The Vietnam Center for Protection of Music Copyright (VCPMC) will not change their decision to double royalty payments to songwriters, despite opposition from the Recording Industry Association of Vietnam (RIAV).
According to RIAV's March 10 objection, the increase will add another burden to singers who hope to release new albums and publicly perform another person's song.
The organization has called on the music copyright center to maintain the same royalty charges that have applied since 2005. They have also suggested that a meeting be held between the two parties and governmental agencies regarding future rate increases.
VCPMNC recently filed an official response, charging that the current royalty rates no longer constitute a reasonable compensation in the present market. Specifically, the average price of a compact disc and video compact disc in 2005 were around VND25,000-30,000 (US$1.9 -2.1 at that time), but have since doubled.
As a result, VCPMC, announced that the new royalty will be increased from VND500,000 ($25) to VND1 million ($50) for an audio recording of a song, and from VND750,000 ($37.5) to VND1.5 million ($75) for a video recording of a song.
Some musicians have even asked that recording artists pay up to VND3 million ($150) per song.
According to RIAV, the number of CDs sold this year has decreased by between 10 and 20 percent. Following VCPMC's official reply, RIAV has delayed all recording projects to await a decision from the National Copyrights Office of Vietnam.