How to calculate royalties when a cafe uses music
According to Appendix II issued with Decree 17/2023/ND-CP, amended and supplemented by Article 33 of Decree 134/2026/ND-CP dated April 6, 2026, royalties when using works, audio recordings, and video recordings in business and commercial activities are calculated according to the formula:
Royalties/year = Base salary x Adjustment coefficient
For coffee and beverage shops, the adjustment coefficient is calculated according to the total area used during the year:
Up to 15m²: coefficient 0.35/15m²/year.
Over 15m² to 50m²: each additional m² is calculated by a coefficient of 0.04/m²/year.
Over 50m²: each additional m² is calculated by a coefficient of 0.02/m²/year.
Maximum level: 8 times the base salary/year.
According to Article 33 of Decree 134/2026/ND-CP, the royalty amount calculated by area must be further adjusted depending on the urban classification where the shop is located:
This means that for the same 40m² shop, the actual royalties can vary greatly depending on the location.
For example: A coffee shop is 40m² wide, the area coefficient is calculated as follows:
Step 1: Calculate the area coefficient according to the progressive principle
The 40m² shop belongs to two levels of area:
Level 1 (from 0 to 15m²): fixed coefficient = 0.35
Level 2 (area exceeding 15m² to 40m²): (40 - 15) × 0.04 = 25 × 0.04 = 1.00
Total area coefficient = 0.35 + 1.00 = 1.35
Step 2: Calculate royalties according to standard price bracket (100%)
Royalties/year = Base salary × Area coefficient
Before July 1, 2026 (base salary 2,340,000 VND): 2,340,000 × 1.35 = 3,159,000 VND/year
From July 1, 2026 (base salary 2,530,000 VND): 2,530,000 × 1.35 = 3,415,500 VND/year
Step 3: Adjust according to urban classification (applied from July 1, 2026)
The amount in Step 2 is the standard price range. Shops in different areas will multiply the urban coefficient according to Article 33 of Decree 134/2026/ND-CP as follows:
If royalties are not paid within 90 days from use, use must be stopped.
If after the above deadline you continue to use it, this is considered a violation. When discovered, the violator may be fined 10-15 million VND (for individuals), double that for organizations, and may be required to pay the royalties mentioned above.
Shops that do not charge money to listen to music may still incur copyright obligations
Many cafe owners believe that just playing music to create a relaxing space for customers, without selling tickets or collecting music fees, will not have to pay royalties. However, this understanding is not consistent with current regulations.
According to Article 34 of Decree 17/2023/ND-CP (amended and supplemented by Decree 134/2026/ND-CP), the use of audio and video recordings at business locations such as cafes, restaurants, hotels, supermarkets... is considered an activity for business and commercial purposes.
Copyright obligations do not depend on whether the customer has to pay to listen to the music, but on whether the music is used to serve the business and create commercial value for the establishment.
Another confusing point is that registering for services like Spotify Premium, YouTube Premium or other online music platforms does not mean being allowed to play music in the business space.
These subscription plans primarily grant rights for personal use; Playing music at cafes, restaurants or businesses must still comply with regulations on copyright and related rights.
In fact, music copyright regulations are not new regulations. However, in recent times, enforcement has not been given much attention, so many businesses have not paid enough attention.
In the context of Vietnam strengthening intellectual property rights protection and tightening handling of copyright infringements, business owners should proactively review music use to ensure compliance with the law.
Compared to the benefits that music brings in enhancing customer experience, building space and attracting service users, the current annual copyright cost is not large.
Fully implementing copyright obligations not only helps minimize legal risks but also contributes to building a professional business environment and respect for intellectual property rights.
Lawyer Nguyen Van Duy
Director of Hoang Duy and Associates Law Firm