Karaoke Bar Ordered to Pay 25,000 RMB for Unauthorized Use of Five Songs in Copyright Infringement Case
Karaoke Bar Ordered to Pay 25,000 RMB for Unauthorized Use of Five Songs in Copyright Infringement Case
CASE OVERVIEW
A Chinese music copyright collective management organization successfully sued a karaoke bar in Eastern China for unauthorized public performance of five musical works. The court ordered the defendant to stop infringement and pay total compensation of 25,000 RMB, including economic losses and reasonable expenses for rights enforcement. The case highlights the legal obligations of commercial establishments that use music for profit.
CASE BACKGROUND AND FACTS
The plaintiff, a state-approved music copyright collective management organization, brought five separate claims against a company operating a karaoke establishment. The defendant had been using a karaoke song playback system to publicly perform five musical works without obtaining permission from the copyright holders or the plaintiff.
The five songs in dispute were: a family letter song, a small song, a pastoral song, a thirst song, and a song about a hometown. The lyrics and music of these works were created by three different sets of authors. Between May 1993 and April 1994, all three copyright owners signed separate music copyright contracts with the plaintiff. These agreements authorized the plaintiff to manage the public performance rights, broadcasting rights, and recording and distribution rights of the relevant musical works on a trust basis. The contracts explicitly granted the plaintiff the right to file lawsuits against infringers in its own name. The contracts had a three-year validity period with automatic renewal provisions.
COURT PROCEEDINGS AND EVIDENCE
The plaintiff discovered the infringement and arranged for evidence collection. On March 25, 2010, a representative of the plaintiff visited the defendant’s premises as an ordinary consumer, accompanied by a notary public and a staff member from a notary office. The notary first verified that the video camera’s hard drive was empty. The representative then selected and played the five disputed songs from the karaoke system, recording the playback process. After the session, the representative obtained a receipt from the establishment.
The entire process was recorded and later notarized. The court compared the recorded content with the original musical works and confirmed they were identical. The defendant was properly summoned by the court but failed to appear for trial or submit any defense.
COURT FINDINGS AND JUDGMENT
The court found that the plaintiff had valid authorization from the copyright owners to manage the public performance rights of the five songs and to bring legal action. The defendant’s operation of a karaoke system that allowed customers to sing along or watch performances constituted a public performance using technical equipment. This was done without permission from the copyright owners or the plaintiff, and without payment of royalties.
The court held that this was an act of copyright infringement. The defendant was ordered to immediately remove the infringing songs from its database and stop all related activities. Regarding damages, the court noted that the plaintiff had not provided evidence of actual losses or the defendant’s profits. The court exercised its discretion and set compensation at 5,000 RMB per song, totaling 25,000 RMB for all five cases. This amount included both economic losses and reasonable costs for enforcing rights, such as notarization fees and legal expenses.
The court rejected the plaintiff’s request for a public apology, reasoning that the infringement only involved property rights, not personal rights.
KEY LEGAL PRINCIPLES
The court applied the Copyright Law of the People’s Republic of China. Under Article 10, performance rights include the right to publicly perform a work and to publicly broadcast the performance by various means. Using a karaoke system to provide songs for customer entertainment falls within this definition. Article 49 provides that damages for copyright infringement shall be based on the infringer’s gains or the权利人’s losses, including reasonable expenses. Where these amounts cannot be determined, the court may set damages based on the circumstances.
PRACTICAL INSIGHTS
This case serves as a clear warning for businesses that use music for commercial purposes. Karaoke bars, restaurants, hotels, and similar establishments must obtain proper licenses from copyright collective management organizations before using musical works. Failure to do so can result in legal liability, including injunctions and monetary damages. The court’s willingness to award compensation even without specific proof of losses shows that copyright holders have effective legal remedies. Businesses should budget for copyright licensing fees as a standard operating expense.
LEGAL REFERENCES
Copyright Law of the People’s Republic of China (2010): Articles 10, 48, 49
Civil Procedure Law of the People’s Republic of China (2007): Articles 64, 130
DISCLAIMER
This article is for informational purposes only and does not constitute legal advice. Copyright laws may vary by jurisdiction. Readers should consult a qualified attorney for advice specific to their situation.