Article 5.

AUDIO RECORDINGSThe fee for the use of a work recorded in a CD, a record, a cassette tape, CD-ROM and otherrecording media shall be the amount calculated as stated below, plus an amount equivalent tothe consumption tax according to the purpose of reproduction of a media recorded (hereinafterreferred to as the “Record”) except if provisions of Article 2, 3, 6, 7, 8, 10, 11, 13, 14, 15 or
16 are applied.
1.

Commercial reproduction(1)

Reproduction for sale at a market
The fee for one use of one musical work shall be a sum obtained by multiplying
the amount set forth in (A) or (B) below by the number of copies, provided that,for the purpose of calculating the rate for a work whose playing time exceeds 5minutes, the same amount shall be added to the fee for the use for each additional
5 minutes or part thereof.
(A) If a retail selling price is marked, a sum obtained by dividing 6% of the retailselling price, not inclusive of the consumption tax, of such Record by thenumber of works contained in such Record or ¥6.1, whichever is greater,
provided that, for the purpose of calculating the rate for a work whose playing
time exceeds 5 minutes, each additional 5 minutes or part thereof shall beconsidered to be one separate work.
(B) If no retail selling price is marked, ¥8.1.

(2)

Reproduction for rental for background music
The fee for the use shall be a sum set forth in (A) or (B) below.
(A) The fee for one use of one musical work shall be a sum set forth in (4).
(B) If an annual blanket licensing agreement is executed, the fee for the use shallbe a sum set forth in (a) or (b) below.
(a) In the event that the name, address and other information sufficient toidentify a place where a rental record for background music is played(hereinafter referred to as the “place of performance”) is reported:
The fee shall be ¥1,200 per annum per place of performance if thenumber of musical works recorded in the rental record for backgroundmusic made available to one place of performance is no more than 300
per annum, provided that, if such number of musical works exceeds 300
per annum, the same amount shall be added to the fee for each additional
300 or part thereof.

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(b) In cases other than (a):Regardless of the number of recording and the number of products, thefee shall be ¥1,200 per annum per musical work, provided that, for thepurpose of calculating the rate for a work whose playing time exceeds 5minutes, the same amount shall be added to the fee for the use for each
additional 5 minutes or part thereof.
(3)

Reproduction for production or recording of a bridal, etc.
(A) If an annual blanket licensing agreement is executed:
The fee for the use shall be ¥1,000 per work if the number of Records (withthe same contents recorded, regardless of type of recording media) is no morethan 3.
(B) In cases other than (A)The fee for the use shall be ¥2,000 per work if the number of Records (withthe same contents recorded, regardless of type of recording media) is no morethan 3.

(4)

Reproduction for purposes other than in (1) through (3)The fee for one use of one musical work shall be a sum obtained by multiplying¥8.1 by the number of copies or ¥400, whichever is greater, provided that, for thepurpose of calculating the rate for a work whose playing time exceeds 5 minutes,
the same amount shall be added to the fee for the use for each additional 5
minutes or part thereof.

2.

Non-commercial reproduction(1)

Reproduction for production or recording of a bridal, etc.
The fee for the use shall be ¥1,000 per work if the number of Records (with thesame contents recorded, regardless of type of recording media) is no more than 3.
If the number of Records exceeds 3, the same amount shall be added to the fee foreach additional 3 or part thereof.

(2)

Reproduction for purposes other than in (1)The fee shall be a sum obtained by multiplying the amount set forth in 1(4) by50%.

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Term definitions(i)

In this Article, the terms shall be defined as follows.
(A) “Commercial reproduction” refers reproduction performed for a charge by persons
whose purpose is making a profit or reproduction performed by persons other thansuch profit-making person (not including the case in which an amount equal toactual costs is charged) for the purpose of distributing copies to a third party.
(B)“Non-commercial reproduction” means reproduction other than the reproduction
defined in (A) such as reproduction performed for non-commercial purposes by
educational institutions, non-commercial entities or private persons in order to
distribute copies without charge.

(C)“Background music” shall mean a music utilized as a background in restaurants,
hair salons, apparel or other shops or offices in order to improve the ambience inshops and offices.

(D) “Rental record for background music” shall mean a record produced for rental toprovide background music.
(E)“Bridal, etc.” shall mean a marriage ceremony, bridal party or other similar
events.

Arrangements for usages where this Article is not applicable(ii)

With respect to the use on audio recordings, in the event the type of use or some specificcircumstances prevent the rates under this Article from being applicable, otherappropriate rates may be determined within the scope of the rates or the sums set forthin this Article upon negotiation with the user.

Provisional measures(iii) In the provisions of 1(3)(A) and 2(1), ¥1,000 shall read ¥400 from October 1, 2019 toMarch 31, 2022 and ¥700 from April 1, 2022 to March 31, 2024.
(iv) In the provisions of 1(3)(B), ¥2,000 shall read ¥800 from October 1, 2019 to March 31,2022 and ¥1,400 from April 1, 2022 to March 31, 2024.

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