More than 200 restaurants and hotels in Kunming, the capital of Yunnan Province, have suspended the playing of background music as of today, questioning the legality of copyright fees required by the Yunnan Office of the Music Copyright Society of China. This is the first suspension of music due to concerns about the legal basis of copyright fees.

Since September 22, copyright fees have been required for background music in all business locations in Yunnan Province. 1.75 yuan is charged per bed per month for each hotel, according to a notice issued by the Yunnan Office of the Music Copyright Society of China.

Restaurants and hotels make their profits from room charges, catering, and entertainment services, and they play background music only to create a better public environment, a usage quite different from that of the KTV. Additionally, as a non-governmental organization, the Music Copyright Society of China does not have legal basis for charging copyright fees, said an insider of the Kunming Municipal Hotel Association.

The insider insisted that restaurants and hotels would not pay the fees under these circumstances.

According to the Copyright Law, business owners should pay copyright fees as long as they play background music openly at their business locations, no matter whether the music is revenue-generating or not, said Zhang Yanhui, head of the Yunnan Office. The copyright fee standards only need to be authorized by the National Copyright Administration instead of price administration departments, Zhang added.

"If we can not settle the matter through consultation, ten or more restaurants and hotels in Kunming will be sued", said Zhang.

(China.org.cn by Yang Xi, December 1, 2008)