Fiscal 2020 Business Affairs - May 19, 2021 Japanese Society for Rights of Authors, Composers and Publishers (JASRAC)
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Fiscal 2020 Business Affairs
May 19, 2021
Japanese Society for Rights of Authors,
Composers and Publishers (JASRAC)
1
Summary
2
Collection and Distribution
(Figures are actual collected or distributed amounts. Unit: Billion yen)
Collection 112.64 billion yen Distribution 120.63 billion yen
117.69 112.64 117.05 120.63
Against Against
FY2019 FY2019
-4.3% +3.1%
■ Collection
Collection of royalties decreased by 5.04 billion yen compared to FY2019.
Although the interactive transmissions category far exceeded its FY2019 results, almost all other categories decreased from FY2019. These
included performances, etc. that experienced a series of event postponements or cancellations and closures or shutdowns of restaurants due
to the COVID-19 pandemic.
■ Distribution
Distribution of royalties increased by 3.57 billion yen from FY2019, distributing to rights owners of 2,778,889 works (unique number).
The distribution amount was the highest ever because: i) they included royalties collected during the second half of FY2019 (from October
2019 to March 2020) before effects from the COVID-19 pandemic became widespread; ii) interactive transmissions remained strong
throughout FY2020; and iii) intensive efforts to distribute previous-year royalties that were undistributed due to non-submission of usage
reports and work registrations.
3
©2021,JASRAC
Details of Collection and Distribution
Royalties Collected in FY2020 Royalties Distributed in FY2020
Distribution
Category Collection
(thousand yen)
Against FY2019 (%) Category (thousand yen) Against FY2019 (%)
Performances 51,070,315 84.0 Performances 56,500,480 91.5
Performances, etc. 19,523,885 79.5
Performances, etc. 15,399,375 63.8
Broadcasts, etc. 31,398,111 99.6
Broadcasts, etc. 30,000,672 96.7
Cable Broadcasts, etc. 4,825,562 101.2
Cable broadcasts, etc. 4,710,532 97.7
Film exhibitions 227,964 70.0
Film exhibitions 300,611 89.7
Foreign income (performances) 524,956 98.8
Foreign income (performances) 659,122 136.6
Mechanicals 18,060,582 86.7 Mechanicals 19,044,721 93.3
Audio discs 8,091,489 80.1
Audio discs 7,866,557 78.8
Audio tapes 187,662 99.6
Audio tapes 190,565 109.1
Music boxes 6,920 59.4
Music boxes 6,435 53.6
Film reproduction 55,969 83.9
Film reproduction 48,424 62.2
Videograms 10,530,221 106.4
Videograms 9,731,585 93.4
Foreign income (mechanicals) 172,458 114.6
Foreign income (mechanicals) 217,014 128.3
Publication 721,903 84.8 Publication 749,713 81.6
Reproduction for specific purposes 3,957,193 77.8 Reproduction for specific purposes 4,255,443 79.9
Reproduction for advertisement 1,243,146 74.6
Reproduction for advertisement 1,255,109 75.9
Reproduction for games 3,012,297 82.3
Reproduction for games 2,702,083 78.7
Lending 1,011,930 72.0 Lending 1,089,134 71.0
Composite use 37,822,725 131.8 Composite use 38,989,674 143.7
Online karaoke 5,729,006 82.6
Online karaoke 5,527,034 80.0
Interactive transmissions 33,260,668 164.7
Interactive transmissions 32,295,691 148.2
Total private copying remuneration 4,499 66.5 Total private copying remuneration 5,653 70.8
Total 112,649,150 95.7 Total 120,634,821 103.1
*Amounts are rounded down to the nearest thousand yen and therefore the sum of the amounts of each category may differ from the total amount. 4
©2021,JASRACHistory of Collections
(Unit: Billion yen)
120.0
117.6
112.6
100.0
80.0
60.0
40.0
20.0
0.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
5
©2021,JASRACHistory of Distributions
(Unit: Billion yen)
120.0
120.6
117.0
109.6 109.9 111.4 111.5 112.4 110.8 112.6
100.0 108.4
80.0
60.0
40.0
20.0
0.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
6
©2021,JASRACRatio of Operational Expenses to Distributions
Distributions and
Ratio of operational
operational expenses Distributions expenses (%)
(Unit: Billion yen)
120.0 117.0 120.6 14
109.6 109.9 111.4 111.5 112.4 110.8 112.6
108.4
100.0 13
80.0
12
12.1 12.0
60.0 11.7 11.8 11.7 11.8 11.8 11.7 11.6
11
40.0
10.7%
Operational expenses
10
20.0
12.7 12.8 12.8 13.1 13.2 13.1 13.4 13.4 13.5 12.8
0.0 9
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
7
©2021,JASRACCollection Results
8Collection Results: Performances
Performances (Figures are actual collected amounts. Unit: Billion yen)
Performances, etc. 15.39 Broadcasts, etc. 30.00 Cable broadcasts, 4.71
etc.
