Collection of copyright royalties from Karaoke operators in China made a major step forward on Sunday as nearly 20 operators in Shenzhen, south China's Guangdong Province, turned in the fee.

China Audio & Video Association (CAVA) and China Copyright Society of Works of Music (CCSWM), which have been tasked with collecting the monies by the National Copyright Administration (NCA), held a ceremony on Sunday afternoon in Shenzhen to salute the karaoke operators who are prepared to cooperate.

Nearly a hundred record companies, including the China Record Corporation, EMI, and Warner Music Corporation, have authorized CAVA to protect their copyrights, Lu Wenju with CAVA told Xinhua.

Karaoke operators are required to pay a daily charge of 12 yuan (US$1.6) for each karaoke room -- less in underdeveloped regions -- for the use of musical and video products, as stated in a NCA notice in November.

Disputes have sounded angrily since the scheme was launched in September last year, with karaoke operators complaining the fee was too high and song composers arguing for an increase to 16-18 yuan.

The NCA said the fee, 0.17 yuan per song on average, accounted for only one percent of karaoke bar turnover according to their investigation in several cities, and was relatively low if compared with that in many other countries.

Consumers' worries over a hike in karaoke charges was partly dispelled by the NCA declaration saying the consumers were not responsible for copyright royalties.

Karaoke operators in China have enjoyed free access to songs and MTVs without paying royalties to songwriters for over 20 years.

But regular accusations of copyright infringement by record companies at home and abroad finally pushed the country to act.

"The collection of copyright royalties from karaoke operators demonstrates the determination of the Chinese government to protect intellectual property rights in China," said NCA official Wang Ziqiang earlier.

Karaoke royalties have been collected in Beijing and dozens of other cities in Yunnan, Shaanxi, Jiangsu, Shandong, Fujian, Liaoning, Guangdong and Xinjiang Uygur Autonomous Region.

The administration is mulling legal action against some major karaoke operators in big cities who continue to infringe intellectual property right laws.

It is estimated that China's nearly 100,000 karaoke establishments -- each with an average of ten karaoke rooms -- generate almost one billion yuan of turnover every year.

(Xinhua News Agency May 21, 2007)