KUNMING, Feb. 15 -- Twelve Karaoke bars in Kunming, capital of southwest China's Yunnan province, have decided to pay the copyright royalties, a month after the National Copyright Administration issued its order, the first of its kind in China.

The 12 Karaoke bars has signed agreements with the China Audio and Video Association (CAVA) to pay the royalties within fifteen days, according to the liaison office of CAVA in Kunming.

In response to the positive feedback and quick signing-up from the 12 Karaoke bars, CAAC has decided to charge them with a preferential price of eight yuan for each private room in the bars.

The ceiling rate for each private room in Karaoke bars was set at 12 yuan (1.5 US dollars) per day by the National Copyright Administration of China (NCAC) on Nov. 9.

Karaoke bars in China generally range from several rooms to more than 100 rooms.

Another 30 Karaoke bars in the city are also willing to sign the agreements with CAVA and are expected to clinch the deal after the Spring Festival, traditional China's New Year, which starts from Feb. 18 to Feb. 25, according to the liaison office.

"Paying the royalties is a protection of the intellectual property right and is conducive to the smooth development of the Karaoke industry." said Xie Yongjun, general manager of TOP ONE KTV in Kunming.

"We'll never impute the increasing cost to the consumers. Although the royalties increase our cost, it's still endurable forus." said Xie.

Ten billion yuan (1.29 billion U.S. dollars) in revenues rackedup by the 100,000 Karaoke bars in China each year should theoretically generate 8 million yuan (one million U.S. dollars) in royalties for copyright holders.

Fifty domestic and foreign recording companies, including Warner Music, Global Music and Sony BMG, launched a campaign in March 1, 2004 to charge royalties from Chinese Karaoke operators, who had lost a succession of lawsuits and been fined thousands of yuan.

The NCAC has approved collecting royalties from Karaoke bars for using music videos from Jan. 1, 2007 at a rate of 12 yuan for each room per day.