1.      The pre-existing framework for State-represented rights and sector-specific royalty regimes

Before the issuance of the Decree, Vietnamese law had already developed two complementary sets of rules: a general framework governing the State’s representative capacity and the authorisation of exploitation, and sector-specific rules governing royalties and remuneration.

State representation and authorisation of exploitation:

Article 42 of the Law on Intellectual Property identifies the circumstances in which the State acts as the representative of the owner of copyright or related rights, as well as those in which it acts as the representative responsible for managing such rights. Articles 22 and 23 of Decree No. 17/2023/ND-CP further regulate the competent authorities, permission requirements, royalty obligations and procedures applicable to the exploitation and use of these rights. Decree No. 134/2026/ND-CP subsequently amended this framework, including by linking the exploitation of rights created using the State budget more closely to the legislation on the management and use of public assets.

Pre-existing sector-specific royalty regimes:

The financial aspects of copyright exploitation were previously governed by two separate sector-specific decrees. Decree No. 18/2014/ND-CP regulated the royalty regime for press and publishing, with particular emphasis on royalties, remuneration and the establishment and use of royalty funds by press agencies and publishers. Its primary focus was therefore the funding and payment of authors, copyright owners and other contributors when works were created or used.

Decree No. 21/2015/ND-CP governed royalties and remuneration for cinematographic, fine-art, photographic, theatrical and other performing-arts works. Its scope covered the creation, exploitation and use of such works, including works commissioned or funded by the State and, to a certain extent, works whose copyright was owned by the State. It therefore already contained elements of a financial mechanism for the exploitation of works in which the State owned the copyright, including contractual payment arrangements and sector-specific methods for calculating royalties and remuneration.

These two decrees, however, remained divided by sector, relied on different concepts and calculation methods, and were not fully structured around the current statutory distinction between rights for which the State acts as the representative of the owner and rights for which it acts as the management representative.

The need for a consolidated financial framework:

The pre-existing framework therefore contained both the legal authority to permit exploitation and several mechanisms for calculating and paying royalties. What remained fragmented was the financial treatment of those rights across different creative sectors.

Decree No. 287/2026/ND-CP, which takes effect on 1 September 2026 and replaces both Decree No. 18/2014/ND-CP and Decree No. 21/2015/ND-CP, should consequently be understood as consolidating and modernising the existing sectoral royalty regimes. Its contribution lies not in creating the State’s representative capacity, but in providing a more unified framework for determining, paying and allocating royalties arising from the exploitation and use of rights represented or managed by the State.

2.     Decree No. 287/2026/ND-CP: The financial architecture for the exploitation of State-represented rights

i.       A consolidated framework for six creative sectors

Under the former regime, press and publishing were governed separately by Decree No. 18/2014/ND-CP, while cinematography, fine arts, photography and performing arts were regulated by Decree No. 21/2015/ND-CP. Clause 1, Article 1 of Decree No. 287/2026/ND-CP now places all six sectors within a common framework, while Clause 2, Article 20 provides that both former Decrees will cease to have effect when the new Decree takes effect on 1 September 2026. The consolidation does not remove sector-specific royalty schedules and criteria, but introduces a common set of general financial principles applicable across the regulated fields.

ii.     Two distinct financial tracks: creation and subsequent exploitation

Decree No. 287/2026/ND-CP draws a clear structural distinction between the financing of creative activity and the exploitation of the resulting rights. Under Clause 1, Article 3, royalties for works created using the State budget are governed by the rules on task assignment, commissioning or bidding. Meanwhile, Clause 2, Article 3 separately regulates royalties arising from the subsequent exploitation and use of copyright and related rights represented or managed by the State.

iii.   A unified regulatory framework, but not a uniform royalty formula

Decree No. 287/2026/ND-CP does not prescribe a single valuation method for all regulated works. Instead, it adopts different calculation mechanisms reflecting the creative process, production model and economic characteristics of each sector:

For cinematographic works, according to Articles 4 and 6, creation royalties are generally calculated as a percentage of the film’s production costs for each creative role. Royalties for subsequent exploitation are determined by agreement, taking into account factors such as the frequency and duration of use, the purpose, form and scope of exploitation, and the revenue or profit generated, where applicable.

For fine-art works, according to Articles 7 and 8, creation royalties are primarily calculated as a percentage of the cost of creating the work. The exploitation of fine-art and photographic works may be valued by reference to factors including the scale of an exhibition, the statutory base salary, applicable economic and technical norms, or the parties’ agreement.

In the performing arts sector, following Articles 9 to 13, creation royalties may be determined either within fixed ranges expressed as multiples of the statutory base salary or as a percentage of performance revenue. Royalties for subsequent exploitation are generally subject to agreement based on the nature and economic results of the use, with public performances of works subject to a minimum royalty of 2% of performance revenue.

For press, Articles 14 to 16 combine commissioned-creation arrangements with minimum royalty levels for subsequent use. These include a minimum payment equal to 20% of the creation royalty for the reuse of works in print and electronic press, as well as production-cost-based calculation methods for radio and television works.

In publishing, according to Articles 17 and 18, royalties are calculated by applying genre-specific percentage ranges. For printed publications, the relevant percentage is generally applied by reference to production costs and print run, while royalties for electronic publications are determined by reference to production costs and the agreed period of use.

iv.   Profit-linked benefit sharing and broader financial administration

Earlier incentive royalties were primarily linked to the subject matter of a work, the language of creation or particularly difficult working conditions, as reflected in Clause 2, Article 4 of Decree No. 18/2014/ND-CP and Clause 4, Article 4 of Decree No. 21/2015/ND-CP. Decree No. 287/2026/ND-CP retains these forms of encouragement but adds a distinct economic benefit-sharing mechanism under Point (c), Clause 3, Article 3: where rights for which the State acts as the representative of the owner are exploited and the representative authority earns a profit, authors and other creative contributors may receive additional incentive royalties, subject to an aggregate cap of 10% of the profit earned.

In addition, Clauses 4 and 5, Article 3 address the allocation of royalties among relevant right holders and in relation to derivative works, while Clause 9, Article 3 places royalty expenditure within a broader system of budget estimation, payment and financial settlement funded by the State budget, revenue from public service activities, income from permitting rights exploitation, sponsorship and other lawful sources.

Taken together, these provisions demonstrate that Decree 287/2026/ND-CP does not create an entirely new royalty regime, but consolidates and develops the existing rules into a more coherent financial framework for determining, paying and distributing royalties and other economic benefits arising from the exploitation and use of copyright and related rights for which the State acts as the owner’s representative or management representative.