Seven types of venues in Guangzhou, including supermarkets, restaurants and railway stations will have to pay copyright fees for the background music they play during their office hours, according to reports published Wednesday by local newspaper the New Express.

The Music Copyright Society of China (MCSC) is authorized to collect music copyright fees and the organization will set up a special office in Guangdong by late October.

Many familiar businesses, such as supermarkets Carrefour, Walmart, and fast food giants KFC and McDonalds are on the list for music tolls.

This is not a new practice, Liu Lianbin, an official from MCSC told the newspaper. Major Chinese cities including Beijing, Shanghai and Chongqing have already started to claim copyright fees from public venues. Guangzhou is just following suit this time.

Many citizens interviewed by the newspaper agreed it is reasonable to claim copyright fees, however, how the fees are set and just how much should be paid have become bones of contention.

Depending on the frequency the music is played, the prices charged at different venues may vary, Liu from the MCSC said.

For instance, hotels have to pay 1.75 yuan (US$0.26) for each bed on a monthly basis, concert venues to pay 2.5 percent of their total ticket proceeds while supermarkets and shopping malls pay copyright fees by the size of their business area, for those covering more than 20,000 square meters, the society charges 2.66 yuan per year for each square meter.

Many stores have already questioned these costs as, for example, an average space of between 7,000 to 12,000 square meters will have to pay about 30,000 yuan each year. It is too much for stores operating under the already difficult economic conditions, the newspaper said.

There are also fears that stores and restaurants may have little choice but to transfer these costs onto their customers.

If individuals or corporations refuse to pay music copyright fees, the Music Copyright Society of China will seek legal means to solve disputes, the newspaper reported.

(CRI October 9, 2008)