24.12 billion yen 31.03
billion yen billion yen
30.00
15.39 Against Against Against
4.82 4.71
FY2019 FY2019 FY2019
-36.2% -3.3% -2.3%
■ Performances, etc.
Royalties collected for performances, etc. decreased markedly compared to the FY2019 results because the COVID-19 pandemic affected
a wide range of categories such as events, live music clubs, restaurants, hotels, and karaoke singing rooms.
■ Broadcasts, etc.
Royalties collected for broadcasts were affected by the decline of broadcasters’ business revenues for FY2019, which are the basis for
royalty calculation for individual commercial broadcasters, and the decrease of repertoire share reflected in blanket licensing fees (the
percentage of JASRAC repertoire). Looking at commercial broadcasting, the number of commercial placements declined significantly as
many companies cut back on advertising spending, affected by the COVID-19 pandemic.
■ Cable Broadcasts, etc.
Royalties collected for both cable radio and cable TV broadcasts decreased compared to the FY2019 results due to the decline of
broadcasters’ business revenues for FY2019, which are the basis for royalty calculation for broadcasters, and the decrease of repertoire
share reflected in blanket licensing fees.
9
©2021,JASRACCollection Results: Reproduction/Reproduction for Specific Purposes
Reproduction/Reproduction for Specific Purposes (Figures are actual collected amounts. Unit: Billion yen)
Audio discs 7.86 Videograms 9.73 Reproduction for 3.95
specific purposes
billion yen billion yen billion yen
10.42 9.72
9.98
7.86 Against Against 5.08 Against
FY2019 FY2019 3.95 FY2019
-21.2% -6.6% -22.2%
■ Audio Discs
Royalties collected from audio discs decreased markedly compared to the FY2019 results as CD production kept declining and product
sales were cancelled or postponed one after another, affected by the COVID-19 pandemic.
■ Videograms
Royalties collected from videograms declined compared to the FY2019 results because, although there were multiple hit products, they
failed to compensate for lower revenue stemming from the ongoing distribution-format shift from packages to transmissions as well as
from sales cancellations and postponements caused by the COVID-19 pandemic.
■ Reproduction for Specific Purposes
As for reproduction for advertisement, the number of commercial placements fell significantly, affected by the COVID-19 pandemic, and
the use of JASRAC repertoire in commercials was flat. As for reproduction for games, there were no hit family game products among
package software containing JASRAC repertoire, while the market for game machines kept shrinking.
10
©2021,JASRACCollection Results: Composite Use
Composite Use (Figures are actual collected amounts. Unit: Billion yen)
Online karaoke Interactive transmissions
5.52 billion yen 32.29 32.29 billion yen
21.79
6.90 Against Against
5.52
FY2019 FY2019
-20.0% +48.2%
■ Online Karaoke
Royalties collected for online karaoke services declined significantly compared to the FY2019 results, as the number of online karaoke
terminals in operation decreased due to a series of closures and shutdowns of facilities using such services, affected by the COVID-19
pandemic.
■ Interactive Transmissions
Royalties collected for interactive transmissions grew markedly compared to the FY2019 results, as music subscription services, online
video services, and games continued to be strong on the back of stay-home demand. Also, concert live transmissions increased amid a
rapid shift to online services in many domains.
The growth of music subscription services was attributable to the fact that contracts were renewed in ways suitable for service
subscription, and new services continued to be licensed in a steady fashion.
Royalties collected for online video services grew significantly, as there was a video subscription service with a large increase in the
number of subscribers due to the hit of original contents.
11
©2021,JASRACHistory of Collections: Performances, etc., Broadcasts, etc., and Interactive Transmissions
(Unit: Billion yen)
40.0 Interactive
transmissions
35.0
32.2
30.0
30.0 Broadcasts, etc.
25.0
20.0
15.0 15.3 Performances,
etc.
10.0
5.0
0.0
12
©2021,JASRACInteractive Transmissions: Year-on-year Comparisons by Category
(Unit: Billion yen) Year-on-year
35.0 32.2 comparison
30.0 148.2%
Year-on-year
25.0 21.7 13.3 Subscription
comparison
20.0
183.8%
7.2 Year-on-year
15.0 Video streaming comparison
11.1
157.8%
10.0 7.0
Year-on-year
3.3 4.0 Video downloading comparison
5.0
4.0 3.7 119.2%
0.0
Others
FY2019 FY2020
13
©2021,JASRACInitiatives on Live Transmissions
Since FY2020, live concert transmission services grew as a substitute to offline live concerts as spreading
COVID-19 infections made it difficult to hold live concerts drawing in a large audience.
