On September 23, 2014, the National Copyright Administration and the National Development and Reform Commission jointly promulgated the Measures for the Remuneration Payment for Using Literary Works (hereinafter, the "Measures"). The Measures will go into effect on November 1, 2014, when the Provisions on the Remuneration for the Use of Published Literary Works promulgated in 1999 will become void.
The Measures provide that the remuneration payment for the use of literary works shall be governed under the principle of party autonomy and shall be agreed to by the parties, and the Measures apply only in the absence of such agreement between the parties or in case of unclear agreement.
The Measures provide that if a literary work is used through paper-based publication, such remuneration may be paid in the form of royalty, basic remuneration or remuneration based on the number of copies made or lump-sum remuneration, and clear explanation shall be provided regarding the calculation of such different types of remuneration.
The Measures increase the basic remuneration standard for an original work from RMB30 to RMB100 per 1,000 words to RMB80 to RMB300 per 1,000 words, the basic remuneration of an adapted work from RMB10 to RMB15 per 1,000 words to RMB20 to RMB100 per 1,000 words, the basic remuneration of a compilation work from RMB3 to RMB10 per 1,000 words to RMB10 to RMB20 per 1,000 words and the basic remuneration of a translated work from RMB20 to RMB80 per 1,000 to RMB50 to RMB200 per 1,000 words. However, the Measures do not increase the royalty rates of original works and derivative works, which still range between 3% to 10% and
1% to 7%, respectively. In addition, the Measures also provide that works published in newspapers are only suitable for lump-sum remuneration.