regulations, the relevant evidential documents referred to in Item 3 of Article 2 include:
1. Evidential documents indicating that the sound recording for sale is recorded with a musical work; and
2. Evidential documents for the fact that the sound recording for sale as set forth in the preceding Item has been publicly published for over six months.
Article 5
Where an appointed agent, a letter of power of attorney, makes the application for approval of a compulsory license or an evidential document for authorization shall be presented. When the agent is changed or discharged, the principal shall give a written notice to the competent authority.
Article 6
Where the documents presented by the applicant are foreign official documents, the documents shall be authenticated by the overseas embassy/consulate, representative office, branch office, or other institute authorized by the Ministry of Foreign Affairs of the Republic of China, or verified by a court of the Republic of China.
Where the documents presented by the applicant are in foreign language, a Chinese translation thereof shall be submitted.
Article 7
After accepting the application, the competent authority shall notify the owner of the economic rights to the musical work; if the domicile or residence of the owner is unknown, the competent authority shall put the contents of the written application form into a public notice.
Article 8
In any of the following situations, the competent authority shall notify the applicant to make up the situation within a specified deadline:
1. Where the application fee is not paid in compliance with these Regulations;
2. Where the items which are required to be indicated in the written application form are missing or incomplete;
3. Where the documents required to be submitted are lacking; or
4. Other situations that need to be made up.
Article 9
In any of the following situations, the competent authority shall return the application with a written statement of reasons to the applicant:
1. Where the written application form is not signed or sealed by the applicant or his/her agent;
2. Where the items indicated in the written application form conflict with the evidential documents or the sample copy of the musical work; or
3. Where the competent authority has set a deadline demanding a make-up in accordance with the provisions of the preceding Article, but the applicant failed to make up or completely make up the deficiency by the deadline.
Article 10
Where the competent authority does not approve the compulsory license, it shall notify the applicant with a written statement of reasons. It shall also notify the owner of the economic rights to the musical work unless his/her domicile or residence is unknown.
Article 11
Where the competent authority approves the compulsory license, it shall put the approval decision into a public notice and notify the applicant. It shall also notify the owner of the economic rights to the musical work unless his/her domicile or residence is unknown.
Article 12
Upon approving a compulsory license, the competent authority shall simultaneously inform the applicant of how the royalties will be calculated and in what manner the license is permitted to use.
The royalty rate of the compulsory license shall be calculated at 5% of the retail price of a sound recording which is scheduled to be published. The royalties paid by the applicant shall be calculated as follows:
Royalties =
The retail price of a sound recording which is scheduled to be published 5% X the quantity to be published
_____________________________________________________________________
The quantity of the musical work which would be used for the sound recording to be published
Where the actual retail price of the sound recording is higher than the estimated retail price that the applicant has declared, the applicant shall make up for the deficiency.
Article 13
The applicant who has lodged royalties shall report to the competent authority for its recordation.
Article 14
Where the applicant has not paid royalties, he/she shall not use the musical work to record and produce a sound recording for sale.
Article 15
The applicant who has obtained approval for a compulsory license from the competent authority shall not transfer the approval or prohibit others from recording and producing another sound recording.
Article 16
After the competent authority has approved a compulsory license, the applicant who wishes to increase the quantity of publications originally approved shall apply to the competent authority for change of the quantity of publication.
Where the competent authority approves the change as set forth in the preceding Paragraph, it shall put the approval decision into a public notice and notify the applicant. It shall also notify the owner of the economic rights to the musical work unless his/her domicile or residence is unknown.
Article 17
The sound recordings which are recorded and produced in accordance with these Regulations shall indicate the following matters:
1. The title of the musical work;
2. The name of the author of the musical work;
3. The items required to be indicated in compliance with the provisions of Article 20 of the Publication Law;
4. The date and document number of approval of the compulsory license by the competent authority;
5. Areas of sales; and
6. Serial number that is sufficient to identify the quantity to be published.
The matters in Item 1 or 2 of the preceding Paragraph which are not marked by a musical work may be omitted from the indication.
Article 18
Where the competent authority revokes approval in accordance with Article 71 of the Law, it shall put the decision into a public notice and notify the applicant. It shall also notify the owner of the economic rights to the musical work unless his/her domicile or residence is unknown.
Article 19
These Regulations shall come into force from the date of promulgation.
This translation is drafted by Lee and Li Attorneys-At-Laws and later revised and concluded by Ministry of Interior, the then competent authority of the Copyright Law.