Key Music Copyright Updates for Cafés and Beverage Outlets

To balance the rights of copyright owners with the financial capacity of commercial operators, the legal framework governing music royalty collection for cafés and beverage service establishments has recently undergone notable revisions.

Previously, music royalty fees were primarily determined through direct negotiation between parties. To refine the legal framework and establish specific statutory rates when parties fail to reach an agreement, the Government issued Decree No. 17/2023/ND-CP (effective April 26, 2023), introducing a standardized fee computation method. Under this framework, royalty fees are calculated using a unified formula based on the national base salary, adjusted by specific multipliers for floor area and business location. Notably, when Decree No. 161/2026/ND-CP raised the monthly base salary to VND 2,530,000 on July 1, 2026, the actual royalty payable by cafés and beverage establishments in non-agreement scenarios increased accordingly.

Under the new methodology, floor area is evaluated on a progressive scale to reflect actual commercial scope. The baseline multiplier starts at 0.35 for the first 15m², with an additional 0.04 added per square meter up to 50m², and an extra 0.02 per square meter for any space exceeding 50m². To prevent excessive financial burdens on larger venues, the law caps annual fees at eight times the base salary, equivalent to a maximum of VND 20,240,000 per year. Simultaneously, location adjustments apply a flexible tier system: establishments in Hanoi and Ho Chi Minh City pay 100% of the standard rate, while Tier-I and Tier-II municipalities pay 80% and 50% respectively. Rates progressively decrease in other areas, dropping to 10% for remote regions.

Beyond the revised formula, regulatory authorities emphasize the distinction between personal and commercial music use. Subscribing to personal streaming plans, such as Spotify Premium or YouTube Premium, does not confer the right to play music for business purposes. When broadcasting music in commercial environments, venue operators remain legally obligated to obtain authorization and pay royalties to a recognized collective management organization, such as the Vietnam Center for Protection of Music Copyright (VCPMC).

To complete licensing procedures, cafés and beverage establishments must prepare an application package containing a music usage declaration form, a copy of their business registration certificate, and documentation verifying the physical floor area. Submissions can be made in person, by mail, or through the collective management organization’s online portal. Upon review, the authority issues a fee assessment notice along with a licensing agreement for execution and payment. Business operators should note that payment must be completed within 90 days from the date music usage commences in commercial operations. In cases of delinquency or non-compliance, establishments face administrative fines ranging from VND 10 million to 15 million for individuals, and from VND 20 million to 30 million for organizations, alongside the compulsory recovery of all unpaid royalties.