User (licensee) Business operator of live concert transmission service
License and invoice on a units-of-service (platform)
Unit
basis
State of licensing
(3) Commercial transmissions (videos, etc.) (ii) Streaming
type usage
Applicable tariff
“Consisting mainly of music”
(royalty rate)
Applied rate: 2.1% of monthly information service
charge and advertising and/or other revenue
As of March 31, 2021, 75 services were licensed.
Number of services (The number of cases reported as having been used from July to
December 2020 stood at 4,000 performances or more.)
14
©2021,JASRACDevelopments in the Musical Instrument Class Lawsuit
February 28, 2020
Judgement of the Tokyo District Court (overall victory for JASRAC)
March 18, 2021
Judgement of the Intellectual Property High Court (partial change of the
Tokyo District Court judgement)
→ JASRAC filed a final appeal and petition for the acceptance of a
final appeal to the Supreme Court.
15
©2021,JASRACJASRAC’s Thinking on Performances, etc. in Musical Instrument Classes
JASRAC claims royalties from the musical instrument class
operators, not participants.
■ Business Model of Musical Instrument Classes
The business operator earns lesson fees by assigning a lesson piece,
giving instructions, and having students give performances in order
to improve their skills.
16
©2021,JASRACReflection of Repertoire Share in the Field of Performing Rights
■ Reflection of Repertoire Share in Blanket Licensing Fees for
Events and Concerts
In the case of performances at an event or concert in the field of performing rights, if royalty fees are calculated
on a per-event basis and the works used includes any other copyright management entity’s repertoire, then
JASRAC will calculate by multiplying the per-event royalty fee by the repertoire share of JASRAC’s works.
This will apply to events and concerts held on or after April 1, 2021.
How to calculate the repertoire share:
Number of Times Performed of JASRAC’s Repertoire
Number of Times Performed of JASRAC’s Repertoire +
Number of Times Performed of Other Copyright Management Entity’s Repertoire
17
©2021,JASRACInitiatives Aimed to Increase Foreign Income
■ Providing Information Independently Gathered by JASRAC
Regarding the use of domestic works in other countries, JASRAC provided sister societies with information that it gathered independently or
that was provided to it by members and entrustors.
■ Providing Information in CWR Format
JASRAC continued to provide music publishers with a service of converting domestic works registration submitted by music publishers into
Common Works Registration (CWR), an international standard format. If the music publisher provides the CWR to music publishers (sub-
publishers) in foreign regions, it will be easier to identify the works used, and foreign income can be expected to increase.
■ Registering and Providing Video Content Information
JASRAC registered the information on works and video content in a database operated by the International Confederation of Societies of
Authors and Composers (CISAC), and provided the information to overseas organizations.
■ Collaborating with Asian Copyright Management Organizations
JASRAC exchanged with some Asian copyright management organizations the result of a collation between the usage report data for global
online services and the musical works databases of those organizations, and used the result to identify musical works.
■ Expanding the Scope of the Administration Services Agreement with Muserk LLC
JASRAC expanded the scope of the administration services agreement with Muserk, LLC regarding the collection of mechanical royalties in the
US. Foreign income from the US grew markedly as Muserk, LLC remitted royalties, including for previous years, to JASRAC.
18
©2021,JASRACDistribution Results
19Distribution Results: Performances
Performances (Figures are actual collected amounts. Unit: Billion yen)
Performances, etc. 19.52 Broadcasts, etc. 31.39 Cable broadcasts, 4.82
etc.
24.55 billion yen billion yen billion yen
19.52
31.53 31.39
Against Against 4.76 4.82 Against
FY2019 FY2019 FY2019
-20.5% -0.4% +1.2%
■ Number of Distribution Works by Category
Category Main royalties for distribution Number of works for distribution
Performances and concerts Portion paid in from October 2019 to September 2020 282,018 works
Performances,
Places of entertainment Portion paid in from January 2020 to December 2020 41,463 works
etc.
