Music copyright fees for cafés and restaurants from July 1, 2026 are attracting significant attention because music has become an essential part of the dining, social, and entertainment experience. However, playing music from a phone, YouTube, Spotify, or a paid streaming account does not necessarily mean that a business has fulfilled all copyright obligations. This article has been prepared by Tran & Tran to help café and restaurant owners understand the applicable calculation method, estimated fees, and the steps required when using music for commercial purposes.
Are music copyright fees from July 1, 2026 a new regulation?
No. The obligation to pay royalties when using musical works, sound recordings, or video recordings in commercial activities does not begin on July 1, 2026.
The royalty schedule was previously provided in Appendix II issued together with Decree No. 17/2023/ND-CP, which took effect on April 26, 2023. On April 9, 2026, part of that appendix was amended by Decree No. 134/2026/ND-CP. July 1, 2026 is particularly relevant because the statutory base salary increases to VND 2,530,000 per month, which changes the amount calculated under the prescribed formula.
Therefore, describing the change as a completely new “music-playing fee” from July 1, 2026 may be misleading. The key change is that royalty amounts are recalculated according to the new base salary, rather than a new obligation being introduced for the first time.
In this article, the term “music copyright fee” is used in the commonly understood sense. Legally, the payment is a royalty associated with the commercial exploitation of musical works, performances, sound recordings, or video recordings.
To understand which rights may be protected and who may be entitled to receive royalties, business owners may refer to the article on what copyright is and the types of copyright protection available.
Must cafés and restaurants pay royalties when playing music?
Cafés and restaurants that use music to create an atmosphere, serve customers, or support their commercial activities may be required to comply with copyright and related-right obligations.
A song played at a venue does not involve only the composer. Depending on the source of the music and how it is used, the activity may also involve the rights of performers and producers of sound or video recordings.
A single song may therefore involve several layers of rights:
- Copyright in the musical composition and lyrics;
- Performers’ rights in the performance by singers or musicians;
- Rights of sound or video recording producers in the specific recording used.
The schedule in Appendix II applies to the use of works, sound recordings, and video recordings in commercial activities that fall within statutory limitations on copyright and related rights. Business owners should therefore avoid checking only the composer’s rights while overlooking the rights attached to the actual recording being played.
Businesses should distinguish clearly between copyright and related rights before signing an agreement or making payment. Misidentifying the relevant right holder may result in a business making a payment that still does not cover all music being used.
How are music copyright fees calculated from July 1, 2026?
According to the royalty schedule referenced in the source article, annual royalties are calculated using the following formula:
Annual royalty = Statutory base salary × Adjustment coefficient
From July 1, 2026, the applicable base salary is VND 2,530,000 per month. The adjustment coefficient depends on the type of business establishment and its area of use.
The basic schedule applies at 100% in Hanoi and Ho Chi Minh City. Lower percentages may apply in other localities depending on the urban classification.
Business owners should note that floor area is an important part of the calculation. Before applying the schedule, the establishment should identify the commercial area in which music is actually used, rather than automatically relying on the total registered business area or the entire leased premises where the practical scope of use is different.
Music copyright fees for cafés
For cafés in Hanoi and Ho Chi Minh City, the estimated annual royalties from July 1, 2026 are as follows:
| Café area | Adjustment coefficient | Annual royalty |
| 15 m² | 0.35 | VND 885,500 |
| 30 m² | 0.95 | VND 2,403,500 |
| 50 m² | 1.75 | VND 4,427,500 |
| 60 m² | 1.25 | VND 3,162,500 |
| 100 m² | 2.05 | VND 5,186,500 |
| 150 m² | 3.05 | VND 7,716,500 |
| 200 m² | 4.05 | VND 10,246,500 |
| 250 m² | 5.05 | VND 12,776,500 |
| 300 m² | 6.05 | VND 15,306,500 |
| 350 m² | 7.05 | VND 17,836,500 |
| 395 m² | 7.95 | VND 20,113,500 |
The annual royalty for a café does not exceed VND 20,240,000, equivalent to eight times the base salary of VND 2,530,000.
It is important to note that the coefficient does not increase under one uniform formula across every floor-area range. For example, establishments below 50 m² and those from 60 m² upward are presented under different calculation structures. A café should therefore not apply a fixed proportional formula where its actual floor area falls between the stated thresholds.
