Melody, one of the biggest karaoke companies in Beijing, has agreed to pay for using music produced by a group of 49 music companies. It's the first club to say it will pay since music companies started a campaign against karaoke halls in China that use their works without permission. Recording industry insiders hail Melody's action as a sign of the increasing awareness of the need to respect copyright in the country.

In a contract signed on Wednesday with Tianwei and Yingke, two law firms representing 49 international and Chinese music companies, Melody promised to pay 360,000 Yuan to use music videos produced by the companies until the end of the year. The karaoke company says it would not raise prices despite the contract.

Chen Xiaoming , executive deputy GM of Melody, said, "It's reasonable for us to pay. All of us should respect the copyrights of music videos - it??s the law."

This is the first contract of its kind to be signed since the two law firms issued legal letters to karaoke halls in over 20 provinces at the beginning of March. The letters called on the halls to pay compensation ranging from 7,000 to 120,000 Yuan. Melody paid three times the highest figure because it has three branches in Beijing.

Rao Ruiqiang, representative for Asia Office of Int'l Fed. of the Phonographic Industry, said, "The signing of the contract by Melody signals a higher level of awareness of copyright. And more importantly, it will improve China's image abroad."

Three entertainment companies have been sued for violating copyright laws. Two of them were fined 53,000 Yuan in compensation.

(CCTV.com March 26, 2004)