Karaoke Portion paid in from January 2020 to December 2020 302,400 works
NHK, commercial terrestrial broadcast radio, and commercial terrestrial
broadcast television Portion used from October 2019 to September 2020
Community broadcasts, the Open University of Japan, 799,968 works
Broadcasts, etc. commercial satellite broadcast radio, and commercial Portion used from April 2019 to March 2020
satellite broadcast television
Commercial broadcasts Portion paid in from October 2019 to September 2020 465 works
Cable Cable radio broadcasts Portion paid in from April 2019 to March 2020 397,607 works
broadcasts, etc. Cable television broadcasts Portion used from April 2019 to March 2020 229,240 works 20
©2021,JASRACDistribution Results: Reproduction/Reproduction for Specific Purposes
Reproduction/Reproduction for Specific Purposes (Figures are actual collected amounts. Unit: Billion yen)
Audio discs 8.09 Videograms 10.53 Reproduction for 4.25
specific purposes
billion yen billion yen billion yen
10.09
9.89 10.53
8.09 Against Against 5.32 Against
FY2019 FY2019 4.25 FY2019
-19.9% +6.4% -20.1%
■ Number of Distribution Works by Category
Category Main royalties for distribution Number of works for distribution
Entities under comprehensive contracts, such as major
record companies
Portion used from January 2020 to December 2020
Audio discs 510,297 works
Users other than entities under comprehensive contracts Portion paid in from January 2020 to December 2020
Entities under comprehensive contracts, such as major video
software production companies
Portion used from October 2019 to September 2020
Videograms 159,543 works
Users other than entities under comprehensive contracts Portion paid in from January 2020 to December 2020
Reproduction for Reproduction for advertisements Portion paid in from January 2020 to December 2020 658 works
specific purposes Reproduction for games Portion paid in from January 2020 to December 2020 2,563 works
21
©2021,JASRACDistribution Results: Composite Use
Composite Use (Figures are actual collected amounts. Unit: Billion yen)
Online karaoke 5.72 Interactive transmissions 33.26
billion yen 33.26 billion yen
6.93 Against 20.19 Against
5.72
FY2019 FY2019
-17.4% +64.7%
■ Number of Distribution Works by Category
Category Main royalties for distribution Number of works for distribution
Online karaoke Portion paid in from January 2020 to December 2020 295,085 works
Interactive transmissions Portion paid in from January 2020 to December 2020 2,249,174 works
22
©2021,JASRACDistributions Provided (FY2020)
Distributions
120.63 billion yen
Against FY2019
+3.1% Distributions posted a record high
Topics
・ Distributions for interactive transmission grew, +64.7%
・ Distributions for small and big concerts declined,
affected by the COVID-19 pandemic, -34.1%
117. 120. ・ Distributions for videograms rose due to hit products,
05 63 +6.4%
billion yen
billion yen
・ Foreign income reproduction royalties increased as
JASRAC entered into agreement with Muserk, LLC, USA,
+14.6%
2019 2020
23
©2021,JASRACDistributions Provided (Interactive Transmissions and Others Compared)
Interactive transmissions Others
Against FY2019
Against FY2019
96.85 -9.8%
＋64.7% billion yen
87.37
billion yen (Year-on-year)
4Q,
33.26 28.43
billion yen (Year-on-year) 4Q, -10.1%
25.56
4Q, 7.96 +75.0%
3Q,
20.19 22.73 3Q,
-16.4%
billion yen +23.6% 19.01
3Q, 7.54
4Q, 4.55 2Q, 2Q, -13.0%
3Q, 6.10 2Q, 8.70 +83.8% 23.90 20.79
2Q, 4.73 1Q, 1Q,
1Q, 9.04 +88.1% +1.0%
1Q, 4.80 21.77 21.99
2019 2020 2019 2020
24
©2021,JASRACDistributions for Interactive Transmissions on the Rise
■ Collections Increased
Royalties increased due to contract renewals and stay-home demand
amid the COVID-19 pandemic.
■ Provided Distributions Earlier
A growing number of services applied a shorter time from use to
distribution, causing JASRAC to provide distributions for two terms.
■ Distributed Royalties for Previous Years
Distributed royalties for previous years by resolving non-submission
cases for music usage reports.
25
©2021,JASRACDistributions Provided (Performances, etc.)
Performances, etc.
19.52 billion yen
Category
Distributions
Year-on-year
Against FY2019 provided
-20.5% Performance and
FY2013 level 5.15 billion yen -34.1%
concert, etc.
Places of
1.81 billion yen -16.8%
entertainment
10.88 billion
Karaoke -13.3%
yen
BGM 0.61 billion yen +1.5%
24.5
Video projection 0.29 billion yen -16.4%
5 yen
billion
19.5
2 yen Game machine
billion (video showing and 0.76 billion yen -27.0%
performance)
2019 2020
26
©2021,JASRACNumbers of JASRAC Administrated Works, Distributed Works, and Rights Owners
■ Number of JASRAC Administrated Works
68,533,535 works
(The number of CIS-Net registrations as of May 13, 2021. Includes 1,891,402 works registered by JASRAC.)