Music copyright fees for restaurants
For restaurants in Hanoi and Ho Chi Minh City, the estimated annual royalties are as follows:
| Restaurant area | Adjustment coefficient | Annual royalty |
| 50 m² | 2.0 | VND 5,060,000 |
| 60 m² | 2.5 | VND 6,325,000 |
| 70 m² | 3.0 | VND 7,590,000 |
| 80 m² | 3.5 | VND 8,855,000 |
| 90 m² | 4.0 | VND 10,120,000 |
| 100 m² | 4.5 | VND 11,385,000 |
| 150 m² | 5.0 | VND 12,650,000 |
| 200 m² | 6.5 | VND 16,445,000 |
| 250 m² | 8.0 | VND 20,240,000 |
The annual maximum for restaurants is also VND 20,240,000 under the published schedule.
A restaurant may be subject to a different coefficient from a café of the same size. Business owners should identify the actual nature of the establishment rather than relying only on the wording displayed on the business sign.
Where a venue operates as a café, restaurant, lounge, bar, live-performance space, or mixed-use hospitality establishment, the applicable classification and scope of music use should be assessed according to the actual business model and supporting documents.
How are royalties calculated in other localities?
The schedule above applies at 100% in Hanoi and Ho Chi Minh City. In other locations, the applicable percentage is determined according to urban classification:
| Location | Applicable percentage |
| Hanoi and Ho Chi Minh City | 100% |
| Class I urban area | 80% |
| Class II urban area | 50% |
| Class III urban area | 20% |
| Remote or especially disadvantaged areas within a Class III urban area | 10% |
These percentages are used to adjust the basic royalty amount according to the location of the business.
For example, the estimated annual royalty for a 100 m² restaurant in Hanoi is VND 11,385,000. Where an equivalent restaurant is located in a Class I urban area and qualifies for the 80% rate, the calculation would be:
VND 11,385,000 × 80% = VND 9,108,000 per year
This is only an illustrative calculation. The actual obligation should still be determined by reviewing the business type, locality, floor area, and the scope of rights represented by the collecting party.
Does playing music from YouTube or Spotify require additional payment?
This is a common area of misunderstanding among business owners.
Paying a subscription fee to a music-streaming platform does not automatically mean that a café or restaurant has been granted the right to play music commercially in a public venue. The permitted scope depends on the terms of the platform and the type of account used.
A personal subscription may allow private listening only and may not include the right to communicate or play music publicly in a café, restaurant, hotel, retail store, or other business establishment.
Business owners should therefore verify:
- Whether the account is intended for personal or commercial use;
- Whether the terms allow music to be played at a business premises;
- Whether the licence covers both copyright and related rights;
- Which songs are included within the licensed repertoire;
- Whether the provider is authorised to grant rights for use in Vietnam.
The principle is similar to the use of licensed software: paying for an account is not enough. The licence must cover the correct user, device, location, and actual commercial purpose.
Does a venue have to pay royalties if it does not charge admission?
The fact that a venue does not sell tickets or charge customers separately for listening to music does not automatically mean that the use is non-commercial.
In many business models, music is used to create atmosphere, encourage customers to stay longer, establish the venue’s identity, and enhance the overall value of its services. Music may therefore contribute directly or indirectly to commercial activity.
Each case should be assessed according to the actual use. Background music, live music, DJ performances, and broadcasts of recorded events may involve different rights and licensing requirements.
Business owners should not rely only on the question of whether admission fees are charged when determining whether royalties are payable.
Can royalty-free music be played in a café or restaurant?
The expression “royalty-free music” is often used imprecisely.
In practice, it may refer to music licensed without charge, music subject to a one-time licence fee, music from a library with specific usage conditions, or works that have entered the public domain.
Even where the underlying musical composition is no longer protected, a particular sound recording may still be protected. For example, the composition may be in the public domain, while a new arrangement and recording remain subject to related rights owned by the performers or producer.
Before using such music, the business should verify the licence, commercial-use conditions, territorial scope, duration, and whether public performance at a commercial establishment is permitted.
Supporting evidence such as contracts, invoices, confirmation emails, licence terms, and music catalogues should be retained. The presence of words such as “free” or “royalty-free” in the name of a music library is not sufficient evidence that commercial use is lawful.
Who should cafés and restaurants pay?
Depending on the repertoire being used, a business may need to work with the copyright owner, performer, sound or video recording producer, or a collective management organisation authorised to administer copyright and related rights.
Before making payment, the business should ask the collecting party to provide information about:
- Its authority or mandate to represent the relevant right holders;
- The categories of rights under its management;
- The repertoire covered by its authority;
- The term and location covered by the licence;
- The royalty calculation;
- The agreement and valid payment documents.
