OVER 800 Karaoke venues will receive legal notices this month from some 50 local and international music companies.

The music companies are demanding that the Karaoke operators cease using their MTV, MV and Karaoke pieces without permission and to pay compensation for breach of copyright, according to a report in the Shanghai Morning Post.

In the past, KTVs and other entertainment venues have never paid the music producers for using the musical items.

Shanghai Tianwen Lawyer Office which is in charge of the case said they were acting for Tianwei, a legal firm in Beijing, in sending out the letters of demand to the Karaoke operators. The Tianwei office this month was also sending out similar letters to Karaoke venues in more than 20 provinces and municipalities including Beijing, Guangzhou and Chengdu.

The amount of compensation would vary according to the size of the KTV, club, bar or restaurant.

The Tianwei office said the aim was to reach an agreement between the music producers and the Karaoke operators.

The Karaoke bars can use the musical items conditionally after paying compensation. If an agreement can't be reached, the matter will go to court.

Insiders said that in accordance with international practice, operators should get permission and pay up before using MTV, MV and Karaoke. This is the law in some countries.

But in China, playing musical works without permission is a big problem in the field of entertainment. Experts suggest the setting up of a business association to deal with the music companies under agreed regulations.

Sources with several big music companies said they were unwilling to discuss the matter before any definite preliminary result had being reached. But they said the production of MTV or Karaoke was an essential part of their business carrying a substantial investment. The cost of producing a five-minute-long MTV item can be as much as making a short movie.

An official surnamed Ge of Cashbox Karaoke said they hadn't received the legal notice yet. Shanghai No. 1 Intermediate People's Court has yet to give judgement in a dispute between Sony Music and Cashbox over the playing of MTV pieces. The case is believed to be the first of its kind in the city.

"In fact, we pay some money to the China Music Copyright Association every year," Ge said. "But now, the problem seems to relate to more than one or two companies."

However, Karaoke pieces include audio and video and the payments to the China Music Copyright Association cover only audio. No one organization now exists to look after the video component. Xiao Min