■ Numbers of Distributed Works and Rights Owners (Unique number in all fields)
FY2019 FY2020
Number of distributed works 2,580,119 works 2,778,889 works
Composers /
Number of rights 72,667 persons 76,278 persons
Authors
owners for
distribution (Japan) Music
2,799 companies 2,888 companies
publishers
Composers /
349,039 persons 379,850 persons
Authors
Number of rights
Music
owners for 46,918 companies 50,258 companies
publishers
distribution (abroad)
*Distributed via 120 overseas *Distributed via 126 overseas
organizations organizations
CIS-Net: A international work information database developed by CISAC. The data on managed works are provided
by member organizations, and information on works managed by them is shared on networks.
27
©2021,JASRACInitiatives to Improve the Transparency of Distribution
FY2014 Distribution statement data
Data on planned payments and detailed
FY2017
作品コード 作品名 許諾番号 利用者名 サービス名
99999999 ○○○○
distribution statement data (transmissions)
99999999 ○○○○
99999999 ○○○○ 9009897002Y30005 アマゾン ジャパン合同会社 Ａｍａｚｏｎ ＭＰ３
99999999 ○○○○ 9009897002Y30005 アマゾン ジャパン合同会社 Ａｍａｚｏｎ ＭＰ３
99999999 ○○○○ 9009897007Y58099 アマゾン ジャパン合同会社 Ｐｒｉｍｅ Ｍｕｓｉｃ
99999999 ○○○○ 9009897007Y58099 アマゾン ジャパン合同会社 Ｐｒｉｍｅ Ｍｕｓｉｃ
99999999 ○○○○ 9009897007Y58099 アマゾン ジャパン合同会社 Ｐｒｉｍｅ Ｍｕｓｉｃ
99999999 ○○○○ 9009897013Y58340 アマゾン ジャパン合同会社 Ａｍａｚｏｎ Ｍｕｓｉｃ Ｕｎｌｉｍｉｔｅｄ
99999999 ○○○○ 9012583332Y58330 株式会社ＮＴＴドコモ（レコチョク） ｄミュージック月額コース
99999999 ○○○○ 9012583333Y58330 株式会社ＮＴＴドコモ（レコチョク） ｄヒッツ（５００）
99999999 ○○○○ 9012583333Y58330 株式会社ＮＴＴドコモ（レコチョク） ｄヒッツ（５００）
99999999 ○○○○ 9012583333Y58330 株式会社ＮＴＴドコモ（レコチョク） ｄヒッツ（５００）
99999999 ○○○○ 9014595003Y58330 ＫＫＢＯＸ Ｊａｐａｎ合同会社 ＫＫＢＯＸ
FY2018 Detailed distribution statement data (performance, etc.)
99999999 ○○○○ 9014775002Y58330 株式会社ＮＴＴぷらら（レコチョク） ひかりＴＶミュージック（サブスクリプション）
99999999 ○○○○ 9014775002Y58330 株式会社ＮＴＴぷらら（レコチョク） ひかりＴＶミュージック（サブスクリプション）
99999999 ○○○○ 9014985107Y30005 株式会社レコチョク レコチョク（メガストア）【ＤＬシングル（ＤＲＭ無）】
99999999 ○○○○ 9016522007Y58340 ＡＷＡ株式会社 ＡＷＡ（Ｓｔａｎｄａｒｄ）【２０１７年２月以降】
99999999 ○○○○ 9016522007Y58340 ＡＷＡ株式会社 ＡＷＡ（Ｓｔａｎｄａｒｄ）【２０１７年２月以降】
99999999 ○○○○ その他のサービス
99999999 ○○○○ 小計
99999999 ○○○○ 9009897002Y30005 アマゾン ジャパン合同会社 Ａｍａｚｏｎ ＭＰ３
99999999 ○○○○ 9009897007Y58099 アマゾン ジャパン合同会社 Ｐｒｉｍｅ Ｍｕｓｉｃ
99999999 ○○○○ 9009897007Y58099 アマゾン ジャパン合同会社 Ｐｒｉｍｅ Ｍｕｓｉｃ
99999999 ○○○○ 9009897007Y58099 アマゾン ジャパン合同会社 Ｐｒｉｍｅ Ｍｕｓｉｃ
99999999 ○○○○ 9009897013Y58340 アマゾン ジャパン合同会社 Ａｍａｚｏｎ Ｍｕｓｉｃ Ｕｎｌｉｍｉｔｅｄ
Detailed distribution statement data (broadcasts, etc.