An organisation may represent many authors and owners, but it does not automatically manage every song available on the market. The business should therefore confirm that the represented repertoire corresponds to the music actually being used.
Business owners should also understand the basic principles of the current Vietnamese Intellectual Property Law before entering into an agreement or making payment solely on the basis of a collection notice.
How are collected royalties managed and distributed?
According to the amended provisions referenced in the source article, collective management organisations must ensure that collected royalties are held in accounts separate from their other assets, receipts, and expenses.
Distribution must be carried out according to the organisation’s agreement with the author, copyright owner, or related-right holder who granted the mandate. Unless otherwise agreed, distribution must not be delayed for more than six months from the collection date.
A collective management organisation may retain part of the collected amount to cover rights-management expenses. However, the retained percentage must be based on agreement and comply with the following limits:
- No more than 40% during the organisation’s first five years of operation;
- No more than 30% during the following five years;
- No more than 25% where the organisation has operated for at least ten years.
Management expenses must also be recorded in financial statements and confirmed by an independent auditing organisation.
These requirements do not give a café or restaurant the right to refuse payment unilaterally. They do, however, show that collecting organisations must also maintain transparency regarding representation, management, and distribution.
Process for complying with music copyright obligations
Step 1: Audit the sources of music being used
The establishment should identify where its music comes from, such as a personal account, commercial platform, USB drive, purchased recording, live band, DJ, or a sound system operated by a third-party provider.
Where an external contractor manages sound or entertainment, the contract should state clearly which party is responsible for obtaining permission and paying royalties.
Step 2: Identify the business type and floor area
The business should determine whether the establishment is classified as a café, restaurant, or mixed-use venue. It should also measure and document the area in which music is used in order to apply the appropriate coefficient.
A chain should not assume that one agreement automatically covers every branch. Each location may differ in floor area, locality, and method of music use.
Step 3: Identify the relevant right holder or management organisation
The establishment should verify which party is authorised to license the repertoire being used.
Payment should not be made solely on the basis of a phone call, message, or general demand without evidence of authority.
Step 4: Request a detailed calculation
The calculation should identify the base salary, coefficient, floor area, locality percentage, and period of use.
Where the amount requested differs from the published schedule, the business should ask for a clear explanation of the legal basis and rights included.
Step 5: Sign an agreement and retain supporting documents
The agreement should specify the rights covered, business location, term, amount, payment method, data-reporting obligations, and dispute-resolution process.
The establishment should retain invoices, bank-transfer records, minutes, repertoire lists, and documents proving the scope of the licence.
Step 6: Conduct periodic reviews
Music catalogues, venue size, and business models may change. Copyright compliance should therefore be reviewed whenever the establishment expands, opens additional branches, hosts live performances, or changes its music provider.
Common mistakes when paying music copyright fees
Believing that payment obligations begin only on July 1, 2026
This is the most common misunderstanding. The obligation existed before that date. July 1, 2026 primarily affects the calculation because the statutory base salary changes.
Assuming a paid streaming account covers every legal obligation
A personal subscription should not automatically be treated as a commercial public-performance licence. The terms of use must be reviewed.
Paying without checking the authority of the collecting party
The party requesting payment should prove the scope of its mandate and its rights in the relevant repertoire.
Paying only for the rights of the songwriter
The recording being played may also involve the rights of performers and sound or video recording producers.
Failing to retain payment records and music lists
Without adequate documentation, a venue may find it difficult to prove that it was licensed for the correct works and period.
Using one agreement for an entire chain without checking its scope
An agreement covering one location does not automatically cover other branches. The territorial and premises-related scope should be reviewed carefully.
What risks arise if royalties are not paid?
Where a business uses works, sound recordings, or video recordings without a lawful basis, it may face requests to stop using the material, pay royalties, compensate the right holder, or comply with other remedies depending on the nature of the conduct and available evidence.
The level of risk depends on the affected rights, duration of use, scale of exploitation, commercial nature of the activity, actual damage, and the parties’ conduct.
Not every dispute results in the same remedy. However, long-term operation or lack of awareness of the law will not necessarily exempt the business from responsibility.
Business owners may refer to the article on copyright infringement on the internet. Although that article focuses on online infringement, its principles regarding right-holder identification, evidence collection, and assessment of use may also be relevant to music played at commercial venues.
Do music owners need to register copyright?
Copyright may arise when a work is created and expressed in a certain form, regardless of whether it has been registered. However, a registration certificate can be important when the owner needs to prove ownership, license the work, receive royalties, or resolve a dispute.