99999999 ○○○○ 9011951001Y30005 株式会社 ミュージックグリッド ＭＥＧ－ＣＤシステム
99999999 ○○○○ 9011951001Y30005 株式会社 ミュージックグリッド ＭＥＧ－ＣＤシステム
99999999 ○○○○ 9011951001Y30005 株式会社 ミュージックグリッド ＭＥＧ－ＣＤシステム
FY2019
99999999 ○○○○ 9012583333Y58330 株式会社ＮＴＴドコモ（レコチョク） ｄヒッツ（５００）
99999999 ○○○○ 9012583333Y58330 株式会社ＮＴＴドコモ（レコチョク） ｄヒッツ（５００）
99999999 ○○○○ 9012583333Y58330 株式会社ＮＴＴドコモ（レコチョク） ｄヒッツ（５００）
and Places of entertainment)
99999999 ○○○○ 9014595003Y58330 ＫＫＢＯＸ Ｊａｐａｎ合同会社 ＫＫＢＯＸ
99999999 ○○○○ 9014595003Y58330 ＫＫＢＯＸ Ｊａｐａｎ合同会社 ＫＫＢＯＸ
99999999 ○○○○ 9014775002Y58330 株式会社ＮＴＴぷらら（レコチョク） ひかりＴＶミュージック（サブスクリプション）
Members’ dashboard
・ Is processed into a graph and shown on the web in a user-friendly way.
・ Has a function for downloading distribution statement data and detailed
distribution statement data.
・ Analyzes the distribution data for eight terms across different categories and
distribution terms for each work.
FY2020
Turn the distribution statement data for overseas
organizations (CRD) into details
Add abbreviated broadcaster names, transmission service names, and the event and venue names of concerts.
Formulate a basic plan for digitizing distribution statements
Consider converting all distribution documents, such as payment statements, into digital ones as well as
FY2021 onward their specifications.
28
©2021,JASRACDigital transformation
(Utilize blockchain technology)
JASRAC’s basic policy on its system development projects is to
pursue digital transformation, and since FY2018 we have been
working on practically applying blockchain technology.
29
©2021,JASRACDemonstration Experiment for the DX of Music from Music Creators
From December 2020 to January 2021
Identified issues faced by music creators, and set an order of priority.
1. Conducted prior inquiries 2. Selected issues and set an order of priority
- Organized and summarized issues discovered via the interview.
- Conducted a group interview with 31 music creators.
- Picked out issues to work on in the demonstration experiment.
Production of musical
1 Narrowed
JASRAC members
works
13 persons down to two
Marketing and sales of
musical works 4 priority issues
Outcome 13
1
Management of musical
18 persons works Issue 1
JASRAC non-members Registration of musical
Issue 2
works and management of
copyrights 7
Screening
Structured the outcome into 13 issues
Surveyed a total of 31 music creators. and selected two priority issues.
30
©2021,JASRACDemonstration Experiment for the DX of Music from Music Creators
From January to February 2021
Considered the background to priority issues as well as action plans, and created and reviewed
prototypes.
Changes in the music industry Issue 1 Assumptions about functions conducive to Action plan
resolving issues
Expanding streaming market There is no means to counter • Can centrally manage sound sources and
unauthorized use of music and theft- metadata. Diversified music information
Widening scope of music creators • Can record music copyright owner information management system using
based music distribution.
in ways that prevents a third party from altering blockchain technology
(Example: A third party uploads creators’ sound source it.
Changes in the activity environment for music onto a UGC service and distributes it via a music • An agency managing such data is extremely
creators subscription service.) high in trust and openness.
Digitization of production and distribution
of music works
Self-distribution Issue 2 Assumptions about functions conducive to Action plan
resolving issues
Becoming anonymous by using an alias The existing copyright management Work with business partners
• Improve and develop the route for registering for data and shift to an online
system is complicated and difficult to music online with JASRAC. format for various application,
use.
• A music creator without much knowledge about registration, and agreement
(Example: A trust agreement with JASRAC and music law and business can easily use an existing procedures.
New issues arising due to the changes registration with it are highly complicated.) copyright management system as required.
• Build a prototype music information management service that offers proof of existence by using blockchain.
• Music creators use and review the service.
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©2021,JASRACOther Distribution Initiatives
■ Adjustment on Royalties Distribution for Live Transmissions
JASRAC adjusted the detailed regulations of its Distribution Rules to reflect the difference in information fees (ticket prices) for each
content in the distribution result for live transmissions of concerts and events, which have been soaring due to COVID-19. The adjustment
applied from 2020-12 distribution period.
■ Bringing Forward the Schedule for Royalties Distribution
JASRAC expanded the scope of its service that brings forward the schedule for royalties distribution for interactive transmissions, and
shortened the collection-to-distribution period for royalties from culture centers by 6 months.
■ Revision of the Distribution Ratios for Joint Copyright Works
Regarding distribution ratios for joint copyright works (any copyright work which has been created jointly by two or more persons and for
which the portion contributed by each person cannot be used separately), JASRAC revised the Distribution Rules in a manner that enables a
copyright owner to specify a distribution ratio in accordance with the extent of contribution to the creation by each joint copyright owner (the
revised ratios will apply starting from the September 2021 distribution term based on the notifications submitted from copyright owners after
April 2021).
32
©2021,JASRACOperating Framework
33Response to the COVID-19 Pandemic
■ Response to Music Users
(1) We handled royalties from restaurants in ways appropriate for the circumstances, such as suspension or cancellation of music use. To
improve the convenience of users for suspension-cancellation procedures, we provided dedicated web forms and set up a call center,
among other measures.
(2) In light of the pandemic’s serious impact on the business continuity of the live entertainment industry, the food-service industry, and the
hotels-inns industry, among others, we asked the Japanese government to provide aid to those industries, which are precious partners of
music creators, by submitting to it a letter of request on April 6, 2020 in the names of JASRAC, the Japan Federation of Authors
and Composers Associations (FCA), and the Music Publishers Association of Japan (MPA).
(3) We granted free licenses to public transmissions by schools for class-session purposes (simultaneous transmissions of teaching material
data) for a period to the start of the public transmission royalty compensation program for music to be used for class-session purposes
(April 28, 2020). Over the period of the state of emergency declared on April 7, 2020, we reduced the royalties for transmissions of teaching
material data from education boards to pupils and students.
■ Response on Members and Entrustors
(1) We moved up the date of royalty remittance for distribution terms by 2 weeks or so, and suspended the invoicing of membership fees to
members.
(2) We set up the State of Emergency Measures Headquarters under the Risk Management Rules, and established and communicated the
COVID-19 Infection Prevention Measures widely to employees. Moreover, we developed an operating structure to distribute royalties
without delay while taking rigorous steps to prevent infections from spreading, such as promoting working from home and instituting
staggered working hours.
34
©2021,JASRACMatters for Members and Entrustors
■ Initiatives to Acquire New Entrustors
In addition to abolishing the system of enrollment fee for trust
contract application, we held online briefing sessions for non- Numbers of new entrustors for FY2020
members, used brochures to promote new entrustors, and Copyright
Music publisher Others Total
owner
revamped the Music Creators page on the official JASRAC
website. Number of new
trustors
Moreover, we sought to widen the scope of management
delegation by providing existing entrustors under trust Number of new
agreements with adequate information on JASRAC’s members
management methods through overhauling the Members page
of the website dedicated to members and entrustors. Numbers shown in brackets are for FY2019.
■ Revised the Articles of Association and the Stipulations for Administration Trust Contract
An annual general assembly in June 2020 resolved to revise the Articles of Association and the Stipulations for
Administration Trust Contract.
(1) Articles of Association
Arranged the provisions on use of electromagnetic means (such as the Internet) at a general assembly.
(2) Stipulations for Administration Trust Contract
Abolished the system of enrollment fee for trust contract application and responded to the revision to the Copyright Act.
35
©2021,JASRACInternational Relations
■ Conclusion of Representation Agreements
(1) Conclusion of Representation Agreements
JASRAC concluded reciprocal representation agreements on mechanical rights with copyright management organizations
in three Baltic countries (EAU in Estonia, AKKA/LAA in Latvia, and LATGA in Lithuania) and CAPASSO (a mechanical rights
management organization in South Africa).
JASRAC concluded a unilateral representation agreement on performing rights and mechanical rights with UNISON, a
copyright management company in Spain.
(2) Widened the scope of administration delegation
Regarding the representation agreements on mechanical rights with the US copyright management company, Muserk LLC
that began in March 2020, JASRAC expanded the scope of delegation in light of the remittance results since the
agreement’s conclusion. In addition to the administration of use on YouTube in the US, JASRAC decided to expand the
scope of administration services agreement with Muserk LLC regarding the management of general music and video
distribution services and reproduction of recordings in the US.
■ Efforts to Enhance Protection Levels in the Asia Pacific Region
On March 25, 2021, JASRAC and the Asia-Pacific Music Creators Alliance (APMA) co-hosted
an international online symposium titled “Buyouts in Asia” to deliberate on an effort to
resolve problems.
This symposium was attended by Shunichi Tokura, (then) Chairman of the APMA, Björn
Ulvaeus, President of CISAC (and member of Swedish pop-music group ABBA), and Gadi
Oron, Director General of CISAC. Alice Lee, Associate Professor at the University of Hong
Kong, reported on research on the issue of buy-outs in Asia.
36
©2021,JASRACAwards, Copyright System Amendment, and Public Awareness Activities about Copyright
■ JASRAC Awards
We awarded copyright owners and music publishers for works that were highly ranked in distribution
for FY2019. For details, see the QR code shown on the right.