For a song, the relevant documents should identify the composer, lyricist, owner, commissioning party, and any transfer of rights.
Where a work was created under a contract, the parties should review provisions on publication, reproduction, performance, communication to the public, and commercial exploitation. A party that financed production should not automatically assume that it owns every right.
Authors and businesses may refer to the copyright registration procedure for works for guidance on preparing documents based on how the work was created.
Where professional support is required, the article on copyright registration services at Tran & Tran explains the main tasks involved in reviewing and filing an application.
What should cafés and restaurants prepare before July 1, 2026?
The establishment should first prepare a list of all music sources being used and determine the rights granted under each account or licence. This is more important than simply identifying which application is installed.
The business should then measure the relevant area, identify its actual business type, and confirm the urban classification of its location. These details form the basis of the applicable royalty calculation.
Next, the venue should verify the authority of the party requesting payment, request a detailed calculation, and clarify whether the payment covers copyright, related rights, or both.
Where the venue organises live performances, hires a DJ, or broadcasts events, each type of use should be reviewed separately. A background-music licence should not automatically be assumed to cover every live or recorded performance.
Finally, agreements, music catalogues, invoices, and payment records should be maintained separately for each location. Café and restaurant chains should establish a centralised copyright-management process instead of leaving each branch to handle compliance independently.
Copyright advisory services at Tran & Tran
Tran & Tran assists businesses in reviewing copyright, related rights, and licensing agreements involving intellectual property used in commercial operations.
For cafés, restaurants, and food-service chains, the scope of support may include reviewing music sources, assessing licence coverage, verifying the authority of a rights-management organisation, analysing contracts, and recommending an appropriate evidence-retention system.
For authors, producers, and owners of music catalogues, advisory work may focus on identifying authorship and ownership, copyright registration, licensing agreements, and monitoring the use of protected works.
Each matter should be assessed based on the music catalogue, contractual documents, and actual method of use. The amount payable and scope of obligations should not be determined solely from the general description of the business.
Conclusion
Music copyright fees for cafés and restaurants from July 1, 2026 are calculated according to the statutory base salary of VND 2,530,000, the applicable adjustment coefficient, floor area, and business location. Under the schedule for Hanoi and Ho Chi Minh City, annual royalties may reach a maximum of VND 20,240,000 for each listed business category.
However, the amount payable is only one part of the issue. A business must also identify the source of the music, the scope of the licence, the relevant right holders, and the authority of the collecting organisation.
The fact that an establishment has purchased a music subscription, does not charge admission, or plays only background music does not automatically remove its copyright obligations. Contracts, music catalogues, and usage conditions should be reviewed before music continues to be used commercially.
Where a business operates multiple branches, uses several music sources, or receives payment demands from different organisations, it should examine each category of rights and each mandate carefully to avoid duplicate or incomplete payment.
Frequently asked questions about music copyright fees
Do cafés only have to pay music royalties from July 1, 2026?
No. The obligation existed before that date. July 1, 2026 changes the amount calculated under the formula because the statutory base salary increases to VND 2,530,000.
Are music copyright fees calculated monthly or annually?
The schedule referred to in the source article calculates royalties annually by multiplying the base salary by the applicable adjustment coefficient.
What is the maximum annual amount?
Under the schedule for Hanoi and Ho Chi Minh City, the amount for a café or restaurant does not exceed VND 20,240,000 per year.
Does a venue using Spotify Premium have to pay additional royalties?
This cannot be determined solely from the fact that the subscription is paid. The business must check whether the service permits commercial use and public playback at a business establishment.
Does a venue have to pay if the music is played at a low volume?
Volume is not the only factor. The purpose, location, source of music, and manner of commercial use must also be considered.
Are fees in provinces the same as those in Hanoi and Ho Chi Minh City?
Not necessarily. The applicable percentage may be 80%, 50%, 20%, or 10%, depending on the urban classification and local conditions.
Does one payment cover every song?
This should not be assumed. Coverage depends on the repertoire and rights administered by the collecting party.
Can a café chain make one payment for all branches?
This depends on the agreement. The business should confirm whether the licence covers all locations or only a specific establishment.
Must royalties be paid for music composed by the café owner?
Where the owner genuinely owns all rights in both the work and the recording, payment to another party may not be required. However, the rights of co-authors, performers, and recording producers should still be checked.
Should a business pay immediately after receiving a royalty demand?
The establishment should first verify the collecting party’s authority, represented repertoire, calculation method, and supporting documents before signing an agreement or making payment.