■ JASRAC Music Culture Award
We commended three entities for their contribution to developing music culture by engaging in low-
profile activities that are not mirrored in numbers such as for sales or use results, and honored them
with the award. For details, see the QR code shown on the right.
■ Copyright System Amendment and Public Awareness Activities about Copyright
(1) Copyright System Amendment
A. Fair compensation for private reproductions
To promptly build a system in which fair compensation is distributed to rights owners, JASRAC submitted opinions to the
Intellectual Property Strategy Promotion Secretariat of the Cabinet Office and gathered information regarding the
Copyright System.
B. Response to simultaneous Internet transmissions of broadcast programs
Through government hearings and soliciting public comments, JASRAC opined that sufficient care must be taken when
considering streamlining the treatment of rights associated with simultaneous transmission, so that fair compensation
would be distributed to rights owners.
(2) Public Awareness Activities about Copyright
We continued to raise public awareness about copyright via endowed courses (Shinshu University and the Open University of
Japan) and to aid research through study promotion research meetings on topics such as the Copyright Act (University of
Tokyo). 37
©2021,JASRAC“Kokorone” Project
■ Discontinued Giving Donations to the Disaster
Recovery Fund (the “Kokorone” Fund)
On March 31, 2020, the “Kokorone” Project, operating since 2011 to support
restoration after the Great East Japan Earthquake with music works, closed its
acceptance of the new participating works, and discontinued giving donations
to the Disaster Recovery Fund (the “Kokorone” Fund), effective from 2020-09
distribution period.
JASRAC proceeded with the selection of recipient for the final support using the
fund, mainly among relevant facilities in Fukushima Prefecture.
38
©2021,JASRACProjects Serving Purposes Common to Entrustors
■ Set up the Committee of Experts on Music and Culture Projects
On May 12, 2021, in order to launch a project serving purposes common to entrustors*, JASRAC set up the
Committee of Experts on Music and Culture Projects designed to examine and deliberate their specific details.
As there is an obligation to be impartial and fair, the committee is composed of six external experts.
Committee members:
Ms. Emi Arai (Associate Professor, School of Education, Utsunomiya University)
Mr. Satoshi Ikemura (Partner Lawyer, Miura & Partners)
Ms. Mutsuko Kayano (Junior Manager, Legal Public Relations Dept., Japan Council of Performers Rights &
Performing Arts Organizations)
Mr. Kunio Takahashi (Chairman, Takahashi Gakuen, President, Chiba Gakugei High School, and doctor of
science)
Ms. Nao Haraguchi (Education Aid Fellow, Tokyo Gakugei University Children Institute for the Future)
Mr. Masayuki Matsuda (Partner Lawyer, Matsuda Yamazaki Law Office and doctor of law)
* Activities designed to help spread and develop culture and arts, funded by royalties deferred for 10 years or
more, among royalties for which distribution is deferred due to being unable to be distributed to copyright
owners on account of their failure to submit work notifications. The annual general assembly for FY2019
decided to launch this project.
39
©2021,JASRACInitiatives to Enhance Entrustor Freedom
We continue to work on developing a mechanism to enhance entrustor freedom and adhere to
entrustor intention.
Agreement revision for the purpose of enhancing entrustor freedom and adhering to
entrustor intention in choosing the scope for contracting out management
Effective date Purpose of revision
○ Separate performing right completely from mechanical right for three categories comprising
April 1, 2017 broadcasts and cable broadcasts, interactive transmissions, and online karaoke for business,
and enable management to be contracted out on a standalone basis.
○ Enable management only in overseas regions to be contracted out.
August 1, 2017
○ Enable the scope for contracting out management to be revised each year.
○ Subdivide the choice categories for the scope for contracting out management in the field
April 1, 2022*
of performance right management.
(*In cases where a proposed revision to the Stipulations for Administration Trust Contract
is resolved by the annual general assembly slated for June 30, 2021)
40
©2021,JASRACInitiatives to Build an Appropriate Competitive Environment
We continued to consider the choice categories for the scope for contracting out management in the field of
performance right management and how a use ratio (a ratio of JASRAC repertoire to used works) should be
reflected.
Subdivide the choice categories for the scope for contracting out management in the field of performance
right management:
Performance right
Category 1 Category 2 Category 3
Performance, etc. at a concert or other Performance, etc. at places of Film showing, video showing,
event entertainment game-machine video showing &
Performance, etc. not falling under Performance, etc. using a karaoke performance, BGM
Categories 2 or 3 device
(*In cases where a proposed revision to the Stipulations for Administration Trust Contract
is resolved by the annual general assembly slated for June 30, 2021)
41
©2021,JASRACJapanese Society for Rights of Authors,
Composers and Publishers (JASRAC)
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